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HomeMy WebLinkAbout05/17/11MAY 17, 2011 At a Regular Meeting of the Board of Commissioners, held on Tuesday, May 17, 2011, at 5:30 p.m., Mayor Paxton presided, and upon call of the roll by the City Clerk, the following answered to their names: Commissioners Abraham, Gault, Kaler, Watkins, and Mayor Paxton (5). ADDITIONS/DELETIONS Presentations were reordered to be presented after the Municipal Order. MUNICIPAL ORDER MEMORANDUM OF UNDERSTANDING BETWEEN MURRAY STATE UNIVERSITY McCRACKEN COUNTY AND GPEDC Commissioner Abraham offered motion, seconded by Commissioner Gault, that a Municipal Order entitled, "A MUNICIPAL ORDER AUTHORIZING AND DIRECTING THE MAYOR OF THE CITY OF PADUCAH TO ENTER INTO A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PADUCAH, McCRACKEN COUNTY, GREATER PADUCAH ECONOMIC DEVELOPMENT, INC., AND MURRAY STATE UNIVERSITY," be adopted. Adopted on call of the roll, yeas, Commissioners Abraham, Gault, Kaler, Watkins and Mayor Paxton (5). M.O.#1609; BK 8 Randy Dunn, President of Murray State University, attended the commission meeting along with MSU Board of Regents' member Susan Guess; GPEDC Executive Board Chair Sandra Wilson; and GPEDC Executive Director Chad Chancellor. President Dunn thanked everyone who had worked toward getting the "Post Secondary Educational Opportunity" in Paducah and located near I-24. PRESENTATIONS FOUNTAIN AVENUE REVITALIZATION NEIGHBORHOOD UPDATE Steve Ervin, Planning Director, gave a powerpoint presentation update for the Phase 1 Revitalization Plan for Fountain Avenue Neighborhood. His presentation covered the beginning of the project in 2007 to the present time. BUDGET FY 2012 City Manager, Jeff Pederson, presented the budget preview for FY2012. He discussed the General Fund and the Investment Fund. The economic downturn is still affecting the City's revenue. He did not make any recommendations at this time on how the City could increase revenue. He recommended the budget meeting for the Commission be held on June 7t' at 3:30 p.m. He recognized the efforts of Jon Perkins, Finance Director, Adrianne Gleeson, Deputy Finance Director and all other directors in compiling the budget information. Mr. Perkins distributed copies of the "Investment Fund 5 -Year Projection" to all commissioners. NOTE: The Commission Meeting Highlights compiled by Pam Spencer, Public Information Office, are attached and made part of the minutes for more information regarding the two presentations. Copies of the powerpoint presentations are in the minute file. CITY MANAGER REPORT Mr. Pederson handed out a new City of Paducah organizational chart and asked for comments or revisions. COMMISSIONER COMMENTS There were not any commissioner comments. MAY 17, 2011 PUBLIC COMMENTS There were not any public comments. Upon motion the meeting adjourned. ADOPTED: May 24 , 2011 City Clerk MAY 17, 2011 City Commission Meeting Highlights Tuesday, May 17, 2011 Memorandum of Understanding Between City of Paducah, Murray State University, McCracken County, and GPEDC The Mayor and Commission approved a municipal order for a memorandum of understanding (MOU) between the City of Paducah, Murray State University, McCracken County, and the Greater Paducah Economic Development Council (GPEDC). Mayor Bill Paxton says, "This is truly a monumental day in Paducah. This announcement is huge for the community." Commissioner Gayle Kaler says, "It's the right thing to do. It's the right time, and we've done it." This MOU establishes the terms and conditions for Murray State University to provide courses and programs through its proposed Paducah Campus to be built on the 23 acre tract of land it owns along Interstate -24 called Barkley Woods. Commissioner Gerald Watkins says, "This is historic. A lot of people have been working on this a long time. WKCTC will never be a four year college. What we've always needed is a true two plus two." Commissioner Carol Gault says, "It just opens the door to a lot of opportunities." "This is huge because of the ripple effect it will have for generations," says Commissioner Richard Abraham. MSU President Dr. Randy Dunn says, "This will really put Paducah -McCracken County at the forefront of doing some wonderful things for generations to come. We are going to have a post -secondary situation along interstate -24 that is going to be the envy of many communities." This campus would replace the current extended campus at the Crisp Center and expand the courses and programs offered by the university. The project is estimated to cost $10 million and would include a 40,000 square foot building, streets, parking lots, utilities, and other infrastructure. McCracken County will issue the bonds for the construction of the facility with the County, City, and MSU paying the debt. One of the goals of the Paducah Campus is to increase the percentage of people in McCracken County with a bachelor's degree. Another target is for the campus to meet an enrollment of 2000. The McCracken Fiscal Court voted to approve the MOU at its May 13 meeting. The Murray State Board of Regents will take up the issue at its meeting on May 20. An agreement will be drawn up at a later date outlining the City's financial commitment. Fiscal Year 2012 Preliminary Budget Presentation Summary: City Manager Jeff Pederson provided the Commission a preview of the budget for fiscal year 2012 which begins July 1. The City's two main funds were discussed: general fund and investment fund. Raising taxes is NOT recommended. The various City departments have been able to tighten their budgets to provide a balanced general fund; however, the Commission will need to make some difficult decisions on where to allocate funds in the investment fund since it has a shortfall of $764,180 for fiscal year 2012. Pederson says, "The economic downturn has had an impact on our budget and will continue to impact us." A budget workshop is scheduled for June 7. General Fund: For 2012 Pederson and the Finance Department project a general fund revenue of $29.8 million which shows little change over the current fiscal year. The general fund is the City's main operating fund which is funded by the payroll tax, property tax, business licenses, insurance premium tax, and various licenses and fees. For 2012, the City has some uncontrollable increases and obligations over the current fiscal year including projected fuel increases, wages, and the funding of pension programs. Those increases total $1.564 million. To balance the general fund, each department was instructed to put together a budget without any increase over the current year. There is some money from the current budget that will be carried over to fiscal year 2012. The general fund will balance; however, there aren't funds appropriated for capital maintenance, only operations. Pederson says, "That is a major red flag. It could lead to facilities in disrepair." Adding a line item for facilities maintenance will be recommended for the investment fund budget. Investment Fund: The investment fund is the '/2 cent payroll tax approved by the City Commission in 2005. It funds economic development, neighborhood redevelopment, infrastructure capital investment, and property tax relief. The investment fund revenue in MAY 17, 2011 addition to carryover funds from the current year is projected to be $4.98 million for fiscal year 2012. However, there is $5.74 million in committed and proposed appropriations creating a shortfall of more than $760,000. The Commission will make decisions on balancing the investment fund at its budget workshop on June 7. Fountain Avenue Neighborhood Revitalization Prollram Update Planning Director Steve Ervin provided the Mayor and Commission an update on the revitalization process underway in the Fountain Avenue Neighborhood. The goal of the program is to return the neighborhood to an economically diverse, mixed income neighborhood, similar to its character at the turn of the 20th century. The boundaries of the neighborhood are Fountain Avenue, Park Avenue, North 13th Street, and the alley between Monroe and Jefferson. The City Commission committed to the revitalization effort in 2007. Ervin says before the revitalization started it was determined that about 80 percent of the structures needed major structural repair. There have been a few demolitions to take care of structures that were beyond rehabilitation. However, there is a three step process for demolition approval. Ervin says, "We want to preserve buildings in the Fountain Avenue Neighborhood, but sometimes the building is beyond its economic life." Also, before the revitalization effort, approximately 75 percent of the properties in the neighborhood were rental. Now, only 50 percent of the properties are rental. Ervin explained that the neighborhood is bonding together and in 2010 started a Neighborhood Watch program. Crime has been reduced nearly 55 percent since the revitalization efforts started. Ervin showed dozens of pictures of new homes and rehabilitated homes. The City's Inspection Department has permitted $5.1 million in construction permits in the neighborhood. The City and State offer several incentive packages for existing homeowners and for people looking to move into the neighborhood. For more information about available properties and incentive packages, visit www.fountainave.com or call the Paducah Planning Department at (270) 444-8690. To learn more about the neighborhood, come out to the Fountain Avenue Community Fair this Saturday, 10:00 a.m. until 1:00 p.m. At 11:00 a.m. there will be a guided walk of the neighborhood. At noon, the City will provide certificates of appreciation to families that have made significant investments in the neighborhood. This is a great event for children since there will be free food, pony rides, a petting zoo, games, and crafts. Pam Spencer Public Information Officer City of Paducah 300 South 5th Street P.O. Box 2267 Paducah, KY42002-2267 psspencer@ci.paducah.ky.us www.paducahkv.gov Office (270) 444-8669 Cell (270) 519-5839 Keep up with City of Paducah news: Follow City of Paducah on Facebook and Twitter. To receive a -news releases and Commission Meeting highlights, just send me your email address.