The URL can be used to link to this page

Home My WebLink AboutFY2005 Budget BookCITY OF PADUCAH KENTUCKY ANNUAL BUDGET FISCAL YEAR 2004 - 2005 MANAGER'S BUDGET LETTER July 1, 2004 Paducah Citizens and the Community Members: Finance Director Jonathan Perkins and I are pleased to present the adopted budget and financial plan for the City of Paducah for fiscal year 2005. 1. INTRODUCTION A. EDITORIAL COMMENTS ABOUT CITY BUDGETS Your City budget performs several important functions: The budget is a legal document through which the Commission carries out its legislative responsibility to control the City's finances. The Budget is a public education document designed to help Paducah's taxpayers understand the finances of their local government. The Budget is a management tool, which each City Department uses to plan, administer, and improve its operations and customer services. The Budget is an instrument for implementing the goals that the Commission sets for the City. The Budget is a decision making aid designed to help the Commission make difficult public policy choices. B. SUMMARY OF FY 2005 BUDGET The FY 2005 budget covers the City's operating costs for the coming year with no tax increase. The recommended Base Operating Budget includes: • 3.0% COLA for all full time employees • Increased cost of amortizing Old Police and Fire Pension System unfunded liability • 3.27% COLA for Old Police and Fire Pension System retirees and dependents x • 2.2% increase in $7,038/employee allocation for Health Insurance effective January 1 • $50,000 increase in economic development allocation to GPEDC • Continued appropriations to DES, Main Street and Paducah Symphony • $25,000 increase appropriation to PATS • Debt service payments • Continued funding of City Fleet Plan The budget also includes Commission and Administrative Contingency appropriations totaling $350,000. This appropriation is set aside primarily for unanticipated emergencies and economic development incentives. C. REVIEW OF FY2004 ACCOMPLISHMENTS The last fiscal year has been busy and exciting. The City has made progress on each of the goals in its Strategic Plan: Goal 1: Strong local economy — Regional Center for Four States • Coca-Cola expansion located in Industrial Park West Speculative Building • Infiniti Media recruited to Industrial Park West • Ulrich Medical located in Information Age Park • AAA Fabricators located on Coleman Road • Runway expansion and taxiway construction and Barkley Regional Airport Buckner Bridges constructed and ROW acquired as first phase of Pecan -Buckner entrance to Mall area Goal 2: Efficient City Government — Quality Services for Citizens • Collective bargaining contracts signed with the City's three unions • Public Works Director Earnie Via recruited and hired • Delinquent tax and code violation lien foreclosure process streamlined • Pay and Classification plan adopted • Staff Changes and Code Enforcement Board have increased the efficiency of our code enforcement operations Police Department Achieved State Accreditation Xi Goal 3: Vital Neighborhoods — Place for People and Businesses Annexation Incentive Policy adopted and The Grove subdivision brought into the City. Lowertown Redevelopment and Artist Relocation Program recognized with American Planning Association national award. First phase of Parks Master Plan implemented with opening of Noble Park Shelter, Blackburn Park Sprayground, and Kolb Park Playground. Housing Authority began construction of 14 new homes at Heritage Place Goal 4: Restored Historic Downtown — A Community Focal Point Luther Carson Four Rivers Center opened and fund-raising goal exceeded Four Rivers Behavioral Health purchased and renovated old Penneys Building River Heritage Museum Exhibits Open Old Union Planter Bank Building opened as Commerce Center, new home of the Chamber of Commerce and GPEDC xii 2. OVERVIEW OF CITY FINANCES A. FUNDS In compliance with professional accounting standards, the City of Paducah operates its finances through 23 different funds. Revenues and expenditures are budgeted in each of these funds. The Flow of Funds Chart on the page after this section shows the City's funds and diagrams their interrelations. Finances for most of Paducah's service delivery activities are managed through just a few of the funds in this confusing array: General Fund: All City Departments that do not operate with an earmarked source of revenue are budgeted in the General Fund. Among others the Police, Fire, and Public Works Departments are operated through the General Fund. Municipal Aid Program (MAP): State law requires us to account for state shared gas tax money in a separate fund. We add a transfer from the general fund to the MAP fund and account for the City's annual paving program through it. Grant Funds: Special Revenue Funds are used to account for grants awarded to the City from agencies of the Federal Government and the Commonwealth of Kentucky. We have several individual funds for large grants and a small grant fund to serve as a "catch-all" for all other grants. Solid Waste Fund: The City operates its garbage collection service as a business and accounts for its operations using accounting rules, which are modeled on business accounting instead of governmental fund accounting. The Solid Waste Fund receives the revenue from the garbage service fees. The fund contains the budgets for our residential and commercial collection services and our compost operation. Internal Service Funds: Internal Service Funds also follow business accounting rules. The budget includes the Fleet Maintenance, Fleet Lease Trust, General Insurance, Health Insurance, Rental Properties, and Radio Depreciation internal service funds. Bond Funds: With the sale of $5 million in General Obligation Bonds in June 2004 for the construction of the Infinity building project in the Industrial Park West the City set up a separate capital improvements fund. This fund accounts for bond proceeds and the costs associated with the construction of bond -funded facilities. In June 2003 we borrowed $3.5 million through the Kentucky League of Cities bond pool to fund street and parking improvements around the Four Rivers Center, Park system improvements, and heat and air system repair. Debt associated with bond -funded projects is handled through the Debt Service Fund. Debt Service Fund: The Debt Service Fund is used to account for the accumulation of resources for and the payments of principal, interest and related cost of debt or bond issues. xiv o. � 0 s- n W > 100Z sau P. loatod� jasn ewooul c93 Iong aj3 Utt jsaaajul sju9wAPd 41 A dx� ��e 0 iasf1W '8 0 I c sjuea u? sjoa,o —41 w sjuele, sjoq w a smwt SID a.o 2 E 0 qrS tjuno� naafi auoyd 0u 2 _ d.e wo" h o Uel wnlwaid euajaje0 � e0 � U Q W 8 Q suogeaa c juawjiedaa N 70 C� L s amjl puma dxd Iel! de0 a xelse Aoidwl c7 m sju eJ o sj oaft i a ad L l63 QnS jun0 XV L � c X00 6ulll ou "_.d g* C C lnsul awoo l < suo5u js ej aju l Iju 00;;Ald� oajddy d uolsu oul NaujsJlujsJl I pu a '8 dl n b3 aouapinj• ci aoil od aouapn3 punj% sjw .[0 ueol 0 sj SjU EI a U _ Sj0 Oaf .ld 70 deo C U A asj y� O 0 Oaad asuaor>sng` rxel wayinsul xel po�� xei Aliedod U I c sjuea u? sjoa,o —41 w sjuele, sjoq w a smwt SID a.o 2 E 0 qrS tjuno� naafi auoyd 0u 2 _ d.e wo" h o Uel wnlwaid euajaje0 � e0 � U Q W 8 Q suogeaa c juawjiedaa N 70 C� L s amjl puma dxd Iel! de0 a xelse Aoidwl c7 m sju eJ o sj oaft i a ad L l63 QnS jun0 XV L � c X00 6ulll ou "_.d g* C C lnsul awoo l < suo5u js ej aju l Iju 00;;Ald� oajddy d uolsu oul NaujsJlujsJl I pu a '8 dl n b3 aouapinj• ci aoil od aouapn3 punj% sjw .[0 ueol 0 sj B. HOW BIG IS THE BUDGET? The multitude of funds makes it hard to answer the simple questions: `.`How big is the City Budget? Just adding the budgets of all the funds together does not answer the question accurately because transfers of monies between funds cause the same dollar to be counted two or more times. The following table adds the budgets of all our funds and then makes adjustments for the transfers to subtract out the double counts. Counting net expenditures in all funds, the FY2005 Budget totals $35,728,680. COMBINED BUDGETS - ALL FUNDS xv i Total Expenditures & Fund Transfers Inter Fund Transfers Budget General $27,213,545 $2,017,985 $25,195,560 Small Grants 0 0 MAP 429,400 429,400 CDBG 25,000 25,000 HOPE 0 0 HOME 130,600 130,600 HUD Revolving 0 0 Court Awards 49,600 49,600 HUD Police 29,125 29,125 Debt Service 1,284,260 1,284,260 General CIP 431,500 216,500 215,000 Special CIP 2,000,000 2,000,000 Solid Waste 4,010,600 4,010,600 Civic Center 35,945 35,945 Rental Property 135,075 87,545 47,530 Radio Depr & Opr 18,710 18,710 Fleet Maintenance 488,000 380,000 108,000 Fleet Lease Trust 704,450 487,850 216,600 General Insurance 1,051,830 1,051,830 0 Health Insurance Trst 3,542,615 3,542,615 0 AEPF 84,750 84,750 PFPF 1,848,000 1,848,000 Totals $43,513,0051 $7,784,325 $35,728,680 xv i C. EXPLANATION OF FUND BALANCES The multitude of funds can make it difficult to understand what financial resources the City has and what flexibility we have in using those resources. Although any balance remaining in some funds at the end of the fiscal year is closed out (transferred) to the General Fund, other funds maintain a fund balance. Enterprise funds, like our Solid Waste Fund, do not have a fund balance because of their business -style accounting rules. They do have unencumbered liquid assets, which are an equivalent of a governmental accounting fund's fund balance. The following table shows the fund balance (or equivalent) that we expected to have June 30, 2004 in each significant fund and explains why the money is retained in that fund's account. ESTIMATED FUND BALANCE xvii Est. Fund Balance Notes General $4,500,000 12'/a% Operating Reserve $3,400,000 Small Grants -0- MAP $400,000 Appropriated for Projects CDB G -0- HOPE $130,000 Appropriated for Grant -Related Projects HOME -0- HUD Revolving $210,000 Restricted to CDBG purposes Court Awards $50,000 Restricted to Police Drug Activities HUD Police -0- Debt Service $30,000 Reserved for debt service payments General CIP $208,000 Appropriated for Projects Special CIP $1,470,000 Restricted for Projects Solid Waste $1,910,000 Undesignated cash = Fund Balance Equivalent Accumulated to delay future garbage rate increases. 121/2% Operating Reserve: $501,000 Civic Center $22,000 Undesignated cash = Fund Balance Equivalent Earmarked for operating shortfall Rental Property -0- Radio Depr & Opr $260,000 Reserved for Radio Projects Fleet Maintenance -0- Undesignated cash = Fund Balance Equivalent Fleet Trust $1,600,000 Future purchase of replacement vehicles Insurance -0- Reserved for Insurance Deductible Payments xvii Health Insur Trust $400,000 Reserved for Health Insurance Claims AEPF $320,000 Reserved to pay pensions PFPF $9,300,000 Reserved to pay police and fire pensions Totals $20,810,000 $154,000 D. GENERAL FUND 1. Why is the General Fund .Budget so "tight"? a) Because we were "In the Red" last year The first reason that the general fund budget is tight this year is that it was "in the red" last year. The FY2004 budget adopted by the Commission had $500,000 more expenditures than revenue. We covered the shortfall with an appropriation of $500,000 from fund balance. In accord with Commission policy, we still retained an operating reserve equal to 12-1/2% of the General Fund balance after the $500,000 appropriation. The "one time" money from fund balance was used to pay "one time" capital and economic development expenditures. For example, we made the following capital expenditures last year out of the $500,000 and the $1.2 million we added to it after we closed the FY2003 books: Lowertown Infrastructure Local Match $94,000 Ulrich Economic Development Incentive $30,000 Coca-Cola Economic Development Incentive $147,000 Buckner/Pecan Lane ROW & Bridge Projects $376,000 Pump Truck Replacement $98,000 East Mall Access Settlement Payment $154,000 Innovative Center Office $5,000 Dennis Wholley Enterprises to Market Paducah Nationally $30,000 Lowertown Project — property acquisitions $150,000 Main Street Program Supplemental Appropriation $45,000 Paducah Symphony $15,000 Floodwall Pump Emergency Repair $68,000 Streetsca e — Electric Services Relocated $37,000 Railroad Museum Door & Roof $30,000 Heritage Place 7`h Street Expansion $77,000 Infinity Media Economic Development Incentive $295,000 AAA Fabricators Economic Development Incentive $75,000 Total $1,726,000 b) Because some revenue was taken from us and some costs we do not control increased. The following examples have a combined impact of over $674,000 on the City's FY 2005 budget. • Base Court Revenue Cut $99,000. Kentucky municipalities used to have City Courts. The Cities collected Court fines and fees and used them to pay for the City Court and to pay part of the costs of City Police Departments. When the State Legislature did away with City Courts and replaced them with State Courts, they promised to hold the Cities harmless and return part of the money collected by the State Courts back to the Cities. Since the amount each City got was based on what their City Court was generating before the change, this money was called "Base Court Revenue." Since the time our City Court was abolished Paducah has received $168,752/year Base Court Revenue. In 2003, the legislature did away with Base Court Revenue. They took half our annual allocation in 2003 and the balance the next year. In 2004, the legislature authorized a new surcharge for cities on local traffic tickets, which will produce an estimated $70,000/year so that our net loss is $99,000/year. • Increased CERS Charge $405,000 The downturn in the stock market has reduced the assets of the Kentucky State Retirement System. To keep the system actuarially sound, the State has increased the State Retirement percentage we have to send them for each dollar we pay our employees. For FY2005 this increase will total $405,000. • Old Police & Fire pension unfunded. liability payment The same stock market impact that caused the State to increase our CERS payments has impacted our old Police and Fire Pension Fund. The fund will have an unfunded liability of about $5.9 million as of June 30 2004. Our actuaries have set up a 28 -year plan for us to reduce the unfunded liability to $0 by 2032. In FY2004, we transferred $518,000 to the Pension Fund to decrease the unfunded liability. To keep on our schedule, our actuaries told us in FY2005 we needed to make a $429,000 payment, but later revised their estimate to $518,000 due to an unanticipated drop in Pension Fund asset values in the second calendar quarter. X1X • Increased cost for old Police & Fire Pension COLA $143,000. Each year the Police and Fire Pension Board votes to have the City provide a COLA (Cost of Living Adjustment) to all retirees and dependents in the plan. To keep the COLA from increasing the Plan's unfunded liability, we have to appropriate enough funds to amortize the cost of each year's COLA through the remaining life of every employee and dependent in the plan. In FY2004, we appropriated $293,000 anticipating a 3.0% COLA. Our actuaries tell us that to amortize an anticipated 3.27% COLA we will have to increase our transfer to the Pension Fund in FY2005 by $143,000 to $436,000. • Increased Health Insurance Contribution $27,000. The City allocates $7,038 for each employee's health insurance costs. Employees who do not insure their families can apply the excess funds to a flexible spending account. We have offered in our collective bargaining negotiations to increase the $7,038/employee allocation in January by an amount equal to the increase in the CPI. We estimate that the cost of this increase of a half year will be $27,000. 2. Expenditure Decisions During their budget workshop the Commission approved the following expenditures as par of the FY2005 budget: a) Reduce Graduated Wage time from 4 to 2 years $25,000 The City's "Graduated Wage" system started all employees represented by the AFSCME bargaining unit at 80% of the established wage for their job when they are hired. Each the end of their first year they go to 85%, at the end of their second year they go to 90% and after four full years on the job they are paid the 100% wage. The new AFSCME contract reduced the four-year time frame to two years with raises every 6 months. As part of the transition from a 4 -year system to a 2 -year system, all current employees who have been here less than 4 years get a raise. b) Retirement Payout Reserve $97,000 The Fire Department has three retirements scheduled early next year and Inspections has one. The retiring employees have significant vacation and sick leave reserves for which they will receive "mustering out" pay. The Fire payments will cost $80,000 and the Inspections Department payment will be about $17,000. Since we do not anticipate any significant salary xx slippage in either Department next year, the FY2005 budget includes funds for the payouts in the budgets of the two Departments. c) Commission Contingency $300,000 The FY 2005 Budget Ordinance provides that: "Funds designated as Commission contingency shall be obligated only upon approval by the City Commission by municipal order." d) Administrative Contingency $50,000 The FY 2005 Budget Ordinance provides that: "Funds designated as Administrative contingency shall be obligated at the discretion of the City Manager, however, the Commission shall be notified seven working days prior to approval of expenditure. If any individual member of the Board of Commissioners requests Commission review of a proposed expenditure, the City Manager must bring the expenditure before the commission for approval by municipal order." e) PATS Funding Increase $25,000 The services our Community receives from PATS continue to grow. Last year PATS passenger count increased from 234,277 to 244,399 passengers. Their Dial -a -Ride program has improved the quality and reduced the cost of taxi service for our citizens and visitors. The total PATS budget is $5,141,584. To take full advantage of available Federal funding PATS must have local match funds. For the last two years the City has contributed $175,000 to PATS. The FY2005 budget increases the contribution by $25,000 to $200,000. f) City/County Comprehensive Plan $100,000 Talbert & Associates prepared the last complete rework of the City's Comprehensive Plan in 1988. Staff and the Planning Commission have updated the Plan every five years but it needs to be completely redone. The City and the County are attempting to work together to fund a new plan for a City -County wide Comprehensive plan. The County has $50,000 budgeted. xxi g) Downtown Economic Analysis, Marketing, and Hotel Plan $35,000 As a prelude to the Comprehensive Plan, staff recommends we hire a consultant to prepare a Downtown Marketing study. The study will provide an economic analysis of our downtown as it operates now and propose a marketing strategy to build on our current successes h) Artist Relocation Program Marketing & Incentives $58,000 Our Artist Relocation Program has helped put Paducah on the map nationally. We are recognized across the country for this creative use of the Arts as an economic engine of change to recreate and revitalize neighborhoods. The FY2005 budget provides $43,000 for marketing and $15,000 for incentives. i) GPEDC Funding $250,000 Our funding last year for GPEDC was $200,000. With the success GPEDC has enjoyed under Wayne Sterling's leadership has come additional expense. Total GPEDC budget is $1.2 million. Purchase Partnership is planning a new private sector fund raising campaign this coming year. j) Phase II Public Works Lot Improvements $45,000 The Public Works Complex currently has a gravel surface on most of the traveled areas between our buildings and the open sheds. The constant travel in the complex creates a lot of dust, which accumulates in our building and on our neighbor's property. This paving and drainage project will reduce the amount of dust produced. The proposal is to use concrete to surface the gravel areas of the lot. Public Works staff will do most of the work in-house. In addition to $45,000 in the General Fund, there is $20,000 budgeted in the Solid Waste fund to give a total of $65,000 for the project. Preliminary site preparations were completed in FY2004. We plan to concrete half of the lot in FY2005 for $65,000 and half of the lot in FY2006 for another $65,000. k) Cable Franchise Negotiations Consultant $50,000 The City Cable ordinance earmarks 2 percentage points of the 5% Cable TV Franchise Fee to the Cable Authority. This formula should generate $112,990 next year. Their budget allocates $60,000 to the Community College for televising City meetings and community service programming. The remaining $50,000 is earmarked for consultant fees to help with our franchise renewal negotiations. Our franchise with Comcast expires in January 2006. XXii 1) Storm water Phase II Project $11,000 The City is under an EPA mandate to prepare and implement a storm water management plan. The City Engineer and Public Works Director have been working on this project in their spare time. Request funds will be used to employ an Engineering Intern to plot storm water outfalls into our GIS system. m) Inspections Tablet PCs The Inspection Department has ordered one tablet PC to test how it can be of benefit in streamlining field inspection reports. If the test shows a significant time savings and improvement in inspector efficiency, we will order 4 Tablet PCs for staff members who work in the field. We will also try a laser tape tool that should save quite a bit of time when an inspector is calculating occupant load or number of required exits for an existing building. n) Neighborhood Development: Property Repair and Purchase $200,000 Based on our Lower town success, the Planning Department is appropriated additional funds to complete the Lower town area and to begin the revitalization of the next neighborhood. o) Fire Department Minimum Manning $44,300 Chief Benton and his staff have calculated that if they had an additional $44,300 to use to pay overtime to Firefighters who were called in to cover when men are absent for training, sick leave, or vacation, they would be able to keep 20 Firefighters on duty 365 days a year. 3. Revenue Most of our revenue growth comes from the group of revenue sources we call `Licenses and Permits', particularly the payroll tax which is included in that group. Total General Fund revenues are expected to remain relatively flat. In FY 2003 we completed implementation of the Commission's four-year program to abolish the City inventory tax. Inventory tax revenues were $457,000 in FY1999 and will remain at $0 next year. GENERAL FUND REVENUE Actual FY2002 Actual FY2003 Estimated FY2004 Budget FY2005 $24,529,807 $25,286,521 $25,198,710 $26,058,130 The table below shows the main sources of anticipated revenue in the General Fund for FY2005. Payroll Tax $11,000,000 42.2% Property tax $4,984,450 19.1% Insurance $3,820,000 14.7% Business Licenses $3,535,000 13.6% Other Lisc & Charge for Service $1,294,365 5.0% Grants $881,170 3.4% Rent, fines & interest $455,600 1.7% Fund Transfers $87,545 .3% Total Revenue Sources $26,058,130 100.0% 4. Expenditures Although the City has done a good job of limiting growth in its general fund operating budget, part of the growth in operating costs that we have experienced has been paid by reducing our annual investments in capital improvements. GENERAL FUND OPERATING EXPENDITURES The following tables show next year's General Fund budget broken out by Department and by xxiv Actual Actual Estimated Budget FY2002 FY2003 FY2004 FY2005 Operating $21,342,075 $22,195,386 $23,337,980 $25,195,560 Transfers: Debt, Pensions & Others $927,651 $745,390 $1,506,900 $1,009,935 CIP $1,707,752 $1,688,122 $1,619,000 $558,450 Operations $397,864 $245,245 $434,830 $449,600 TOTAL $24,375,342 $24,874,143 $26,898,710 $27,213,545 The following tables show next year's General Fund budget broken out by Department and by xxiv category of expenditure as compared to last year's amounts. The largest category of expenditure on the second graph is employee salaries and benefits, which consumes 66.8% of the FY2005 General Fund Budget. E. FUND BALANCE In the FY2001 budget ordinance, the Commission adopted a policy of maintaining a minimum unencumbered fund balance in the General Fund equal to 12.5% of that fund's budgeted expenditures. The following table shows our projection for the current fiscal year: FUND BALANCE IN GENERAL FUND FY2004 % FY2005 Undesignated Police $6,686,565 24.8% $7,417,360 27.3% PW & Eng $5,773,780 21.5% $5,961,700 21.9% Fire $5,131,670 19.1% $5,609,925 20.6% Interfund Transfers $3,560,730 13.2% $2,017,985 7.4% Admin/Fin/HumResources $2,446,560 9.1% $2,517,385 9.3% Planning/Insp/Inf Sys $2,040,170 7.6% $2,316,360 8.5% Recreation $1,077,470 4.0% $1,155,445 4.2% Outside Agencies 181,765 .7% $217,385 .8% E. FUND BALANCE In the FY2001 budget ordinance, the Commission adopted a policy of maintaining a minimum unencumbered fund balance in the General Fund equal to 12.5% of that fund's budgeted expenditures. The following table shows our projection for the current fiscal year: FUND BALANCE IN GENERAL FUND FY2004 % FY2005 Undesignated Personal Service $16,667,960 62.0% $18,195,925 66.817( Contractuals $2,240,015 8.3% $2,552,385 9.4°1 Commodities $3,691,080 13.7% $3,775,020 13.90/( Capital $448,925 1.7% $377,230 1.4% City Grants $290,000 1.1% $295,000 1.10/( [nterfund Transfers $3,560,730 13.2% $2,017,985 7.4°1 E. FUND BALANCE In the FY2001 budget ordinance, the Commission adopted a policy of maintaining a minimum unencumbered fund balance in the General Fund equal to 12.5% of that fund's budgeted expenditures. The following table shows our projection for the current fiscal year: FUND BALANCE IN GENERAL FUND Fund balance figures are very difficult to estimate before all revenues are received, all expenditures are posted, and the City's books are closed for the year. The $4.5 million figure in the table is the estimate Jon Perkins and his staff prepared for our work on the operating budget. xxv Actual FY2001 Actual Actual FY2002 FY2003 Estimated FY2004 Undesignated $4,229,377 $4,441,662 $4,925,982 $4,500,000 Fund balance figures are very difficult to estimate before all revenues are received, all expenditures are posted, and the City's books are closed for the year. The $4.5 million figure in the table is the estimate Jon Perkins and his staff prepared for our work on the operating budget. xxv Based on this estimate, our fund balance for the end of this fiscal year will be 17.5% of FY2004 expenditures. The City has met its policy of maintaining a 12.5% ($3.2 million) fund balance. Based on this projection, the FY2005 Budget includes an appropriation of $1.1 million from fund balance for capital and other "one time" expenditures. F. MULTI YEAR PROJECTION The spreadsheet on the following page summarizes the operation of the General Fund for the last 5 years and projects revenue and expenditures in the General Fund until the year 2008. The primary driver of the revenue growth shown on the spreadsheet is based on the assumption that our payroll and business license tax receipts will grow at an average rate of 3.3% a year. Base budget personnel costs are assumed to grow at 5.5%, while operating costs for General Fund Departments are assumed to grow at a slower rate. If our estimates are accurate, future revenues will not cover future costs and the City will have to raise taxes or cut operating expenditures. The numbers on the chart for FY2004 are budgeted, not actual numbers. Total expenditures for FY2004 will likely be less than the $26.9 million shown on the chart. xxvi 0 ov Ir) t-- In0Ln o 00000 00 0 v � 00 �D �D 7 0 <F• o 0 0o rn o 0 0 0 0 0 0 0 0 o M NCs N N C� oo N M h O n1 h O O vi O N u1 h M N h M O h w r-- 00 C, h oo 'd' Nm v) �D oo M In .Ny �t N M vt N N Cr o0 O M oo N ... N w N N NEA N M 69 cxd r o I?A 64 69 69 69 w o 0 0 0 •a o X. O�.. C o0 aJ N O O V' N O v1 � N 0 0 0 0 0 O O O a Y' M � \C 7 �O v'� a, ^� O h v'i dt vi a\ O v1 O O M M' O O In v -i O O vl� v1 <t h v1 ul O a, h oo [`- C� N N N M C, h z O O M u? h m v1 00 N M N N O v'i N M <t N N N 6N9 69 bq 69 69 69 69 p O o 0 0 0 O O O \ O Mlo N O Cs p v1 0 0 O O O a. O M 00 r N h u7 O a, d' m oo o0 7 O O N" oo N 0 0 N h Ln O v1 g 00 7 d• C� oo h h oo oo C, N �D N M M a, Q\ V N U M 7 N oc wGoq N N 69 69 69 69 0 0 0 0 0 0 0 0 S Ln w� 0 0 0 O Ln vt v� vl v) O� 0 Cl O M d. N 00 N M O �C oo N •--� m O N Q1 N O d' 0 M In N vl) h v1 vi h oo C, C, co v-, h h rn " v v� h h C, n O D\ N V'1 00 M V> —� O N h M N O N N N N 69 � 69 69 69 O vi v1 �n O v) Lr) v1 O Sm 0 0 0 0 0 O O Ocl S O C, It N r- 00 V t� O v'i M C, [ - M h v1 h m MC, 00 m 00 M O N O .h-: h o O M C, w C, v7 t} v1 O o0 D1 O M-Zt h In �D o0 h . r oo o0 a O O O o0 �D V1 h M N v'1 7 l� V N M oo h N N N 69 � 69 69 69 69 C, M �D V v1 z h V N �o° S p �D M O V1 M D\ O M o0 N opo h O W O N N N �c 'n O N 'D oo h m M oo V N o 0 0 C, O v1 Q\ O V1 M C� oc N m .�-i N o0 V -,t O �D ,D h N oo h N O 7 M o0 N h O O M M V N h 7 V7 V•l N M .-+ M 69 y .h-� N N N 69 b 69 Go 3 69 69 N O C � O CL M A � M Cl p N C1 --� x W °o N V'1 00 D1 \O GO M [� ul lc N 10 r- w v1 o0 oo It 01 C, ~ O Q1 W M N Vj N ooN cq v1 v1 1p h ~ N N O Nm rt oo m 7 M oo N O N O cl V'1 N C+ M N N N O M It N N N C b N 69 a> d 69 69 69 69 Oo 4-w o0 �D 7 N C, N_ 'n h Voc 0 O b A N O vN h ) oo D oo � 000 000 M N b C, u> 7 11; [l O N C, I M oo V1 00 'D oo D1 N �' M C1 M M V1 oo N oo z N --+ � v1 N O --� V M C, M N h O a\ I� N V oo m M h N o0 cl N N �D N N C U �oq 69 69 69 a o0 v'i O h V 00 C, M0 0 0 N z oo M fn V v1 O b h 7 an 0 7 m M oo h O O C, 7 -+ O * O O 7 o C, O W vl N h M O W N M oo 4n1 O It -r) N oo Q, O d� V7 O 7 �F' M N v"1 h V m N •r V� h V'1 N 69 69 69 69 69 k O 7 h O M O O �t M per° �D �C h h •-� W v1 pM "t N M N M nl vhi Cl oo Nc,:, N O a, O O M v1 v1 <t O h V Np O 1 C, O �D � oo r- h N h h h O O� o0 1D M O o0 <!' M v1 h oo [� O a, M M -+ oo v'i h ti• N o0 M p N D1 V j7 69 69 69 69 69 oO � C% C y N> d p Ri Q C .> cxd r o I?A v a s w k •a o X. O�.. C o0 aJ N w is U O C i O.�G A- .~C,CO "b °ad c)0 °i� c O a U U U U F G. MUNICIPAL AID PROGRAM (MAP) FUND REVENUE Paducah's allocation of State gas tax funds has historically averaged in the range of $400,000 - $425,000 a year, but appears to be declining. We anticipate only $383,000 in FY2005. The City's Capital Improvement Program sets the goal of adding $750,000 ($500,000 asphalt, $250,000 concrete) a year from the General Fund to give a total of $1 million to $1.25 million a year total revenue for resurfacing. We've not met this goal over the past several years. 1. MAP FUND REVENUE 2. EXPENDITURES The City maintains 211 miles of streets. Depending on traffic use patterns, an asphalt street will last 10 to 12 years between resurfacings. An expenditure of $1 million a year for street resurfacing will allow us to resurface every street in town once every 20 years. The Engineering Department starts looking seriously at resurfacing streets when their ranking is given as a 5 on a scale of 1 to 10, 10 being the best condition. Currently, the City streets ranking 5 and below is estimated at $5 million to repair at today's construction cost. All revenue to the MAP fund is spent on street maintenance in the year it is received or the following year. In addition to resurfacing expenditures, the CIP sets a goal of spending $250,000 a year on curb, gutter, and sidewalk repairs. Much of this expenditure flows through the MAP fund. The FY2005 Budget includes no appropriation for Street Resurfacing. Actual FY2002 Actual FY2003 Estimated FY2004 Budget FY2005 Gas Tax $399,977 $373,022 $385,000 $383,000 General Fund Transfer $500,000 $548,000 $93,750 $0 TOTAL 1 $899,977 $921,021 $478,750 $383,000 2. EXPENDITURES The City maintains 211 miles of streets. Depending on traffic use patterns, an asphalt street will last 10 to 12 years between resurfacings. An expenditure of $1 million a year for street resurfacing will allow us to resurface every street in town once every 20 years. The Engineering Department starts looking seriously at resurfacing streets when their ranking is given as a 5 on a scale of 1 to 10, 10 being the best condition. Currently, the City streets ranking 5 and below is estimated at $5 million to repair at today's construction cost. All revenue to the MAP fund is spent on street maintenance in the year it is received or the following year. In addition to resurfacing expenditures, the CIP sets a goal of spending $250,000 a year on curb, gutter, and sidewalk repairs. Much of this expenditure flows through the MAP fund. The FY2005 Budget includes no appropriation for Street Resurfacing. H. GRANT FUNDS Most of the City's grant funds are budgeted. as the grants are received. We anticipate receiving the following grants during the coming year: Grant Use of Funds Amount Home Owner 2004 Assist Low Income Home Buyers $900,000 AHTF 2004 Homeowner Rehab $80,000 Christmas in April AHTF 2004 Christmas in April Homeowner Rehab $84,000 Universal Hiring COPS 2004 Hire 3 Additional Officers $225,000 KLC Safety Grant Purchase of Safety Equipment $2,100 KY DUI Grant 2004 Overtime for DUI Activities $26,400 KY Traffic Safety Grant Overtime for Traffic Safety Activities $36,000 Methamphetamine 2004 Meth Lab Clean Up Overtime $5,000 FEMA Fire Safety Grant Emergency Preparedness Equipment $105,000 In addition we have applied for or intend to apply for and may receive the following grants: Grant Use of Funds Amount LLEBG Grant Equipment $15,000 Firefighter Grant MDT's for all fire services $343,700 KY Land & Water 2004 Skate Park $75,000 KY Rec. Trails 2005 Greenway Trail Construction $50,000 KY Micro Enterprise Chamber & MSU $50,000 I. SOLID WASTE FUND I. REVENUE Until 1993, the City's solid waste collection service required an annual subsidy of $210,000 to $422,000 a year from the General Fund. Since that date, revenue from service fees has covered the full cost of the service. We instituted our first fee increase since 1992 in 2003 to pass through a mandate from the legislature to pay a $1.75/ton tipping fee to the State. SOLID WASTE FUND REVENUE Actual FY2002 Actual FY2003 Estimated FY2004 Budget FY2005 $3,332,042 $3,338,214 $3,450,200 $3,466,000 2. EXPENDITURES The operating cost of the Solid Waste Department includes administration, residential collection, commercial dumpster collection, brush and leaf collection, and operation of our compost facility. Disposal costs are paid to CWI, which operates a Transfer Station. Disposal of our waste is in privately owned sanitary landfills in either Tennessee or Illinois. SOLID WASTE FUND EXPENDITURES OMWA Actual FY2002 Actual FY2003 Estimated FY2004 Budget FY2005 Operating Cost $1,839,690 $1,868,772 $2,558,530 $2,070,540 Disposal Cost $941,000 $1,032,000 $970,000 $1,196,060 Capital $91,600 $76,700 $66,200 $444,000 Depreciation 1 $330,000 $315,000 1 $330,000 $300,000 TOTAL $3,202,290 $3,292,472 $3,924,730 $4,010,600 OMWA Under our contract with CWI, our disposal costs were held constant from 1995 to 1999. The contract allowed CWI to increase its tipping fee charges as shown in the following table: Year Increase 1999 2.7% 2000 3.0% 2001 3.0% 2002 1.1% 2003 2.04% We can expect their charges to increase up to 3% in July 2004. Our contract with CWI expired in 2004. Under our contract, we have the option of two 5 -year renewals. Bob Freudenthal and County Administrator Steve Doolittle have negotiated an extension of our contract, which is before the Commission for approval. J. FLEET FUNDS The City uses it Fleet Funds to charge itself for services it provides to its own departments. The Fleet Maintenance division provides services to the General Fund and Solid Waste fleet. Until FY1999, the Fleet Fund operated as a single fund, but beginning with the FY2000 budget, it was separated into two funds. The Fleet Maintenance Fund tracks the operation of our maintenance garage. Each department has funds budgeted for the repair and maintenance of equipment and vehicles, as well as fuel. When a tire is changed on a police car, a charge is paid from the Police Department to the garage's fleet fund. Total expenditures in the fleet maintenance fund next year are expected to be $488,000. The second fund is our Fleet Lease Trust Fund. We use this fund to build up monies to replace trucks and cars owned by the General Fund. When a new vehicle is purchased, a lease amount is calculated by dividing the cost of the vehicle by its expected life. Each year the Department using the vehicle pays the lease amount into the Fleet Lease Trust Fund. When the vehicle is ready to be auctioned, the funds accumulated from the lease payments and the interest they earn will provide the money to buy a replacement vehicle. We started putting money into this vehicle replacement system in FY1999. At July 2004, we will have a balance of approximately $1.6 million in the fund. Two major changes are proposed for the Fleet Fund this year: • We will be making our first expenditures from the lease payments into the funds. Eleven Police Patrol cars costing an estimated $253,000 will be purchased with Lease Trust Fund monies to replace 11 old cars that have been fully amortized by lease payments over the last 5 years. • We will start making lease payments to fund the replacement of our fleet of fire trucks. Last year we made our last payment on the loan that funded the purchase the City's fire trucks. We, until last year, we had been paying $162,000/year on the loan. By paying $170,000 into the Fleet Trust Fund this year and increasing that payment to $200,000/year over the next few years, we will accumulate enough funds to implement a replacement schedule that will replace all 7 of our fire trucks by 2017. The following tables display the historic evolution and projected change in our Fleet Trust Fund. City of Paducah, KY Fleet Trust Fund Vehicle/Hvy Equipment Cash/Investment and Vehicle/Equipment Book Values $8 ° ❑ CasMnvestments $zo —— — — — ._. --- $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 1999 2000 2001 2002 2003 2004 2005 2006 K. DEBT SERVICE FUND The $1,284,260 appropriated in the Debt Service Fund will cover principal and interest payments on the following financial obligations: 2004 INFINITI MEDIA BONDS In the spring of 2004, the Commission approved an economic development incentive to bring the Infiniti Media manufacturing plant to Paducah. The City and County are building a 100,000 square foot manufacturing building in Industrial Park West to Infiniti Media's specification. The City sold taxable general obligation bonds to pay for the project. We will lease the building to the Industrial Development Authority and the Authority will lease the building to Infinity Media. For the first three years the City and County will split paying the lease on the building. After the first three years the company will pay the lease. The lease payments will equal the principal and interest payments on the bonds. The City's portion of the first year principal and interest payment will be about $216,500 (total debt service payment $433,000). 2004 COUNTY NOTE In the spring of 2004 the City signed an interlocal agreement with McCracken County promising to pay half the cost of a 5 -year, $500,000 KACo (Kentucky Association of Counties) Note. City of Paducah, KY Fleet LeaseTrus t Fund Total Asset Value vs. Goal El Total Assets Goal $8.0 ff 77 $5.0 -- - a - --- p q it � Ik � t $3.0 $1.0 $0.0 1999 2000 2001 2002 2003 2004 2005 2006 K. DEBT SERVICE FUND The $1,284,260 appropriated in the Debt Service Fund will cover principal and interest payments on the following financial obligations: 2004 INFINITI MEDIA BONDS In the spring of 2004, the Commission approved an economic development incentive to bring the Infiniti Media manufacturing plant to Paducah. The City and County are building a 100,000 square foot manufacturing building in Industrial Park West to Infiniti Media's specification. The City sold taxable general obligation bonds to pay for the project. We will lease the building to the Industrial Development Authority and the Authority will lease the building to Infinity Media. For the first three years the City and County will split paying the lease on the building. After the first three years the company will pay the lease. The lease payments will equal the principal and interest payments on the bonds. The City's portion of the first year principal and interest payment will be about $216,500 (total debt service payment $433,000). 2004 COUNTY NOTE In the spring of 2004 the City signed an interlocal agreement with McCracken County promising to pay half the cost of a 5 -year, $500,000 KACo (Kentucky Association of Counties) Note. McCracken County will borrow the money. $240,000 will be used to construct a rail siding in Industrial Park West adjacent to the Infiniti Media Building. $260,000 will be used to option and/or purchase additional property for industrial park and economic development purposes. The City's share of the note will be about $54,000/year. 2003 CAPITAL PROJECT BOND In May 2003, the City Commission approved a bond issue for $3.5 million to finance the following capital projects: Four Rivers Center for Performing Arts utility relocation, streetscape improvements and parking lot construction $1,500,000 Park Improvements: Blackburn, Kolb, Noble Parks and Perkins Creek Nature Preserve $1,000,000 Police building HVAC & related construction $650,000 City Hall HVAC, controls stem, ductwork and structural improvements $350,000 CONVENTION CENTER/FOUR RIVERS CENTER BONDS — BOND SERIES 2001 In June of 2001 the City issued approximately $9.29 million in general obligation bonds to provide $6 million for construction of the 50,000 square foot additions to the Convention Center and $3 million for construction of the Four Rivers Performing Arts Center. Our next payment on the bonds will be December 1, 2004, and our following payment will be in June 2005. Total principal and interest payment for the year will be approximately $644,100. While the City issued these bonds, 50 percent of the principal amount of the bonds was issued on behalf of the County of McCracken. In accordance with an interlocal cooperative agreement between the City, County and the Tourist and Convention Bureau, principal and interest payments on the bond are being made from an additional 2% transient room tax collected by the County. Principal & Interest Payment: +/- $644,000 Revenue from 2% of Hotel/Motel Bed Tax +/- $449,000 City Contribution +/- $65,000 County Contribution +/- $65,000 Visitor's Bureau Contribution +/- $65,000 TOTAL +/- $644,000 The City General Fund includes a $65,000 transfer out to the Bond fund. The Bond Fund anticipates the revenue from the Bed Tax, County, and Visitor's Bureau. 3. ACKNOWLEDGMENTS All of the City's Department Heads have cooperated with this year's budget process and have supported the preparation of this document. Although I have participated in the departmental interviews and the final assembly process, almost all of the planning, decision making and work involved in preparing the FY2005 Budget was done by Finance Director Jonathan Perkins with the able assistance of Judy Nelson, Sam Lady, LeAnne Jameson, Natalie Massa, Angela Copeland and Cathy Graham. I sincerely appreciate their excellent work and ask you to join me in commending them. ty XXXV BUDGET ORDINANCE ORDINANCE NO. 2004-6-6827 AN ORDINANCE ADOPTING THE CITY OF PADUCAH, KENTUCKY, ANNUAL BUDGET FOR THE FISCAL YEAR JULY 1, 2004, THROUGH JUNE 30, 2005, BY ESTIMATING REVENUES AND RESOURCES AND APPROPRIATING FUNDS FOR THE OPERATION OF CITY GOVERNMENT. WHEREAS, an annual budget proposal has been prepared and delivered to the City Commission; and WHEREAS, the City Commission has reviewed such proposed budget and made the necessary modifications. BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. The following estimate of revenues and resources is adopted as the City of Paducah, Kentucky Revenue Budget for Fiscal Year 2004-2005. F:\Jon\Excel\Budget FY2005\Budget Ordinance 2004-2005\Ordinance t 4 MUNICIPAL HUD GENERAL FY2005 HUD AID COURT POLICE DEBT GENERAL SMALL PROGRAM CDBG HOPE HOME FUND GRANTS FUND FUND FUND FUND 01) (02) (03) 06) 07 08 SOURCES: CASH FROM FUND RESERVE 1,155,415 23,600 REVENUES. PROPERTY TAXES 4,984,450 LISC, PERMITS, 0 OTHER TAXES 18,882,550 383,000 449,100 GRANTS, CONTRIBUTIONS 881,170 46,000 25,000 29,125 130,600 FINES & FORFEITURES 54,000 25,000 PROP RENTAL & SALES 291,600 CHARGES FOR SERVICES 572,315 181,205 346,500 INTEREST INCOME 110,000 400 1,000 RECREATION, OTHER FEES 164,500 MISCELLANEOUS 30,000 0 TOTAL REVENUES 25,970,585 0 429,400 25,000 0 130,600 FUND TRANSFERS IN 87,545 126,850 341,600 1 488,660 TOTAL SOURCES 27,213,545 01 429,400 25,000 01 130,600 F:\Jon\Excel\Budget FY2005\Budget Ordinance 2004-2005\Ordinance t 4 HUD GENERAL FY2005 HUD COURT POLICE DEBT REVOLVING E911 AWARDS GRANT SERVICE FUND TELCOM FUND FUND FUND FUND (09) (11) 12) 13) (14) (30) SOURCES: CASH FROM FUND RESERVE 23,600 REVENUES: PROPERTY TAXES LISC, PERMITS, OTHER TAXES 750,000 449,100 GRANTS, CONTRIBUTIONS 170,785 29,125 FINES & FORFEITURES 25,000 PROP RENTAL & SALES CHARGES FOR SERVICES 181,205 346,500 INTEREST INCOME 1,530 1,000 RECREATION, OTHER FEES MISCELLANEOUS 1,800 TOTALREVENUES 0 181,205 924,115 26,000 29,125 795,600 FUND TRANSFERS IN 126,850 341,600 1 488,660 TOTAL SOURCES 0 L 308,055 1 1,265,715 49,600 29,125 1 1,284,260 F:\Jon\Excel\Budget FY2005\Budget Ordinance 2004-2005\Ordinance t 4 FY2005 FLEET CIP SOLID CIVIC RENT & FLEET CIP CONV/FRC WASTE CENTER RADIO SERVICE FUND FUND FUND FUND FUNDS FUND 40) (42) 50) 62 (63) & (64) (70 SOURCES: CASH FROM FUND RESERVE 216,500 2,000,000 544,600 4,450 820,125 REVENUES: PROPERTY TAXES LISC, PERMITS, OTHER TAXES GRANTS, CONTRIBUTIONS FINES & FORFEITURES PROP RENTAL & SALES 635,205 1,000 36,000 135,075 75,000 CHARGES FOR SERVICES 1,068,500 3,415,000 8,000 101,850 380,000 INTEREST INCOME 22,000 40,000 50 2,300 100,800 RECREATION, OTHER FEES MISCELLANEOUS 10,000 657,205 1,068,500 3,542,615 8,000 5,300 365,100 TOTAL REVENUES 0 0 3,466,000 36,050239,225 380,000 FUND TRANSFERS IN 215,000 1,068,500 3,542,615 8,000 84,750 108,000 TOTAL SOURCES TOTAL SOURCES 431,500 2.000,000 1 4,010,600 1 36,050 239,225 488,000 FY2005 FLEET HEALTH MAINT AEPF PFPF TRUST INSURANCE INS TRUST TRUST PENSION PENSION FUND FUND FUND FUND FUND FUND (71) 72) (73) (74) 76) (77 SOURCES: CASH FROM FUND RESERVE 4,450 820,125 REVENUES: PROPERTY TAXES LISC, PERMITS, OTHER TAXES GRANTS, CONTRIBUTIONS FINES & FORFEITURES PROP RENTAL & SALES 635,205 75,000 CHARGES FOR SERVICES 1,068,500 3,542,615 8,000 189,300 INTEREST INCOME 22,000 5,300 100,800 RECREATION, OTHER FEES MISCELLANEOUS 657,205 1,068,500 3,542,615 8,000 5,300 365,100 TOTAL REVENUES FUND TRANSFERS IN 216,600 75,000 662,775 873,805 1,068,500 3,542,615 8,000 84,750 1,848,000 TOTAL SOURCES F:\Jon\Excel\Budget FY2005\Budget Ordinance 2004.2005\Ordinance SECTION 2. The following sums of money are hereby appropriated for Fiscal Year 2004-2005. FY2005 GENERAL FUND (01) SMALL GRANTS (02 MUNICIPAL AID PROGRAM FUND 03) CDBG FUND (06) HOPE FUND (07) HOME FUND (08) APPROPRIATIONS: GENERAL GOVERNMENT 1,435,380 FINANCE 762,430 INFORMATION SYSTEMS 268,965 275,825 INSPECTIONS 793,425 PLANNING 1,253,970 25,000 130,600 POLICE 7,417,360 49,600 29,125 FIRE 5,609,925 PUBLIC WORKS 4,966,015 PARKS SERVICES 1,155,445 CABLE AUTHORITY 112,990 HUMAN RIGHTS 104,395 HUMAN RESOURCES 319,575 ENGINEERING 995,685 429,400 DEBT SERVICE/E911 1,265,715 1,284,260 SOLID WASTE OPERATION FLEET MAINTENANCE PENSIONS CASH CARRY FORWRD/RESRV 32,230 FUND TRANSFERS OUT 1 2,017,985 TOTAL APPROPRIATIONS 1 27,213,545 1 0 429,400 1 25,000 1 0:;;j 1,284,260 FY2005 HUD REVOLVING FUND 09) TELCOM ll) E911 FUND 12) COURT AWARDS FUND 13) HUD POLICE GRANT FUND (14) GENERAL DEBT SERVICE FUND 30 APPROPRIATIONS: GENERAL GOVERNMENT FINANCE INFORMATION SYSTEMS 275,825 INSPECTION PLANNING POLICE 49,600 29,125 FIRE PUBLIC WORKS RECREATION CABLE AUTHORITY HUMAN RIGHTS HUMAN RESOURCES ENGINEERING DEBT SERVICE / E911 1,265,715 1,284,260 SOLID WASTE OPERATION FLEET MAINTENANCE PENSIONS CASH CARRY FORWRD/RESRV 32,230 FUND TRANSFERS OUT TOTAL APPROPRIATIONS 0 308,055 1 1,265,715 1 49,600 1 29,125 1,284,260 XZ F:\Jon\Excel\Budget FY2005\Budget Ordinance 2004-2005\Ordinance FY2005 CIP FUND (40) CIP CONV/FRC FUND (42) SOLID WASTE FUND (50) CIVIC CENTER FUND (62) RENT & RADIO FUNDS (63 & 64 FLEET SERVICE FUND (70) APPROPRIATIONS: GENERAL GOVERNMENT GENERAL GOVERNMENT 15,000 2,000,000 FINANCE FINANCE 1,051,830 3,542,615 8,000 66,240 INFORMATION SYSTEMS INFORMATION SYSTEMS INSPECTION INSPECTION PLANNING PLANNING 200,000 POLICE POLICE FIRE FIRE PUBLIC WORKS PUBLIC WORKS RECREATION RECREATION 35,945 CABLE AUTHORITY CABLE AUTHORITY HUMAN RIGHTS HUMAN RIGHTS HUMAN RESOURCES HUMAN RESOURCES ENGINEERING ENGINEERING DEBT SERVICE / E911 DEBT SERVICE / E911 SOLID WASTE OPERATION SOLID WASTE OPERATION 4,010,600 FLEET MAINTENANCE FLEET MAINTENANCE 488,000 PENSIONS 84,750 1,848,000 CASH CARRY FORWRD/RESRV CASH CARRY FORWRD/RESRV 16,670 105 85,440 FUND TRANSFERS OUT FUND TRANSFERS OUT 216,5001 87,545 873,805 1,068,500 3,542,615 8,000 84,750 1,848,000 TOTAL APPROPRIATIONS TOTAL APPROPRIATIONS 1 431,500 2,000,000 1 4,010,600 1 36,050 239,225 488,000 FY2005 FLEET TRUST FUND (71) INSURANCE FUND (72) HEALTH MAINT INS TRUST TRUST FUND FUND 73 (74) AEPF PENSION FUND (76) PFPF PENSION FUND (77) APPROPRIATIONS: GENERAL GOVERNMENT FINANCE 1,051,830 3,542,615 8,000 INFORMATION SYSTEMS INSPECTION PLANNING POLICE FIRE PUBLIC WORKS RECREATION CABLE AUTHORITY HUMAN RIGHTS HUMAN RESOURCES ENGINEERING DEBT SERVICE / E911 SOLID WASTE OPERATION FLEET MAINTENANCE 704,450 PENSIONS 84,750 1,848,000 CASH CARRY FORWRD/RESRV 169,355 16,670 FUND TRANSFERS OUT 873,805 1,068,500 3,542,615 8,000 84,750 1,848,000 TOTAL APPROPRIATIONS SECTION 3. The City Manager and Finance Director will publish a budget document which reflects the funding priorities set by the City Commission during their budget workshops and which will be used to interpret the above appropriations. F:1JonlExcellBudget FY2005\13udget Ordinance 2004-20051Ordinance X11 SECTION 4. The City does hereby adopt the following financial management policies: A. The General Fund's minimum undesignated fund balance shall be 12.5% of the General Fund's budgeted expenditures. The Solid Waste Fund's minimum unreserved cash balance shall be 12.5% of the Solid Waste's budgeted operating expenses. The Debt Service Fund's designated fund balance shall be sufficient to fully fund all outstanding debt including principal and interest. B. The City Manager is authorized to transfer budgeted amounts between departmental budget line items and between divisions of departments; however, any transfers of funds, appropriated in Section 2, between departments must be approved by City Commission. C. Funds designated as Commission contingency shall be obligated only upon approval by the City Commission by municipal order. D. Funds designated as Administrative contingency shall be obligated at the discretion of the City Manager, however, the Commission shall be notified seven working days prior to approval of expenditure. If any individual member of the Board of Commissioners requests Commission review of a proposed expenditure, the City Manager must bring expenditure before the Commission for approval by municipal order. E. City Manager shall assure that recurring revenues are greater than or equal to recurring expenditures. R The City Manager has the authority to enact a budget allocation program or to transfer funds to or from any departmental line item to insurance or reserve accounts. G. As new vehicles are purchased the City will fully fund the Fleet Trust Fund in order to replace rolling stock owned by the General Fund as it achieves obsolescence. The Fleet Trust Fund shall be funded with monthly lease charges assigned to rolling stock. Additionally, General Fund transfers shall be made to offset the cost of initial rolling stock acquisition H. The City will maintain a self insurance fund called Health Insurance Trust Fund through the use of user fees as set by administrative policy. 1. The City will make annual progress toward the goal of achieving fully funded status for the Appointive Employees Pension Fund (AEPF) and the Police and Firemen's Pension Fund (PFPF) through sound financial management and/or annual General Fund transfers as designated in the budget document. J. The City will provide to all eligible employees a S586.50 per month credit (for the months of July - December 2004) to be applied to the Comprehensive Health Insurance Benefit Plan (Cafeteria Plan) as directed by the employee. The monthly credit will be adjusted by an amount equal to the increase in the CPI (USDOL Bureau of Labor Statistics Consumer Price Index - All urban consumers) during a 12 month period ending October 2004 for the months of January - June 2005, SECTION 5. Finance Director is responsible for maintaining current table of Estimated Revenues in Section 1 and Appropriation of Funds in Section 2 and to provide a copy to the City Clerk. If during the course of the year the City Commission adopts Ordinances to anticipate new revenues or to make new appropriations, the Finance Director will update these Tables and provide a copy to the City Clerk. SECTION 6. This ordinance shall be read on two separate days and will become effective upon publication in full pursuant to KRS Chapter 424. Mayor ATTEST: - �OOAS-A Tammara Brock, City Clerk Introduced by the Board of Commissioners, June 8, 2004 Adopted by the Board of Commissioners, June 22, 2004 Recorded by Tammara Brock, City Clerk, June 22, 2004 Published by The Paducah Sun, July 2, 2004 excel\budget ordinance 2004-2005 XZ 11 F:\Jon\Excel\Budget FY2005\Budget Ordinance 2004-2005\Ordinance