HomeMy WebLinkAbout05-26-2020 CalledMay 26, 2020
At a Called Meeting of the Board of Commissioners, held on Tuesday, May 26, 2020, at
4:30 p.m., Mayor Brandi Harless presided, and upon call of the roll by the City Clerk, the following
answered to their names: Commissioners Abraham, Wilson and Mayor Harless (3) Commissioners
McElroy and Watkins were unable to attend this meeting.
In order to keep the Commission and public safe in the midst of the COVID-19 outbreak and in
accordance with Kentucky Executive Order 2020-243, all members of the Board of Commissioners
participated using video teleconferencing. Further, this meeting was not open to the public. The public
was invited to view the meeting on YouTube at https://www.youtube.com/useL/PaducwAggov or on the
government access channel Government 11 (Comcast channel 11).
INVOCATION
Commissioner Wilson led the invocation.
PLEDGE OF ALLEGIANCE
Mayor Harless led the pledge.
BUDGET WORKSHOP
Public Information Officer Pam Spencer offered the following summary of the Budget Workshop:
Fiscal Year 2021 Budget Workshop (4:30 p.m.)
"Before their regular Commission meeting at 5:3 Op. m., the Paducah Board of
Commissioners held a budget workshop at 4:3 Op. m. to review the Fiscal Year 2021
Budget, a balanced budget. City Manager Jim Arndt, Assistant City Manager Michelle
Smolen, and Finance Director Jonathan Perkins led the discussion of the budget
process, operating funds, and recommendations. Arndt said the theme of the FY21
budget is "budget in place " which refers to keeping the City's workforce, operations,
and projects intact even with an expected revenue decrease. Arndt said, "Team
Paducah employed an intense budget formulation process that included participation
from the City Manager's Office, the Finance Team, the Leadership team, and the Board
of Commissioners. This year was extremely collaborative, as we worked tirelessly
together to meet the needs of our community, while conservatively budgeting for an
uncertain FY21.
Several of highlights regarding the development of the FY21 budget are as follows:
• Due to the effects from COVID-19 on the economy, Paducah is projecting a 10%
decrease in major revenue sources which directly impacts the General Fund, the City's
main operating fund.
• The proposed General Fund budget is $35,888,465 which is a $85, 000 decrease from
this fiscal year's original budget. Since the Investment Fund is funded by the payroll tax
which is projected to decrease 15%, the proposed budget is $5,113,560.
• To balance the budget, the following measures are proposed:
o A hiring freeze and the freezing of merit increases for the fiscal year;
o Use approximately $1.5 million from the unreserved General Fund cash balance in
excess of the required 12% reserves;
o Use $500, 000 of reserves from the Debt Service Fund; and
o Use $789, 375 from the Radio Fund to pay the City's portion of the 911 operations.
Even with the effects of the expected revenue decreases from COVID-19, the City has
positive budgetary news to share:
• The proposed budget contains all annual debt requirements in the amount of
$3,968,945.
• The annual pension contributions are remaining flat for this fiscal year with rates
provided by the State.
• The proposed budget contains a 2.5% cost -of -living increase as contractually obligated
for ]AFF and FOP. This percentage will be for the non -represented employees as
well. AFSCME will receive a contractually obligated 2% increase.
• The proposed budget includes significant funding for current capital projects and some
new purchases including adding $250, 000 to start the televising and cleaning of the
May 26, 2020
stormwater system and $400,000 set aside for a project in association with FEMA for
the dredging of the sediment near the Transient Boat Dock.
• The proposed budget includes our required 12% reserves for the General Fund.
• The proposed budget includes funding for the Grant -in -Aid program.
• The proposed budget projects no increase in property tax rates.
Regarding the City's Strategic Plan, also known as Our Paducah, all of the projects in
the proposed budget have been reviewed to insure alignment. An updated Strategic
Plan document based on the January Commission retreat will be placed before the
Board in July for adoption. In reviewing the current Plan, Smolen said there are 37
action items. Even with the COVID-19 situation, 31 of the items are moving forward
with either little impactor minor adjustments. A few of the action items being moved to
a future date (What's Important Later (WIL) category) include the development of a
comprehensive bike plan, adoption of performance measures throughout the
organization, installation of public art in community gateways, and the hosting of a
multicultural event.
The City Team plans to review the budget numbers after six months into the FY21
budget, more than likely in February, to review the revenue projections and make any
adjustments on spending. The budget ordinance for FY21 is expected to be introduced
June 9 and adopted at a called meeting on Wednesday, June 24. The City's fiscal year
begins July 1. The Fiscal Year 2021 Budget Book will be placed on the City of Paducah
website in July. To view the current year's budget and budget information dating back
to 2005, visit http.-ApaducahAy ov/city buds. "
COMMENTS FROM CITY MANAGER
➢ The June 23 meeting will be cancelled due to Election Day. There will be a called meeting on
June 24.
ADJOURN
Mayor Harless offered motion, seconded by Commissioner Wilson, to adjourn the meeting. All in
favor.
Meeting ended at approximately 5:29 p.m.
ADOPTED: June 9, 2020
Bran ' arless, Mayor
ATTEST:
Lindsay Parish, Lily Clerk
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