HomeMy WebLinkAboutJune-30-2021CITY OF PADUCAH,
KENTUCKY
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
FINANCE DEPARTMENT CITY OF PADUCAH, KENTUCKY
City of Paducah
Paducah, Kentucky
Comprehensive Annual Financial Report
Year Ended June 30, 2021
Issued by the
Finance Department
CITY OF PADUCAH, KENTUCKY
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Exhibit No. Page No. Introductory Section:
Letter of Transmittal 1 - 7
Organizational Chart 8
Principal Officials 9
GFOA Certificate of Achievement 10
Financial Section:
Independent Auditor’s Report 11-12
Required Supplementary Information:
Management’s Discussion and Analysis 13-28
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 1 29-30
Statement of Activities 2 31-32
Fund Financial Statements:
Governmental Funds:
Balance Sheet 3 33-34
Reconciliation of the Governmental Funds Balance
Sheet to Statement of Net Position 4 35-36
Statement of Revenues, Expenditures and Changes
in Fund Balances 5 37-38
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities 6 39-40
Statement of Revenues, Expenditures and Changes -
Budget and Actual - General Fund 7 41-44
Statement of Revenues, Expenditures and Changes -
Budget and Actual - Special Revenue Investment Fund 8 45
Statement of Revenues, Expenditures and Changes -
Budget and Actual - Special Revenue Bond Fund 9 46
Proprietary Funds:
Statement of Net Position 10 47
Statement of Revenues, Expenses and Changes in
Net Position 11 48
Statement of Cash Flows 12 49
Fiduciary Funds:
Statement of Net Position 13 50
Statement of Changes in Net Position 14 51
Notes to Financial Statements 52-101
Required Supplementary Information:
Schedule of Changes in the Police and Firefighters’
Pension Trust Fund’s Net Pension Liability and Related Ratios A-1 102
Schedule of Changes in the Appointive Employees’
Pension Trust Fund’s Net Pension Liability and Related Ratios A-2 103
Schedule of Police and Firefighters’ Pension Trust Fund
Contributions and Investment Returns A-3 104
Schedule of Changes in the Appointive Employees’
Pension Trust Fund Contributions and Investment Returns A-4 105
Schedule of City’s Proportionate Share of the Net Pension Liability
County Employees’ Retirement System A-5 106
Exhibit No. Page No.
Schedule of City’s Contributions - Pensions
County Employees’ Retirement System A-6 107
Schedule of City’s Proportionate Share of the Net Medical Insurance
Plan Liability - County Employees’ Retirement System A-7 108
Schedule of City’s Contributions – Medical Insurance Plan
County Employees’ Retirement System A-8 109
Supplementary Information:
General Capital Improvements Detail Schedule of
Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual B-1 110
Debt Service Fund Detail Schedule of Revenues,
Expenditures, and Changes in Fund Balance - Budget
and Actual B-2 111
Nonmajor Governmental Funds:
Combining Balance Sheet B-3 112-113
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances B-4 114-115
Detail Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual:
Municipal Aid Fund B-5 116
Emergency Communication Service Fund B-6 117
Court Awards Fund B-7 118
CDBG Grant Fund B-8 119
Bed Tax Fund B-9 120
Nonmajor Enterprise Funds:
Combining Statement of Net Position C-1 121
Combining Statement of Revenues, Expenses and
Changes in Fund Net Position C-2 122
Combining Statement of Cash Flows C-3 123
Internal Service Funds:
Combining Statement of Net Position D-1 124
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Position D-2 125
Combining Statement of Cash Flows D-3 126
Fiduciary Funds:
Combining Statement of Net Position -
Private-purpose Trust Funds E-1 127
Combining Statement of Changes in Net Position -
Private-purpose Trust Funds E-2 128
Table No. Page No. Statistical Section:
Net Position by Component 1 129
Changes in Net Position 2 130-131
Fund Balances, Governmental Funds 3 132
Changes in Fund Balances, Governmental Funds 4 133
Assessed and Estimated Actual Value of
Taxable Property 5 134
Governments 6 135
Principal Taxpayers 7 136
Secured Tax Levies and Collections 8 137
Employee License Tax Collections 9 138
Table No. Page No. Statistical Section:
Principal Employee License Taxpayers 10 139
Ratio of Outstanding Debt by Type 11 140
Ratio of Net General Bonded Debt Outstanding 12 141
Direct and Overlapping Governmental
Activities Debt 13 142
Legal Debt Margin Information 14 143
Demographic and Economic Statistics 15 144
Principal Employers 16 145
City Full-Time Employees by Function 17 146
Operating Indicators by Function 18 147
Capital Asset Statistics by Function 19 148
Single Audit Section:
Schedule of Expenditures of Federal Awards 149
Notes to the Schedule of Expenditures of Federal
Awards 150
Independent Auditor’s Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters Based
on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards 151-152
Independent Auditor’s Report on Compliance for Each Major
Program and on Internal Control Over Compliance Required by
Uniform Guidance 153-154
Schedule of Findings and Questioned Costs 155
Schedule of Prior Audit Findings 156
CITY OF PADUCAH, KENTUCKY
INTRODUCTORY SECTION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
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December 20, 2021
Honorable Mayor and Commissioners
City of Paducah
Paducah, Kentucky
We are pleased to submit Paducah's Comprehensive Annual Financial Report for the year ended June 30,
2021. Responsibility for the accuracy of the presented data and the completeness and fairness of the
presentation, including all disclosures, rests with the City.
The major objective of this report is to describe the City’s financial condition and the financial results of
its operation in a format designed to be useful to the general public, elected officials, investors and
creditors. We believe the data, as presented, is accurate in all material aspects; that it is reported in a
manner designed to present fairly the financial position and results of operations of the various funds. All
disclosures necessary to enable the reader to gain maximum understanding of the City’s financial
activities have been included.
City management’s narrative on the financial activities of the City for the fiscal year ended June 30, 2021,
is in the Management’s Discussion and Analysis (MD&A) section of this report, immediately following
the Report of Independent Auditors. The letter of transmittal is written to complement the MD&A and
the financial statements, and should be read from that perspective and in conjunction with all
other sections of the .
THE CITY
Paducah was established in 1827 by explorer General William Clark. The City of Paducah is situated at
the confluence of the Ohio and Tennessee Rivers in the north central portion of McCracken County.
Paducah is the largest city both in the county and in the Jackson Purchase eight county region. The City
has established itself as the cultural, economic, medical and transportation center for not only the Jackson
Purchase region but for a large portion of Southern Illinois and portions of Western Tennessee and
Southeastern Missouri.
Industry
The Paducah area has moved from the traditional “manufacturing industry” to a “service industry”
economy and cultural center. Multi-state computer services, significant banking corporations, wholesale
and retail trade, river-related services, the health care industry and related services are the major
employment centers.
CITY OF PADUCAH
Finance Department
P.O. Box 2267
Paducah, KY 42002-2267
270-444-8512
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Economic Development Activities
Greater Paducah Economic Development (GPED) coordinates the City’s efforts in strengthening and
building economic development activities. The board of directors is comprised of elected candidates
from GPED’s Investor Council based upon their unique gifts and abilities and their capacity to
appropriately apply them to the organization and community. In existence since 1987, GPED assumes and
carries out the responsibility of working with existing industry and business, as well as identifying and
recruiting new companies to the City of Paducah. Additionally, GPED is responsible for development of
long-term strategy for economic development activities and coordinates local entities in the
accomplishment of those strategies.
In the early 1990s, the City of Paducah, the State of Kentucky and several federal agencies, in conjunction
with business, developed a 650-acre Commerce Park (formerly known as the Information Age Park.)
This park was designed to appeal to firms needing advanced telecommunications and computing
capabilities.
In 1997, the City of Paducah jointly with the County of McCracken acquired the ‘Industrial Park West of
Paducah and McCracken County’. This park contains 218 acres with immediate access to two major
railroad lines, Paducah and Louisville and Paducah and Illinois (formerly Illinois Central). The park is
located within the southwest quadrant of the I-24/Cairo Road interchange.
In 2007, GPED began assembling property to establish a ‘Triple Rail Site’ in western McCracken
County. The site is an industrial park served by two Class I railroad companies, Burlington Northern
Santa Fe and Norfolk Southern, and a short line railroad company, Paducah and Louisville. The site has
river docking service within 1.5 miles, is within 3 miles of Interstate 24, and 5 miles from Barkley
Regional Airport. GPED owns 229 acres and has option and brokerage agreements on additional
surrounding properties.
Churches and Schools
A relatively strong religious base is evident in the community, as demonstrated by the many churches in
Paducah. Numerous churches, representing many of the major denominations, are located within the
City. Several area churches offer televised activities as a convenience to those who do not attend church.
Elementary and secondary education in Paducah is provided by the Paducah Independent School System,
McCracken County School System, Community Christian Academy, and St. Mary’s Parochial School
System.
The availability of higher education in the area is continuing to flourish. West Kentucky Community and
Technical College (WKCTC), formerly known as Paducah Community College, is a two-year institution
affiliated with the University of Kentucky’s community college system. WKCTC also serves as a site for
the University of Kentucky extended campus graduate programs, in addition to a four-year engineering
college in conjunction with the University of Kentucky. In 2008, WKCTC opened a Paducah School of
Art. In 2010, a new 65,000 square feet Emergency Technology Center was opened, offering industrial
and manufacturing technologies, engineering technology, as well as business and industry training and
information technology programs. This is the first state supported new building to be constructed on the
WKCTC campus in over 20 years. In 2011, Murray State University entered into an agreement with the
City, McCracken County, and Paducah Economic Development to construct an approximately 40,000
square foot educational building to serve as their Paducah campus. Classes began at the Paducah campus
in 2014.
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Medical Facilities
Paducah serves as the regional medical center for much of the Jackson Purchase Area of Western
Kentucky, a large portion of Southern Illinois, and Northwestern Tennessee. Paducah’s medical industry
has almost every major medical specialty represented in the physician population. The medical industry,
represented by Mercy Health and Baptist Health, provides over 650 beds for medical needs. The two
largest hospitals, together, employ approximately 3,000 persons.
Recreation and Culture
Citizens have available a wide range of recreational and cultural activities which cater to diverse tastes.
Area residents may choose from fishing on nearby Kentucky and Barkley Lakes to enjoying the performing
arts. City parks provide areas for baseball, softball, golf, football, tennis, disc golf, footgolf, skate boarding,
soccer, hiking and picnicking. The Parks Services Department offers a substantial number of activities for
people of all ages.
The Dogwood Festival, held in April, highlights the coming of spring in Paducah. Residents are encouraged
to spotlight their trees to illuminate a driving tour to celebrate an abundance of dogwood trees.
The LowerTown Art and Music Festival is uniquely showcased within the borders of Paducah’s 180-year-
old historic neighborhood. The LowerTown Art and Music Festival is an outdoor-juried show that the
work of local artists and includes jazz, salsa, zydeco and blues music, as well as food from area restaurants.
Paducah is the site of the Museum of the American Quilter’s Society. In May 2008, a congressional
designation was passed naming the museum as the National Quilt Museum of the United States. The
museum, dedicated in 1991, is the centerpiece for the quilters’ annual convention held in April. The
convention attracts an estimated 30,000 visitors to Paducah annually.
One of Paducah’s oldest celebrations is the 8th of August Emancipation Celebration, which features African
American family reunions, or a homecoming. It is a time for African Americans to pay tribute to their
heritage and roots, and a time of reconciliation.
The Barbecue on the River event was started in 1995, as a way for local charities to raise funds. It attracts
in excess of 40,000 participants to Paducah’s riverfront during the last weekend in September. Over time,
this annual event has grown to incorporate other events, including Marine Industry Day and Old Market
Days.
Paducah Power sponsors the annual Christmas in the Park lighting display at Noble Park. The public is
invited to a special lighting ceremony the Friday after Thanksgiving. This is the seventeenth year for the
event. Although the event is free, volunteers collect more than $40,000 in cash and thousands of pounds of
canned food annually.
Paducah has an active symphony and several theater groups. The Paducah Symphony Orchestra stages
concerts during the winter season, with the Market House Theater presenting several productions during
the same time period. In addition, West Kentucky Community and Technical College’s Arts in Focus series
sponsors a variety of professional productions.
The Luther F. Carson Four Rivers Center for the Performing Arts opened in February 2004 as a regional,
multiple-purpose facility, with a 1,800-seat main hall designed to accommodate a wide variety of cultural
and educational programs.
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The McCracken County Public Library offers a large selection of literature, special collections and
programs. The West Kentucky Community and Technical College Library supplement this community
resource.
THE GOVERNMENT
Paducah operates under a City Manager plan of government. The Paducah Board of Commissioners is
made up of a Mayor and four Commissioners elected at large by the citizens on a non-partisan basis. The
Mayor is elected for a four-year term and Commissioners for a two-year term. The Mayor and
Commissioners have equal voting powers.
The Board of Commissioners sets the policies that govern the City. It appoints advisory citizens groups
that help in the decision-making process. The City Manager is appointed by the Board and assists it in
formulating objectives, policies and programs. The City Manager is responsible for the day-to-day
operation of the City’s 335 full-time employees as of June 30, 2021. Department managers are responsible
for their respective departments and report directly to the City Manager.
REPORTING ENTITY AND ITS SERVICES
For financial statement purposes, as required by generally accepted accounting principles, the City’s
Comprehensive Annual Financial Report includes all City of Paducah financial statements (primary
government) and its component units. The component units discussed below are included in the City’s
reporting entity because of the significance of their operational or financial relationships with the City of
Paducah.
Blended units are presented as such because the units’ governing bodies are substantially the same as the
governing body of the City, or provide services almost entirely to the City of Paducah. The City has only
one blended unit: the Police and Firefighters’ Pension Fund, which was established for the benefit of police
and firemen of the City.
The City has one component unit that has been presented as a discrete unit to emphasize that it is legally
separate from the City. Paducah Water Works is included in the City’s financial statements because of its
financial relationship with the City.
The City provides a full range of municipal services, including police and fire protection; maintenance of
streets and infrastructure; sanitation services; cultural events and recreation activities.
Accounting System
The City’s accounting system is organized on the basis of separate funds, each of which is considered to be
a separate accounting entity. The financial activities of each fund generate a separate set of self-balancing
accounts, which comprise its assets, liabilities, fund equity, revenues, and expenditures/expenses.
Municipal resources are allocated to and accounted for in individual funds based upon the purposes for
which they are to be spent and the means by which spending activities are controlled.
The City’s accounting records for the governmental funds and agency funds are maintained on a modified
accrual basis, with revenues being recorded when “measurable and available” and expenditures being
recorded when the services or goods are received and the liabilities are incurred. Accounting records for
the City’s proprietary funds and trust funds are maintained on the accrual basis, with revenues recognized
when earned and expenses recorded when the liability is incurred or economic asset used.
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Internal Control
In developing and evaluating the City’s accounting system, consideration is given to the adequacy of
internal controls. Because the cost of a control should not exceed the benefits to be derived, the objective
of these internal controls is to provide reasonable, rather than absolute assurance that the financial
statements are free of any material misstatements. Internal controls were designed for Paducah’s accounting
system to reasonably safeguard its assets against loss from unauthorized use or disposition, check the
accuracy of accounting data, promote operational efficiency and encourage adherence to prescribed
managerial policies.
Budgetary Control
Paducah’s budget process provides for input from department managers, top management, elected officials
and the public to determine what programs and services will be provided for during the upcoming year.
Budgetary control is maintained at the departmental level by comparing budgeted expenditures with actual
expenditures on a periodic and year-to-date basis. An expenditure, which would result in an overrun of
department appropriation, cannot be made until additional funds are appropriated and a budget amendment
is approved. Purchase orders which result in an overrun of department appropriations cannot be honored
until additional appropriations are made available. Unencumbered funds at year-end roll into the fund
balance.
Financial Policies
The City’s financial policies are shaped by state law and established by management and the City
Commission. Financial policies include budgeting and financial planning, capital planning, revenue,
investment, debt management, procurement, and accounting and auditing.
During FY2021, one of the City’s financial policies did have a significant impact on the financial
statements:
Pension Obligation Costs. In FY2006, the City issued general obligation bonds of $6,100,000 to finance
the police and firefighters’ pension fund actuary liability. Since the issuance of these bonds, the City has
made it policy to contribute the normal cost as well as the minimum actuarially sound contribution annually
that would arise from the fund being in a deficit position as of the actuarial date. For FY2021 this
contribution was $332 thousand. This amount was $315 thousand in FY2020.
LONG-TERM FINANCIAL PLANNING
On October 1, 2005, the City’s payroll tax was increased ½ cent. As a result of the payroll tax increase, the
City Commission created the Investment Fund. The Investment Fund is funded with the ½ cent increase
and is dedicated to the following purposes: community redevelopment, economic development,
infrastructure capital investment, and property tax relief. During the FY2021 budget process, the
Commission reviewed numerous decision packages proposed for the Investment Fund Budget; expenditures
totaling approximately $5.3 million were appropriated.
The City has numerous infrastructure/capital items that will affect the long-term financial planning process.
The following projects are examples of future considerations facing the City:
Better Utilizing Investments to Leverage Development (BUILD) Grant. The City has been awarded a $10.4
million BUILD grant which will be used to create new opportunities for tourism, recreation and commerce
along the Ohio riverfront in support of good jobs and economic growth. The grant will be used to construct
the following riverfront projects: Riverboat excursion pier and plaza construction; bike, pedestrian, and
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broadband linkages from the Convention Center to the riverfront; and, improvements to the landing near
the City’s transient boat dock. The project is currently in the environmental assessment phase.
Tax Increment Financing District (TIF). The City has received approval from the Kentucky Economic
Development Financing Authority (KEDFA) for a TIF District. The District includes approximately 315
acres of Paducah downtown riverfront which will be used to promote public and private development. It is
anticipated that mixed-use development will include the construction of hotels, residential units,
restaurant/entertainment space, retail space, manufacturing space, public buildings, and public
infrastructure improvements. Once activated, it’s anticipated that tax revenue in excess of a prescribed
baseline will be reinvested in the area with funds from state sales tax, property tax, individual income tax,
and corporate income tax in addition to local property and payroll taxes.
ECONOMIC CONDITION
The City continues to be aggressive in promoting economic development, since new developmental job
growth is necessary to ensure the continued stability of the City’s tax base. Economic indicators and trends
reflect that the area’s economy has remained fairly steady considering the nation’s recent economic
struggles. It is expected that the economy will continue to hold over the near-term. Area employment
decreased slightly in comparison to the prior year, with 26,071 persons employed (McCracken County) as
of June 30, 2021. The June 2021 unemployment rate was 5.9% (McCracken County), which is an increase
from 5.4% in the prior year, and equal to the June 2021 federal unemployment rate of 5.9%.
INDEPENDENT AUDIT
Kentucky Revised Statute 91A-040 requires an annual audit of each fund of the City by an auditor of public
accounts or a certified public accountant. The independent certified public accounting firm of Kemper CPA
Group, LLP, has conducted this audit and their opinion has been included in this report. The City is also
subject to the Single Audit Act Amendments of 1996 reporting requirements. The Single Audit Report is
included within this report. CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Paducah, Kentucky for its
comprehensive annual financial report for the fiscal year ended June 30, 2020. This was the thirtieth
consecutive year that the City achieved this prestigious award.
In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a government
must publish an easily readable and efficiently organized comprehensive annual financial report. This report
must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only.
We believe our current comprehensive annual financial report continues to meet the Certificate of
Achievement Program’s requirements, and we are submitting it to GFOA to determine its eligibility for
another certificate.
ACKNOWLEDGMENTS
The preparation of this report on a timely basis could not be accomplished without the efficient and
dedicated services of the entire staff of the Finance Department. We wish to express our appreciation to all
members of the Finance Department who assisted and contributed to its preparation, and special thanks to
Kemper CPA Group, LLP. We also thank the Mayor, City Manager, and City Commission for their interest
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and support in planning and conducting the financial operations of the City in a responsible and progressive
manner.
CITY OF PADUCAH, KENTUCKY
ORGANIZATIONAL CHART
CITIZENS OF PADUCAH
CITIZENS OF PADUCAH
Mayor and Commissioners
Advisory Board
and
Committees
City Manager
City Clerk /
Customer
Experience
Parks and
Recreation
Fire Department
Police
Department
Engineering
Department -8- Information
Systems
Human
Resources / Risk
Management
Finance
Department
Planning
Department
E911
Public Works
Department
Assistant City Manager
CITY OF PADUCAH, KENTUCKY
PRINCIPAL OFFICIALS
BOARD OF COMMISSIONERS
Mayor George P. Bray
Mayor Pro tem Sandra Wilson
Commissioner Raynarldo Henderson
Commissioner David Guess
Commissioner Carol C. Gault
CITY MANAGER
Daron Jordan
Assistant City Manager Michelle Smolen
Finance Jonathan Perkins, CPA
Police Chief Brian Laird
Fire Chief Steve Kyle
City Engineer Rick Murphy
Public Works Chris Yarber
Planning Nicholas Hutchison
Parks Services Amie Clark
Information Services Stephen Chino
City Clerk Lindsay Parish
Human Resources/Risk Manager Stefanie Suazo
Public Information Pam Spencer
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CITY OF PADUCAH, KENTUCKY FINANCIAL SECTION COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2021
INDEPENDENT AUDITOR’S REPORT
Honorable George Bray, Mayor
Members of the Board of Commissioners
City of Paducah
Paducah, Kentucky
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of
Paducah, Kentucky, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial
statements of the following component unit: Paducah Water Works, which is presented as a discretely presented
component unit in the statement of net position and statement of activities. These financial statements were audited by
another auditor whose report has been furnished to us, and our opinions, insofar as it relates to the amounts included for
Paducah Water Works, discretely presented component unit, is based solely on the reports of the other auditor. We
conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, the discretely presented component unit, each
major fund, and the aggregate remaining fund information of the City of Paducah, Kentucky, as of June 30, 2021, and
the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary
comparison for the General Fund and the Special Revenue Investment Fund for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
100 South 4th Street Suite 300 Paducah, KY 42001
Phone: (270)443-4400 Fax: (270)443-0963 kempercpa.com
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and
analysis and pension and other post-employment benefits trust fund schedules on pages 13-28 and 102-109 be
presented to supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City of Paducah, Kentucky’s basic financial statements. The introductory section on pages 1-10; budgetary comparison
schedules, combining and individual nonmajor fund, budgetary comparison schedules for the nonmajor funds,
nonmajor enterprise, internal service and fiduciary financial statements on pages 110-128; and statistical section on
pages 129-148, are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The schedule of expenditures of federal awards on pages 149-150 is presented for purposes of additional
analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards , and is also not a required part of the basic financial statements.
The budgetary comparison schedules, combining and individual nonmajor fund financial statements, budgetary
comparison schedules for the nonmajor funds, nonmajor enterprise, internal service and fiduciary financial statements
and the schedule of expenditures of federal awards are the responsibility of management and were derived from and
relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the budgetary comparison schedules, combining and individual nonmajor fund,
budgetary comparison for the nonmajor funds, nonmajor enterprise, internal service and fiduciary financial statements
and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic
financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2021, on our
consideration of the City of Paducah, Kentucky’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City
of Paducah, Kentucky’s internal control over financial reporting and compliance.
Certified Public Accountants and Consultants
Paducah, Kentucky
December 22, 2021
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CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
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CITY OF PADUCAH, KENTUCKY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2021
The City of Paducah (“City”) offers Management’s Discussion and Analysis to provide a narrative overview
and analysis of City financial activities for fiscal year ended June 30, 2021. To fully understand the entire
scope of the City’s financial activities, this information should be read in conjunction with the letter of
transmittal (pages 1-7) and the basic financial statements (pages 29-101) provided in this document.
The City first implemented Government Accounting Standards Board Statement 34, Basic Financial
Statements—and Management’s Discussion and Analysis—for State and Local Governments , for fiscal year
2003.
I. Financial Highlights
The City’s assets and deferred outflows exceeded liabilities and deferred inflows at the close of the fiscal year by $15.0 million (net position). This amount includes $865 thousand restricted to specific projects by laws, regulations or contractual agreements. A deficit total of ($45.5) million was unrestricted as a result of GASB No. 68, Accounting and Financial Reporting for Pensions, which was implemented in the fiscal year ended 6/30/2015 and GASB No. 75, Accounting and Financial Reporting for Postemployment Benefits other than Pensions (OPEB), which was implemented in the fiscal year ended 6/30/18.
The City’s total net position decreased ($2.4) million this year, primarily due to changes in the net
pension and OPEB liabilities and the related deferred outflows and inflows. Net position of
governmental activities decreased by ($2.0) million and business-type activities decreased by ($340)
thousand.
At fiscal year end, City governmental funds reported a combined ending fund balance of $55.0
million. Approximately 44% of this total amount, $24.0 million, is restricted or committed for
highways/streets and capital improvements. Assigned fund balance comprises 15% of total fund
balance; the majority of which is set aside for capital improvements.
At the end of the current fiscal year, unassigned General Fund fund balance was $21.5 million and is
available for spending at the City’s discretion. Cash makes up approximately $18.5 million. When
compared to final total appropriations, the General Fund cash balance is 46%.
II. Overview of Financial Statements
This discussion and analysis serves as an introduction to the City’s basic financial statements, which
consist of four components: 1) government-wide financial statements, 2) fund financial statements, 3)
component unit financial statements, and 4) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements.
A. Government-Wide Financial Statements
Government-wide financial statements are designed to provide readers with a broad overview of
City finances in a manner similar to private-sector business.
The Statement of Net Position presents information on all City assets, deferred outflows of
resources, and liabilities, and deferred inflows of resources with the difference between these
reported as net position. Monitoring increases and/or decreases in net position over time may serve
as a useful indicator of whether the financial position of the City is improving, stagnating, or
deteriorating.
The Statement of Activities presents information showing how the City’s net position changed
during the fiscal year. All net position changes are reported as soon as the underlying event giving
rise to the change occurs regardless of the timing of related cash flows. Revenues and expenses are
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reported in the Statement of Activities for some items that will only result in cash flows in the
future.
Both of the government-wide financial statements distinguish City functions that are primarily
supported by taxes and intergovernmental revenues (governmental activities) from other City
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). City governmental activities include general government, public
safety, public service, park and recreation, planning and development, and interest on long-term
debt. Business-type activities of the City include Solid Waste, Section Eight Housing, Civic Center,
and the Transient Boat Dock.
Government-wide financial statements include not only the City (the primary government), but also
a legally separate Paducah Water Works (component unit) for which the City is financially
accountable. Financial information for the component unit is reported separately from the financial
information presented for the primary government itself.
The government-wide financial statements can be found on pages 29-32 of this report.
B. Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over segregated resources
for specific activities or objectives. The City of Paducah, like other state and local governments,
uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
City funds can be divided into three categories:
1) Governmental Funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements. Unlike
government-wide financial statements, however, governmental fund financial statements focus on
current sources and uses of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. This information may be useful in evaluating a city’s near-
term financing requirements.
The City maintains ten (10) individual governmental funds. Information is presented separately in
the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General, General Capital Improvements, Special
Revenue Investment, Bond Fund and Debt Service Funds, all of which are considered to be major
funds. Data from the other five (5) funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of
combining and individual fund statements elsewhere in this report on pages 112-120.
Readers may better understand the long-term impact of the City’s near-term financing decisions by
comparing the narrow-focus governmental funds financial statements with governmental activities
in the government-wide financial statements. Exhibit 4 (pages 35-36) and Exhibit 6 (pages 39-40)
provide a reconciliation to ease comparison between the fund financial statements and the
government-wide statements.
The basic governmental fund financial statements can be found on pages 33-40 of this report.
2) Proprietary Funds. The City maintains two types of proprietary funds:
a. Enterprise Funds. Enterprise funds are used to report the same functions presented as
business-type activities in the government-wide financial statements and are used to account
for operations:
That are financed and operated in a manner similar to private business enterprises where
the intent of the governing body is that the costs of providing goods and services to the
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general public on a continuing basis be financed or recovered primarily through user
charges; or
Where the governing body has decided that periodic determination of revenues earned,
expenses incurred, and/or net income is appropriate for capital maintenance, public
policy, management control, accountability or other purposes.
The City uses four enterprise funds to account for Solid Waste, Section Eight Housing,
Civic Center, and Transient Boat Dock. The Civic Center and Transient Boat Dock receive
subsidies from the General Fund.
The City’s component unit enterprise is the Paducah Water Works. This component unit,
which has its own board of directors, is also an enterprise fund and is shown on pages 29-32.
b. Internal Service Funds are used to accumulate and allocate costs internally among the
City’s various functions. The City uses internal service funds to account for fleet services,
fleet replacement, risk management (insurance) and employee health programs. Internal
service funds have been allocated between governmental activities and business-type
activities in the government-wide financial statements based on revenue earned.
Proprietary funds provide the same kind of information as government-wide financial
statements, but in greater detail. Individual data for the nonmajor proprietary funds is presented
in the form of combining statements on pages 121-123 of this report. Individual data for the
internal service funds is likewise presented in the form of combining statements on pages 124-
126 of this report.
3) Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government and are not reflected in government-wide financial statements
because those resources are not available to support City programs. Individual data for two of
the City’s three fiduciary funds (Appointive Employees’ Pension and Police and Firefighters’
Retirement) is presented in the notes to the financial statements on pages 90-91. Individual data
for the Cemetery and Parks Trusts Fund is presented on pages 127-128 of this report.
C. Notes to the Financial Statements
The notes provide additional information that is essential to fully understanding data provided in the
government-wide and fund financial statements. Notes to the financial statements can be found on
pages 52-101 of this report.
D. Other Information
In addition to basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning City funding of its pension obligation to its
employees.
Additional budgetary comparison schedules, as well as the combining statements referred to earlier
in connection with nonmajor governmental funds, nonmajor proprietary funds, internal service funds
and fiduciary funds are presented immediately following the required supplementary information on
pensions. Additional budgetary comparison schedules and combining fund statements and schedules
can be found on pages 110-128 of this report.
III. Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of the City’s financial
position. City assets and deferred outflows exceeded liabilities and deferred inflows by $15.0
million, a decrease of $2.4 million from prior year.
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For FY2021, the largest portion of the City’s net position ($59.7 million) reflects its investment in
capital assets (i.e., land, buildings, machinery, equipment and infrastructure) less outstanding related
debt used to acquire those assets. The City uses these capital assets to provide service to citizens
and, as a result, these assets are not available for future spending. The City’s capital assets
investment is reported net of related debt, but the resources to pay this debt must be provided from
other sources since the capital assets cannot be used to liquidate the liabilities. An additional portion
of City net position ($865 thousand) represents resources that are subject to external restrictions on
how they may be used.
In FY2015 the City implemented Government Accounting Standards Board (GASB) Statement No.
68. It requires that the City report and fully disclose its share of net pension liability, which is $72.7
million as of June 30, 2021. In FY2018 the City implemented GASB 75, which requires that the
City report and fully disclose its share of other post-employment benefit (OPEB) liabilities. This
generated a $21.8 million liability as of June 30, 2021. Disclosing the City’s participation in the
County Employee Retirement System (CERS) for pension and other post-employment benefits has
been the primary factor in driving the City’s unrestricted net position to a negative $45.5 million in
FY2021.
As of June 30, 2021, the City reports positive balances of total net position, both for the government
as a whole, as well as for its separate governmental and business-type activities.
City of Paducah, Kentucky
Net Position
June 30
Governmental Activities Business-Type Activities Total Primary Government
2021 2020 2021 2020 2021 2020
Current Assets $ 74,147,534 $67,987,539 $ 5,577,059 $ 5,295,447 $79,724,593 $ 73,282,986
Capital Assets 66,224,431 67,922,569 2,094,123 2,465,553 68,318,554 70,388,122
Other noncurrent assets 3,791,311 4,914,272 - - 3,791,311 4,914,272
Total Assets 144,163,276 140,824,380 7,671,182 7,761,000 151,834,458 148,585,380
Deferred Outflows of
Resources 18,328,954 19,111,875 941,529 921,265 19,270,483 20,033,140
Current Liabilities 8,666,472 7,866,306 421,837 415,008 9,088,309 8,281,314
Noncurrent liabilities 130,008,089 123,382,854 6,258,651 5,851,946 136,266,740 129,234,800
Total liabilities 138,674,561 131,249,160 6,680,488 6,266,954 145,355,049 137,516,114
Deferred Inflows of Resources 10,502,689 13,332,719 197,789 343,695 10,700,478 13,676,414
Net position:
Net Invested in Capital Assets 57,608,864 57,368,777 2,094,123 2,465,553 59,702,987 59,834,330
Restricted 759,959 941,141 105,322 - 865,281 941,141
Unrestricted (45,053,843)(42,955,542)(465,011)(393,937)(45,518,854)(43,349,479)
TOTAL NET POSITION $ 13,314,980 $ 15,354,376 $ 1,734,434 $ 2,071,616 $ 15,049,414 $ 17,425,992
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The exhibit below charts the City’s total net position for the past ten years (as previously mentioned,
prior years have not been restated for implementation of GASB 68 and 75 in this discussion).
After several years of keeping a level net position, the City has experienced significant fluctuations
over the past six years. Substantial increases occurred in fiscal years 2013, 2014, 2016, and 2017,
which resulted from heavy capital development that was funded primarily with grant funding.
Projects during these fiscal years included the completion of the boat launch, Riverfront
Development Phases 1A & 1B, the Olivet Church Road project, and Phase 1 of the Jim & Pat
Brockenborough Rotary Health Park.
The City’s net position decreased significantly in FY2015 due to the implementation of GASB 68.
The City’s participation in the County Employee Retirement System (CERS) led to the inclusion of
an initial noncurrent liability in excess of $30 million. Net position took another hit in FY2018 due
to the implementation of GASB 75. The City’s participation in the Kentucky Retirement Systems
Insurance Fund generated a noncurrent liability for other post-employment benefits in the amount of
$20 million FY2018. Annual adjustments to these liabilities have continued to drive net position
down from FY2019 through FY2021.
A. Analysis of the City’s Operations
The following table provides a summary of the City’s operations for the years ended June 30, 2021
and 2020. Governmental activities decreased the City’s net position by $2,039,396 and business-
type activities decreased the City’s net position by $337,182.
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City of Paducah, Kentucky
Changes in Net Position
June 30
Governmental Activities Business-Type Activities Total Primary Government
Revenues:2021 2020 2021 2020 2021 2020
Program revenues:
Charges for services $ 2,652,919 $ 3,326,669 $ 4,599,835 $ 4,826,918 $ 7,252,754 8,153,587
Operating grants/contributions 5,036,389 3,000,719 2,118,215 1,903,339 7,154,604 4,904,058
Capital grants/contributions 1,662,014 2,192,974 -- 1,662,014 2,192,974
General Revenues:
Property taxes 5,915,288 5,670,956 -- 5,915,288 5,670,956
Franchise taxes 334,487 135,383 --334,487 135,383
Telecommunications tax 629,429 711,289 - - 629,429 711,289
Insurance premium tax 5,819,896 4,712,859 -- 5,819,896 4,712,859
Vehicle tax 867,472 706,928 - - 867,472 706,928
Bank tax 391,897 344,841 --391,897 344,841
Gross receipts license tax 4,530,125 4,307,270 --4,530,125 4,307,270
Employee license tax 22,064,353 21,490,918 -- 22,064,353 21,490,918
Transient room tax 1,211,819 790,534 -- 1,211,819 790,534
Other taxes 383,814 371,387 --383,814 371,387
Unrestricted investment
earnings 368,425 610,727 27,226 68,177 395,651 678,904
Gain on sale of capital assets --59,348 72,986 59,348 72,986
Miscellaneous -- - - --
Total revenues 51,868,327 48,373,454 6,804,624 6,871,420 58,672,951 55,244,874
Expenses:
General Government 12,846,090 10,574,490 --12,846,09010,574,490
Public safety 28,084,323 27,623,826 -- 28,084,323 27,623,826
Public service 6,761,258 7,491,652 -- 6,761,258 7,491,652
Park & recreation 3,477,584 3,597,301 -- 3,477,584 3,597,301
Planning & development 2,284,229 2,049,447 --2,284,229 2,049,447
Interest on long-term debt 694,776 1,026,449 --694,776 1,026,449
Solid Waste -- 4,849,815 5,302,783 4,849,815 5,302,783
Section Eight Housing --1,913,079 1,620,623 1,913,079 1,620,623
Civic Center --30,00457,990 30,004 57,990
Transient Boat Dock --108,371 83,834 108,371 83,834
Total expenses 54,148,260 52,363,165 6,901,269 7,065,230 61,049,529 59,428,395
Increase (decrease) in Net
position before transfers (2,279,933)(3,989,711)(96,645)(193,810)(2,376,578 )(4,183,521)
Transfers 240,537 466,050 (240,537)(466,050)--
Change in net position (2,039,396)(3,523,661)(337,182)(659,860)(2,376,578)(4,183,521)
Net position, July 115,354,376 18,878,037 2,071,616 2,731,476 17,425,992 21,609,513
NET POSITION, JUNE 30 $ 13,314,980 $ 15,354,376 $ 1,734,434 $ 2,071,616 $ 15,049,414 $ 17,425,992
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B. Governmental Activities
As with most municipalities, the City’s governmental activities are heavily subsidized by taxes, with
little or no program revenue for each function. The chart below demonstrates the importance of tax
revenue to essential functions of the City.
The graph below depicts the breakdown of revenue by source for fiscal year 2021.
In fiscal year 2021, the City derived approximately 81% of its revenue from taxes/licenses.
Occupational licenses, which include payroll withholding tax, business licenses, and insurance
premium tax is the largest source of income to the City, totaling $32.4 million. This category of
revenue increased $1.9 million, or 6.24% from the prior year. Insurance premium tax experienced
the largest growth in this area, increasing by $1.1 million. This is primarily due to a rate increase of
1% that was effective on July 1, 2020. Business licenses and payroll tax increased by 5.2% and
2.7%, respectively. No changes in these revenues appear to be the result of one significant
taxpayer’s activity, but the result of multiple entities having modest increases/decreases, some of
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which could be fluctuations caused by the pandemic. Property taxes continue to be a stable source
of revenue, comprising 11% of total revenue in FY2021. This was the first full year of collections
of the City’s Transient Room Tax of 4% that was enacted in August 2019. Total revenue collected
in FY2021 was $1.2 million.
Operating grants/contributions was also a revenue category of note for FY2021, increasing by $2.0
million, or 68% from the prior year. This was due to the receipt of Covid-19 Relief Funds in the
amount of $2.3 million, which were utilized for reimbursement of public safety personnel expenses
during the pandemic.
C.Business-Type Activities
The chart below shows the year’s revenues and expenses for each of the City’s business-type
activities.
These activities should break-even; that is, the charges for services should be large enough to sustain
operations. Only one of the business-type activities reflected these results for FY2021 – the Section
8 Housing Fund, with income before contributions and transfers of $142,916. Typically, the Solid
Waste Fund has positive operating results. However, this fund had a loss for the last two years. In
FY2020, in an effort to provide Covid-19 relief, commercial customers were given a credit of one-
half of their bill amount for two consecutive months, causing a decrease in revenue of approximately
$200,000. For both fiscal years, increased pension contributions, as well as pension and OPEB
liability adjustments, were the primary reasons for the losses.
Beginning in FY2012, an annual transfer is made from Solid Waste to the General Fund. The Phase
II Storm Water Act requires that the City make an effort to curb solid waste from the landfill/sewer
system. As a result, three full time street sweepers and eighteen right of way maintenance
employees (one day a week) have been assigned to this program. Because these are General Fund
employees, the Solid Waste Fund is making monthly interfund transfers to the General Fund to
compensate for their use. The total amount transferred for this purpose in FY2021 was $320,000.
Analysis of the remaining business-type activities is included in Section IV-B of this report.
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IV. Financial Analysis of the City’s Funds
A. Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows
and balances of spendable resources. Such information is useful in determining the City’s financing
requirements. Unreserved fund balance serves as a useful measure of the City’s net resources
available for spending at the end of the fiscal year.
At the end of the fiscal year, the City governmental funds reported combined ending fund balances
of $55.0 million. In FY2011, the City implemented GASB Statement No. 54, Fund Balance
Reporting and Governmental Fund Type Definitions. The redefined categories of fund balance are
described below:
Nonspendable fund balance includes amounts that are not in a spendable form or are
required to be maintained intact indefinitely. For example, at the end of the fiscal year, the
City had $376,339 of real property held in inventory for urban development.
Restricted fund balance has external limitations on use that may be imposed by creditors,
grantors, contributors, or laws and regulations. At the end of the fiscal year, the City had
$20,539,113 restricted for paving, public safety and capital improvements.
Committed fund balance has self-imposed limitations enacted by the highest level of
decision making that requires formal action at the same level to remove the limitations. At
the end of the fiscal year, the City had $4,325,486 in fund balance committed for capital
improvements and pension reserve.
Assigned fund balance has limitations resulting from intended use; formal action is not
required. Approximately 15% of the City’s fund balance is assigned for various purposes,
including capital improvements, public safety, and debt service.
Unassigned fund balance is the total fund balance in the General Fund in excess of the other
fund balance categories.
Approximately 39% of total fund balance, $21.5 million is unassigned General Fund fund balance,
which is available for spending at the government’s discretion but only up to the amount represented
by cash. At year-end there was $18.5 million available as General Fund cash; the balance is tied up
in other assets including accounts receivable and property taxes collectible. City fiscal policy
(Ordinance 2020-06-8641) requires that an amount not less than 12% of the General Fund’s
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budgeted expenditures remain undesignated in the fund balance, or $4.8 million, which leaves $13.7
million as unreserved for fiscal year 2021.
As a measure of General Fund liquidity, readers may compare unassigned (formerly reported as
“unreserved”) fund balance to total General Fund expenditures. Unassigned General Fund fund
balance ($21.5 million) represents 54% of expenditures and transfers out ($39.9 million).
The chart above shows that this ratio has remained very stable over the last ten years. However,
there was a significant increase in FY2018. The four primary sources of revenue for the City
exceeded budgeted amounts by close to $1 million that year, driving up fund balance. There was
also a large transfer out ($900 thousand) budgeted for FY2018 for an E911 capital project that was
delayed until the following year and funded by a debt issue, lowering expenditures. The last few
years have had less significant changes, each representative of a typical financially healthy year with
some positive variances in both revenues and expenditures. The FY2021 budget is discussed further
in the General Fund budgetary highlights in Section V of this report.
The Investment Fund had a fund balance of $3.7 million, all of which is committed for capital
projects. The Investment Fund was authorized by the City Commission in fiscal year 2005-2006 as
a special revenue fund whose use is restricted to property tax reduction, economic development,
community redevelopment and capital and infrastructure projects. The Investment Fund captures all
manner of financial activities related to revenue from the ½ cent payroll tax increase, effective
October 1, 2005. The fund balance for this fund increased $721 thousand over the previous year.
This was primarily due to conservative budget estimates as a result of the Covid-19 pandemic and
the uncertainty of the impact it would have on FY2021 revenues. Fortunately, revenue exceeded
budget by nearly $615 thousand.
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B. Proprietary Funds
The City’s proprietary funds provide the same information found in the government-wide financial
statements but in more detail.
Net position of the respective proprietary funds are:
Solid Waste $ 945,823
Section Eight Housing 105,322
Civic Center 76,672
Transient Boat Dock 11,813
Combined total net position change for the four funds was a decrease of $302 thousand, broken
down as follows: Solid Waste ($424 thousand decrease), Section Eight Housing ($143 thousand
increase), and Civic Center and Transient Boat Dock (Approximately $20 thousand decrease
combined). The largest proprietary fund, Solid Waste, was discussed under Business Type Activities
(Section III-C).
Due to the Covid-19 pandemic, a memo of FY2020 4th quarter financial mitigation directives were
issued by the City Manager in April 2020. These directives included shutting down the transient
boat dock and disconnecting any nonessential utilities, as well as shutting down the Cherry Civic
Center and disconnecting any nonessential utilities. While the transient dock has since reopened, the
Civic Center still remains closed as of the date of this report. General Fund transfers were made into
both funds to cover essential activities and because of those transfers, both funds ended the year with
near break-even results.
V. General Fund Budgetary Highlights
Differences between the original budget and the final budget resulted in a $3.0 million increase in
appropriations. A $2.9 million transfer was made to the Capital Improvements Fund from
unreserved fund balance as a portion of local match for the City’s multi-year floodwall rehabilitation
project with the U.S. Army Corp of Engineers.
Final appropriations (including operating transfers out) exceeded total actual expenditures by less
than $100 thousand. Departmental appropriations (excluding intergovernmental and other)
exceeded actual by approximately $1.5 million. Almost 47% of that ($697 thousand) was due to
salary and related benefit slippage in various departments from unfilled positions. As discussed
earlier in this report, the Covid-19 pandemic resulted in the enactment of several financial mitigation
factors in April 2020. One of those was a city-wide hiring freeze that was put into place on all full-
time, part-time, and seasonal labor. Some positions remained frozen throughout FY2021, while
some were released for hiring. The City also experienced some of the labor market issues discussed
across the nation. Vacancies for many open positions were difficult to fill, leading to additional
salary slippage across the General Fund. The remaining areas of positive budget variance within
operations appear to be scattered across many areas and not limited to a particular department.
Intergovernmental Expense almost completely closed the budget gap with actual expenditures
exceeding appropriations by $1.3 million. In December 2020, the City forgave a $911 thousand note
with the Greater Paducah Economic Development Council (GPEDC). Also included in
intergovernmental expenses was $397 thousand for the pass-through of property taxes to the
Paducah Junior College. The College is technically not a taxing district, and the City levies this tax
on their behalf. The City does not include this account in its budgeting process.
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VI. Capital Asset and Debt Administration
A. Capital Assets
The City’s investment in capital assets for governmental and business-type activities as of June 30,
2021, is $59.7 million (net of accumulated depreciation and related debt). This investment in capital
assets includes land, buildings and improvements, vehicles and equipment, park facilities, roads,
highways, and bridges, and construction in progress.
Capital improvements are included in each department budget until improvements are completed.
At the end of the fiscal year, completed projects are capitalized in the Government-wide Statements.
During fiscal year 2021, project and equipment additions totaled over $6.5 million, with $2.3 million
of that attributed to Construction in Progress at year-end. Some of the largest capital-type project
additions, in terms of dollars in fiscal year 2021, are shown in the following table:
Platform Fire Truck $1,200,000
Floodwall Pump #2 Rehab (Construction in Progress) 605,992
Greenway Trail Phase V 592,433
EOD Tactical Robot 442,064
Buckner Lane Bridge 338,156
Floodwall Rehab – USACE Match (Construction in Progress) 321,827
Bob Leeper Bridge 316,508
Noble Park Peck Addition 304,024
In the upcoming years, several street, economic development, riverfront development, and drainage
projects will continue and are estimated to cost several million dollars. Capital improvement projects
including infrastructure, City-owned facility improvements, continued neighborhood revitalization,
and street and sidewalk rehabilitation are among the projects to be addressed.
City of Paducah, Kentucky
Capital Assets
(Net of Accumulated Depreciation)
June 30
Governmental Activities Business-Type Activities Total Primary Government
2021 2020 2021 2020 2021 2020
Land $ 10,423,688 $ 10,385,388 $ 68,886 $ 68,886 $ 10,492,574 $ 10,454,274
Land improvements 14,776,273 14,595,049 -- 14,776,273 14,595,049
Construction in
progress 5,878,560 6,015,403 -- 5,878,560 6,015,403
Buildings and
improvements 7,819,330 10,202,350 189,689 206,016 8,009,019 10,408,366
Infrastructure 20,165,168 20,528,696 -- 20,165,168 20,528,696
Equipment 3,419,823 3,166,891 534,536 624,587 3,954,359 3,791,478
Furnishings and
fixtures 57,030 73,588 - - 57,030 73,588
Vehicles 3,684,559 2,955,204 1,301,012 1,566,064 4,985,571 4,521,268
TOTALS $ 66,224,431 $ 67,922,569 $ 2,094,123 $ 2,465,553 $ 68,318,554 $70,388,122
Additional information on City capital assets can be found in Note 3 in the notes to financial
statements on pages 70-72.
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B. Long-Term Debt
At year-end, the City had $40,894,867 in outstanding bonds and notes payable, compared to
$44,407,723 at June 30, 2020 with maturities extending through 2040.
Governmental Activities
2021 2020
Convention Center Renovation – 2008 $1,301,646 $1,455,949
Refinanced Convention Center – 2010 - 3,140,000
Refinanced Rental Building – 2011 - 1,265,000
Murray State University Agreement – 2011 1,624,534 1,749,410
Public Pool Renovations – 2013 650,000 720,000
Economic Development – 2013 1,445,000 1,600,000
Refinanced Public Projects – 2014 3,240,000 3,560,000
Refinanced Police/Firefighter Pension Fund Liability - 2014 1,985,000 2,420,000
CFSB Agreement - 2017 2,814,627 2,862,122
Riverfront and 911 Equipment – 2018 2,400,000 2,555,000
Kentucky Infrastructure Authority – 2018 322,622 298,504
Refinanced KLC and Floodwall Rehabilitation – 2018 1,715,000 2,045,000
Recreation Facility - 2020 20,520,000 20,520,000
Refinanced Convention Center – 2020 2,525,000 -
Net Premiums/Discounts 351,438 216,738
TOTALS $40,894,867 $44,407,723
The City had one new debt issue during FY2021.
Refinanced Convention and Performing Arts Center. In October 2020, the City issued general
obligation refunding bonds of $3,020,000 (2020B) to advance refund $3,140,000 of outstanding
2010B series bonds issued to refinance the original 2001 issue.
Debt issues prior to July 1, 2020 are described below:
Municipal Sports and Recreational Facility. In February 2020, the City issued general obligation
bonds of $20,520,000 to finance the construction of a municipal sports and recreation facility.
Riverfront and 911 Equipment. In August 2018, the City issued general obligation bonds of
$2,700,000 to finance 911 equipment ($1.045 million) and riverfront development ($1.655 million).
Refinanced KLC and Floodwall Rehabilitation. In August 2018, the City issued general
obligation bonds of $2,670,000 to refund $2,815,573 of outstanding Kentucky League of Cities
Funding Trust 2003 Lease and 2009 lease agreements issued to finance several public improvement
projects.
Kentucky Infrastructure Authority (KIA). In July 2018, the City entered into an agreement with
KIA to obtain up to $4,610,667 for rehabilitation of Pump Station #2.
Julian Carroll Convention Center Improvements. In January 2017, the City entered into an
agreement with Community Financial Services Bank in the amount of $3 million on behalf of
McCracken County to finance improvements to the Julian Carroll Convention Center.
Police/Firefighter Pension Fund Liability – Refinance. In November 2014, a $4.225 million
general obligation was issued to advance refund $3.845 of outstanding 2005 series bonds. The 2005
bonds were issued to finance the police and firefighters’ pension fund estimated pension liability.
- 26 -
Public Improvement Projects – Refinance. In May 2014, a $5.46 million general obligation was
issued to refund $5.545 million of outstanding 2010 series bonds. The 2010 bonds were issued to
finance several public improvement projects including a major park parking lot renovation and
several resurfacing projects, sports park property acquisition, pavilion acquisition, greenway trail
development, and the public portion of a hotel purchase.
Economic Development. In September 2013, $2.475 million in general obligation taxable bonds
were issued to finance a portion of construction of 1) improvements to a speculative building and 2)
an approximately 30,000 square foot building (TeleTech). Each of these buildings are being utilized
for separate economic development projects.
Public Pool Renovations. In September 2013, $1.12 million in general obligation bonds were issued
to finance Noble Park’s pool renovation project.
Murray State University (MSU) Agreement. In November 2011, the City entered into a general
obligation note in the amount of $2,674,093 with McCracken County and MSU to finance the
construction of an educational facility to be occupied by Murray State University.
Rental Building – Refinance. In August 2011, a $3.91 million bond obligation was issued to
advance refund $3.78 million of outstanding 2004 series bonds. The 2004 bonds were issued to
finance the construction of a rental building in the Paducah Industrial Park West. The previous
agreement with McCracken County was renewed: 50% of the principal amount of the bonds was
issued on behalf of McCracken County, Kentucky. The outstanding bonds were called in August
2020 from the sale of the property.
Convention and Performing Arts Center – Refinance. In August 2010, a $7.165 million general
obligation was issued to advance refund $6.725 million of outstanding 2001 series bonds. The 2001
bonds were issued to finance construction of the Luther F. Carson Four Rivers Center for the
Performing Arts and the expansion of the Julian Carroll Convention Center. The previous agreement
with McCracken County was renewed: 50% of the principal amount of the bond was issued on
behalf of McCracken County, Kentucky, and the County has issued the City a general obligation note
in a principal amount equal to 50% of the principal amount of the bonds.
Convention Center Renovation. In March 2009, McCracken County entered into an agreement in
the amount $5,000,000 with the Kentucky Association of Counties to finance renovations to the
Julian Carroll Convention Center. The note was issued by McCracken County; however, the City is
obligated for 50% of the principal amount through an Interlocal Cooperative Agreement between the
City and McCracken County.
The City’s legal debt limit under §158 of the Kentucky Constitution is 10% of total assessed value of
taxable property in Paducah; therefore, the debt limit is $275,884,749. The City’s latest bond rating
by Standard & Poor’s is AA-. The City has a relatively low amount of general obligation debt, which
explains our large legal debt margin.
The City of Paducah, Kentucky, issues and incurs debt in order to fund capital improvement projects,
purchase major capital equipment and facilities, and respond to other special funding needs. In fiscal
year 2021, just under 2% of the General Fund budget was expended for debt service, and thus has
minimal impact on current and future operations.
Additional information on the City’s long-term debt can be found in Note 3 in the notes to financial
statements on pages 74-78.
- 27 -
VII. Other Potentially Significant Matters.
A. Post-employment Benefits. Over the years, the City’s contribution to the Kentucky Retirement
System (CERS) has seen a substantial rise in costs that has significantly impacted the City’s
operating budget. The table and graph below show the actual cost of the City’s contributions to
CERS for both Non-Hazardous and Hazardous employees for selected fiscal years 2001, 2011, and
2021
CERS Employer Contributions
Non-Hazardous Hazardous
FY Rate Amount % Chg Rate Amount % Chg
20017.17% $401,380 16,78% $971,009
2011 16.93%$1,283,108 220%33.25%$2,599,817 168%
2021 24.06%$2,189,315 71% 39.58% $3,985,840 53%
In early spring 2013, the State of Kentucky passed a pension reform bill (Senate Bill 2) to prevent
pension costs from escalating even higher. This legislation established a hybrid cash balance plan
for participants entering the plan after January 1, 2014, that provides a retirement benefit based on
an individual’s accumulated account balance. It also reset the amortization period to a new 30-year
period beginning with FY2015. Other highlights include the elimination of automatic cost of living
increases for retirees and provisions for retirement “spiking.” However, employer contribution rates
will not differ for employees beginning participation after January 1, 2014. The contribution rates
will be determined based on all CERS membership, and any excess funds contributed on new
employees will be used to pay down the system’s unfunded liability.
During the 2018 Regular Session of the General Assembly, Senate Bill 151 was passed in an attempt
to further reduce the State’s pension liability. Some of the changes include adjusting retirement
formulas, creating an optional 401(a) defined contribution plan for future employees, and
implementing additional anti-spiking provisions. Because SB 151 did not include the strong
measures necessary to bring the retirement system to a healthy position, the rates set by KRS
remained unchanged, and participants in the plan were faced with substantial budget crises – for
some smaller entities it even presented going concern issues. In order to provide rate relief for the
employers participating in CERS, House Bill 362 was passed. This Bill states that the employer
- 28 -
contribution rates established by the board for CERS payable on or after July 1, 2018 and until June
30, 2028, for the pension and health insurance funds shall not increase more than 12% per year.
This resulted in 12% increases in contribution rates for each year subsequent to that, with exception
to FY2020, in which rates remained frozen at 24.06% and 39.58% for non-hazardous and hazardous
employees, respectively, due to financial concerns to local governments resulting from the Covid-19
pandemic.
In spite of the passage of the legislation described above, the future of the plan and long-term effects
on the City’s operations are of utmost concern. As indicated in the chart above, the City paid $6.2
million in contributions for FY2021
B. Police & Fire Pension Fund (PFPF) Unfunded Liability. In fiscal year 2006, the City issued $6.1
million in general obligation bonds to eliminate the unfunded pension liability. With the sharp
decline in value of the national stock market in 2009, the PFPF’s equity investment dropped
accordingly. PFPF net assets dropped in 2009 by nearly $3.5 million, or 28.5% of the beginning net
assets (July 1, 2008). The Fund still remains in an unfunded position due to these events. The July
2021 actuary study shows that the PFPF unfunded pension liability is approximately $2.1 million as
the following chart displays.
Since the 2009 drop, the City has contributed approximately $300,000 - $400,000 annually to meet
the actuary’s recommended amount toward the unfunded pension liability. The valuation as of July
1, 2021, indicates the minimum actuarially sound contribution for FY2022 will be $262,036.
VIII. Requests for Information
This financial report is designed to provide a general financial overview for those interested in the City
of Paducah government finances. Questions or requests for additional financial information may be
addressed to Jonathan Perkins, Finance Director, City of Paducah, 300 South 5th Street, Paducah, KY
42003.
CITY OF PADUCAH, KENTUCKY BASIC FINANCIAL STATEMENTS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2021
Exhibit 1
Component
Unit
Paducah
Governmental Business-type Water Works
Current Assets:Activities Activities Total Authority
Cash and cash equivalents 27,595,946$ 2,874,060$ 30,470,006$ 1,906,566$
Investments 30,249,987 1,500,000 31,749,987 -
Receivables, net:
Notes 285,816 - 285,816 -
Accounts 8,478,992 587,985 9,066,977 1,563,739
Grants 708,572 - 708,572 -
Interest 91,367 7,551 98,918 -
Property tax 6,377,702 - 6,377,702 -
Other - - - 713,998
Internal balances (594,804) 594,804 - -
Inventory 438,596 12,659 451,255 1,350,336
Prepaid expenses 515,360 - 515,360 86,722
Other current assets - - - 65,967
Total current assets 74,147,534 5,577,059 79,724,593 5,687,328
Noncurrent Assets:
Notes receivable 3,791,311 - 3,791,311 -
Capital assets:
Land and construction in progress 16,302,248 68,886 16,371,134 2,326,577
Depreciable capital assets 49,922,183 2,025,237 51,947,420 58,505,826
Cash, designated - - - 8,062,024
Other assets - - - 232,300
Total noncurrent assets 70,015,742 2,094,123 72,109,865 69,126,727
Total assets 144,163,276 7,671,182 151,834,458 74,814,055
Deferred Outflows of Resources:
Deferred pension related outflows 10,694,443 486,795 11,181,238 1,766,017
Deferred OPEB related outflows 7,461,097 454,734 7,915,831 1,420,457
Deferred charges on refunding 173,414 - 173,414 -
Total deferred outflows of resources 18,328,954 941,529 19,270,483 3,186,474
See accompanying notes to the basic financial statements.
CITY OF PADUCAH, KENTUCKY
STATEMENT OF NET POSITION
JUNE 30, 2021
ASSETS
-29-
Primary Government
Component
Unit
Paducah
Governmental Business-type Water Works
Current Liabilities:Activities Activities Total Authority
Voucher and accounts payable 2,451,804 200,676 2,652,480 750,226
Accrued payables 2,159,458 43,349 2,202,807 1,001,669
Unearned revenue 28,453 64,814 93,267 -
Accrued compensated absences 1,295,448 112,998 1,408,446 362,981
Accrued interest 399,645 - 399,645 - Notes payable due within one year 336,664 - 336,664 471,709
Bonds payable due within one year 1,995,000 - 1,995,000 -
Replacement reserve - - - 232,300
Other current liabilities - - - 108,785
Total current liabilities 8,666,472 421,837 9,088,309 2,927,670
Noncurrent Liabilities:
Accrued compensated absences 1,008,222 30,931 1,039,153 -
Landfill post-closure costs - 2,062,500 2,062,500 -
Net pension liability 69,595,312 3,168,088 72,763,400 9,325,623
Net other post employment benefits liability 20,841,352 997,132 21,838,484 2,935,112
Notes payable 5,726,765 - 5,726,765 5,292,712
Bonds payable 32,836,438 - 32,836,438 -
Total noncurrent liabilities 130,008,089 6,258,651 136,266,740 17,553,447
Total liabilities 138,674,561 6,680,488 145,355,049 20,481,117
Deferred Inflows of Resources
Deferred revenues - property taxes 6,118,973 - 6,118,973 -
Deferred pension related inflows 1,355,805 13,548 1,369,353 170,872
Deferred OPEB related inflows 3,027,911 184,241 3,212,152 556,138
Total deferred inflows of resources 10,502,689 197,789 10,700,478 727,010
Net invested in capital assets 57,608,864 2,094,123 59,702,987 55,067,982
Restricted for:
Housing and development projects - 105,322 105,322 -
Capital projects & infrastructure 563,002 - 563,002 -
Public safety 196,957 - 196,957 -
Unrestricted (45,053,843) (465,011) (45,518,854) 1,724,420
TOTAL NET POSITION 13,314,980$ 1,734,434$ 15,049,414$ 56,792,402$
-30-
LIABILITIES
NET POSITION
Primary Government
Exhibit 2
FUNCTIONS/PROGRAMS Operating
Charges for Grants and
Primary Government:Expenses Services Contributions
Governmental activities:
General government 12,846,090$ 1,268,310$ 498,955$ 110,640$
Public safety 28,084,323 363,503 3,155,814 1,018,171
Public service 6,761,258 985,735 701,409 207,146
Parks and recreation 3,477,584 35,371 - 302,557
Planning and development 2,284,229 - 566,606 23,500
Interest on long-term debt 694,776 - 113,605 -
Total governmental activities (See Note 1) 54,148,260 2,652,919 5,036,389 1,662,014
Business-type activities:
Solid Waste 4,849,815 4,561,051 62,715 -
Section Eight Housing 1,913,079 466 2,055,500 -
Civic Center 30,004 (2,750) - -
Transient Boat Dock 108,371 41,068 - -
Total business-type activities 6,901,269 4,599,835 2,118,215 -
TOTAL PRIMARY GOVERNMENT 61,049,529$ 7,252,754$ 7,154,604$ 1,662,014$
Component Unit:
Paducah Water Works Authority 11,762,195$ 12,560,675$ -$ 1,221,505$
TOTAL COMPONENT UNITS 11,762,195$ 12,560,675$ -$ 1,221,505$
General revenues:
Taxes and licenses:
Property taxes, levied for general purposes
Insurance premium tax
Gross receipts license tax
Employee license tax
Franchise tax
Telecommunications tax
Vehicle tax
Bank tax
Transient room tax
Other taxes
Unrestricted investment earnings
Sale of assets
Total general revenues
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning
Net position - ending
See accompanying notes to the basic financial statements.
CITY OF PADUCAH, KENTUCKY
Grants and
Contributions
FOR THE YEAR ENDED JUNE 30, 2021
STATEMENT OF ACTIVITIES
Program Revenues
Capital
-31-
Component Unit
Governmental Business-type Paducah Water
Activities Activities Total Works Authority
(10,968,185)$ -$ (10,968,185)$ -$
(23,546,835) - (23,546,835) -
(4,866,968) - (4,866,968) -
(3,139,656) - (3,139,656) -
(1,694,123) - (1,694,123) -
(581,171) - (581,171) -
(44,796,938) - (44,796,938) -
- (226,049) (226,049) -
- 142,887 142,887 -
- (32,754) (32,754) -
- (67,303) (67,303) -
- (183,219) (183,219) -
(44,796,938) (183,219) (44,980,157) -
- - - 2,019,985
- - - 2,019,985
5,915,288 - 5,915,288 -
5,819,896 - 5,819,896 -
4,530,125 - 4,530,125 -
22,064,353 - 22,064,353 -
334,487 - 334,487 -
629,429 - 629,429 -
867,472 - 867,472 -
391,897 - 391,897 -
1,211,819 - 1,211,819 -
383,814 - 383,814 -
368,425 27,226 395,651 40,884
- 59,348 59,348 13,604
42,517,005 86,574 42,603,579 54,488
240,537 (240,537) - -
42,757,542 (153,963) 42,603,579 54,488
(2,039,396) (337,182) (2,376,578) 2,074,473
15,354,376 2,071,616 17,425,992 54,717,929
13,314,980$ 1,734,434$ 15,049,414$ 56,792,402$
Net (Expense) Revenue and Changes in Net Position
Primary Government
-32-
CITY OF PADUCAH, KENTUCKY BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2021
Exhibit 3
General Bond
Fund Fund
Assets
Cash and cash equivalents 12,976,943$ 2,405,266$ 29,167$
Investments 5,500,000 - 19,749,987
Receivables:
Accounts 7,777,816 -
Grants 258,978 -
Interest 49,001 -
Property taxes (net of allowances for uncollectibles)6,417,702 -
Inventory - -
Prepaid items - -
Due from other funds - 1,403,855
Total Assets 32,980,440$ 3,809,121$ 19,779,154$
Liabilities
Voucher and accounts payable 736,310$ 154,000$ -$
Accrued payroll and payroll taxes 1,544,153 - -
Due to other funds 1,403,855 - -
Due to other taxing agencies 542,320 - -
Unearned revenue - other 5,010 - -
Accrued compensated absences 171,458 - -
Total liabilities 4,403,106 154,000 -
Deferred Inflows of Resources
Unavailable revenue-property taxes 6,368,341 - -
Fund Balances:
Nonspendable
Inventory - - -
Restricted for:
Highways and streets - - -
Public safety - -
Capital improvements - - 19,779,154
Committed for:Capital improvements - 3,655,121 -
Pension reserve 670,365 - -
Assigned for:
Public safety - - -
Debt service - - -
Capital improvements - - -
Unassigned:
General Fund 21,538,628 - -
Total fund balances 22,208,993 3,655,121 19,779,154
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 32,980,440$ 3,809,121$ 19,779,154$
See accompanying notes to the basic financial statements.
-33-
Special Revenue
Fund
Investment
CITY OF PADUCAH, KENTUCKY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
General Debt
Capital Service
Improvements Fund
5,218,673$ 1,005,449$ 1,044,194$ 22,679,692$
1,500,000 500,000 - 27,249,987
291,946 - 336,495 8,406,257
449,594 - - 708,572
- 3,158 - 52,159
- - - 6,417,702
376,339 - - 376,339
- - -
- - - 1,403,855
7,836,552$ 1,508,607$ 1,380,689$ 67,294,563$
1,088,563$ -$ 237,702$ 2,216,575$
- - 55,912 1,600,065
- - - 1,403,855
- - - 542,320
800 - - 5,810
- - - 171,458
1,089,363 - 293,614 5,940,083
- - - 6,368,341
376,339 - - 376,339
- - 563,002 563,002
- - 196,957 196,957
- - - 19,779,154
- - - 3,655,121
- - - 670,365
- - 327,116 327,116
- 1,508,607 - 1,508,607
6,370,850 - - 6,370,850
- - - 21,538,628
6,747,189 1,508,607 1,087,075 54,986,139
7,836,552$ 1,508,607$ 1,380,689$ 67,294,563$
-34-
Nonmajor
Governmental Governmental
Total
FundsFunds
Exhibit 4
Total fund balance - total governmental funds 54,986,139$
Amounts reported for governmental activities in the Statement
of Net Position are different because:
209,368
4,077,127
27,126
66,224,431
173,414
(3,027,911)
7,461,097
(1,355,805)
10,694,443 13,945,238
See accompanying notes to the basic financial statements. (Continued)
-35-
Deferred refunding costs and deferred pension activity in
governmental activities are not current financial resources or
payables and,therefore, are not reported in the governmental funds
balance sheet:
Capital assets used in governmental activities are not current
financial resources and,therefore, are not reported in the
governmental funds balance sheet.This amount includes capital
assets of Internal Service Funds.
Deferred refunding costs
Deferred pension related inflows
Deferred OPEB related inflows
Deferred OPEB related outflows
Deferred pension related outflows
CITY OF PADUCAH, KENTUCKY
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO STATEMENT OF NET POSITION
Delinquent property taxes receivable are not reported in the
governmental funds balance sheet since they are not considered
"available" revenues.
Interest receivable on the long-term notes receivable is not reported
on the governmental funds balance sheet since neither the note
receivable nor the interest is available to pay current period
expenditures.
JUNE 30, 2021
The long-term notes receivable are not reported in the governmental
funds balance sheet since they are not available to pay current period
expenditures.
Exhibit 4
(Continued)
(2,071,977)$
(399,645)
$ 2,331,664
128,999,868 (131,331,532)
8,578,686$
(335,177)
(594,804) 7,648,705
NET POSITION OF GOVERNMENTAL ACTIVITIES 13,314,980$
See accompanying notes to the basic financial statements.
JUNE 30, 2021
Long-term pensions,OPEB,bonds and notes of ($131,331,532)are
not due and payable in the current period and,therefore,they are not
reported in the governmental funds balance sheet.The long-term
pensions, OPEB, bonds and notes are:
CITY OF PADUCAH, KENTUCKY
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO STATEMENT OF NET POSITION
The portion of accrued compensated absences that are not due and
payable in the current period, and therefore,not reported in the
governmental funds balance sheet.
Accrued interest payments on debt are not due and payable in the
current period and,therefore, are not reported in the governmental
funds balance sheet.
-36-
Due within one year
Due after one year
Current assets
Net amount allocated to
Internal service funds are used by management to charge the costs of
certain activities,such as insurance and fleet management,to
individual funds. The assets and liabilities of the Internal Service
Funds (net of amount allocated to business-type activities)not
included in other reconciling items are:
Current liabilities
business-type activities
Exhibit 5
General Investment Bond
Revenues:Fund Fund Fund
Taxes 8,219,381$ -$ -$
Licenses 27,457,182 5,414,682 -
Charges for services 599,199 - -
Intergovernmental - - -
Grants 3,298,308 - -
Interest 164,745 - 125,240
Property upkeep, rentals, sales and other 1,108,053 - -
Total revenues 40,846,868 5,414,682 125,240
Expenditures:
Current operations:
General government 5,448,505 - -
Public safety 19,681,771 - -
Public service 4,988,813 - -
Parks and recreation 2,945,053 - -
Planning and development - 1,073,622 -
Intergovernmental and other 1,393,692 - -
Capital outlay - - -
Debt service:
Principal requirement - - -
Debt issuance costs - - 49,076
Interest requirement - - 3,944
Total expenditures 34,457,834 1,073,622 53,020
Excess (deficiency) of revenues over expenditures 6,389,034 4,341,060 72,220
Other Financing Sources (Uses):
Refunding debt issued - - 3,020,000
Issuance of notes payable - -
Payment to refunded bond escrow agent - - (3,187,734)
Premium on debt issued - - 232,710
Discount on debt issued - - (11,955)
Transfers in 1,498,177 154,000 -
Transfers out (5,322,851) (3,774,226) (323,229)
Total other financing sources (uses)(3,824,674) (3,620,226) (270,208)
Net change in fund balances 2,564,360 720,834 (197,988)
Fund balances - beginning 19,644,633 2,934,287 19,977,142
Fund balances - ending 22,208,993$ 3,655,121$ 19,779,154$
See accompanying notes to the basic financial statements.
-37-
CITY OF PADUCAH, KENTUCKY
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Special Revenue
General Debt
Capital Service
Improvements Fund
-$ -$ 1,555,520$ 9,774,901$
- - - 32,871,864
- - 323,756 922,955
26,250 1,286,147 494,042 1,806,439
1,041,306 - 225,734 4,565,348
- 16,160 6,787 312,932
512,623 1,937,723 591,984 4,150,383
1,580,179 3,240,030 3,197,823 54,404,822
- - - 5,448,505
- - 2,060,063 21,741,834
- - 1,018,158 6,006,971
- - - 2,945,053
- - 1,409,319 2,482,941
- - - 1,393,692
4,499,609 - - 4,499,609
- 3,575,792 - 3,575,792
- - - 49,076
- 1,180,978 - 1,184,922
4,499,609 4,756,770 4,487,540 49,328,395
(2,919,430) (1,516,740) (1,289,717) 5,076,427
- - - 3,020,000
48,236 - - 48,236
- - - (3,187,734)
- - - 232,710
- - - (11,955)
5,019,015 2,807,092 1,504,211 10,982,495
(38,336) (1,054,000) (395,676) (10,908,318)
5,028,915 1,753,092 1,108,535 175,434
2,109,485 236,352 (181,182) 5,251,861
4,637,704 1,272,255 1,268,257 49,734,278
6,747,189$ 1,508,607$ 1,087,075$ 54,986,139$
-38-
Governmental
Total
FundsFunds
Nonmajor
Governmental
Exhibit 6
Net change in fund balances - total governmental funds 5,251,861$
Amounts reported for governmental activities in the Statement
of Activities are different because:
4,056,766
(965,824)
(1,038)
(7,371,945)
(3,068,236)
(2,098,436)
(3,663,104)
See accompanying notes to the basic financial statements.(Continued)
-39-
The payments of pension and OPEB contributions require the use of current
financial resources and,therefore, are reported as expenditures in governmental
funds.However,the current year payments are deferred outflows of resources
in the government-wide statements and accrued pension and OPEB expenses are
recorded when incurred.
Proceeds of the issuance of debt provides current financial resources and is
reported as an other financing source in governmental funds.
Payments on property taxes recognized as revenues when received in the
governmental funds and as levied in the government-wide statements.This is
the amount of cash collections that exceeded accrued property tax revenues.
Only the loss on the disposal of capital assets is reported in the Statement of
Activities,whereas in the governmental funds, the proceeds from the sale
increases financial resources.Thus, the change in net position differs by the net
book value of capital assets disposed.
CITY OF PADUCAH, KENTUCKY
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Collections on long-term notes receivables and related interest receivable are
revenues in the government funds when collected.
Governmental funds report capital outlays as expenditures.However,in the
Statement of Activities,the cost of those assets is allocated over their estimated
useful lives as depreciation expense.This is the capitalized amount of capital
outlays in the current period. This amount includes Internal Service Fund's
capital outlays of $1,611,439.
Depreciation expense on capital assets is reported in the government-wide
Statement of Activities and Changes in Net Position, but does not require the
use of current financial resources. Therefore, depreciation expense is not
reported as an expenditure in governmental funds. This amount includes
Internal Service Funds' depreciation expense of $964,295.
Exhibit 6
(Continued)
6,715,792$
(70,247)
(121,071)
(150,404)
58,337$
35,297
Capital Outlays (1,611,439)
964,295 (553,510)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES (2,039,396)$
See accompanying notes to the basic financial statements.
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
Governmental funds report the effect of bond premiums,discounts and
refunding costs when debt is issued, whereas these amounts are deferred and
amortized in the Statement of Activities.
TO THE STATEMENT OF ACTIVITIES
Long-term accrued compensated absences do not require the use of current
financial resources and,therefore, are not reported as expenditures in
governmental funds.
Principal payments of debt and payment to escrow agent for refunding require
the use of current financial resources and,therefore, are reported as
expenditures in governmental funds.However,these payments of debt do not
affect net position in the government-wide Statement of Activities.
Accrued interest payments on debt do not require the use of current financial
resources. Interest expense is reported net of the change in accrued interest
payable in the government-wide Statement of Activities.
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
CITY OF PADUCAH, KENTUCKY
-40-
Internal service funds are used by management to charge the costs of certain
activities,such as insurance and fleet management,to individual funds. The net
revenue of the Internal Service Funds is reported with governmental activities
net of the amount allocated to business-type activities and depreciation expense.
These amounts are as follows:
Change in net position
business-type activities
Depreciation expense
Net of amount allocated to
Exhibit 7
Variance with
Final Budget
Positive
Original Final (Negative)
Revenues:
Taxes:
Real and personal,
current year 6,398,000$ 6,398,000$ 6,683,748$ 285,748$
Real and personal,
prior year 0 0 28,953 28,953
Franchise 170,000 170,000 334,487 164,487
Bank taxes 355,000 355,000 391,897 36,897
In lieu of tax payment 314,000 314,000 315,187 1,187
Penalty, interest and
advertising 55,000 55,000 68,251 13,251
Paducah Junior College
tax collections - - 396,858 396,858
Total taxes 7,292,000 7,292,000 8,219,381 927,381
Licenses:
Business licenses 3,800,000 3,800,000 4,530,125 730,125
Employee earnings 14,400,000 14,400,000 16,649,670 2,249,670
Cable franchise fees 306,000 306,000 345,696 39,696
Penalties 215,000 215,000 139,705 (75,295)
Alcoholic beverages 157,000 157,000 80,105 (76,895)
Insurance premium tax 4,800,000 4,800,000 5,819,896 1,019,896
Building permits 165,000 165,000 134,662 (30,338)
Electrical permits 40,000 40,000 49,155 9,155
Zoning change fees 7,000 7,000 9,984 2,984
Miscellaneous building
and electrical fees 5,000 5,000 4,620 (380)
Payroll tax sharing with County (329,000) (329,000) (306,436) 22,564
Total licenses 23,566,000 23,566,000 27,457,182 3,891,182
Charges for services:
Tax collection fee 202,500 202,500 222,099 19,599
Administrative charge 315,000 315,000 317,500 2,500
Base court revenue 35,000 35,000 24,230 (10,770)
Recreation fees 115,000 115,000 35,370 (79,630)
Total charges for services 667,500 667,500 599,199 (68,301)
See accompanying notes to the basic financial statements.(Continued)
ActualBudgeted Amounts
-41-
CITY OF PADUCAH, KENTUCKY
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2021
Amounts
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
Exhibit 7
(Continued)
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Grants:
Police State Incentive 415,000$ 415,000$ 377,961$ (37,039)$
Fire State Incentive 398,000 398,000 359,106 (38,894)
Police supplemental grants 30,000 30,000 2,354,960 2,324,960
Other grants - - 206,281 206,281
Total grants 843,000 843,000 3,298,308 2,455,308
Interest 163,000 163,000 164,745 1,745
Other:
Property rent and sales 722,162 722,162 713,015 (9,147)
Property upkeep and
maintenance 120,965 120,965 86,728 (34,237)
E911 - GIS 33,060 33,060 33,060 -
Miscellaneous 145,000 154,855 275,250 120,395
Total other 1,021,187 1,031,042 1,108,053 77,011
Total revenues 33,552,687 33,562,542 40,846,868 7,284,326
Expenditures:
General government:
General administration:
Mayor and Commissioners 258,440 255,100 221,124 33,976
City Manager 831,545 881,585 778,027 103,558
City Clerk 429,745 436,140 432,595 3,545
Corporate Counsel 173,090 162,960 157,986 4,974
Non-departmental 1,067,460 861,163 898,078 (36,915)
Memberships and contingency 6,000 5,865 4,139 1,726
Civic beautification - 3,000 1,177 1,823
Total general administration 2,766,280 2,605,813 2,493,126 112,687
Finance:
Finance administration 264,650 247,620 242,006 5,614
Accounting and payroll 412,280 427,495 406,889 20,606
Revenue collection 463,375 465,190 444,753 20,437
Total finance 1,140,305 1,140,305 1,093,648 46,657
See accompanying notes to the basic financial statements.(Continued)
CITY OF PADUCAH, KENTUCKY
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
Budgeted Amounts
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2021
FUND BALANCE - BUDGET AND ACTUAL
-42-
Exhibit 7
(Continued)
Variance with
Final Budget
Actual Positive
General government:Original Final Amounts (Negative)
Planning:
Administration 234,350$ 228,655$ 226,188$ 2,467$
Planning 382,280 426,270 423,257 3,013
Total planning 616,630 654,925 649,445 5,480
Radio and rental property 193,565 193,565 87,658 105,907
Human rights 17,025 17,025 11,276 5,749
Information systems 705,020 751,975 746,921 5,054
Human resources/risk management 356,360 371,105 366,431 4,674
Total general government 5,795,185 5,734,713 5,448,505 286,208
Public safety:
Police:
Police administration 1,254,190 1,215,895 1,149,608 66,287
Patrol 7,391,730 7,241,945 7,239,306 2,639
Investigations 2,155,455 2,171,990 2,106,219 65,771
Total police 10,801,375 10,629,830 10,495,133 134,697
Fire:
Fire administration 584,355 601,920 589,634 12,286
Suppression 7,405,390 7,396,310 7,315,891 80,419
Prevention and inspection 1,146,630 1,114,720 1,091,271 23,449
Training 176,870 189,950 189,842 108
Total fire 9,313,245 9,302,900 9,186,638 116,262
Total public safety 20,114,620 19,932,730 19,681,771 250,959
Public service:
Public works:
Street maintenance 2,356,395 2,332,910 2,092,109 240,801
Street lighting 795,000 795,000 732,008 62,992
Facility maintenance 1,095,815 1,089,580 952,704 136,876
Total public works 4,247,210 4,217,490 3,776,821 440,669
See accompanying notes to the basic financial statements.(Continued)
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
CITY OF PADUCAH, KENTUCKY
Budgeted Amounts
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2021
-43-
Exhibit 7
(Continued)
Variance with
Final Budget
Actual Positive
Public service:Original Final Amounts (Negative)
Engineering services:
Engineering services 558,370$ 583,305$ 574,528$ 8,777$
Flood control 899,920 874,985 637,465 237,520
Total engineering services 1,458,290 1,458,290 1,211,993 246,297
Total public service 5,705,500 5,675,780 4,988,814 686,966
Parks and recreation:
Parks and recreation administration 756,660 824,440 806,752 17,688
Grounds maintenance 1,261,800 1,387,700 1,326,268 61,432
Pools and recreation programs 1,278,495 1,023,970 812,033 211,937
Total parks and recreation 3,296,955 3,236,110 2,945,053 291,057
Intergovernmental and other:
Cable authority 88,570 88,570 85,459 3,111
Intergovernmental expense - - 396,858 (396,858)
Donated assets - - 911,375 (911,375)
Total intergovernmental and other 88,570 88,570 1,393,692 (1,305,122)
Total expenditures 35,000,830 34,667,903 34,457,835 210,068
Excess (deficiency) of revenues over expenditures (1,448,143) (1,105,361) 6,389,033 7,494,394
Other financing sources (uses):
Transfers in 1,005,000 1,998,338 1,498,177 (500,161) Transfers out (1,868,855) (5,204,975) (5,322,850) (117,875)
Total other financing sources (uses)(863,855) (3,206,637) (3,824,673) (618,036)
Net change in fund balance (2,311,998) (4,311,998) 2,564,360 6,876,358
Fund balance - beginning 19,644,633 19,644,633 19,644,633 -
Fund balance - ending 17,332,635$ 15,332,635$ 22,208,993$ 6,876,358$
See accompanying notes to the basic financial statements.
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
-44-
CITY OF PADUCAH, KENTUCKY
Budgeted Amounts
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2021
Exhibit 8
Variance with
Final Budget
Positive
Original Final (Negative)
Revenues:
Licenses:
Employee earnings 4,800,000$ 4,800,000$ 5,414,682$ 614,682$
Total licenses 4,800,000 4,800,000 5,414,682 614,682
Total revenues 4,800,000 4,800,000 5,414,682 614,682
Expenditures:
General government:
Planning and development:
Economic development 989,250 1,088,250 1,073,622 14,628
Total expenditures 989,250 1,088,250 1,073,622 14,628
Excess (deficiency) of revenues
over expenditures 3,810,750 3,711,750 4,341,060 629,310
Other financing sources (uses):
Transfers in - - 154,000 154,000
Transfers out (4,124,310) (4,179,310) (3,774,226) 405,084
Total other financing sources (uses)(4,124,310) (4,179,310) (3,620,226) 559,084
Net change in fund balance (313,560) (467,560) 720,834 1,188,394
Fund balance - beginning 2,934,287 2,934,287 2,934,287 -
Fund balance - ending 2,620,727$ 2,466,727$ 3,655,121$ 1,188,394$
See accompanying notes to the basic financial statements.
ActualBudgeted Amounts
-45-
Amounts
CITY OF PADUCAH, KENTUCKY
SPECIAL REVENUE INVESTMENT FUND
FOR THE YEAR ENDED JUNE 30, 2021
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
Exhibit 9
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues:
Grants -$ -$ -$ -$
Interest 110,500 110,500 125,240 14,740
Total revenues 110,500 110,500 125,240 14,740
Expenditures:
Debt issuance costs - - 49,076 (49,076)
Interest and fiscal requirement - - 3,944 (3,944)
Capital outlay 51,000 51,000 - 51,000
Total expenditures 51,000 51,000 53,020 (2,020)
Excess (deficiency) of revenues over
expenditures 59,500 59,500 72,220 12,720
Other Financing Sources (Uses):
Refunding debt issued - - 3,020,000 3,020,000
Payment to refunded bond escrow agent - - (3,187,734) (3,187,734)
Premium on debt issued - - 232,710 232,710
Discount on debt issued - - (11,955) (11,955)
Transfers in - - - -
Transfers out (19,705,000) (50,000) (323,229) (273,229)
Total other financing sources (uses)(19,705,000) (50,000) (270,208) (220,208)
Net change in fund balance (19,645,500)$ 9,500$ (197,988) (207,488)$
Fund balance, July 1, 2020 19,977,142
FUND BALANCE, JUNE 30, 2021 19,779,154$
See accompanying notes to the basic financial statements.
-46-
FOR THE YEAR ENDED JUNE 30, 2021
CITY OF PADUCAH, KENTUCKY
SPECIAL REVENUE BOND FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
Budgeted Amounts
Exhibit 10
Nonmajor
Solid Enterprise
Current Assets:Waste Funds Totals
Cash and cash equivalents 2,448,674$ 425,386$ 2,874,060$ 4,916,253$
Investments 1,500,000 - 1,500,000 3,000,000
Accounts receivable 587,985 - 587,985 84,817
Interest receivable 7,551 - 7,551 -
Prepaid expenses - - - 515,360
Inventory - 12,659 12,659 62,256
Total current assets 4,544,210 438,045 4,982,255 8,578,686
Noncurrent Assets:
Net capital assets:
Land 68,886 - 68,886 -
Depreciable capital assets 1,945,811 79,426 2,025,237 3,917,723
Total noncurrent assets 2,014,697 79,426 2,094,123 3,917,723
Total assets 6,558,907 517,471 7,076,378 12,496,409
Deferred Outflows of Resources:
Deferred pension related outflows 465,938 20,857 486,795 148,145
Deferred OPEB related outflows 430,299 24,435 454,734 135,171
Total deferred outflows of resources 896,237 45,292 941,529 283,316
Current Liabilities:
Voucher and accounts payable 138,805 61,871 200,676 235,229
Accrued payroll and payroll taxes 42,758 591 43,349 17,071
Accrued compensated absences 112,275 723 112,998 25,129
Unearned revenue - 64,814 64,814 22,643
Due to other funds - - - -
Total current liabilities 293,838 127,999 421,837 300,072
Noncurrent Liabilities:
Net pension liability 2,997,846 170,242 3,168,088 941,723
Net other post employment benefits liability 943,550 53,582 997,132 296,400
Landfill post-closure costs 2,062,500 - 2,062,500 -
Accrued compensated absences 24,426 6,505 30,931 35,105
Total noncurrent liabilities 6,028,322 230,329 6,258,651 1,273,228
Total liabilities 6,322,160 358,328 6,680,488 1,573,300
Deferred Inflows of Resources
Deferred pension related inflows 12,820 728 13,548 4,027
Deferred OPEB related inflows 174,341 9,900 184,241 54,768
Total deferred inflows of resources 187,161 10,628 197,789 58,795
Net invested in capital assets 2,014,697 79,426 2,094,123 3,917,723
Restricted - Housing - 105,322 105,322 -
Unrestricted (1,068,874) 9,059 (1,059,815) 7,229,907
TOTAL NET POSITION 945,823$ 193,807$ 1,139,630 11,147,630$
Reconciliation to government-wide statements of net position:
Adjustment to reflect the consolidation of Internal Service Funds'
activities related to Enterprise Funds 594,804
NET POSITION OF BUSINESS-TYPE ACTIVITIES 1,734,434$
See accompanying notes to the basic financial statements.
-47-
Business-type Activities
ASSETS
LIABILITIES
NET POSITION
Funds
Service
Internal
Governmental
Activities
CITY OF PADUCAH, KENTUCKY
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
Exhibit 11
Nonmajor
Solid Enterprise
Operating Revenues:Waste Funds Totals
Charges for services - internal -$ 41,068$ 41,068$ 5,971,425$
Charges for services - external 4,560,891 - 4,560,891 278,495
Miscellaneous 160 550 710 -
Total operating revenues 4,561,051 41,618 4,602,669 6,249,920
Operating Expenses:
Cost of sales and service 4,107,684 2,044,266 6,151,950 5,538,831
Depreciation and amortization 662,975 10,021 672,996 964,295
Total operating expenses 4,770,659 2,054,287 6,824,946 6,503,126
Operating income (loss)(209,608) (2,012,669) (2,222,277) (253,206)
Nonoperating Revenues (Expenses):
Grants - program purpose 62,715 2,055,500 2,118,215 -
Interest and investment income 27,164 61 27,225 55,491
Gain (loss) on disposal of property
and equipment 59,348 - 59,348 45,835
Total nonoperating revenues (expenses)149,227 2,055,561 2,204,788 101,326
Income (loss) before contributions and
transfers (60,381) 42,892 (17,489) (151,880)
Contributions and Transfers:
Transfers in - 94,283 94,283 275,217
Transfers out (363,859) (14,820) (378,679) (65,000)
Total contributions and transfers (363,859) 79,463 (284,396) 210,217
Change in net position (424,240) 122,355 (301,885) 58,337
Net position - beginning 1,370,063 71,452 11,089,293
Net position - ending 945,823$ 193,807$ 11,147,630$
Reconciliation to government-wide statements of net position:
Adjustment to reflect the consolidation of Internal Service Funds'
activities related to Enterprise Funds (35,297)
CHANGE IN NET POSITION OF BUSINESS-TYPE ACTIVITIES (337,182)$
See accompanying notes to the basic financial statements.
CITY OF PADUCAH, KENTUCKY
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Governmental
Internal
Service
Funds
-48-
ActivitiesBusiness-type Activities
Exhibit 12
Nonmajor
Solid Enterprise
Cash Flows from Operating Activities:Waste Funds Totals
Cash received from customers 4,512,375$ 41,152$ 4,553,527$ -$
Cash received from interfund services provided - - - 6,610,173
Payments to suppliers (2,598,125) - (2,598,125) 338,574
Payments to employees (739,941) (56,464) (796,405) (208,901)
Claims paid - - - (3,959,959)
Payments to internal service funds (483,562) (3,252) (486,814) -
Other receipts 160 466 626 -
Other payments - (2,045,371) (2,045,371) (811,068)
Net cash provided (used) by operating activities 690,907 (2,063,469) (1,372,562) 1,968,819
Cash Flows from Noncapital Financing Activities:
Grants - program purpose 62,715 2,078,828 2,141,543 -
Transfers from other funds - 94,283 94,283 275,217
Transfers to other funds (363,859) (14,820) (378,679) (65,000)
Net cash provided (used) by noncapital
financing activities (301,144) 2,158,291 1,857,147 210,217
Cash Flows from Capital and Related
Financing Activities:
Purchase of capital assets (301,567) - (301,567) (1,618,077)
Proceeds from sale of capital assets 59,348 - 59,348 45,835
Net cash provided (used) by capital and
related financing activities (242,219) - (242,219) (1,572,242)
Cash Flows from Investing Activities:
Interest on cash and investments 21,066 61 21,127 55,491
Purchase of investments - - - -
Net cash provided (used) by investing
activities 21,066 61 21,127 55,491
Net increase (decrease) in cash and cash
equivalents 168,610 94,883 263,493 662,285
Cash and cash equivalents, July 1, 2020 2,280,064 330,503 2,610,567 4,253,968
CASH AND CASH EQUIVALENTS,
JUNE 30, 2021 2,448,674$ 425,386$ 2,874,060$ 4,916,253$
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities:
Operating income (loss) (209,608)$ (2,012,669)$ (2,222,277)$ (253,206)$
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation and amortization 662,975 10,021 672,996 964,295
Change in assets and liabilities:
Receivables (48,516) - (48,516) 361,383
Prepaid expenses - - - 684,640
Inventories - 1,198 1,198 (9,433)
Unearned revenues - 23,328 23,328 -
OPEB obligation and related deferrals 229,769 (4,371) 225,398 19,190
Pension obligation and related deferrals 30,255 (16,618) 13,637 104,083
Account and accrued payables 26,032 (64,358) (38,326) 97,867
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES 690,907$ (2,063,469)$ (1,372,562)$ 1,968,819$
See accompanying notes to the basic financial statements.
CITY OF PADUCAH, KENTUCKY
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
-49-
Governmental
Activities
Internal
Service
Business-type Activities
Funds
Exhibit 13
Private-
Pension purpose
Funds Trusts
Cash and cash equivalents 220$ 45,642$
Receivables:
Interest 2,066 -
Other - -
Investments at fair value
Money market funds 111,724 -
Common stock 2,109,063 -
Mutual funds 2,963,923 1,308,348
Total assets 5,186,996 1,353,990
Voucher and accounts payable 48 -
Payroll taxes and withholdings
payable - -
Total liabilities 48 -
Net position restricted for pensions 5,186,948$
Held in trust for other purposes 1,353,990$
See accompanying notes to the basic financial statements
NET POSITION
Primary Government
-50-
ASSETS
LIABILITIES
CITY OF PADUCAH, KENTUCKY
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2021
Exhibit 14
Private-
Pension purpose
Additions:Funds Trusts
Contributions:
Employer 362,475$ -$
Plan members - -
Private donations - 4,080
Total contributions 362,475 4,080
Investment income:
Net increase (decrease) in
fair value of investments 1,095,790 162,022
Interest and dividends 69,462 141,580
Net investment income 1,165,252 303,602
Total additions 1,527,727 307,682
Deductions:
Benefits 990,862 -
Capital outlay - 97,762
Administrative expenses 46,053 15,341
Total deductions 1,036,915 113,103
Change in net position 490,812 194,579
Net position - beginning 4,696,136 1,159,411
Net position - ending 5,186,948$ 1,353,990$
See accompanying notes to the basic financial statements.
-51-
STATEMENT OF CHANGES IN NET POSITION
CITY OF PADUCAH, KENTUCKY
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
CITY OF PADUCAH, KENTUCKY NOTES TO THE FINANCIAL STATEMENTS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2021
- 52 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Accounting Policies:
General Statement
The City of Paducah (City) complies with generally accepted accounting principles (GAAP) as applied to
governmental units. This requires the use of the accrual basis of accounting for government-wide
financial statements and proprietary funds financial statements and a modified accrual basis of accounting
for the governmental funds financial statements. The Governmental Accounting Standards Board (GASB)
is the accepted standard-setting body for establishing governmental accounting and financial reporting
principles. The financial reporting entity, basis of accounting, and other significant policies employed by
the City are summarized as follows:
Financial Reporting Entity
The City operates under a City Manager form of government. The Board of Commissioners consists of a
Mayor and four Commissioners elected at large by the citizens on a non-partisan basis. As required by
generally accepted accounting principles, the financial statements of the reporting entity include those of
the City of Paducah (the primary government) and its component units. The component units discussed
below are included in the City’s reporting entity because of the significance of their operational or
financial relationships with the City.
Blended Component Units
Police and Firefighters’ Pension Fund – This retirement fund was established for the benefit of the
police and firemen of the City. It is administered by a Board of Trustees consisting of the Mayor, City
Finance Director and representatives of the Police and Fire Departments. The Board is authorized to
establish benefit levels and to approve actuarial assumptions used in the determination of contribution
levels. The pension fund is reported as a fiduciary fund and does not issue separate financial statements.
Discretely Presented Component Units
The component unit column in the government-wide financial statements includes the financial data of the
City’s other component unit. It is reported in a separate column to emphasize that it is legally separate
from the City. The following component unit is included in the reporting entity because of its financial
relationship with the City; and, the City is able to impose its will on the organization.
Paducah Water Works – The City of Paducah Water Works Commission is appointed by the Mayor
and City Commission. The rates for user charges and bond issuance authorizations are subject to
approval by the City Commission of the City of Paducah.
Complete financial statements of the individual component unit can be obtained from its respective
administrative office at the following location:
Paducah Water Works
1801 N. 8th Street
Paducah, Kentucky 42003
(Continued)
- 53 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Accounting Policies:
Related Organizations
City officials are also responsible for appointing the members of boards of other organizations; but, the
City’s accountability for these organizations do not extend beyond appointing authority. The
organizations listed below are notable related organizations which have not been included as component
units in the City’s report.
Transit Authority of the City of Paducah – The Transit Authority is a legally separate entity that
provides for transit operations both within and outside the City. The Transit Authority is not financially
accountable to the City.
Paducah Housing Authority – The Paducah Housing Authority (PHA) is a legally separate entity that
provides for construction, operation, and management of low-income housing projects within the City.
PHA is a legally separate entity and is not financially accountable to the City.
Paducah Power System – The Paducah Power System (PPS) is a legally separate entity that provides
electric utilities to residents in the Paducah area. PPS is not financially accountable to the City.
Joint Sewer Agency – As of July 1, 1999, the assets and liabilities of the Wastewater/Stormwater Fund
were transferred to the Paducah-McCracken County Joint Sewer Agency pursuant to a municipal order
dated June 29, 1999. The Paducah-McCracken County Joint Sewer Agency is a legally separate entity
and is not financially accountable to the City.
Forest Hills Village, Inc. – The Corporation’s purpose is to manage City of Paducah properties known
as “Forest Hills Housing Development”. The City and Corporation have a lease agreement detailing
the terms and conditions of operations. Forest Hills Village, Inc. is a legally separate entity and is not
financially accountable to the City.
Paducah Junior College, Incorporated (PJC) – The College is a part of the University of Kentucky’s
Community College System which is now administered by the Kentucky Community and Technical
College System. The Community College System receives student tuition, fees and other related
income that provides the financing for the operational budget of the College. A tax levied and collected
by the City is a primary revenue source for the College. These funds, as well as gifts and grants made
to the College, may be used for the acquisition or improvement of property or to finance programs
beyond the level of those normally provided by community colleges in the University of Kentucky
system. PJC is a legally separate entity and is not financially accountable to the City.
Mainstreet – Mainstreet is a 501(c)3 established for the promotion of cultural and economic growth in
Downtown Paducah. Mainstreet is a legally separate entity and is not financially accountable to the
City.
(Continued)
- 54 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Account Policies:
Basis of Presentation
Government-wide Financial Statements
The Statement of Net Position and Statement of Activities display information about the reporting
government as a whole. They include all funds of the reporting entity except for fiduciary funds. The
statements distinguish between governmental and business-type activities. Governmental activities
generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.
Business-type activities are financed in whole or in part by fees charged to external parties for goods or
services.
Fund Financial Statements
Fund financial statements of the reporting entity are organized into funds, each of which is considered to
be separate accounting entities. Each fund is accounted for by providing a separate set of self-balancing
accounts that constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources,
fund equity, revenues, and expenditure or expenses. Funds are organized into three major categories:
governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental
and proprietary categories. A fund is considered major if it is the primary operating fund of the City or
meets the following criteria:
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or
enterprise fund are at least ten percent of the corresponding total for all funds of that category or
type; and
b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund or
enterprise fund are at least five percent of the corresponding total for all governmental and enterprise
funds combined.
The funds of the financial reporting entity are described below:
Governmental funds are those funds through which most governmental functions typically are financed.
The measurement focus of governmental funds is on the sources, uses and balance of current financial
resources. The City has presented the following major governmental funds:
General Fund – To account for resources traditionally associated with governments which are not
required to be accounted for in another fund.
Special Revenue Investment Fund – To account for restricted funds from employee license fee used for
economic development, community redevelopment and infrastructure capital investments within
Paducah.
Special Revenue Bond Fund – To account for restricted funds from bond issues used for infrastructure
capital investments within Paducah.
General Capital Improvements – To account for the acquisition or construction of major capital projects
other than those financed by proprietary fund operations and special assessments.
Debt Service Fund – To account for the accumulation of resources and payment of bond and note
principal and interest, and capital lease activity.
The City has presented the following major proprietary fund:
Solid Waste Fund – To account for the provision of refuse services to the residents of the City.
(Continued)
- 55 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Account Policies:
Basis of Presentation
Fund Financial Statements
Additionally, the City reports the internal service funds which are used to account for the fleet
management services, property and casualty insurance, and self-funded health insurance provided to
departments of the City.
Fiduciary funds report resources held in trust. Two of these funds are single-employer defined benefit
funds and are administered by the City. These funds are Police and Firefighters' Pension Fund (PFPF) and
Appointive Employees' Pension Fund (AEPF). Pension trust funds report the receipt, investment, and
distribution of retirement contributions. The remaining funds are private-purpose trust funds which report
the receipt and distribution in accordance with maintenance trust agreements.
Measurement Focus
Measurement focus is a term used to describe “which” transactions are recorded within the various
financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the
measurement focus applied.
On the government-wide Statement of Net Position and the Statement of Activities, both governmental
and business-like activities are presented using the economic resources measurement focus as defined in
item b. below.
In the fund financial statements, the “current financial resources” measurement focus or the “economic
resources” measurement focus is used as appropriate:
a. All governmental funds utilize a “current financial resources” measurement focus. Only current
financial assets and liabilities are generally included on their balance sheets. Their operating
statements present sources and uses of available spendable financial resources during a given period.
These funds use fund balance as their measure of available spendable financial resources at the end
of the period.
b. The proprietary, pension, and private-purpose trust funds and financial statements of City
component units utilize an "economic resources" measurement focus. The accounting objectives of
this measurement focus are the determination of operating income, changes in net position (or cost
recovery), financial position, and cash flows. All assets and liabilities (whether current or
noncurrent) associated with their activities are reported. Proprietary, pension, and private-purpose
trust fund equity is classified as net position.
c. Custodial funds are not involved in the measurement of results of operations; therefore,
measurement focus is not applicable to them.
Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, both governmental and
business-type activities are presented using the accrual basis of accounting generally including the
reclassification or elimination of internal activity (between or within funds). Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred
or economic asset used.
(Continued)
- 56 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Account Policies:
Basis of Accounting
In the fund financial statements, governmental funds are presented on the modified accrual basis of
accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable
and available.” Measurable means knowing or being able to reasonably estimate the amount. Available
means collectible within the current period or within sixty days after year end. Expenditures (including
capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond
principal and interest which are reported when due. Custodial funds are presented using the accrual basis
of accounting.
All proprietary, pension, and private-purpose funds utilize the accrual basis of accounting. Under the
accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the
liability is incurred or economic asset used.
Revenues – Exchange and Non-Exchange Transactions
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal
value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis,
revenue is recorded in the fiscal year in which the resources are measurable and become available.
Available means that the resources will be collected within the current fiscal year or are expected to be
collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the City,
available means expected to be received within sixty days of year end.
Non-exchange transactions, in which the City receives value without directly giving equal value in return,
include employee license taxes, property taxes, grants, entitlements, and donations. The City considers
property taxes as available if they are collected within sixty days after year end. Revenue from grants,
entitlements, and donations is recognized in the year in which all eligibility requirements have been
satisfied. Eligibility requirements include timing requirements, which specify the year when the resources
are required to be used or the year when use is first permitted, matching requirements, in which the City
must provide local resources to be used for a specified purpose, and expenditure requirements, in which
the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue
from non-exchange transactions must also be available before it can be recognized.
The revenues susceptible to accrual are taxes, intergovernmental, employer and employees’ contributions
to trust funds, interest revenue, and charges for services. Permit revenues are not susceptible to accrual
because generally they are not measurable until received in cash.
Unearned revenue
The City reports unearned revenue on its government-wide statement of net position and the fund financial
statements. Unearned revenues arise when potential revenue does not meet both the "measurable” and
“available” criteria for recognition in the current period. Unearned revenues also arise when resources are
received by the City before it has a legal claim to them, as when grant monies are received prior to the
incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are
met, or when the City has a legal claim to the resources, the liability for unearned revenue is removed and
revenue is recognized.
Allocation of Indirect Expenses
The City allocates indirect expenses primarily comprised of fleet management services and various self-
funded insurance coverage provided to departments and employees of the City. Allocations are charged to
functions based on use by weighted-average methodology.
(Continued)
- 57 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Accounting Policies:
Budgets and Budgetary Accounting
The City legally adopts annual budgets for all governmental and proprietary funds except for Section Eight
Housing Fund. The City follows these procedures in establishing the budgetary data reflected in these
financial statements:
1. Prior to July, the City Manager submits to the City Commission a proposed operating budget for the
fiscal year commencing on July 1. The operating budget includes proposed expenditures and the
means of financing those.
2. Public hearings are conducted by the City to obtain taxpayer comments.
3. Prior to July, the budget is legally enacted through passage of an ordinance.
4. The City Manager is authorized to transfer budgeted amounts between departments and their line
items; however, any revisions that alter the total expenditures must be approved by the City
Commission.
5. Formal budgetary integration is employed as a management control device during the year; and, the
budget is legally adopted. Budget amendments are also legally adopted.
6. The budget is adopted on the modified accrued basis of accounting.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for
expenditures are recorded in order to reserve that portion of the applicable appropriation, is employed as
an extension of formal budgetary integration in the General Fund, Special Revenue Funds, Debt Service
Fund, and Capital Projects Funds. In accordance with generally accepted accounting principles (GAAP),
encumbrances outstanding at year end are reported as reservations of fund balances since they do not
constitute expenditures or liabilities. There are no encumbrances at June 30, 2021.
Cash and Investments
The City Commission adopted formal deposit and investment policies in January 2001. These policies
apply to all City funds not contained in public trusts. The pension trust fund has investment policies
separately approved by their oversight board. The private purpose trust has not adopted a deposit and
investment policy.
For the purpose of the Statement of Net Position, “cash and cash equivalents” includes all demand and
savings accounts of the City. For the purpose of the proprietary fund Statement of Cash Flows, “cash and
cash equivalents” include all demand and savings accounts and certificates of deposit with an original
maturity of three months or less.
Investments are reported at fair value which is determined using selected bases. Short-term investments
are reported at cost, which approximates fair value. Securities traded on a national or international
exchange are valued at the last reported sales price at current exchange rates. Managed funds, related to
the pension and private purpose trust funds not listed on an established market, are reported at estimated
fair value as determined by the respective fund managers based on quoted sales prices of the underlying
securities. Cash deposits and certificates of deposit are reported at carrying amount which reasonably
estimates fair value. Additional cash and investment disclosures are presented in Note 3.
(Continued)
- 58 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Accounting Policies:
Receivables
Major receivable balances for the governmental activities include property taxes, employee earnings taxes,
business licenses, insurance premiums taxes, franchise taxes, grant revenue, and interlocal note
receivables. Business-type activities report utilities and interest earnings as their major receivables.
The government-wide statements also include general obligation notes receivable related to the general
obligation bonds outstanding as described in Note 3. In the fund financial statements, receivables in
governmental funds include revenue accruals such as franchise tax, employee earnings taxes, business
licenses, insurance and grants, and other similar intergovernmental revenues since they are usually both
measurable and available.
Nonexchange transactions collectible but not available are deferred. Interest and investment earnings are
recorded when earned only if paid within sixty days since they would be considered both measurable and
available. Proprietary fund receivables include revenues earned at year end and not yet received. Utility
accounts receivable and interest earnings compose the majority of proprietary fund receivables.
Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of
accounts receivable.
Interfund Receivables and Payables
During the course of operations, numerous transactions occur between individual funds that may result in
amounts owed between funds. Those related to goods and services type transactions are classified as “due
to and from other funds.” Short-term interfund loans are reported as “interfund receivables and payables.”
Long-term interfund loans (noncurrent portion) are reported as “advances from and to other funds.”
Interfund receivables and payables between funds within governmental activities are eliminated in the
Statement of Net Position. See Note 3 for details of interfund transactions, including receivables and
payables, at year end.
Inventories
Inventory consists of expendable supplies and fuel of $62,256 held for consumption and re-sell and real
property of $376,339 held for urban development. Inventory supplies are stated at cost on a first-in, first-
out basis. Inventory property held for development are stated at the lower of cost or market. The cost is
recorded as an expenditure at the time individual items are consumed or sold for urban development rather
than when purchased.
Capital Assets
The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets
are used in governmental fund operations or proprietary fund operations and whether they are reported in
the government-wide or fund financial statements.
(Continued)
- 59 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Accounting Policies:
Capital Assets
Government-wide Statement
In the government-wide financial statements, property, plant and equipment are accounted for as capital
assets. All capital assets are valued at historical cost or estimated historical cost if actual is unavailable,
except for donated capital assets and work of art capital assets received in a service concession
arrangement which are recorded at their acquisition value at the date of donation. Estimated historical cost
was used to value the majority of the assets acquired prior to June 30, 2004.
Assets capitalized have an original cost of $500 or more prior to July 1, 1999, $2,500 or more after July 1,
1999, $3,000 or more after June 24, 2009 and $5,000 or more after June 30, 2016. Prior to July 1, 2002,
governmental funds’ infrastructure assets were not capitalized. These assets have been valued at estimated
historical cost.
Capital assets of the primary government are depreciated over the estimated useful lives using the straight-
line method. The estimated useful lives are as follows:
Land improvements 10-30 Years
Buildings 30 Years
Building improvements 10-30 Years
Infrastructure 10-30 Years
Equipment 3-10 Years
Furnishings and fixtures 5-7 Years
Vehicles 7-10 Years
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as
capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary
fund operations are accounted for the same as in the government-wide statements.
Deferred Outflows/Inflows of Resources
Government-wide Statement
In addition to assets, the statement of net position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources,
represents the consumption of net position that applies to a future period(s) and will not be recognized as
an outflow of resources (expense/expenditure) until then. The government has two items that qualify for
reporting in the category. These are the deferred charge on refunding and deferred pension and other post-
employment benefits (OPEB) related outflows reported in the statements of net position. A deferred
charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition
price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
The deferred pension and OPEB related outflows result from pension and OPEB contributions subsequent
to the measurement date of the pension and OPEB plans and various changes resulting from actuarial
pension and OPEB measurement. The pension and OPEB contribution amounts are deferred and
recognized as a component of the change in pension plan liability in the next measurement period. The
various changes resulting from actuarial pension and OPEB measurements are deferred and amortized in
future periods as a component of the pension and OPEB expense.
(Continued)
- 60 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Accounting Policies:
Deferred Outflows/Inflows of Resources
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources, represents
an acquisition of net position that applies to a future period(s) and will not be recognized as an inflow of
resources (revenue) until that time. The City has two type of items reported in this category. These are
property taxes levied during the fiscal year for the next fiscal year and inflows related to the City’s pension
and OPEB plans that qualify for reporting in this category – deferred pension and OPEB related inflows.
The various changes resulting from actuarial pension and OPEB measurements are deferred and amortized
in future periods as a component of the pension and OPEB expense.
A summary of change in deferred outflows/inflows of resources is as follows:
Balance
July 1, 2020 Additions Reductions
Balance
June 30, 2021
Governmental Activities
Deferred outflows of resources
Deferred charge on refunding $ 189,117 $ 47,734 $ (63,437)$ 173,414
Pensions:
Deferred pension contributions $ 4,065,425 $ 4,342,499 $(4,065,425)$4,342,499
Differences between employer contributions
and proportionate share of contributions 334,136 - (98,678) 235,458
Differences between expected and
actual experience 2,295,528 1,609,423 (1,942,066)1,962,885
Change of assumptions 6,079,054 -(3,497,576)2,581,478
Difference between projected and
actuarial earnings -3,110,798 (1,538,675)1,572,123
Pension related deferred outflows $ 12,774,143 $ 9,062,720 $(11,142,420)$ 10,694,443
Deferred inflows of resources
Differences between employer contributions
and proportionate share of contributions $ 1,248,009 $ - $ (600,414) $ 647,595
Differences between expected and
actual experience 82,243 -(82,243)-
Difference between projected and
actuarial earnings 1,079,257 663,243 (1,034,290)708,210
Pension related deferred inflows $ 2,409,509 $ 663,243 $(1,716,947)$1,355,805
Other post-employment benefits (OPEB):
Deferred outflows of resources
Deferred OPEB contributions $1,299,562 $ 1,500,977 $ (1,299,562) $ 1,500,977
Differences between employer contributions
and proportionate share of contributions 45,669 -(8,463)37,206
Differences between expected and
actual experience - 1,973,995 (373,916) 1,600,079
Change of assumptions 4,803,384 885,177 (2,216,540)3,472,021
Difference between projected and
actuarial earnings -1,660,571 (809,757)850,814
OPEB related deferred outflows $ 6,148,615 $ 6,020,720 $(4,708,238)$ 7,461,097
Deferred inflows of resources
Differences between expected and
actual experience $ 3,513,428 $ - $(983,303)$ 2,530,125
Change of assumptions 30,677 - (10,563) 20,114
Difference between projected and
actuarial earnings 858,302 -(858,302)-
Differences between employer contributions
and proportionate share of contributions 599,018 -(121,346)477,672
OPEB related deferred inflows $ 5,001,425 $-$(1,973,514)$ 3,027,911
Deferred inflows of resources
Unavailable revenues –property taxes $ 5,921,785 $ 6,118,977 $(5,921,785)$ 6,118,977
(Continued)
- 61 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Accounting Policies:
Deferred Outflows/Inflows of Resources
A summary of change in deferred outflows/inflows of resources is as follows (continued):
Business-Type Activities
Pensions:
Deferred outflows of resources
Deferred pension contributions $ 204,993 $ 187,814 $(204,993)$ 187,814
Differences between employer contributions
and proportionate share of contributions 43,714 -(26,722)16,992
Differences between expected and
actual experience 77,479 71,601 (70,078)79,002
Change of assumptions 307,121 - (183,412) 123,709
Difference between projected and
actuarial earnings -159,199 (79,921)79,278
Pension related deferred outflows $ 633,307 $ 418,614 $(565,126)$ 486,795
Deferred inflows of resources
Differences between expected and
actual experience $ 12,821 -(12,821)-
Differences between employer contributions
and proportionate share of contributions 16,296 - (2,748) 13,548
Difference between projected and
actuarial earnings 48,916 -(48,916)-
Pension related deferred inflows $78,033 $-$(64,485)$ 13,548
Other post-employment benefits (OPEB)
Deferred outflows of resources
Deferred OPEB contributions $ 66,137 $ 75,984 $(66,137)$ 75,984
Change of assumptions 214,701 25,774 (67,033) 173,442
Differences between expected and
actual experience - 216,486 (49,887)166,599
Differences between employer contributions
and proportionate share of contributions 7,120 - (1,554) 5,566
Difference between projected and
actuarial earnings -64,850 (31,707)33,143
OPEB related deferred outflows $ 287,958 $ 383,094 $(216,318)$ 454,734
Deferred inflows of resources
Differences between expected and
actual experience $ 218,919 $ - $(52,190)$ 166,729
Change of assumptions 1,436 -(381)1,055
Difference between projected and
actuarial earnings 32,481 - (32,481) -
Differences between employer contributions
and proportionate share of contributions 12,826 3,631 -16,457
OPEB related deferred inflows $ 265,662 $3,631$(85,052)$ 184,241
Fund Financial Statements
The government has only one type of item, which arises only under a modified accrual basis of account,
which qualifies for reporting as deferred inflows of resources. Accordingly, the item, unavailable revenue,
is reported only in the governmental funds balance sheet. The governmental funds report unavailable
revenues for one source: property taxes. This amount is deferred and recognized as an inflow of resources
in the period that the amount becomes available.
(Continued)
- 62 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Accounting Policies:
Restricted Assets
Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for their
repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable
bond covenants.
Accrued Leave
Accumulated unpaid vacation, sick pay, and other employee benefit amounts are recorded as long-term
debt in the government-wide statements. The current portion of accrued compensated absences is
estimated based on historical trends. In the fund financial statements, governmental funds report only the
matured compensated absence liability payable from expendable available financial resources, while the
proprietary funds report the liability as it is incurred.
Accumulations for vacation pay are restricted to a maximum of 50 days and provide vesting rights upon
completion of six months service. Accumulations for sick pay are restricted to a maximum of 150 days
and provide payment to employees or beneficiaries for accumulations in excess of 50 days and up to 120
days upon death or retirement from City service. Qualified participants in the County Employees’
Retirement System, under certain circumstances, are eligible to convert accrued sick pay benefits into
additional credit for years of service upon retirement.
Long-Term Debt
The accounting treatment of long-term debt depends on whether the assets are used in governmental fund
operations or proprietary fund operations and whether they are reported in the government-wide or fund
financial statements.
All long-term debt to be repaid from governmental and business-type resources is reported as liabilities in
the government-wide statements. The long-term debt consists primarily of bonds payable, notes payable,
and accrued compensated absences.
Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The
debt proceeds are reported as other financing sources and payment of principal and interest as
expenditures. The accounting for proprietary funds is the same in the fund statements as it is in the
government-wide statements.
Equity Classifications
Government-wide Statements
Equity is classified as net position and displayed in three components:
a. Net invested in capital assets – Consists of capital assets including restricted capital assets, net of
accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes,
or other borrowings that are attributable to the acquisition, construction, or improvement of those
assets.
b. Restricted net position – Consists of net assets with constraints placed on the use either by (1)
external groups such as creditors, grantors, contributors, or laws or regulations of other governments;
or (2) law through constitutional provisions or enabling legislation.
c. Unrestricted net position – All other net assets that do not meet the definition of “restricted” or “net
invested in capital assets.”
(Continued)
- 63 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Accounting Policies:
Fund Statements
Governmental fund equity is classified as fund balance and displayed in five components:
a. Nonspendable fund balance includes amounts that are not in a spendable form or are required to be
maintained intact indefinitely.
b. Restricted fund balance includes amounts that can be spent only for the specific purpose stipulated
by creditors, grantors, contributors, or laws or regulations of other governments.
c. Committed fund balance includes amounts that can be used only for the specific purposes
determined by the City Commissioners through the approval of City ordinances. Commitments
may be changed or lifted only by the City Commissioners making the same formal action that
imposed the constraint originally.
d. Assigned fund balance comprises the amounts intended to be used for a specific purpose. Intent can
be expressed by the City Commissioners or the City Finance Officer, as stated in the Finance
Department Accounting Policy (FIN-20). No formal action is required.
e. Unassigned fund balance includes amounts that have not been assigned to other funds or restricted,
committed, or assigned to a specific purpose within the General Fund. The General Fund is the only
fund which may report a positive unassigned fund balance. In other governmental funds, it is not
appropriate to report a positive unassigned fund balance if expenditures incurred for specific
purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may
be necessary to report a negative unassigned fund balance in that fund.
When both restricted and unrestricted fund balances are available for use, it is the City's policy to use
restricted fund balance first, then unrestricted fund balance. Furthermore, committed fund balances are
reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are
incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be
used.
Proprietary fund equity is classified the same as in the government-wide statements.
Interfund Transactions
Interfund services provided and used are accounted for as revenues, expenditures, or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and
as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are
reported as transfers.
Program Revenues
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
(Continued)
- 64 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Accounting Policies:
Operating and Non-Operating Revenues and Expenses – Proprietary Funds
Operating revenues and expenses for proprietary funds are those that result from providing services and
producing and delivering goods and/or services. It also includes all revenue and expenses not related to
capital and related financing, noncapital financing, or investing activities. Operating expenses for the
enterprise and internal service funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
Expenditures/Expenses
In the government-wide financial statements, expenses are classified by function for both governmental
and business-type activities.
In the fund financial statements, expenditures are classified as follows:
Governmental Funds – by function: Current (further classified by character)
Debt Service
Capital Outlay
Proprietary Fund – by operating and nonoperating
In the fund financial statements, governmental funds report expenditures of financial resources.
Proprietary funds report expenses relating to use of economic resources.
Interfund Transfers
Permanent reallocation of resources between funds of the reporting entity are classified as interfund
transfers. For the purposes of the Statement of Activities, all interfund transfers between individual
governmental funds have been eliminated.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make assumptions that affect reported amounts and disclosures. Accordingly,
actual results could differ from those estimates.
Stewardship, Compliance, and Accountability
By its nature as a local government unit, the City and its component units are subject to various federal,
state, and local laws and contractual regulations. An analysis of the City’s compliance with significant
laws and regulations and demonstration of its stewardship over City resources follows.
Fund Accounting Requirements
The City complies with all state and local laws and regulations requiring the use of separate funds.
(Continued)
- 65 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Accounting Policies:
Revenue Restrictions
The City has various restrictions placed over certain revenue sources from state or local requirements or
contractual agreements. The primary restricted revenue sources include:
Revenue Source Legal Restrictions of Use
Section Eight Housing Choice Voucher Program Subsidize Rental Costs for Low-
Income Families
FEMA - Disaster Grants Debris Removal and Disaster Recovery
Emergency Communication Revenue E-911 Emergency Services
Transient Room Tax Debt Obligations
Homeland Security Grant Program Homeland Security Enhancement
Bond Proceeds Defeasance of debt and Capital Projects
25% of Employee Earning Tax Economic, Community and
Capital Development
For the year ended June 30, 2021, the City complied in all material respects with these revenue restrictions.
Debt Restrictions and Covenants
The City may not incur any indebtedness that would require payment from resources beyond the current
fiscal year revenue without first obtaining voter approval.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the
County Employees Retirement System (CERS) and additions to/deductions from fiduciary net position have
been determined on the same basis as they are reported by the pensions. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
Other Post-employment Benefits (OPEB)
For purposes of measuring the liability, deferred outflows of resources and deferred inflows of resources
related to OPEB, and OPEB expense, information about the fiduciary net position of the County
Employees Retirement System (CERS) and additions to/deductions from CERS’s fiduciary net position
have been determined on the same basis as they are reported by CERS. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with
the benefit terms. Investments are reported at fair value, except for money market investments and
participating interest-earning investment contracts that have a maturity at the time of purchase of one year
or less, which are reported at cost.
(Continued)
- 66 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Summary of Significant Accounting Policies:
Subsequent Events
In preparing these financial statements, management has evaluated events and transactions for potential
recognition or disclosure through December 22, 2021, the date financial statements were available to be
issued.
Effect of COVID-19 Pandemic
On March 11, 2020, the World Health Organization ("WHO") recognized COVID-19 as a global
pandemic, prompting many national, regional, and local governments to implement preventative or
protective measures, such as travel and business restrictions, temporary store closures, and wide-sweeping
quarantines and stay-at-home orders. As a result, COVID-19 and the related restrictive measures have had
a significant adverse impact upon many sectors of the economy. We believe the ultimate financial impact
of the COVID-19 pandemic on the City is likely to be determined by factors which are uncertain,
unpredictable and outside of the control of the City. The situation surrounding COVID-19 remains fluid,
and if disruptions do arise, they could materially adversely affect future revenues.
Note 2 - Property Taxes:
The City bills and collects its own property taxes. The City elects to use the annual property assessment
prepared by McCracken County as its base to apply the property tax rate. According to Kentucky Revised
Statutes, the assessment date for the City must conform to the assessment date of McCracken County and
the annual increase in the property tax levy cannot exceed 4%. City property tax revenues are recorded as
a receivable when assessed because the City has an enforceable legal claim to the resources. At this time,
the receivable is offset by unearned revenue. Property tax revenues are recognized during the period for
which they are levied.
The due dates and collection period for all property taxes, exclusive of vehicle taxes, for the fiscal year
ended June 30, 2021, are as follows:
Description Date
Assessment and enforceable lien January 1, 2020
Levy September 22, 2020
Face value amount payment dates 1st half by November 1, 2020
2nd half by February 1, 2021
Delinquent date - 10% penalty
plus 1/2% per month 1st half - November 30, 2020
2nd half - February 28, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
The following notes present detail information to support the amounts reported in the basic financial
statements for its various assets, liabilities, equity, revenues, and expenditures/expenses.
(Continued)
- 67 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Deposits
Custodial credit risk for deposits is the risk that in the event of a bank failure, the City's deposits may not
be returned or the City will not be able to recover collateral securities in the possession of an outside party.
The City's investment policy requires all investments be made in accordance with applicable legal
requirements with consideration of investment safety. Accordingly, the City maintains collateral
agreements with its financial institutions. Deposits are 101% secured with collateral valued at market or
par, whichever is lower, less the amount of the Federal Deposit Insurance Corporation insurance (FDIC).
The City Commission approves and designates a list of authorized depository institutions based on
evaluation of solicited responses and certifications provided by financial institutions and recommendations
of an evaluation committee and/or Finance Director.
Deposits of the City's reporting entity are insured or collateralized with securities held by the City, its
agent, or by the pledging financial institution's trust department or agent in the name of City. During the
year ended June 30, 2021, the City's only cash and cash equivalents were demand deposits. At year end,
the carrying amount and the bank balance of the City's cash and cash equivalents were $30,515,868 and
$31,270,607, respectively.
Investment Policies
City Policy
Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
Generally, the City's investing activities are managed under the custody of the City's Finance Director.
Investing is performed in accordance with investment policies adopted by the City Commission complying
with State Statutes. In accordance with the City's investment policy and the State Statutes, the City may
invest funds temporarily in excess of operating needs in the following:
Kentucky Revised Statutes (KRS 66.480) authorize the City to invest in:
1. Obligations of the U.S. Treasury, agencies, and instrumentalities, including obligations subject to
repurchase agreements, provided delivery of obligations subject to repurchase agreements are held
by the City or through an authorized agent;
2. Obligations and contracts for future delivery or purchase of obligations backed by the full faith and
credit of the United States or a United States government agency;
3. Obligations of any corporation of the United States government;
4. Bonds or certificates of indebtedness of the Commonwealth of Kentucky and of its agencies and
instrumentalities;
5. Certificates of deposit or other interest-bearing accounts of any bank or savings and loan institution
which are insured by the Federal Deposit Insurance Corporation or similar entity or which are
collateralized, to the extent uninsured, by any obligations permitted by section 41.240(4) of the
Kentucky Revised Statutes;
6. Securities issued by a state or local government, or any instrumentality or agency thereof, in the
United States, and rated in one of the three highest categories by a national recognized rating
agency.
(Continued)
- 68 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The three levels of the fair value hierarchy are as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Valued using a matrix pricing technique. Matrix pricing is used to value securities based
on the securities’ relationship to benchmark quoted prices.
Level 3: Unobservable inputs – market data are not available and are developed using the best
information available about the assumptions that market participants would use when pricing an
asset or liability.
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest
level of any input that is significant to the fair value measurement.
The City has the following fair value measurements as of June 30, 2021 :
Weighted
Fair Value/ Average Average
Carrying Credit Quality/ Fair Value Maturity
Types of Investments Amount Rating (1) Level 1 Level 2 Level 3 Years (2)
Governmental and
Business Funds
Certificates of deposits $ 12,000,000 NR - $12,000,000 - 0.40
Money market 19,749,987 NR $19,749,987 - - NA
TOTAL GOVERNMENTAL AND
BUSINESS FUNDS $ 31,749,987
Fiduciary and Private
Purpose Trust Funds
Cash equivalents $ 111,724 NR $ 111,724 $ - $ - NA
Common stock 2,109,062 NR 2,109,062 - - NA
Mutual funds
Bond 1,798,368 NR 1,798,368 - - 6.80
Equity 1,950,722 NR 1,950,722 - - NA
International 523,181 NR 523,181 - NA
TOTAL FIDUCIARY AND
PRIVATE PURPOSE
TRUST FUNDS $ 6,493,058
(1) Ratings are provided where applicable to indicate associated Credit Risk. NA indicates not applicable. NR indicates that instrument is not
rated.
(2) Maturities are provided for debt instruments with maturity dates. NA indicates not applicable.
(Continued)
- 69 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. The City policy provides that, to the extent practicable, investments are matched with
anticipated cash flows. Investments are diversified to minimize the risk of loss resulting from
overconcentration of assets in a specific maturity period, a single issuer, or an individual class of
securities. Unless matched to a specific cash flow, investments are not, in general, made in securities
maturing more than five years from the date of purchase. Surplus cash may be invested in securities
exceeding five years if the maturity of such investments is made to coincide as nearly as practicable with
the expected use of the investment. Concentration of credit risk is the risk of loss attributed to the
magnitude of the City's investment in a single issuer. The City policy does not specifically address
concentration of credit risk.
Pension Trust Policy
The City's pension trust is the Police and Firefighters' Pension Fund (PFPF). Investment policy provides
for investment manager(s) who have full discretion of assets allocated to them subject to the overall
investment guidelines set out in the policy. Overall investment guidelines provide for diversification and
allow investment in domestic and international common stocks, fixed income securities, and cash
equivalents. Custodial credit risk is addressed by the policy providing for the engagement of a custodian
who accepts possession of securities for safekeeping; collects and disburses income; collects principal of
sold, matured, or called items; and provides periodic accounting to the pension board.
Pension Trust Policy
Asset allocation guideline for the plan is as follows:
PFPF Retirement Plan
Minimum Target Maximum
Equities 45% 55% 65%
Fixed income 35% 45% 55%
The retirement plan addresses credit risk and concentration of credit risk with a policy that prohibits
investment of more than 5% of its assets in the securities of any one issuer with the exception of U.S.
government. Policy further prohibits investment of more than 20% in any one market sector. No more
than 10% of corporate debt securities in the fixed income portfolio may be rated below-investment grade.
Commercial paper must be rated A1, P1.
Interest rate risk is addressed by the policy requiring the plan manager(s) to maintain both diversification
and a predictable and dependent source of current income. Fixed income investments are flexibly
allocated among maturities of different lengths.
Private Purpose Trust
The private purpose trust does not have a formal investment policy. The City established the trust in
accordance with Kentucky Revised Statutes. The trust provides for an investment manager who has full
discretion of assets allocated to him subject to the provisions of the trust agreement. The trust invests in
domestic and international mutual funds, fixed income securities, U.S. treasury securities, and cash and
equivalents.
(Continued)
- 70 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Capital Assets
Capital asset activity for the year ended June 30, 2021, was as follows:
Balance Balance
Primary Government: July 1, 2020 Additions Deductions June 30, 2021
Capital assets, not being depreciated:
Land $10,385,388 $ 75,000 $ 36,700 $10,423,688
Construction-in-progress 6,015,403 2,286,170 2,423,013 5,878,560
Total capital assets, not being
depreciated 16,400,791 2,361,170 2,459,713 16,302,248
Capital assets, being depreciated:
Land improvements 21,329,478 1,245,438 - 22,574,916
Buildings and improvements 24,817,804 13,409 2,549,012 22,282,201
Infrastructure 54,820,719 338,156 - 55,158,875
Equipment 10,732,465 914,382 151,552 11,495,295
Furnishings and fixtures 291,072 - 2,324 288,748
Vehicles 9,863,277 1,643,140 199,975 11,306,442
Totals at historical cost 121,854,815 4,154,525 2,902,863 123,106,477
Less accumulated depreciation:
Land improvements 6,734,429 1,064,214 - 7,798,643
Buildings and improvements 14,615,454 343,058 495,641 14,462,871
Infrastructure 34,292,023 701,684 - 34,993,707
Equipment 7,565,574 652,864 142,966 8,075,472
Furnishings and fixtures 217,484 16,558 2,324 231,718
Vehicles 6,908,073 913,785 199,975 7,621,883
Total accumulated depreciation 70,333,037 3,692,163 840,906 73,184,294
Total capital assets, being
depreciated, net 51,521,778 462,362 2,061,957 49,922,183
PRIMARY GOVERNMENT
ACTIVITIES CAPITAL
ASSETS, NET $67,922,569 $ 2,823,532 $ 4,521,670 $66,224,431
Current year additions of capital assets being depreciated include assets transferred from business type funds
with historical cost of $35,917 and accumulated depreciation of $29,059. In addition, deductions of
construction-in-progress include an abandoned project with accumulated costs of $675,351.
(Continued)
- 71 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Capital Assets
Depreciation expense was charged to governmental activities as follows:
General government:
General administration $ 309,631
Finance 1,081
Planning 19,137
Information systems 15,572
Fleet maintenance 5,130
Total general government 350,551
Public safety:
Police 220,271
Fire 111,334
Emergency 911 193,901
Court awards 3,168
Fleet Lease Trust 959,165
Total public safety 1,487,839
Public service:
Public works 10,910
Engineering 47,064
Total public service 57,974
Parks and recreation 1,064,825
Planning and development:
Infrastructure 701,265
Grants 650
Total planning and development 701,915
TOTAL DEPRECIATION EXPENSE –
GOVERNMENTAL ACTIVITIES $3,663,104
Depreciation expense was charged to business-type activities as follows:
Solid Waste Fund $ 662,975
Section Eight Housing -
Civic Center 10,021
TOTAL DEPRECIATION EXPENSE –
BUSINESS-TYPE ACTIVITIES $ 672,996
(Continued)
- 72 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Capital Assets
Balance Balance
Business-type Activities: July 1, 2020 Increases Decreases June 30, 2021
Capital assets, not being depreciated:
Land $ 68,886 $ - $ - $ 68,886
Total capital assets, not being
depreciated 68,886 - - 68,886
Capital assets, being depreciated:
Buildings and improvements 563,965 - - 563,965
Equipment 1,997,944 138,955 88,551 2,048,348
Vehicles 3,546,942 169,249 165,944 3,550,247
Totals at historical cost 6,108,851 308,204 254,495 6,162,560
Less accumulated depreciation:
Buildings and improvements 357,949 16,327 - 374,276
Equipment 1,373,357 229,006 88,551 1,513,812
Vehicles 1,980,878 427,663 159,306 2,249,235
Total accumulated depreciation 3,712,184 672,996 247,857 4,137,323
Total capital assets, being
depreciated, net 2,396,667 (364,792) 6,638 2,025,237
BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS, NET $ 2,465,553 $ (364,792) $ 6,638 $ 2,094,123
Current year deductions of capital assets being depreciated include assets transferred to government type
funds with historical cost of $35,917 and accumulated depreciation of $29,059.
Balance Balance
Discretely Presented July 1, 2020 Increases Decreases June 30, 2021
Component Units:
Capital assets, not being depreciated:
Land & construction in progress $ 1,333,061 $ 993,516 $ - $ 2,326,577
Capital assets, being depreciated:
Utility plant 100,768,181 4,067,666 315,001 104,520,846
Less accumulated depreciation:
Utility plant 43,776,750 2,534,855 296,585 46,015,020
Total capital assets, being
depreciated, net 56,991,431 1,532,811 18,416 58,505,826
COMPONENT UNIT
CAPITAL ASSETS, NET $ 58,324,492 $ 2,526,327 $ 18,416 $ 60,832,403
Depreciation expense, charged to functions/programs of discretely presented major component units as
follows:
Paducah Water Works $ 2,534,855
(Continued)
- 73 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Accounts Payable
Payables in the governmental and proprietary funds are composed of payables to vendors and accrued
expenditures.
Long-Term Liabilities
The City’s long-term liabilities are segregated between the amounts to be repaid from governmental
activities and amounts to be repaid from business-type activities.
Governmental Activities
As of June 30, 2021, the governmental long-term liabilities consisted of the following:
General obligation bonds:
Current portion $ 1,995,000
Noncurrent portion 32,836,438
TOTAL GENERAL OBLIGATION
BOND COSTS, NET OF PREMIUMS AND DISCOUNTS $ 34,831,438
Note payable:
Current portion $ 336,664
Noncurrent portion 5,726,765
TOTAL NOTE PAYABLE PAYMENTS $ 6,063,429
Accrued compensated absences:
Current portion $ 1,295,448
Noncurrent portion 1,008,222
TOTAL ACCRUED COMPENSATED
ABSENCES $ 2,303,670
Business-type Activities
As of June 30, 2021, the long-term liabilities payable from proprietary fund resources consisted of the
following:
Accrued compensated absences:
Current portion $ 112,998
Noncurrent portion 30,931
TOTAL ACCRUED COMPENSATED
ABSENCES $ 143,929
(Continued)
- 74 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Long-Term Liabilities
General Obligation Bonds
Series 2010B Bond Issue – The City of Paducah issued general obligation bonds of $7,165,000 in August
2010 with interest rates ranging between 1% and 3.25%, to advance refund $6,725,000 of outstanding
2001 series bonds with interest rates ranging between 4.5% and 5%. The 2001 series bonds were issued to
finance construction of the Performing Arts Center and Convention Center expansion. These bonds are
required to be fully paid within 16 years from the date of issue and are backed by the full faith and credit
of the City. While these 2010B series bonds are issued by the City, 50% of the principal amount of the
bonds was issued on behalf of the County of McCracken, Kentucky which intends to participate on an
equal basis with the City in financing the projects and has issued the City a general obligation note in a
principal amount equal to 50% of the principal amount of the bonds and bearing interest at the same rates
as the City’s bonds in order to secure the County’s obligations to the City. This note receivable is reflected
in the government-wide Statement of Net Position. The outstanding bonds were called on November 27,
2020 with the issuance of Series 2020B Bond Issue.
Series 2011 Bond Issue – The City of Paducah issued general obligation taxable refunding bonds of
$3,910,000 in August 2011 with an interest rate of 3.68%, to refund $3,780,000 of outstanding 2004 series
bonds issued for an economic development project in the Industrial Park West with interest rates ranging
from 2.25% to 6%. These bonds are required to be fully paid within 13 years from the date of issue and
are backed by the full faith and credit of the City. While these bonds are issued by the City, 50% of the
principal amount of the bonds was issued on behalf of the County of McCracken, Kentucky which intends
to participate on an equal basis with the City and has guaranteed 50% of the principal amount of the
bonds. This note receivable is reflected in the government-wide Statement of Net Position. The
outstanding bonds were called on August 17, 2020 from the sale of the property.
Series 2013A Bond Issue – The City of Paducah issued general obligation bonds of $1,120,000 in
September 2013, to finance the municipality pool renovations. Interest rates range from 0.70% to 3.60%.
These bonds are required to be fully paid within 15 years from the date of issue and are backed by the full
faith and credit of the City.
Series 2013B Bond Issue – The City of Paducah issued general obligation taxable bonds of $2,475,000 in
September 2013, to finance a portion of the costs of the construction of improvements to an
industrial/distribution facility and a portion of the costs of the acquisition, construction, installation and
equipping of an approximately 30,000 square foot building for the economic development. Interest rates
range from 0.60% to 4.00%. These bonds are required to be fully paid within 15 years from the date of
issue and are backed by the full faith and credit of the City.
Series 2014A Bond Issue – The City of Paducah issued general obligation refunding bonds of $5,460,000
in May 2014 with interest rates ranging from 2.00% to 3.50%, to refund $5,545,000 of outstanding 2010
series bonds issued to finance several public improvement projects with interest rates ranging from 1.00%
to 5.50%. These bonds are required to be fully paid within 16 years from the date of issue and are backed
by the full faith and credit of the City.
(Continued)
- 75 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Long-Term Liabilities
General Obligation Bonds
Series 2014B Bond Issue – The City of Paducah issued general obligation refunding bonds of $4,225,000
in November 2014 with interest rate of 2.55%, to advance refund $3,845,000 of outstanding 2005 series
bonds issued to finance the police and firefighter's pension fund estimated actuary liability. These bonds
are required to be fully paid within 10 years from the date of issue and are backed by the full faith and
credit of the City.
Series 2018A Bond Issue – The City of Paducah issued general obligation bonds of $2,700,000 in August
2018, to finance 911 Equipment and Riverfront development. Interest rates are fixed ranging from 3.125%
to 5.0%. These bonds are required to be fully paid within 15 years from the date of issue and are backed
by the full faith and credit of the City.
Series 2018B Bond Issue – The City of Paducah issued general obligation bonds of $2,670,000 in August
2018, to refund $2,815,573 of outstanding Kentucky League of Cities Funding Trust 2003 Lease and 2009
Lease agreements issued to finance several public improvement projects. Interest rates are fixed ranging
from 4.0% to 5.0%. These bonds are required to be fully paid within 10 years from the date of issue and
are backed by the full faith and credit of the City.
Series 2020A Bond Issue – The City of Paducah issued general obligation bonds of $20,520,000 in
February 2020, to finance Municipal Sports and Recreational Facility. Interest rates are fixed ranging
from 2.125% to 4.0%. These bonds are required to be fully paid within 20 years from the date of issue and
are backed by the full faith and credit of the City.
Series 2020B Bond Issue – The City of Paducah issued general obligation refunding bonds of $3,020,000
in October 2020 with interest rate of 3.00%, to advance refund $3,140,000 of outstanding 2010B series
bonds issued to refinance 2001 Bond Issue. These bonds are required to be fully paid within 6 years from
the date of issue and are backed by the full faith and credit of the City. The reacquisition price exceeded
the net carrying amount of the old debt by $47,734. This amount was deferred and amortized over the
remaining life of the refunded debt. This advance refunding was undertaken to reduce future total debt
service payments over the next 6 years by $190,533 with a resulting net economic gain of $167,772.
Notes Payable
Kentucky Association of Counties – The County of McCracken, Kentucky entered into an agreement in
the amount of $5,000,000 in March 2009, with the Kentucky Association of Counties to assist with the
Julian Carroll Convention Center. The interest rate is variable. The note is required to be fully paid within
20 years from the date of issue and is backed jointly by the full faith and credit of the City and the County.
While the note is issued by the County, 50% of the principal amount of the note was issued on behalf of
the City which intends to participate on an equal basis with the County in accordance with an Interlocal
Cooperation Agreement between the City and McCracken County, Kentucky on February 23, 2009 and are
backed by the full faith and credit of the City.
Murray State University Paducah Agreement – On November 22, 2011, the City entered into a general
obligation note in the amount of $2,674,093 with McCracken County to finance the construction of an
educational facility to be occupied by Murray State University. The note matures on December 1, 2031
and has interest rates ranging from 1.0% to 3.5% and are backed by the full faith and credit of the City.
(Continued)
- 76 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Long-Term Liabilities
Notes Payable
Community Financial Services Bank – On January 24, 2017, the City entered into an agreement in the
amount of $3,000,000 on behalf of the County of McCracken, Kentucky to finance improvements to the
Julian Carroll Convention Center. The agreement matures on January 24, 2032 with interest rate of 1.98%
and are backed by the full faith and credit of the City.
Kentucky Infrastructure Authority (KIA) – On July 1, 2018, the City entered into an agreement with KIA
to obtain up to $4,610,667 for rehabilitation of Pump Station #2. The agreement contains principal
forgiveness in the amount of 50% but not to exceed $1,300,000. Interest rate is fixed at 0.50%. This
agreement is required to be fully paid within 20 years from the date of initiation of operation for the
project and are backed by the full faith and credit of the City.
Changes in Long-Term Liabilities
The following is a summary of changes in long-term debt for the year ended June 30, 2021:
Beginning Ending Due within
Type of Liability: Balance Additions Reductions Balance One Year
Governmental activities:
General obligation bonds:
Recreation Facility $20,520,000 $ - $ - $ 20,520,000 $ -
Refinanced Pension 2,420,000 - (435,000) 1,985,000 445,000
Refinanced Convention Center 3,140,000 - (3,140,000) - -
Refinanced Convention Center - 3,020,000 (495,000) 2,525,000 475,000
Refinanced Rental Building 1,265,000 - (1,265,000) - -
Public Pool Renovations 720,000 - (70,000) 650,000 75,000
Economic Development 1,600,000 - (155,000) 1,445,000 155,000
Refinancing Public Projects 3,560,000 - (320,000) 3,240,000 330,000
Riverfront and 911 Equipment 2,555,000 - (155,000) 2,400,000 165,000
Refunding Floodwall issue 2,045,000 - (330,000) 1,715,000 350,000
Premiums 318,910 232,710 (108,215) 443,405 -
Discounts (102,172) (11,955) 22,160 (91,967) -
Total bonds payable 38,041,738 3,240,755 (6,451,055) 34,831,438 1,995,000
Notes payable:
Kentucky Infrastructure
Authority 298,504 48,236 (24,118) 322,622 -
Kentucky Association of
Counties 1,455,949 - (154,303) 1,301,646 160,550
Murray State University
Agreement 1,749,410 - (124,876) 1,624,534 127,798
CFSB Agreement 2,862,122 - (47,495) 2,814,627 48,316
Total notes payable 6,365,985 48,236 (350,792) 6,063,429 336,664
Accrued Compensated
Absences 2,136,275 1,476,669 (1,309,274) 2,303,670 1,295,448
TOTAL GENERAL LONG-
TERM LIABILITIES $46,543,998 $ 4,765,660 $ (8,111,121) $ 43,198,537 $ 3,627,112
(Continued)
- 77 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Long-Term Liabilities
Changes in Long-Term Liabilities
Beginning Ending Due within
Type of Liability: Balance Additions Reductions Balance One Year
Business-type activities:
Accrued compensated
Absences $ 132,284 $ 130,872 $ (119,228) $ 143,928 $ 112,998
TOTAL BUSINESS LONG-
TERM LIABILITIES $ 132,284 $ 130,872 $ (119,228) $ 143,928 $ 112,998
Changes in Long-Term Liabilities
(1) The calculation to reconcile amounts in this schedule to the "net investment in capital assets" for
governmental activities is:
Net Capital Assets $66,224,431
Less:
19.75% of the outstanding 2020B
General obligation bonds $ (498,688)
Net of the County's portion 249,344
(249,344)
78% of the outstanding 2014A
General obligation bonds (2,527,200)
100% of the outstanding 2013A
General obligation bonds (650,000)
52% of the outstanding 2013B
General obligation bonds (751,400)
100% of the outstanding 2018A
General obligation bonds (2,400,000)
100% of the outstanding 2018B
General obligation bonds (1,715,000)
100% of the outstanding KY
Infrastructure Authority (322,623)
Net investment in capital assets $57,608,864
(Continued)
- 78 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Long-Term Liabilities
Annual Debt Service Requirements
The annual debt service requirements to maturity for bonds and notes as of June 30, 2021, are as follows:
Year Ending
June 30 Principal Interest
2022 $ 2,434,282 $ 1,129,132
2023 2,486,947 1,051,380
2024 2,612,972 975,112
2025 2,775,561 892,480
2026 3,170,336 804,482
2027-2031 13,207,048 2,668,023
2032-2036 7,726,466 1,149,195
2037-2040 6,481,255 618,968
TOTALS $40,894,867 $ 9,288,772
Accrued Compensated Absences
Compensated absence obligations arise from amounts due to City employees for vested amounts of
vacation pay and sick pay which will be payable in the future. Typically, the compensated absence
obligations have been paid by the General Fund, Emergency Communication Service Fund, Section Eight
Housing Fund, Solid Waste Fund, and Fleet Maintenance Fund. Amounts accrued at June 30, 2021, are as
follows:
Governmental Business-type
Activities Activities
Accrued sick leave $ 686,372 $ 80,523
Accrued vacation leave 1,617,298 63,406
Totals 2,303,670 143,929
Less current portion 1,295,448 112,998
LONG-TERM PORTION $1,008,222 $ 30,931
Termination Benefits
Twelve employees, through employment contracts, are entitled to certain termination benefits upon
involuntary termination of employment by the City Commission. These benefits include provision for
salary payments for three to six months, as well as, certain health, life, dental, and disability insurance
coverage for same period of time. As these benefits are only provided for involuntary termination of
employment, no provision has been made for these benefits. The City funds these benefits on a pay-as-
you-go basis in the period incurred. Termination benefits of $23,098 were paid for the year ended June 30,
2021.
(Continued)
- 79 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Termination Benefits
In addition, qualified participants in the County Employee's Retirement System (CERS), under certain
circumstances are eligible to convert accrued sick pay benefits into additional credit for years of service
upon retirement. Costs and notification of payment for these benefits are not calculated by the CERS
actuary until a qualified participant submits an application for retirement benefits. Accordingly, no
provision has been made for these benefits; and the City funds these benefits in the period of notification
for payment by the CERS. For the year ended June 30, 2021, $172,151 of payments was made for these
benefits.
Landfill Closure and Post-Closure Costs
The County of McCracken, Kentucky (County) closed the local landfill to the public on June 30, 1995.
The County must comply with established state and federal landfill closure procedures and must perform
maintenance and monitoring procedures at the site for thirty years after closure. The 30-year period will
begin upon approval from the Commonwealth of Kentucky regarding the environmental condition of the
landfill site. As of June 30, 2021, approval had not yet been granted. The County estimated post-closure
care costs totaling $4,125,000 or $125,000 per year plus 10% for inflation. Actual costs may be higher due
to inflation, changes in technology, or changes in regulations. In the year ending June 30, 2001, the City
entered into an inter-local agreement to share equally the costs for post-closure costs and, accordingly, has
recorded a long-term liability for 50% of the estimated closure expense. It is anticipated that post-closure
costs will be paid out of the Solid Waste Fund to the extent that funds are available with any excess costs
being funded using long-term borrowing.
Interfund Transactions and Balances
Interfund transfers during the year ended June 30, 2021, were as follows:
Interfund Interfund
Governmental Funds: Transfers In Transfers Out
General Fund $1,498,177 $5,322,850
Special Revenue Investment Fund 154,000 3,774,225
Special Revenue Bond Fund - 323,229
Capital Project Fund 5,019,015 38,336
Debt Service Fund 2,807,092 1,054,000
Nonmajor Governmental Funds 1,504,211 395,676
Internal Service Funds 275,217 65,000
Proprietary Funds:
Solid Waste - 363,859
Nonmajor Proprietary Funds 94,283 14,820
TOTALS $11,351,995 $11,351,995
Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them to the
fund that statute or budget requires to expend them and to (b) use unrestricted revenues collected in the
general fund to finance various programs accounted for in other funds in accordance with budgetary
authorizations. Significant transfers from the general fund transfers includes $114,836 for E911 support;
$757,036 for debt service; and $3,335,961 for capital projects. Significant transfers from the special
revenue investment fund includes $600,000 for municipal aid street resurfacing program; $1,631,152 for
debt service; and $1,368,075 for capital projects. Significant transfers from solid waste fund include
$320,000 for general fund operations support.
(Continued)
- 80 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 3 - Detail Notes on Transaction Classes/Accounts:
Due To/From Balances
Due to/from balances used to cover current operating expenses were as follows as of June 30, 2021:
Due To Due From
General Fund $ - $1,403,855
Special Revenue Investment Fund 1,403,855 -
TOTALS $1,403,855 $1,403,855
Note 4 - Pension Plans - City of Paducah:
The City provides retirement benefits to its employees through three pension funds. Two of these funds
are single-employer defined benefit funds and are administered by the City. These funds are Police and
Firefighters’ Pension Fund (PFPF) and Appointive Employees’ Pension Fund (AEPF). The other pension
is a multi-employer public employee retirement fund administered by the Kentucky County Employees
Retirement System (CERS). The City also participates in three deferred compensation plans. Information
regarding these plans follows:
Cost-Sharing Multiple-Employer Defined Benefit Plan
County Employees’ Retirement System
Plan description - The City is a participant in the County Employees Retirement System (CERS), a
cost-sharing multiple-employer defined benefit pension plan administered by the Kentucky Retirement
System, an agency of the Commonwealth of Kentucky. Under the provisions of the Kentucky Revised
Statute (“KRS”) Section 61.645, the Board of Trustees of the Kentucky Retirement System administers
CERS and has the authority to establish and amend benefit provisions. The Kentucky Retirement
System issues a publicly available financial report that includes financial statements and required
supplementary information for CERS. That report may be obtained from http://kyret.ky.gov/.
Benefits provided - CERS provides retirement, health insurance, death and disability benefits to Plan
employees and beneficiaries. Employees are vested in the plan after five years’ service. For retirement
purposes, non-hazardous and hazardous employees are grouped into three tiers, based on hire date:
Non-hazardous members:
Tier 1 Participation date Prior to September 1, 2008
Unreduced retirement 27 years of service or 65 years old
Reduced retirement Minimum 5 years of service and 55 years old
Minimum 25 years of service and any age
Tier 2 Participation date September 1, 2008 to December 31, 2013
Unreduced retirement Minimum 5 years of service and 65 years old
Age of 57 or older and sum of service years plus age equal 87
Reduced retirement Minimum 10 years of service and 60 years old
(Continued)
- 81 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 4 - Pension Plans - City of Paducah:
Cost-Sharing Multiple-Employer Defined Benefit Plan
County Employees’ Retirement System
Non-hazardous members:
Tier 3 Participation date After December 31, 2013
Unreduced retirement Minimum 5 years of service and 65 years old
Age of 57 or older and sum of service years plus age equal 87
Reduced retirement Not available
Hazardous members:
Tier 1 Participation date Prior to September 1, 2008
Unreduced retirement 20 years of service and any age
Minimum 5 years of service and 55 years old
Reduced retirement Minimum 15 years of service and 50 years old
Tier 2 Participation date September 1, 2008 to December 31, 2013
Unreduced retirement Minimum 5 years of service and 60 years old
25 years of service and any age
Reduced retirement Minimum 15 years of service and 50 years old
Tier 3 Participation date After December 31, 2013
Unreduced retirement Minimum 5 years of service and 60 years old
25 years of service and any age
Reduced retirement Not available
Cost of living adjustments are provided at the discretion of the General Assembly. Retirements is based
on a factor of the number of years’ service and hire date multiplied by the average of the highest five
years’ earnings. Reduced benefits are based on factors of both of these components. Participating
employees become eligible to receive the health insurance benefit after at least 180 months of service.
Death benefits are provided for both death after retirement and death prior to retirement. Death benefits
after retirement are $5,000 in lump sum. Five years’ service is required for death benefits prior to
retirement and the employee must have suffered a duty-related death. The decedent’s beneficiary will
receive the higher of the normal death benefit and $10,000 plus 25% of the decedent’s monthly final rate
of pay and any dependent child will receive 10% of the decedent’s monthly final rate of pay up to 40% for
all dependent children. Five years’ service is required for non-service related disability benefits.
Plan Funding – State statute requires active members to contribute % of creditable compensation based
on the tier:
Non-hazardous Hazardous
Required Contribution Required Contribution
Tier 15%Tier 1 8%
Tier 2 5% plus 1% for insurance Tier 2 8% plus 1% for insurance
Tier 3 5% plus 1% for insurance Tier 3 8% plus 1% for insurance
Employers contribute at the rate determined by the CERS Board to be necessary for the actuarial
soundness of the system, as required by KRS 61.565 and 61.752. The City’s required contribution rate
was 19.30% for non-hazardous employees and 30.06% for hazardous employees for the year ended
June 30, 2021. Non-hazardous and hazardous employee plans are administered separately.
(Continued)
- 82 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 4 - Pension Plans - City of Paducah:
Cost-Sharing Multiple-Employer Defined Benefit Plan
County Employees’ Retirement System
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions
At June 30, 2021, the City reported a liability for its proportionate share of the net pension liability for
CERS. The amount recognized by the City as its proportionate share of the net pension liability that
was associated with the City was as follows:
City’s non-hazardous proportionate share of the CERS net pension liability $ 24,344,624
City’s hazardous proportionate share of the CERS net pension liability 46,263,440
Total CERS net pension liability associated with the City $ 70,608,064
The net pension liability for each plan was measured as of June 30, 2020, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of that date.
The City’s proportion of the net pension liability for CERS was based on the actual liability of the
employees and former employees relative to the total liability of the System as determined by the
actuary. At June 30, 2021, the City’s non-hazardous proportion was 0.317404% percent and hazardous
proportion was 1.534428% percent.
For the year ended June 30, 2021, the City recognized pension expense of $10,868,258 ($3,818,643 for
non-hazardous and $7,049,615 for hazardous) related to CERS pension plans. At June 30, 2021, the
City reported deferred outflows of resources and deferred inflows of resources related to the CERS
pension plans from the following sources:
Non-hazardous Hazardous
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and
actual experience $ 607,078 $ - $ 1,434,809 $ -
Changes in assumptions 950,616 - 1,754,570 -
Net difference between projected and
actual earnings on pension plan
investments 609,194 - 1,042,206 -
Changes in proportion and differences
between City contributions and
proportionate share of contributions 130,572 104,111 121,880 557,032
2,297,460 104,111 4,353,465557,032
City contributions subsequent to the
measurement date 1,604,948 -2,925,365 -
Total $ 3,902,408 $ 104,111 $ 7,278,830 $557,032
(Continued)
- 83 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 4 - Pension Plans - City of Paducah:
Cost-Sharing Multiple-Employer Defined Benefit Plan
County Employees’ Retirement System
The City reported $4,530,313 as deferred outflows of resources related to pensions resulting from
City’s non-hazardous and hazardous contributions subsequent to the measurement date that will be
recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts
reported as deferred outflows of resources and deferred inflows related to pensions will be recognized
in pension expense as follows:
Fiscal Year Ending June 30
Non-
Hazardous Hazardous
2022 $ 1,005,928 $ 1,526,042
2023 652,346 1,005,496
2024 290,407 741,079
2025 244,668 523,816
Actuarial assumptions - The total pension liability in the June 30, 2021 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Non-Hazardous Hazardous
Inflation 2.30%2.30%
Projected salary increases 3.30%-10.30%3.55%-19.05%
Investment rate of return, net of
investment expense & inflation 6.25%6.25%
For CERS, Mortality rates for the period after service retirement are according to the MP-2014
mortality improvement scale using a base year of 2020 for all active and retired employees and
beneficiaries. The MP-2014 mortality improvement scale using a base year of 2019 set back four years
for male and female is used for the period after disability retirement. The actuarial assumptions used
were based on the results of an actuarial experience study for the period July 1, 2013 – June 30, 2018.
For CERS, the long-term expected return on plan assets is reviewed as part of the regular experience
studies prepared every five years. The most recent analysis, performed for the period covering fiscal
years 2013 through 2018, is outlined in a report dated April 18, 2019. Several factors are considered in
evaluating the long-term rate of return assumption including long-term historical data, estimates
inherent in current market data, and a log-normal distribution analysis in which best-estimate ranges of
expected future real rates of return (expected return, net of investment expense and inflation) were
developed by the investment consultant for each major asset class. These ranges were combined to
produce the long-term expected rate of return by weighting the expected future real rates of return by
the target asset allocation percentage and then adding expected inflation. The capital market
assumptions developed by the investment consultant are intended for use over a 10-year horizon and
may not be useful in setting the long-term rate of return for funding pension plans which covers a
longer timeframe. The assumption is intended to be a long-term assumption and is not expected to
change absent a significant change in the asset allocation, a change in the inflation assumption, or a
fundamental change in the market that alters expected returns in future years.
(Continued)
- 84 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 4 - Pension Plans - City of Paducah:
Cost-Sharing Multiple-Employer Defined Benefit Plan
County Employees’ Retirement System
The target allocation and best estimates of arithmetic real rates of return for each major asset class, as
provided by CERS’s investment consultant, are summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
US Equity 18.75%4.30%
Non-US Equity 18.75%5.25%
Private Equity 10.00%6.65%
Specialty Credit/High Yield 15.00% 3.90%
Core Bonds 13.50% (0.25)%
Real Estate 5.00%5.30%
Opportunistic 3.00%2.25%
Real Return 15.00%3.95%
Cash 1.00%(0.75)%
Total 100.0%
Discount rate - The discount rate used to measure the total pension liability was 6.25%. The projection
of cash flows used to determine the discount rate assumed that contributions from plan employees and
employers will be made at statutory contribution rates. Projected inflows from investment earnings
were calculated using the long-term assumed investment return of 6.25%. The long-term investment
rate of return was applied to all periods of projected benefit payments to determine the total pension
liability.
Sensitivity of CERS proportionate share of net pension liability to changes in the discount rate - The
following table presents the net pension liability of the City, calculated using the discount rates selected
by the pension system, as well as what the City’s net pension liability would be if it were calculated
using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate:
1%
Decrease
Current
Discount
Rate
1%
Increase
CERS 5.25%6.25% 7.25%
Non-hazardous’ proportionate share of
net pension liability $30,022,219 $24,344,624 $19,643,360
Hazardous’ proportionate share of
net pension liability $57,175,023 $46,263,440 $37,356,704
(Continued)
- 85 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 4 - Pension Plans - City of Paducah:
Cost-Sharing Multiple-Employer Defined Benefit Plan
County Employees’ Retirement System
Pension plan fiduciary net position - Detailed information about the pension plan’s fiduciary net
position is available in the separately issued financial report of the CERS.
Single Employer Defined Benefit Funds - Police and Firefighters' Pension Fund (PFPF) and
Appointive Employees’ Pension Fund (AEPF)
Basis of Accounting – The financial statements are prepared using the accrual basis of accounting. Plan
member and employer contributions are recognized in the period in which the contributions are due,
pursuant to formal commitments. Benefits and refunds are recognized when due and payable in
accordance with the terms of each plan.
Administration – The Appointive Employees’ Pension Fund Board and the City of Paducah Police and
Firefighters’ Pension Fund Board are responsible for establishing or amending contribution rates and
requirements for their respective plans.
Administrative Costs – Administrative costs are funded from investment earnings.
Valuation of Investments – Investments are reported at fair value. Investments are composed of
securities valued at current market prices. See investment policies in Note 3 for the pension trusts.
Plan Administration – Management of the PFPF, as authorized by Kentucky Revised Statute 95.869, is
vested in the PFPF Board of Trustees, which consist of the Mayor, City Treasurer, a retired firefighter
and a retired police officer. Management of the AEPF, as authorized by Kentucky Revised Statute
90.400, is vested in the AEPF Board of Trustees, which consists of the Mayor, City Manager and an
elected retired employee.
Plan Description:
PFPF is a single-employer defined benefit plan. On August 1, 1988, the plan was closed to new
entrants and current active duty police and firemen of the City were given a choice of remaining in this
plan or transferring into the CERS. Effective August 1, 1988, the PFPF covered 21 active duty
members. There are no active participants in the plan at June 30, 2021. All other active duty members
elected coverage under CERS. PFPF does not issue a separate, stand-alone report. Accordingly, the
plan financial statements are included in this audit report.
AEPF is a single-employer defined benefit plan which covers past appointed employees of the City. In
1975, the City froze admission of new entrants into the plan. There are no active participants in the
plan at June 30, 2021. AEPF does not issue a separate, stand-alone report. Accordingly, the plan
financial statements are included in this audit report.
(Continued)
- 86 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 4 - Pension Plans - City of Paducah:
Single Employer Defined Benefit Funds - Police and Firefighters' Pension Fund (PFPF) and
Appointive Employees’ Pension Fund (AEPF)
Membership Information:
Membership of each plan consisted of the following at June 30, 2021:
PFPF AEPF
Active participants 0 0
Beneficiaries 23 1
Retired participants 16 0
TOTAL PARTICIPANTS 39 1
These plans are closed to new members.
Benefits provided:
PFPF provides retirement, disability, and death benefits. These benefits are determined by Kentucky
Revised Statutes (KRS) sections 95.851 to 95.884. Retirement benefits for general plan members are
2½% of average salary times years of service up to and including 30 years. The maximum is 75% of
average salary. Average salary is the highest average salary of the member for any 3 consecutive years
of service. Retirement allowed any time after attainment of age 50, provided that at least 20 years of
service have been completed. Occupational disability benefits equal to 70% of the members’ final rate
of pay. Non-occupational disability benefits are available after completing 10 years of service and are
determined in a similar manner as retirement benefits subject to a maximum of 50% of average salary.
Surviving beneficiaries may receive death benefits per the terms of the plan. Benefit terms provide for
an annual cost-of-living adjustment up to 5% a year provided the adjustment is supportable on an
actuarially sound basis. Kentucky Revised Statute 95.859(2) provides that the widow’s minimum
benefit shall be increased by the same percentage as the increase in Social Security benefits, not to
exceed 5%.
AEPF provides retirement, disability, and death benefits. Retirement allowed any time after attainment
of age 60, provided that at least 20 years of service have been completed. Retirement benefits for
general plan members are 50% of monthly salary at the time of retirement. Occupational disability
benefits equal to 50% of the members’ final rate of pay. Surviving beneficiaries may receive death
benefits per the terms of the plan. Effective January 1, 1998, all persons receiving benefits received a
one-time increase of 10%.
Funding policy:
PFPF - Since there are only retired employees and beneficiaries receiving benefits, the City expects
little or no additional pension obligation. The City has pledged to maintain benefits and the financial
soundness of the plan by appropriations from the General Fund, as necessary.
AEPF - Since there are only retired employees and beneficiaries receiving benefits, the City expects
little or no additional pension obligation. The City has pledged to maintain benefits and the financial
soundness of the plan by appropriations from the General Fund, as necessary.
(Continued)
- 87 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 4 - Pension Plans - City of Paducah:
Single Employer Defined Benefit Funds - Police and Firefighters' Pension Fund (PFPF) and
Appointive Employees’ Pension Fund (AEPF)
Changes in PFPF and AEPF’s Net Pension Liability is as follows :
PFPF
Total
Pension
Liability
Plan
Net
Position
Net
Pension
Liability
(a)(b)(a) – (b)
Balance – June 30, 2020 7,526,025 $ 4,696,136 $2,829,889
Service cost - - -
Interest expense 457,312 - 457,312
Experience losses (gains) 301,216 - 301,216
Change in assumptions---
Contributions – City - 349,548 (349,548)
Contributions – Members - - -
Investment income - 1,165,249 (1,165,249)
Benefits paid (980,922) (980,922) -
Plan administrative expenses -(43,063)43,063
Net change (222,394)490,812 (713,206)
Balance – June 30, 2021 $ 7,303,631 $ 5,186,948 $2,116,683
AEPF
Total
Pension
Liability
Plan
Net
Position
Net
Pension
Liability
(a)(b)(a) – (b)
Balance – June 30, 2019 $ 64,385 $ - $ 64,385
Service cost - - -
Interest expense 3,565 -3,565
Experience losses (gains) (19,357) - (19,357)
Change in assumptions - - -
Contributions – City - 12,927 (12,927)
Contributions – Members - - -
Investment income---
Benefits paid (9,940) (9,940)-
Plan administrative expenses -(2,987)2,987
Net change (25,732)-(25,732)
Balance – June 30, 2020 $ 38,653 $-$ 38,653
For the year ended June 30, 2021, the City recognized pension expense of $165,356 ($178,161 expense
for PFPF and ($12,805) gain for AEPF) for these pension plans.
(Continued)
- 88 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 4 - Pension Plans - City of Paducah:
Single Employer Defined Benefit Funds - Police and Firefighters' Pension Fund (PFPF) and
Appointive Employees’ Pension Fund (AEPF)
At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources
related to the PFPF and AEPF pension plans from the following sources:
PFPF AEPF
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and
actual experience $-$-$-$-
Changes in assumptions - - - -
Net difference between projected
and actual earnings on pension
plan investments -708,210 --
Total $ -$ 708,210 $-$-
Amounts reported as deferred outflows of resources and deferred inflows related to pensions will be
recognized in pension expense as follows:
Fiscal Year Ending June 30
PFPF AEPF
2022 $ (207,823)$ -
2023 (179,819)-
2024 (154,758) -
2025 (165,810) -
The schedule of funding progress, presented as required supplementary information following the notes
to the financial statements, presents multiyear trend information about whether the actuarial value of
plan assets is increasing or decreasing relative to the actuarial accrued liability for benefits.
Actuarial assumption
PFPF AEPF
Valuation date 7/1/21 7/1/21
Actuarial cost method Entry age normal Aggregate (1)
Amortization method Level dollar closed Level dollar closed
Remaining amortization period 12 Years 10 Years
Asset valuation method Fair value Fair value
(Continued)
- 89 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 4 - Pension Plans - City of Paducah:
Single Employer Defined Benefit Funds - Police and Firefighters' Pension Fund (PFPF) and
Appointive Employees’ Pension Fund (AEPF)
Actuarial assumptions:
Investment rate of return 6.50% (3) 6.00%
Projected salary increases (2) (2)
Inflation rates adjustments (2) (2)
(1) The Aggregate Method does not identify or separately amortize the unfunded actuarial
liabilities. Information about funded status and funding progress is presented using the entry
age actuarial cost method for that purpose; and, that information presented is intended to serve
as a surrogate for the funding progress of the plan.
(2) The plan has no active participants. The pension cost for each year is determined as an
amortization of the unfunded actuarial accrued liability over the lesser of 10 years or the
weighted average of expected term of payment of plan benefits.
(3) 6.50% Effective July 1, 2020
Post-retirement mortality – The mortality rates for the plans were based as follows:
PFPF 1971 Group annuity mortality (GAM) table
UP-1984 table set forward 5 years for participants retiring due to disability
AEPF GAM 1983 Male
GAM 1983 Female
Rate of return – Investment return is anticipated to be the major source of additional funds for
payment of benefits. The assumed rate of return is a long-term average. The fund’s rate of return is
determined primarily by the asset allocation – the classes in which it is invested, and the
performance of the associated markets. For the July 1, 2021 PFPF plan year, the assumed rate of
return was 6.50%. For the AEPF July 1, 2021 plan year, the assumed rate of return was 6%.
Discount Rate – The projection of cash flows used to determine the discount rate assumed that the
plan member contributions will be made at the current contribution rate and that City contributions
will be made equal to the difference between actuarially determined contribution and the member
contribution. The pension plans’ fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate
of return on pension plans investment was applied to all periods of projected benefit payments to
determine the total pension liability. The discount rate used to measure the total pension liability as
of July 1, 2021 was as follows:
PFPF 6.50%
AEPF 6.00%
(Continued)
- 90 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 4 - Pension Plans - City of Paducah:
Single Employer Defined Benefit Funds - Police and Firefighters' Pension Fund (PFPF) and
Appointive Employees’ Pension Fund (AEPF)
Sensitivity of the net pension liability to changes in the discount rate – The following presents the
net pension liability of the City’s plans would be if it were calculated using a discount rate that is 1%
point lower or 1% point higher than the current rate:
1% Current 1%
Decrease Rate Increase
PFPF Net Pension Liability $ 2,608,135 $ 2,116,683 $ 1,682,998
AEPF Net Pension Liability $ 40,853 $ 38,653 $ 36,662
Financial Reports
The Police and Firefighters' Pension Fund (PFPF) and Appointive Employees’ Pension Fund (AEPF) plans
do not issue stand-alone financial reports. The Plans financial statements are as follows:
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUNDS
JUNE 30, 2021
PFPF AEPF Total
Assets
Cash and cash equivalents $ 220 $ - $ 220
Receivables:
Interest 2,066 -2,066
Other ---
Investments at fair value
Money market accounts 111,724 - 111,724
Common stock 2,109,063 - 2,109,063
Mutual funds 2,963,923 -2,963,923
Total assets 5,186,996 -5,186,996
Liabilities
Vouchers and accounts payable 48 -48
Net Position
Held in trust for pension benefits $ 5,186,948 $-$ 5,186,948
(Continued)
- 91 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 4 - Pension Plans - City of Paducah:
Single Employer Defined Benefit Funds - Police and Firefighters' Pension Fund (PFPF) and
Appointive Employees’ Pension Fund (AEPF)
COMBINING STATEMENT OF CHANGES IN NET POSITION
PENSION TRUST FUNDS
JUNE 30, 2021
PFPF AEPF Total
Additions:
Contributions
Employer $ 349,548 $ 12,927 $ 362,475
Plan members ---
Total contributions 349,548 12,927 362,475
Investments earnings:
Net change in fair value of investments 1,095,790 - 1,095,790
Interest and dividends 69,462 -69,462
Net investment earnings 1,165,252 -1,165,252
Total additions 1,514,800 12,927 1,527,727
Deductions:
Benefits 980,922 9,940 990,862
Administrative expenses 43,066 2,987 46,053
Total deductions 1,023,988 12,927 1,036,915
Change in net position 490,812 - 490,812
Net position - beginning 4,696,136 -4,696,136
Net position - ending $ 5,186,948 $-$ 5,186,948
Summary of Pension Expense:
As of June 30, 2021, the City’s pension expense associated with the three pension plans are summarized
as follows:
Governmental
Activities
Business-Type
Activities Total
CERS –Non-hazardous $ 3,321,703 $496,940$ 3,818,643
CERS – Hazardous 7,049,615 - 7,049,615
PFPF 178,161 178,161
AEPF (12,805)(12,805)
Total $ 10,536,674 $496,940$11,033,614
(Continued)
- 92 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 5 – Other Postemployment Benefits (OPEB):
CERS Medical Insurance Plan
Plan description – the City contributes to the Kentucky Retirement Systems Insurance fund (Insurance
Fund), a cost-sharing multiple-employer defined benefit post-employment health care plan administered
by the Kentucky Retirement Systems (KRS). The Insurance Fund was established to provide hospital and
medical insurance for members for receiving benefits from the Kentucky Employees Retirement Systems
(KERS), the County Employees Retirement System (CERS), and the State Police Retirement System
(SPRS). The City participates in the County Employees Retirement System (CERS). CERS non-hazardous
and hazardous employee plans are administered separately.
Benefits provided – the Insurance Fund pays a prescribed contribution for whole or partial payments of
required premiums to purchase hospital and medical insurance, based on years of service, for retirees and
certain eligible beneficiaries. The authority to establish and amend benefit provisions rests with the
Kentucky General Assembly. KRS issues a publicly available financial report that can obtained at
www.kyret.ky.gov.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEBs
Contributions – per Kentucky Revised Statues 78.545 (33), contribution requirements are established and
may be amended by the KRS Board. The City was required to contribute at actuarially determined rates of
4.76% of non-hazardous covered payroll and 9.52% of hazardous covered payroll for the fiscal years
ended June 30, 2021.
At June 30, 2021, the City reported a liability for its proportionate share of the net OPEB liability for the
CERS Insurance Trust. The collective net OPEB liability was measured as of June 30, 2020, and the total
OPEB liability used to calculate the collective net OPEB liability was based on a projection of the City’s
long-term share of contributions to the OPEB plan relative to the projected contributions of all
participating employers, actuarially determined. At June 30, 2020, the City’s non-hazardous proportion
was 0.319847 percent and hazardous proportion was 1.532405 percent.
The amount recognized by the City as its proportionate share of the OPEB liability that was associated
with the District was as follows:
City’s non-hazardous proportionate share of the CERS
medical insurance liability $7,662,289
City’s hazardous proportionate share of the CERS
medical insurance liability
14,176,195
Total CERS medical insurance liability associated with the City $ 21,838,484
(Continued)
- 93 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 5 – Other Postemployment Benefits (OPEB):
For the year ended June 30, 2021, the City recognized an OPEB expense of $3,225,271 ($1,011,259 non-
hazardous and $2,214,012 hazardous, respectively). At June 30, 2021, the City reported deferred outflows
of resources and deferred inflows of resources related to OPEBs from the following sources:
Non-hazardous Hazardous
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and
actual experience $ 1,280,207 $ 1,281,206$ 486,471 $ 1,415,648
Changes in assumptions 1,332,785 8,106 2,312,678 13,062
Net difference between projected and
actual earnings on pension plan
investments 254,678 - 629,279 -
Changes in proportion and differences
between City contributions and
proportionate share of contributions 42,772 126,480 -367,650
2,910,442 1,415,792 3,428,428 1,796,360
City contributions subsequent to the
measurement date 583,881 -993,080 -
Total $ 3,494,323 $1,415,792 $4,421,508 $ 1,796,360
The City reported $1,576,961, including implicit subsidies of $254,666, as deferred outflows of resources
related to OPEB resulting from City non-hazardous and hazardous contributions subsequent to the
measurement date that will be recognized as a reduction of the net OPEB liability in the year ended June
30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows related to
pensions will be recognized in OPEB expense as follows:
Fiscal Year Ending June 30
Non-
Hazardous Hazardous
2022 $ 393,542 $ 413,334
2023 468,911 95,045
2024 324,576 460,028
2025323,424 199,227
2026 (15,803)
(Continued)
- 94 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 5 – Other Postemployment Benefits (OPEB):
Actuarial assumptions – The total OPEB liability in the June 30, 2020 actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the measurement:
Investment rate of return 6.25%
Projected salary increases 3.30% - 19.05%, varies by service
Inflation rate 2.30%
Real Wage Growth 2.00%
Healthcare cost trend rates
Under 65 7.00% at January 1, 2020 decreasing to an ultimate rate of
4.05% over a period of 12 years
Ages 65 and Older 5.00% at January 1, 2020 decreasing to an ultimate rate of
4.05% over a period of 10 years
Municipal Bond Index Rate 2.45%
Discount Rate 5.34% and 5.30% for non-hazardous and hazardous
Mortality rates used for active members is PUB-2010 General (non-hazardous) and Public Safety
(hazardous) Mortality Tables projected with ultimate rates from the MP-2014 mortality scale using a base
year of 2010. For healthy retired members and beneficiaries, System-specific mortality table based on
mortality experience from 2013-2018 projected with the ultimate rates from MP-2014 mortality
improvement scale using a base year of 2019. The PUB-2010 Disabled Mortality Table projected with a
4-year set-forward for both males and females with ultimate rates from the MP-2014 mortality scale using
a base year of 2010 is used for the period after disability retirement.
The long-term expected rate of return on OPEB plan investments was determined using a log-normal
distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns,
net of OPEB plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class, as
provided by TRS’s investment consultant, are summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
US Equity 18.75%4.50%
Non-US Equity 18.75%5.25%
Private Equity 10.00%6.65%
Specialty Credit/High Yield 15.00%3.90%
Core Bonds 13.50%(0.25)%
Real Estate 5.00%5.30%
Opportunistic 3.00%2.25%
Real Return 15.00%3.95%
Cash 1.0%(0.75)%
Total 100.0%
(Continued)
- 95 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 5 – Other Postemployment Benefits (OPEB):
Discount rate - The discount rate used to measure the total OPEB liability was 5.34% for non-hazardous
and 5.30% for hazardous. The projection of cash flows used to determine the discount rate assumed that
plan member contributions will be made at the current contribution rates and the employer contributions
will be made at statutorily required rates. Based on those assumptions, the OPEB plan’s fiduciary net
position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all
periods of projected benefit payments to determine the total OPEB liability.
The following table presents the City’s proportionate share of the collective net OPEB liability of the
System, calculated using the discount rate of 5.34% for non-hazardous and 5.30% for hazardous, as well
as what the City’s proportionate share of the collective net OPEB liability would be if it were calculated
using a discount rate that is 1-percentage-point lower (4.34% for non-hazardous and 4.30% for hazardous)
or 1-percentage-point higher (6.34% for non-hazardous and 6.30% for hazardous) than the current rate:
1%
Decrease
Current
Discount
Rate
1%
Increase
CERS
Non-hazardous’ proportionate share of
net OPEB liability $ 7,206,561 $ 7,662,289 $ 5,870,548
Hazardous’ proportionate share of
net pension liability $19,243,815 $14,176,195 $10,092,721
Sensitivity of the City’s proportionate share of the collective net OPEB liability to changes in the
healthcare cost trend rates – The following presents the City’s proportionate share of the collective net
OPEB liability, as well as what the City’s proportionate share of the collective net OPEB liability would
be if it were calculated using healthcare cost trend rates that were 1-percentage-point lower or 1-
percentage-point higher than the current healthcare cost trend rates:
1%
Decrease
Current
Discount
Rate
1%
Increase
Non-hazardous’ proportionate share of
net OPEB liability $ 5,932,527 $ 7,662,289 $ 9,761,396
Hazardous’ proportionate share of
net pension liability $10,130,726 $14,176,195 $19,149,752
(Continued)
- 96 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 6 - Component Unit Long-Term Liabilities:
Long-term liabilities of the discretely presented component units consist of the following at June 30, 2021:
Note Payable, Kentucky Infrastructure Authority (KIA) – Paducah Water Works
In connection with a merger with Reidland Water District, Paducah Water Works (PWW) assumed a loan
from the KIA with interest rate of 1.00%, with a .25% annual service fee. In addition, PWW has a note
with KIA for a 24” Water Main with interest rate of 1.75% and a .25% annual service fee. The annual
requirements to amortize the outstanding notes as of June 30, 2021, are as follows:
.25%
Year Ending Service R & M
June 30 Principal Interest Fee Reserve Total
2022 $ 471,709 $ 70,793 $ 14,117 $ 11,200 $ 567,819
2023 477,236 65,266 12,934 11,200 566,636
2024 482,835 59,668 11,737 11,200 565,440
2025 488,503 53,998 10,526 11,200 564,227
2026 494,242 48,260 9,302 11,200 563,004
2027-2031 2,559,868 152,639 27,629 11,200 2,751,336
2032-2036 652,554 43,844 6,265 - 702,663
2037 137,474 1,807 258 - 139,539
TOTALS $5,764,421 $496,275 $ 92,768 $ 67,200 $6,420,664
Note 7 - Appropriations Deficit:
No departments that adopted budgets annually had excess expenditures over appropriations for the fiscal
year ended June 30, 2021.
Note 8 - Commitments and Contingencies:
Grant Contingencies
Amounts received from grantor agencies are subject to audit and adjustment by grantor agencies,
principally the federal government. Any disallowed claims, including amounts already collected, may
constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed
by the grantor cannot be determined at this time although the government expects such amounts, if any, to
be immaterial.
Construction Commitments
The City has various on-going contracts for construction, renovations, paving materials, equipment, and
labor. As of June 30, 2021, the most significant construction commitment were as follows:
Cumulative Estimated
Costs Incurred Total Costs
Comprehensive Stormwater Master Plan Study $ 975,891 $ 1,047,040
Floodwall Rehab 2,528,497 6,775,887
Dredging - Permitting 82,133 266,250
$ 3,586,521 $ 8,089,177
(Continued)
- 97 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 9 - Risk Management and Litigation:
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City obtains coverage from
commercial insurance companies to handle the risk of loss. There have been no decreases in insurance
coverage from the prior year. There have been no settlements in excess of insurance coverage during the
prior three years.
An analysis of claims activity is presented below:
Current Year
Beginning of Claims and Actual Balance at
Fiscal Year Changes in Claim Fiscal
Liability Estimates Payments Year End
2018 - 2019 $ - $ 101,030 $ 101,030 $ -
2019 - 2020 - 108,994 108,994 -
2020 - 2021 - 140,231 140,231 -
During fiscal year 1999, the City established the Health Insurance Fund (an internal service fund) to
account for and finance employee medical costs relating to the City’s employee self-insured medical
benefit plan that went into effect as of July 1, 1999. The health insurance provides coverage for up to
$175,000 for each covered individual. The City purchases commercial insurance (reinsurance) for claims
in excess of the coverage provided per individual or in excess of the maximum aggregate limit, which is
based on a formula that considers group census and anticipated claims. As of June 30, 2021, that amount
was $2,315,795. Self-insurance costs are accrued based on claims reported within 90 days of the balance
sheet date as well as an estimated liability for claims incurred but not reported. The total accrued liability
for self-insurance costs was $230,715 at June 30, 2021.
The analysis of claims activity is presented below:
Current Year
Beginning of Claims and Actual Balance at
Fiscal Year Changes in Claim Fiscal
Liability Estimates Payments Year End
2018 - 2019 $ 108,812 $ 2,114,691 $2,130,206 $ 93,297
2019 - 2020 93,297 1,639,610 1,624,455 108,452
2020 - 2021 108,452 2,131,217 2,008,954 230,715
Several lawsuits are pending involving citizens’ complaints and the City of Paducah. Various allegations
have been made seeking damages which the legal counsel of the City, along with its management, has
determined to be immaterial to the City’s financial position.
Note 10 - Lease Agreements:
Operating Leases
The City is leasing land and building to the Luther F. Carson Four Rivers Center for the Performing Arts
(Center) for a primary term of 99 years. No rental revenue is collected from this lease. The rental for the
primary term of the lease is for the construction and use of the performing arts center. The building is
deemed the property of the City; however, for financial reporting, the building is reported with the Luther
F. Carson Four Rivers Center financial records. In December 2003, with the authorization of the City, the
Center secured financing of $6.5 million subject to a mortgage against the leasehold and real property on
which the performing arts center is located. The City also consented to an assignment of the lease as
security for the loan.
(Continued)
- 98 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 10 - Lease Agreements:
Operating Leases
The City also leases certain other property to various lessees under non-cancelable agreements that have
various expiration dates through June 30, 2024. Rental revenue received from leased property during 2021
totaled $596,396.
The following is an analysis of property leased under these leases at June 30, 2021:
Land $ 270,000
Buildings 873,250
Equipment 110,126
Total 1,253,376
Less: accumulated depreciation (983,376)
NET BOOK VALUE $ 270,000
Depreciation expense for the year ended June 30, 2021, on leased property was $60,691.
The following is a schedule of future minimum rental income from operating leases at June 30, 2021:
Lease
Income
2022 $ 482,791
2023 440,861
2024 425,830
2025 425,830
2026 217,499
Thereafter -
TOTAL MINIMUM LEASE RECEIPTS $1,992,811
Note 11 – Tax Abatements:
Developer Residential Property Tax Abatements –
The City of Paducah is authorized by Kentucky Revised Statues Chapter 81A and City Ordinance 2002-
10-6989 to enter into property tax abatement agreements for the purpose of subsidizing developers for
their cost of infrastructure improvements associated with residential infill and annexation development.
Tax reimbursements cannot exceed the cost of City-approved infrastructure associated with the
development over the life of the agreement. The abatement is limited to the actual City of Paducah real
estate property taxes collected in any given year attributed to a specific development area as outlined in the
individual agreement with the City.
(Continued)
- 99 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 11 – Tax Abatements:
For the year ended June 30, 2021, the City abated property taxes totaling $71,473 under this program,
including the following tax abatement agreements:
Recipient Development Agreement
Ordinance
Abatement Amount
Current
Year
Inception to
Date
Signature Homes of
Paducah, LLC
Westwood Subdivision
In-fill 2010-12-7768 $27,520 $148,469
Greenway Village,
LLC
Greenway Village In-
fill, phase 1 2011-2-7789 $15,929 $99,532
Higdon
Development
Ridgewood In-fill,
phase 1 2019-4-8573 $17,065 $29,867
Greenway Village,
LLC
Greenway Village In-
fill, phase 2 2019-4-8572 $10,959 $20,092
Kentucky Business Investment (KBI) Program, KRS 154.32 –
The KBI Program provides income tax credits and wage assessments to new and existing manufacturing
companies, and non-retail service companies that locate or expand operations in Kentucky. The Program
can be set to last up to 10 years.
For the year ended June 30, 2021, the City rebated employee local payroll taxes totaling $9,539 under this
program, including the following resolutions:
Recipient Start Date Term Authority
Payroll Tax
Rebate Amount
Current
Year
Inception to
Date
Dippin’ Dots, LLC 12-11-2016 10 yrs. Resolution - 2014 $9,539 $48,416
Industrial Park West (IPW) – Ordinance 1997-2-5642 authorized the joint development of the IPW, for
economic development purposes, as well as an inter-local agreement authorizing the city to share 50% of
payroll tax revenue generated in the Park. This agreement is good for 10 years after 97% of the park
property is developed or 25 years (March 6, 2022), whichever is first.
For the year ended June 30, 2021, the City shared payroll tax revenue totaling $116,752 under this
agreement with McCracken County (“County”), as follows:
Payroll Tax Remitter Start Date
Payroll Tax Revenue Shared
Current Year Inception to
Date
Coca Cola September 2005 $11,734 $334,550
Genova September 2014 -0- $144,693
Plastic Services Products October 2020 $ 8,353 $8,353
H.T. Hackney March 2012 $34,446 $230,977
Whitehall December 2014 $62,219 $365,433
(Continued)
- 100 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 11 – Tax Abatements:
Information Age Park (IAP) – Ordinance 2005-11-7046 authorized an inter-local agreement between the
City and County relating to payroll tax revenue generated in the Park. If the City invites the County to
participate in the cost of an economic development project, the City will share 50% of payroll tax revenue
generated through the term of the agreement which expired February 13, 2021.
For the year ended June 30, 2021, the City shared payroll tax revenue totaling $171,330 under this
agreement with the County, as follows:
Payroll Tax Remitter Start Date
Payroll Tax Revenue Shared
Current Year Inception to
Date
Lynx March 2006 $32,936 $831,088
Ulrich March 2006 $11,298 $207,506
Pepsi December 2007 $ 4,382 $85,949
Marquette March 2008 $93,761 $1,105,459
Teletech December 2014 $28,953 $283,852
AAA (Pebco) – Ordinance 2004-6-6824 authorized an inter-local agreement between the City and County
relating to payroll tax revenue generated by the AAA Company on Coleman Road. The City and County
partnered on an economic development project which calls for the City to share 50% of payroll tax revenue
generated at the AAA facility on Coleman Road for 25 years, through 2029.
For the year ended June 30, 2021, the City shared payroll tax revenue totaling $8,814 under this agreement
with the County, as follows:
Payroll Tax Remitter Start Date
Payroll Tax Revenue Shared
Current Year Inception to
Date
AAA (Pebco) July 2005 $8,814 $184,059
Other Local Economic Development Programs –
In order to attract certain companies to the Paducah area, the City and County partnered together to
construct facilities to house corporate operations in the Information Age Park (IAP) and the Industrial Park
West (IPW).
For the year ended June 30, 2021, the City and County provided reduced rent for the following corporate
recipient, totaling $110,556:
Recipient Location Bldg.
Size
Agreement
Ordinance
FMV
Rent Rent Paid
Teletech 2301 McCracken Blvd. 30,000 sf 2012-11-7986 $330,000 $219,444
(Continued)
- 101 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
Note 12 – Implementation of GASB Pronouncements
Future Implementation of GASB Pronouncements
In addition to the pronouncements discussed previously, GASB has issued additional guidance for state and
local governments that are not yet effective. The City is currently reviewing the provisions of the following
pronouncements to determine the impact of implementation in future periods.
Statement No. 87 – Leases (FY2022)
Statement No 89 – Accounting for Interest Costs Incurred before the End of a Construction Period
(FY2022)
Statement No 91 – Conduit Debt Obligations (FY2022)
Statement No. 92 – Omnibus 2020 (FY2022)
Statement No. 93 – Replacement of Interbank Offered Rates (FY2022)
Statement No. 97 – Certain Component Unit Criteria, and Accounting and Financial Reporting for
Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB
Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. (FY2022)
CITY OF PADUCAH, KENTUCKY REQUIRED SUPPLEMENTARY INFORMATION COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2021
2021 2020 2019 2018 2017 2016 2015 2014
Total pension liability
Service cost -$ 10,901$ 10,267$ 7,678$ 7,038$ 7,183$ 5,576$ 4,871$
Interest 457,312 472,881 527,900 560,538 626,531 686,614 744,910 792,267
Changes in benefit terms - - - - - - - -
Differences between expected and actual experience 301,216 249,805 (384,990) (2,758) (278,063) (111,824) (43,965) 150,977
Changes in assumptions - - - - 148,359 156,880 166,753 175,893
Benefit payments/refunds (980,992) (965,299) (1,033,958) (1,101,201) (1,223,078) (1,308,290) (1,386,273) (1,445,080)
Net change in total pension liability (222,464) (231,712) (880,781) (535,743) (719,213) (569,437) (512,999) (321,072)
Total pension liability - beginning 7,526,025 7,757,737 8,638,518 9,174,261 9,893,474 10,462,911 10,975,910 11,296,982
Total pension liability - ending (a)7,303,561$ 7,526,025$ 7,757,737$ 8,638,518$ 9,174,261$ 9,893,474$ 10,462,911$ 10,975,910$
Plan fiduciary net position
Contributions - employer 349,548$ 345,049$ 366,129$ 380,168$ 436,575$ 420,352$ 391,468$ 420,834$
Contributions - member - 4,394 6,448 6,325 4,001 4,494 6,088 5,354
Net investment income 1,165,249 280,927 461,503 492,276 766,509 165,489 310,681 1,057,726
Benefit payments/refunds (980,922) (965,299) (1,033,958) (1,101,201) (1,223,078) (1,308,290) (1,386,273) (1,445,080)
Administrative expenses (43,063) (42,185) (43,503) (44,419) (44,786) (46,422) (49,115) (48,406)
Other - - - - - - - -
Net change in plan fiduciary net position 490,812 (377,114) (243,381) (266,851) (60,779) (764,377) (727,151) (9,572)
Plan fiduciary net position - beginning 4,696,136 5,073,250 5,316,631 5,583,482 5,644,261 6,408,638 7,135,789 7,145,361
Plan fiduciary net position - ending (b)5,186,948$ 4,696,136$ 5,073,250$ 5,316,631$ 5,583,482$ 5,644,261$ 6,408,638$ 7,135,789$
Net pension liability ending (a) - (b)2,116,613$ 2,829,889$ 2,684,487$ 3,321,887$ 3,590,779$ 4,249,213$ 4,054,273$ 3,840,121$
Plan fiduciary net position as a percentage of total pension 71%62%65%62%61%57%61%65%
Covered payroll n/a 54,921$ 80,600$ 79,064$ 50,009$ 56,175$ 76,102$ 66,928$
Net pension liability as a percentage of covered payroll n/a 5153%3331%4202%7180%7564%5327%5738%
-102-
Exhibit A-1
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE POLICE AND FIREFIGHTERS' PENSION
Last Eight Fiscal Years Ending June 30 (1)
TRUST FUND'S NET PENSION LIABILITY AND RELATED RATIOS
Schedule is intended to show information for 10 years. Additional years of supplementary information will be provided as this information becomes available.(1)
2021 2020 2019 2018 2017 2016 2015 2014
Total pension liability
-$ -$ -$ -$ -$ -$ -$ -$
Interest 3,565 3,728 3,906 4,084 5,308 5,400 5,687 8,258
Changes in benefit terms - - - - - - - -
Differences between expected and actual experience (19,357) 3,710 3,506 3,308 (13,742) 9,751 9,391 (30,605)
Changes in assumptions - - - - - - - -
Benefit payments/refunds (9,940) (10,372) (10,372) (10,372) (13,533) (19,856) (19,856) (21,152)
Net change in total pension liability (25,732) (2,934) (2,960) (2,980) (21,967) (4,705) (4,778) (43,499)
Total pension liability - beginning 64,385 67,319 70,279 73,259 95,226 99,931 104,709 148,208
Total pension liability - ending (a)38,653$ 64,385$ 67,319$ 70,279$ 73,259$ 95,226$ 99,931$ 104,709$
Plan fiduciary net position
Contributions - employer 12,927$ 13,386$ 13,459$ 14,012$ 21,062$ 6,599$ -$ -$
Contributions - member - - - - - - - -
Net investment income - - - - - 53 264 598
Benefit payments/refunds (9,940) (10,372) (10,372) (10,372) (13,533) (19,856) (19,856) (21,152)
Administrative expenses (2,987) (3,014) (3,087) (3,640) (7,529) (7,539) (7,533) (7,483)
Other - - - - - - - -
Net change in plan fiduciary net position - - - - - (20,743) (27,125) (28,037)
Plan fiduciary net position - beginning - - - - - 20,743 47,868 75,905
Plan fiduciary net position - ending (b)-$ -$ -$ -$ -$ -$ 20,743$ 47,868$
Net pension liability ending (a) - (b)38,653$ 64,385$ 67,319$ 70,279$ 73,259$ 95,226$ 79,188$ 56,841$
Plan fiduciary net position as a percentage of total pension l 0.0%0.0%0.0%0.0%0.0%0.0%20.8%45.7%
Covered payroll n/a n/a n/a n/a n/a n/a n/a n/a
Net pension liability as a percentage of covered payroll n/a n/a n/a n/a n/a n/a n/a n/a
(1)
-103-
Exhibit A-2
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE APPOINTIVE EMPLOYEES' PENSION
TRUST FUND'S NET PENSION LIABILITY AND RELATED RATIOS
Last Seven Fiscal Years Ending June 30 (1)
Schedule is intended to show information for 10 years. Additional years of supplementary information will be provided as this information becomes available.
Service cost
2021 2020 2019 2018 2017 2016 2015 2014
Actuarially determined contribution 332,386$ 315,257$ 368,373$ 380,168$ 434,758$ 416,844$ 391,468$ 421,933$
Contributions in relation to the actuarially
determined contribution 349,548 345,049 366,129 376,148 436,575 420,352 391,468 420,834
Contribution deficiency (excess)(17,162)$ (29,792)$ 2,244$ 4,020$ (1,817)$ (3,508)$ -$ 1,099$
Covered payroll n/a 54,921$ 80,600$ 79,064$ 50,009$ 56,175$ 76,102$ 66,928$
Contributions as a percentage of covered payroll n/a 628%454%476%873%748%514%629%
2021 2020 2019 2018 2017 2016 2015 2014
Annual money-weighted rate of return,
net of investment expense 26.61%5.92%9.28%9.44%14.61%2.78%4.69%15.95%
(1)
Exhibit A-3
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF POLICE AND FIREFIGHTERS' PENSION TRUST FUND
CONTRIBUTIONS AND INVESTMENT RETURNS
Last Eight Fiscal Years Ending June 30 (1)
Schedule of Contributions
Schedule of Investment Returns
-104-
Schedule is intended to show information for 10 years. Additional years of supplementary information will be provided as this information becomes available.
2021 2020 2019 2018 2017 2016 2015 2014
Actuarially determined contribution 10,372$ 10,372$ 10,372$ 10,372$ 19,856$ 19,856$ 15,734$ 10,779$
Contributions in relation to the actuarially
determined contribution 12,927 13,386 13,459 14,012 21,062 6,599 - -
Contribution deficiency (excess)(2,555)$ (3,014)$ (3,087)$ (3,640)$ (1,206)$ 13,257$ 15,734$ 10,779$
Covered payroll n/a n/a n/a n/a n/a n/a n/a n/a
Contributions as a percentage of covered payroll n/a n/a n/a n/a n/a n/a n/a n/a
2020 2020 2019 2018 2017 2016 2015 2014
Annual money-weighted rate of return,
net of investment expense 0.00%0.00%0.00%0.00%0.00%0.47%0.75%0.97%
(1)
Last Eight Fiscal Years Ending June 30 (1)
Exhibit A-4
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF APPOINTIVE EMPLOYEES' PENSION TRUST FUNDS
CONTRIBUTIONS AND INVESTMENT RETURNS
-105-
Schedule of Contributions
Schedule of Investment Returns
Schedule is intended to show information for 10 years. Additional years of supplementary information will be provided as this information becomes available.
Year Ended
June 30
City's
proportion
of the net
pension
liability
City's
proportionate share
of the net pension
liability (asset)
City's covered
payroll
City's share of the
net pension
liability (asset) as
a percentage of its
covered payroll
Plan fiduciary
net position as a
percentage of
the total pension
liability
CERS Nonhazardous
2021 0.3174%24,344,624$ 8,161,809$ 298.2749%47.8139%
2020 0.3199%22,498,921$ 8,163,051$ 275.6190%50.4470%
2019 0.3150%19,185,252$ 7,880,115$ 243.4641%53.5420%
2018 0.3210%18,788,122$ 7,861,744$ 238.9816%53.3249%
2017 0.3047%14,999,862$ 7,266,510$ 206.4246%55.5028%
2016 0.3150%13,543,354$ 7,349,249$ 184.2821%59.9684%
2015 0.3261%10,579,475$ 7,477,608$ 141.4821%66.8010%
2014 0.3261%11,970,884$ 7,466,979$ 160.3176%61.2209%
CERS Hazardous
2021 1.5344%46,263,440$ 8,966,031$ 515.9857%44.1116%
2020 1.5325%42,330,934$ 8,765,379$ 482.9333%46.6327%
2019 1.5888%38,425,266$ 8,850,650$ 434.1519%49.2645%
2018 1.6403%36,697,162$ 9,004,106$ 407.5603%50.2164%
2017 1.6165%27,738,524$ 8,404,139$ 330.0579%53.9483%
2016 1.6428%25,218,200$ 8,402,943$ 300.1115%57.5152%
2015 1.6323%19,617,569$ 8,267,598$ 237.2826%63.4574%
2014 1.6323%21,907,757$ 8,016,505$ 273.2831%65.7178%
*The amounts presented were determined as of the measurement date June 30 of the prior year.
*
Exhibit A-5
-106-
CITY OF PADUCAH, KENTUCKY
SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
COUNTY EMPLOYEES' RETIREMENT SYSTEM
LAST EIGHT FISCAL YEARS*
Schedule is intended to show information for 10 years. Additional years of supplementary information will be provided as
this information becomes available.
REQUIRED SUPPLEMENTARY INFORMATION
Year Ended
June 30
Contractually
required penson
contribution
Contributions
relative to
contractually
required
contribution
Contribution
deficiency
(excess)
City's covered
payroll
Contributions
as a percentage
of covered
payroll
CERS Nonhazardous
2021 1,604,948$ 1,604,948$ -$ 8,315,793$ 19.3000%
2020 1,575,229$ 1,575,229$ -$ 8,161,809$ 19.3000%
2019 1,324,047$ 1,324,047$ -$ 8,163,051$ 16.2200%
2018 1,141,041$ 1,141,041$ -$ 7,880,115$ 14.4800%
2017 1,098,317$ 1,098,317$ -$ 7,861,744$ 13.9704%
2016 902,501$ 902,501$ -$ 7,266,510$ 12.4200%
2015 937,029$ 937,029$ -$ 7,349,249$ 12.7500%
2014 1,027,423$ 1,027,423$ -$ 7,477,608$ 13.7400%
CERS Hazardous
2021 2,925,365$ 2,925,365$ -$ 9,731,752$ 30.0600%
2020 2,695,189$ 2,695,189$ -$ 8,966,031$ 30.0600%
2019 2,179,073$ 2,179,073$ -$ 8,765,379$ 24.8600%
2018 1,964,844$ 1,964,844$ -$ 8,850,650$ 22.2000%
2017 1,954,791$ 1,954,791$ -$ 9,004,106$ 21.7100%
2016 1,702,679$ 1,702,679$ -$ 8,404,139$ 20.2600%
2015 1,741,930$ 1,741,930$ -$ 8,402,943$ 20.7300%
2014 1,799,856$ 1,799,856$ -$ 8,267,598$ 21.7700%
*
Changes of Benefit Terms:
None
Methods and assumptions used in the actuarially determined contributions:
The assumptions were updated as of result of an experience study for the five year period ending June 30, 2018.
The investment rate of return remained unchanged from at 6.25% from the prior measurement date.
The discount rate remained unchanged at 6.25% from the prior measurement date.
The inflation rate remained unchanged at 2.30% from the prior measurment date.
Projected salary increases 3.30% to 11.50% - non-hazardous and 3.05% to 18.55% - hazardous.
Exhibit A-6
-107-
Notes to Required Supplementary Information
For the Year Ended June 30, 2021
The amortization period of the unfunded accrued liability was reset to a closed 30 year period for the year ended June 30,
2019.
Schedule is intended to show information for 10 years.Additional years of supplementary information will be provided
as this information becomes available.
CITY OF PADUCAH, KENTUCKY
SCHEDULE OF CITY'S CONTRIBUTIONS
COUNTY EMPLOYEES' RETIREMENT SYSTEM
LAST EIGHT FISCAL YEARS*
REQUIRED SUPPLEMENTARY INFORMATION
The actuarially determined contribution rates, as a percentage of payroll,used to determine the actuarially determined
contribution amounts in the Schedule of Employer contributions are calculated as of the indicated valuation date.The
following actuarial methods and assumptions (from the indicated actuarial valuations)were used to determine contribution
rates reported in that schedule for the year ending June 30, 2020:
Year Ended
June 30
City's
proportion
of the net
pension
liability
City's
proportionate share
of the net pension
liability (asset)
City's covered
payroll
City's share of the
net pension
liability (asset) as
a percentage of its
covered payroll
Plan fiduciary
net position as a
percentage of
the total pension
liability
CERS Nonhazardous
2021 0.3173%7,662,289$ 8,161,809$ 93.8798%51.6704%
2020 0.3198%5,379,682$ 8,163,051$ 65.9028%60.4382%
2019 0.3150%5,592,780$ 7,880,115$ 70.9733%57.6218%
2018 0.3210%6,452,856$ 7,861,744$ 82.0792%52.3940%
CERS Hazardous
2021 1.5341%14,176,195$ 8,966,031$ 158.1100%58.8413%
2020 1.5324%11,337,649$ 8,765,379$ 129.3458%64.4396%
2019 1.5888%11,328,384$ 8,850,650$ 127.9949%64.2437%
2018 1.6403%13,559,555$ 9,004,106$ 150.5930%58.9878%
*The amounts presented were determined as of the measurement date June 30 of the prior year.
*Schedule is intended to show information for 10 years. Additional years of supplementary information will be provided as
this information becomes available.
-108-
Exhibit A-7
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET MEDICAL INSURANCE LIABILITY
COUNTY EMPLOYEES' RETIREMENT SYSTEM
LAST FOUR FISCAL YEARS*
Year Ended
June 30
Contractually
required pension
contribution
Contributions
relative to
contractually
required
contribution
Contribution
deficiency
(excess)
City's covered
payroll
Contributions
as a percentage
of covered
payroll
CERS Nonhazardous
2021 395,832$ 395,832$ -$ 8,315,793$ 4.7600%
2020 388,502$ 388,502$ -$ 8,161,809$ 4.7600%
2019 429,376$ 429,376$ -$ 8,163,051$ 5.2600%
2018 370,365$ 370,365$ -$ 7,880,115$ 4.7000%
2017 371,860$ 371,860$ -$ 7,861,744$ 4.7300%
CERS Hazardous
2021 926,463$ 926,463$ -$ 9,731,752$ 9.5200%
2020 918,612$ 918,612$ -$ 8,966,031$ 10.2455%
2019 918,612$ 918,612$ -$ 8,765,379$ 10.4800%
2018 827,536$ 827,536$ -$ 8,850,650$ 9.3500%
2017 841,884$ 841,884$ -$ 9,004,106$ 9.3500%
*
Changes of Benefit Terms:
None
Changes of assumptions:
Valuation date
Actuarial cost method
Amortization method
Amortization period
Asset valuation method
Payroll growth rate
Investment Return
Inflation
Single discount rate
Mortality
Healthcare trend rates (Pre-65)
Healthcare trend rates (Post-65)
LAST FIVE FISCAL YEARS*
Exhibit A-8
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CITY'S CONTRIBUTIONS - MEDICAL INSURANCE PLAN
COUNTY EMPLOYEES' RETIREMENT SYSTEM
Schedule is intended to show information for 10 years.Additional years of supplementary information will be provided as this
information becomes available.
Notes to Required Supplementary Information
For the Year Ended June 30, 2021
-109-
The actuarially determined contribution rates,as a percentage of payroll,used to determine the actuarially determined contribution
amounts in the Schedule of Employer Contributions are calculated as the of the indicated valuation date. The following actuarial
methods and assumptions (from the indicated actuarial valuations) were used to determine contribution rates reported in that schedule
for the year ending June 30, 2020:
June 30, 2018
Entry Age Normal
Level Percent of Payroll
25 years, Closed
20%of the difference between the value of assets and the expected actuarial
value of assets is recognized.
2.00%
6.25%
2.30%
5.34% and 5.30% for non-hazardous and hazardous; decrease from 5.68% and 5.69%.
RP-2000 Combined Mortality Table,projected to 2013 with Scale BB (set back 1 year
for females).
Initial trend starting at 7.00%at January 1,2020,and gradually decreasing to an
ultimate trend rate of 4.05% over a period of 12 years.
Initial trend starting at 5.00%at January 1,2020,and gradually decreasing to an
ultimate trend rate of 4.05% over a period of 10 years.
CITY OF PADUCAH, KENTUCKY
SUPPLEMENTARY INFORMATION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
Exhibit B-1
Variance with
Final Budget
Final Positive
Budget (Negative)
Revenues:
Intergovernmental and grants
Intergovernmental 26,250$ 26,250$ -$
Grants 2,596,961 1,041,306 (1,555,655)
Interest (1,430) - 1,430
Property upkeep, rentals, sales and other 1,712,617 512,623 (1,199,994)
Total revenues 4,334,398 1,580,179 (2,754,219)
Expenditures:
Capital outlay 16,769,781 4,499,608 12,270,173
Excess (deficiency) of revenues over
expenditures (12,435,383) (2,919,429) 9,515,954
Other Financing Sources (Uses):
Long-term debt issued 4,002,989 48,236 (3,954,753)
Transfers in 5,019,011 5,019,015 4
Transfers out (38,342) (38,336) 6
Total other financing sources 8,983,658 5,028,915 (3,954,743)
Net change in fund balance (3,451,725)$ 2,109,486 5,561,211$
Fund balance, July 1, 2020 4,637,704
FUND BALANCE, JUNE 30, 2021 6,747,190$
See auditors report on pages 11-12.
-110-
Actual
CITY OF PADUCAH, KENTUCKY
DETAIL SCHEDULE OF REVENUES, EXPENDITURES, AND
GENERAL CAPITAL IMPROVEMENTS FUND
FOR THE YEAR ENDED JUNE 30, 2021
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Exhibit B-2
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Intergovernmental 737,990$ 1,286,147$ 548,157$
Interest 13,000 16,160 3,160
Property upkeep, rentals, sales and other 289,000 1,937,723 1,648,723
Total revenues 1,039,990 3,240,030 2,200,040
Expenditures:
Debt service:
Principal requirement 2,826,830 3,575,792 (748,962)
Interest and fiscal requirement 1,144,115 1,180,978 (36,863)
Total expenditures 3,970,945 4,756,770 (785,825)
Excess (deficiency) of revenues over
expenditures (2,930,955) (1,516,740) 1,414,215
Other Financing Sources (Uses):
Transfers in 2,943,945 2,807,092 (136,853)
Transfers out (1,554,000)(1,054,000) 500,000
Total other financing sources 1,389,945 1,753,092 363,147
Net change in fund balance (1,541,010)$ 236,352 1,777,362$
Fund balance, July 1, 2020 1,272,255
FUND BALANCE, JUNE 30, 2021 1,508,607$
See auditors report on pages 11-12.
CITY OF PADUCAH, KENTUCKY
DEBT SERVICE FUND
DETAIL SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
-111-
CITY OF PADUCAH, KENTUCKY SUPPLEMENTARY INFORMATION NONMAJOR GOVERNMENTAL FUNDS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2021
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds
Municipal Aid Program – to account for revenues and expenditures of Kentucky gas tax refunds.
Emergency Communication Service Fund - to account for revenues associated with 911 program.
Court Awards Fund - to account for revenues associated with judicial system confiscations.
Grants - to account for the grant programs awarded to the City of Paducah from agencies of the Federal
Government and the Commonwealth of Kentucky.
Bed Tax Fund – to account for revenues associated with bed tax collections.
Exhibit B-3
Court
Awards
Fund
Cash and cash equivalents 582,119$ 97,558$ 364,517$
Investments - - -
Receivables, net:
Accounts 46,769 289,726 -
TOTAL ASSETS 628,888$ 387,284$ 364,517$
Liabilities:
Voucher and accounts payable 65,886$ 4,256$ 167,560$
Accrued payroll and payroll taxes - 55,912 -
Total liabilities 65,886 60,168 167,560
Fund Balances:
Restricted for:
Highway and streets 563,002 - -
Public safety - - 196,957
Capital Improvements - - -
Assigned for:
Public safety - 327,116 -
Total fund balances 563,002 327,116 196,957
TOTAL LIABILITIES AND
FUND BALANCES 628,888$ 387,284$ 364,517$
See auditors report on pages 11-12.
LIABILITIES
Service Fund
Communication
CITY OF PADUCAH, KENTUCKY
COMBINING BALANCE SHEET
ASSETS
-112-
Emergency
AND
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
FUND BALANCES
Municipal
Aid Program
Special Revenue Funds
CDBG Bed
Grant Tax
Fund Fund
-$ -$ 1,044,194$
- - -
- - 336,495
-$ -$ 1,380,689$
-$ -$ 237,702$
- - 55,912
- - 293,614
- - 563,002
- - 196,957
- - -
- - 327,116
- - 1,087,075
-$ -$ 1,380,689$
Governmental
-113-
Funds
Total Nonmajor
Special Revenue Funds
Exhibit B-4
Court
Awards
Revenues:Fund
Taxes -$ 343,701$ -$
Charges for services - 323,756 -
Intergovernmental 494,042 - -
Grants - - 28,234
Interest 4,502 263 2,022
Miscellaneous - 591,984 -
Total revenues 498,544 1,259,704 30,256
Expenditures:
Current operations:
Public safety - 2,018,239 41,824
Public service 1,018,158 - -
Planning and development - - -
Capital Outlay - - -
Debt Service:
Principal requirement - - -
Debt issuance costs - - -
Interest and fiscal requirement - - -
Total expenditures 1,018,158 2,018,239 41,824
Excess (deficiency) of revenues
over expenditures (519,614) (758,535) (11,568)
Other Financing Sources (Uses):
Transfers in 600,000 904,211 -
Transfers out (250,000) (145,676) -
Total other financing sources (uses)350,000 758,535 -
Net change in fund balances (169,614) - (11,568)
Fund balances, July 1, 2020 732,616 327,116 208,525
FUND BALANCES, JUNE 30, 2021 563,002$ 327,116$ 196,957$
See auditors report on pages 11-12.
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
Special Revenue Funds
Communication
-114-
Aid Program
Municipal
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Emergency
Service Fund
Special Revenue Funds
CDBG Bed
Grant Tax
Fund Fund
-$ 1,211,819$ 1,555,520$
- - 323,756
- - 494,042
197,500 - 225,734
- - 6,787
- - 591,984
197,500 1,211,819 3,197,823
- - 2,060,063
- - 1,018,158
197,500 1,211,819 1,409,319
- - -
-
- - -
- - -
- - -
197,500 1,211,819 4,487,540
- - (1,289,717)
- - 1,504,211
- - (395,676)
- - 1,108,535
- - (181,182)
- - 1,268,257
-$ -$ 1,087,075$
Governmental
Funds
-115-
Total Nonmajor
Exhibit B-5
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Intergovernmental 480,000$ 494,042$ 14,042$
Interest 3,000 4,502 1,502
Total revenues 483,000 498,544 15,544
Expenditures:
Public service 1,221,000 1,018,158 202,842
Excess (deficiency) of revenues over
expenditures (738,000) (519,614) 218,386
Other Financing Sources (Uses):
Transfers in 600,000 600,000 -
Transfers out (250,000) (250,000) -
Total other financing sources (uses)350,000 350,000 -
Net change in fund balance (388,000)$ (169,614) 218,386$
Fund balance, July 1, 2020 732,616
FUND BALANCE, JUNE 30, 2021 563,002$
See auditors report on pages 11-12.
-116-
FOR THE YEAR ENDED JUNE 30, 2021
CITY OF PADUCAH, KENTUCKY
MUNICIPAL AID PROGRAM FUND
DETAIL SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Exhibit B-6
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Local contributions 395,000$ 343,701$ (51,299)$
Telephone surcharges 325,000 323,756 (1,244)
Interest 1,000 263 (737)
Miscellaneous 695,290 591,984 (103,306)
Total revenues 1,416,290 1,259,704 (156,586)
Expenditures:
Public safety 2,045,240 2,018,239 27,001
Excess (deficiency) of revenues over
expenditures (628,950) (758,535) (129,585)
Other Financing Sources (Uses):
Transfers in 789,375 904,211 114,836
Transfers out (160,425) (145,676) 14,749
Total other financing sources (uses)628,950 758,535 129,585
Net change in fund balance -$ - -$
Fund balance, July 1, 2020 327,116
FUND BALANCE, JUNE 30, 2021 327,116$
See auditors report on pages 11-12.
-117-
FOR THE YEAR ENDED JUNE 30, 2021
CITY OF PADUCAH, KENTUCKY
EMERGENCY COMMUNICATION SERVICE FUND
DETAIL SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Exhibit B-7
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Grants 30,000$ 28,234$ (1,766)$
Interest 1,200 2,022 822
Total revenues 31,200 30,256 (944)
Expenditures:
Public safety 70,750 41,824 28,926
Excess (deficiency) of revenues over
expenditures (39,550) (11,568) 27,982
Net change in fund balance (39,550)$ (11,568) 27,982$
Fund balance, July 1, 2020 208,525
FUND BALANCE, JUNE 30, 2021 196,957$
See auditors report on pages 11-12.
-118-
CITY OF PADUCAH, KENTUCKY
COURT AWARDS FUND
DETAIL SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Exhibit B-8
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Grants 197,500$ 197,500$ -$
Total revenues 197,500 197,500 -
Expenditures:
Planning and development 197,500 197,500 -
Excess (deficiency) of revenues over
expenditures - - -
Other Financing Sources (Uses):
Transfers in - - -
Transfers out - - -
Total other financing sources (uses)- - -
Net change in fund balance -$ - -$
Fund balance, July 1, 2020 -
FUND BALANCE, JUNE 30, 2021 -$
See auditors report on pages 11-12.
-119-
FOR THE YEAR ENDED JUNE 30, 2021
CITY OF PADUCAH, KENTUCKY
CDBG FUND
DETAIL SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Exhibit B-9
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Taxes -$ 1,211,819$ 1,211,819$
Grants - - -
Other - - -
Total revenues - 1,211,819 1,211,819
Expenditures:
Planning and development - 1,211,819 (1,211,819)
Excess (deficiency) of revenues over
expenditures - - -
Other Financing Sources (Uses):
Operating transfers in - - -
Operating transfers out - - -
Net change in fund balance -$ - -$
Fund balance, July 1, 2020 -
FUND BALANCE, JUNE 30, 2021 -$
See auditors report on pages 11-12.
-120-
FOR THE YEAR ENDED JUNE 30, 2021
CITY OF PADUCAH, KENTUCKY
BED TAX FUND
DETAIL SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CITY OF PADUCAH, KENTUCKY
SUPPLEMENTARY INFORMATION
NONMAJOR PROPRIETARY FUNDS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
COMBINING FINANCIAL STATEMENTS
NONMAJOR PROPRIETARY FUNDS
Section Eight Housing Fund – to account for the housing choice voucher program grant governed by the
United States Department of Housing and Urban Development.
Civic Center Fund – to account for the operation of the Civic Center.
Transient Dock Fund – to account for the operation of the Transient Dock.
Exhibit C-1
Civic Transient
Center Dock
Current Assets:Fund Fund
Cash and cash equivalents 425,386$ -$ -$ 425,386$
Inventory - - 12,659 12,659
Total current assets 425,386 - 12,659 438,045
Noncurrent Assets:
Net depreciable capital assets - 79,426 - 79,426
Total assets 425,386 79,426 12,659 517,471
Deferred Outflows of Resources:
Deferred pension related outflows 20,857 - - 20,857
Deferred OPEB related outflows 24,435 - - 24,435
Total deferred outflows of resources 45,292 - - 45,292
Current Liabilities:
Voucher and accounts payable 58,862 2,754 255 61,871
Accrued payroll - - 591 591
Accrued compensated absences 723 - - 723
Unearned revenues 64,814 - - 64,814
Due to other funds - - - -
Total current liabilities 124,399 2,754 846 127,999
Noncurrent Liabilities:
Net pension liability 170,242 - - 170,242
Net other post employment benefits liability 53,582 - - 53,582
Accrued compensated absences 6,505 - - 6,505
Total noncurrent liabilities 230,329 - - 230,329
Total liabilities 354,728 2,754 846 358,328
Deferred Inflows of Resources
Deferred pension related inflows 728 - - 728
Deferred OPEB related inflows 9,900 - - 9,900
Total deferred inflows of resources 10,628 - - 10,628
Net invested in capital assets - 79,426 - 79,426
Restricted - Housing 105,322 - - 105,322
Unrestricted - (2,754) 11,813 9,059
TOTAL NET POSITION 105,322$ 76,672$ 11,813$ 193,807$
See auditors report on pages 11-12.
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
JUNE 30, 2021
ASSETS
LIABILITIES
NET POSITION
-121-
Total Nonmajor
Enterprise
Funds
Section
Eight
Housing
Exhibit C-2
Civic Transient
Center Dock
Operating Revenues:Fund Fund
Charges for services -$ -$ 41,068$ 41,068$
Miscellaneous 466 - 84 550
Total operating income 466 - 41,152 41,618
Operating Expenses:
Cost of sales and service 1,913,077 22,733 108,456 2,044,266
Depreciation and amortization - 10,021 - 10,021
Total operating expenses 1,913,077 32,754 108,456 2,054,287
Operating income (loss)(1,912,611) (32,754) (67,304) (2,012,669)
Non-Operating Revenues (Expenses):
Grants - program purpose 2,055,500 - - 2,055,500
Interest and investment income 27 - 34 61
Total nonoperating revenues
(expenses)2,055,527 - 34 2,055,561
Income (loss) before contributions and
transfers 142,916 (32,754) (67,270) 42,892
Contributions and Operating Transfers:
Transfers in - 28,900 65,383 94,283
Transfers out - (14,820) - (14,820)
Total contributions and operating transfers - 14,080 65,383 79,463
Change in net position 142,916 (18,674) (1,887) 122,355
Net position - beginning (37,594) 95,346 13,700 71,452
Net position - ending 105,322$ 76,672$ 11,813$ 193,807$
See auditors report on pages 11-12.
COMBINING STATEMENT OF REVENUES, EXPENSES
CITY OF PADUCAH, KENTUCKY
Total Nonmajor
Enterprise
-122-
FOR THE YEAR ENDED JUNE 30, 2021
NONMAJOR PROPRIETARY FUNDS
AND CHANGES IN NET POSITION
Funds
Section
Eight
Housing
Exhibit C-3
Civic Transient
Center Dock
Cash Flows from Operating Activities:Fund Fund
Cash received from customers -$ -$ 41,152$ 41,152$
Payments to employees (37,968) - (18,496) (56,464)
Payments to internal service funds (950) (2,302) - (3,252)
Other receipts 466 - - 466
Housing assistance and other payments (1,939,230) (18,068) (88,073) (2,045,371)
Net cash provided (used) by operating activities (1,977,682) (20,370) (65,417) (2,063,469)
Cash Flows from Noncapital
Financing Activities:
Grants - program purpose 2,078,828 - - 2,078,828
Transfers from other funds - 28,900 65,383 94,283
Transfers to other funds - (14,820) - (14,820)
Net cash provided (used) by noncapital
financing activities 2,078,828 14,080 65,383 2,158,291
Cash Flows from Investing Activities:
Interest on cash and investments 27 - 34 61
Net increase (decrease) in cash and cash
equivalents 101,173 (6,290) - 94,883
Cash and cash equivalents, July 1, 2020 324,213 6,290 - 330,503
CASH AND CASH EQUIVALENTS,
JUNE 30, 2021 425,386$ -$ -$ 425,386$
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Operating income (loss)(1,912,611)$ (32,754)$ (67,304)$ (2,012,669)$
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation and amortization - 10,021 - 10,021
Change in assets and liabilities:
Inventory - - 1,198 1,198
Unearned revenues 23,328 - - 23,328
OPEB obligation and related deferrals (4,371) - - (4,371)
Pension obligation and related deferrals (16,618) - - (16,618)
Accounts payable and accrued expenses (67,410) 2,363 689 (64,358)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES (1,977,682)$ (20,370)$ (65,417)$ (2,063,469)$
See auditors report on pages 11-12.
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
-123-
Section
Eight
Housing
Total Nonmajor
Enterprise
Funds
CITY OF PADUCAH, KENTUCKY
SUPPLEMENTARY INFORMATION
INTERNAL SERVICE FUNDS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
COMBINING FINANCIAL STATEMENTS INTERNAL SERVICE FUNDS
Fleet Maintenance – to account for costs of operating a maintenance facility for automotive equipment used by
other City departments.
Fleet Lease Trust – to account for the financing of vehicle acquisitions provided by one department or agency
to other departments or agencies of the government and to other governmental units, on a cost reimbursement
basis.
Insurance Fund – to account for the costs of obtaining insurance for other City departments.
Health Insurance Fund – to account for the costs associated with the City’s health insurance activities. The
intent of the City of Paducah is that the cost of providing insurance coverage on a continuing basis be financed
primarily through user charges.
Exhibit D-1
Health
Fleet Lease Insurance Insurance Combined
Current Assets:Trust Fund Fund Total
Cash and cash equivalents 8,997$ 2,327,497$ 504,847$ 2,074,912$ 4,916,253$
Investments - 1,000,000 250,000 1,750,000 3,000,000
Receivables, net 3,878 12,198 - 68,741 84,817
Prepaid expense - 515,360 - - 515,360
Inventories 62,256 - - - 62,256
Total current assets 75,131 3,855,055 754,847 3,893,653 8,578,686
Noncurrent Assets:
Net depreciable capital assets 8,550 3,909,173 - - 3,917,723
Total assets 83,681 7,764,228 754,847 3,893,653 12,496,409
Deferred Outflows of Resources:
Deferred pension related outflows 148,145 - - - 148,145
Deferred OPEB related outflows 135,171 - - - 135,171
Total deferred outflows of resources 283,316 - - - 283,316
Current Liabilities:
Voucher and accounts payable 3,804 - 710 230,715 235,229
Accrued payroll and payroll taxes 17,071 - - - 17,071
Accrued compensated absences 25,129 - - - 25,129
Deferred revenue - - - 22,643 22,643
Total current liabilities 46,004 - 710 253,358 300,072
Noncurrent Liabilities:
Pensions obligation 941,723 - - - 941,723
Other post employment benefits (OPEB)296,400 - - - 296,400
Accrued compensated absences 35,105 - - - 35,105
Total noncurrent liabilities 1,273,228 - - - 1,273,228
Total liabilities 1,319,232 - 710 253,358 1,573,300
Deferred Inflows of Resources
Deferred pension related inflows 4,027 - - - 4,027
Deferred OPEB related inflows 54,768 - - - 54,768
Total deferred inflows of resources 58,795 - - - 58,795
Net invested in capital assets 8,550 3,909,173 - - 3,917,723
Unrestricted (1,019,580) 3,855,055 754,137 3,640,295 7,229,907
TOTAL NET POSITION (1,011,030)$ 7,764,228$ 754,137$ 3,640,295$ 11,147,630$
See auditors report on pages 11-12.
-124-
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2021
LIABILITIES
ASSETS
NET POSITION
Fleet
Maintenance
Exhibit D-2
Health
Fleet Lease Insurance Insurance Combined
Trust Fund Fund Total
Operating Revenues:
Charges for services - internal 409,322$ 1,003,323$ 1,341,492$ 3,217,288$ 5,971,425$
Charges for services - external - - - 278,495 278,495
Total operating revenues 409,322 1,003,323 1,341,492 3,495,783 6,249,920
Operating Expenses:
Vehicle maintenance 680,690 140,651 - - 821,341
Administrative - 53,314 - 617,104 670,418
Insurance premium, claims and medical - -1,369,970 2,677,102 4,047,072
Depreciation 5,130 959,165 - - 964,295
Total operating expenses 685,820 1,153,130 1,369,970 3,294,206 6,503,126
Operating income (loss)(276,498) (149,807) (28,478) 201,577 (253,206)
Nonoperating Revenues and (Expenses):
Interest and investment income - 29,542 - 25,949 55,491
Gain (loss) on disposal of property
and equipment 3,304 42,531 - - 45,835
Total nonoperating revenues
(expenses)3,304 72,073 - 25,949 101,326
Income (loss) before transfers (273,194) (77,734) (28,478) 227,526 (151,880)
Contributions and Transfers:
Transfers in 128,348 6,638 140,231 - 275,217
Transfers out - - - (65,000) (65,000)
Total contributions and operating transfers 128,348 6,638 140,231 (65,000) 210,217
Change in net position (144,846) (71,096) 111,753 162,526 58,337
Net position - beginning (866,184)7,835,324 642,384 3,477,769 11,089,293
Net position - ending (1,011,030)$ 7,764,228$ 754,137$ 3,640,295$ 11,147,630$
See auditors report on pages 11-12.
-125-
Fleet
Maintenance
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Exhibit D-3
Health
Fleet Lease Insurance Insurance Combined
Cash Flows from Operating Activities:Trust Fund Fund Total
Receipts from other funds for services 410,773$ 1,334,182$ 1,341,834$ 3,523,384$ 6,610,173$
Payments to suppliers (346,066) 684,640 - - 338,574
Payments to employees (208,901) - - - (208,901)
Insurance premium, claims and medical - - (1,405,119) (2,554,840) (3,959,959)
Other payments - (193,965) - (617,103) (811,068)
Net cash provided (used) by operating activities (144,194) 1,824,857 (63,285) 351,441 1,968,819
Cash Flows from Noncapital Financing
Activities:
Transfers from other funds 128,348 6,638 140,231 - 275,217
Transfers to other funds - - - (65,000) (65,000)
Net cash provided (used) by noncapital
financing activities 128,348 6,638 140,231 (65,000) 210,217
Cash Flows from Capital and Related
Financing Activities:
Proceeds from sale of capital assets 3,304 42,531 - - 45,835
Purchase of capital assets - (1,618,077) - - (1,618,077)
Net cash used by capital and related financing 3,304 (1,575,546) - - (1,572,242)
Cash Flows from Investing Activities:
Interest and dividends - 29,542 - 25,949 55,491
Purchase of investments - - - - -
Net cash used by investing activities - 29,542 - 25,949 55,491
Net increase (decrease) in cash
and cash equivalents (12,542) 285,491 76,946 312,390 662,285
Cash and cash equivalents, July 1, 2020 21,539 2,042,006 427,901 1,762,522 4,253,968
CASH AND CASH EQUIVALENTS,
JUNE 30, 2021 8,997$ 2,327,497$ 504,847$ 2,074,912$ 4,916,253$
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Operating income (loss)(276,498)$ (149,807)$ (28,478)$ 201,577$ (253,206)$
Adjustments to reconcile operating
income (loss) to net cash provided
(used) by operating activities:
Depreciation and amortization 5,130 959,165 - - 964,295
Change in assets and liabilities:
Receivables 1,451 330,859 342 28,731 361,383
Prepaid expense - 684,640 - - 684,640
Inventories (9,433) - - - (9,433)
OPEB obligation and related deferrals 19,190 - - - 19,190
Pension obligation and related deferrals 104,083 - - - 104,083
Accounts payable and accrued expenses 11,883 - (35,149) 121,133 97,867
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES (144,194)$ 1,824,857$ (63,285)$ 351,441$ 1,968,819$
See auditors report on pages 11-12.
-126-
Fleet
Maintenance
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
CITY OF PADUCAH, KENTUCKY SUPPLEMENTARY INFORMATION FIDUCIARY FUNDS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2021
COMBINING FINANCIAL STATEMENTS FIDUCIARY FUNDS Private-purpose Trust Funds
Cemetery and Park Trusts - to account for assets held by the City in the capacity of trustee for specified
purposes.
Exhibit E-1
Cemetery
and
Park
Trusts
Cash and cash equivalents 45,642$
Investments at fair value
Money market funds -
Mutual funds 1,308,348
Total assets 1,353,990
Accounts payable -
Held in trust for other purposes 1,353,990$
See auditors report on pages 11-12.
STATEMENT OF NET POSITION
CITY OF PADUCAH, KENTUCKY
-127-
ASSETS
LIABILITIES
NET POSITION
JUNE 30, 2021
FIDUCIARY FUNDS - PRIVATE-PURPOSE TRUST FUNDS
Exhibit E-2
Cemetery
and
Park
Additions:Trusts
Contributions:
Intergovernmental revenues -$
Private donations 4,080
Total contributions 4,080
Investment earnings:
Change in fair value of investments 162,022
Interest and dividends 141,580
Net investment earnings 303,602
Total additions 307,682
Deductions:
Capital outlay 97,762
Administrative expenses 15,341
Total deductions 113,103
Change in net position 194,579
Net position - beginning 1,159,411
Net position - ending 1,353,990$
See auditors report on pages 11-12.
STATEMENT OF CHANGES IN NET POSITION
CITY OF PADUCAH, KENTUCKY
-128-
FOR THE YEAR ENDED JUNE 30, 2021
FIDUCIARY FUNDS - PRIVATE-PURPOSE TRUST FUNDS
CITY OF PADUCAH, KENTUCKY STATISTICAL SECTION COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2021
STATISTICAL SECTION
Contents Page
Financial Trends 129-133
Revenue Capacity 134-139
Debt Capacity 140-143
Economic and Demographic Information 144-145
Operating Information 146-148
These schedules offer economic and demographic indicators to help the reader understand
the environment within which the City's financial activities take place.
These schedules contain service and infrastructure data to help the reader understand how
the information in the City's financial report relates to the services the City provides and the
activities it performs.
Sources:Unless otherwise noted,the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
This part of the City of Paducah's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements,
note disclosures,and required supplementary information say about the City's overall
financial health.
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being changed over time.
These schedules contain information to help the reader assess the factors affecting the City's
ability to generate its property and employee taxes.
These schedules present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt in the future.
2021 2020 2019 2018 (1)2017 2016 2015 (2)2014 2013 2012
Governmental activities:
Net Invested in Capital Assets 57,608,864$ 57,368,777$ 55,243,449$ 55,031,812$ 52,898,618$ 46,389,685$ 39,349,789$ 39,844,772$ 33,365,112$ 31,957,381$
Restricted for:
Program purposes 196,957 208,525 213,379 128,699 131,055 147,218 144,857 205,979 284,760 897,942
Capital projects 563,002 732,616 964,320 1,959,953 2,137,650 1,148,789 2,427,218 2,168,201 1,301,421 4,105,639
Unrestricted (45,053,843) (42,955,542) (37,543,113) (34,235,978) (17,834,152) (23,323,077) (22,209,537) 13,382,066 13,539,204 5,913,997
Total governmental activities net position 13,314,980$ 15,354,376$ 18,878,035$ 22,884,486$ 37,333,171$ 24,362,615$ 19,712,327$ 55,601,018$ 48,490,497$ 42,874,959$
Business-type activities:
Net Invested in Capital Assets 2,094,123 2,465,553 2,494,761 2,876,483 2,152,827 1,678,728 1,133,226 1,210,415 1,232,735 1,308,574
Restricted for:
Program purposes 105,322 - -- -38,247 124,012 437,483 385,885 732,817
Unrestricted (465,011) (393,937) 256,715 159,847 1,513,281 3,194,228 3,033,822 3,837,034 3,428,267 3,246,320
Total business-type activities net postion 1,734,434$ 2,071,616$ 2,751,476$ 3,036,330$ 3,666,108$ 4,911,203$ 4,291,060$ 5,484,932$ 5,046,887$ 5,287,711$
Primary government:
Net Invested in Capital Assets 59,702,987 59,834,330 57,738,210 57,908,295 55,051,445 48,068,413 40,483,015 41,055,187 34,597,847 33,265,955
Restricted for:
Program purposes 302,279 208,525 213,379 128,699 131,055 185,465 268,869 643,462 670,645 1,630,759
Capital projects 563,002 732,616 964,320 1,959,953 2,137,650 1,148,789 2,427,218 2,168,201 1,301,421 4,105,639
Unrestricted (45,518,854) (43,349,479) (37,286,398) (34,076,131) (16,320,871) (20,128,849) (19,175,715) 17,219,100 16,967,471 9,160,317
Total primary government net position 15,049,414$ 17,425,992$ 21,629,511$ 25,920,816$ 40,999,279$ 29,273,818$ 24,003,387$ 61,085,950$ 53,537,384$ 48,162,670$
(1)Significant change in governmental and business-type net position due to implementation of GASB No. 75 - Accounting and Financial Reporting for Other Postemployment Benefits other than Pensions.
(2)Significant change in governmental and business-type net position due to implementation of GASB No. 68 - Accounting and Financial Reporting for Pensions.
Fiscal Year
TABLE 1
CITY OF PADUCAH, KENTUCKY
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
-129-
Pages 1 of 2
2021 2020 2019 2018 (1)2017 2016 2015 (2)2014 2013 2012
Expenses
Governmental activities:
General government 12,846,090$ 10,574,490$ 8,891,713$ 9,590,575$ 8,652,987$ 9,777,876$ 9,801,489$ 8,005,619$ 7,843,140$ 12,937,997$
Public safety 28,084,323 27,623,826 27,002,119 25,602,852 20,176,070 20,503,784 17,974,548 18,439,670 18,204,945 17,045,731
Public service 6,761,258 7,491,652 7,681,383 7,511,063 7,771,335 10,266,856 6,855,234 6,982,536 6,167,510 6,163,602
Parks and recreation 3,477,584 3,597,301 3,544,515 3,397,087 3,059,447 3,052,360 2,811,533 2,750,531 2,710,659 2,654,098
Planning and development 2,284,229 2,049,447 3,511,710 1,455,677 1,077,265 911,830 1,000,020 1,805,379 1,463,659 1,192,952
Interest on long-term debt 694,776 1,026,449 800,175 861,589 885,380 900,593 850,827 1,084,016 1,066,876 1,059,537
Total governmental activities expenses 54,148,260 52,363,165 51,431,615 48,418,843 41,622,484 45,413,299 39,293,651 39,067,751 37,456,789 41,053,917
Business-type activities:
Solid Waste 4,849,815 5,302,783 4,512,447 4,096,022 3,902,907 3,815,476 3,843,081 3,985,233 3,967,490 3,900,264
Section Eight Housing 1,913,079 1,620,623 2,046,520 2,064,408 1,952,441 1,874,074 1,819,328 1,855,869 2,032,843 1,921,004
Civic Center 30,004 57,990 70,956 76,639 92,471 74,457 98,318 81,982 78,000 71,069
Transit Boat Dock 108,371 83,834 93,047 50,535 1,031 - - - - -
TISA - - - - - - - - - 173,708
Total business-type activities expenses 6,901,269 7,065,230 6,722,970 6,287,604 5,948,850 5,764,007 5,760,727 5,923,084 6,078,333 6,066,045
Total primary government expenses 61,049,529$ 59,428,395$ 58,154,585$ 54,706,447$ 47,571,334$ 51,177,306$ 45,054,378$ 44,990,835$ 43,535,122$ 47,119,962$
Program Revenues
Governmental activities:
Charges for services:
General government 1,268,310$ 1,946,225$ 1,347,624$ 1,276,959$ 1,650,034$ 1,128,785$ 185,745$ 1,672,552$ 1,525,212$ 1,488,845$
Public safety 363,503 348,524 523,209 571,427 340,705 237,641 237,222 264,143 354,829 509,297
Public service 985,735 981,243 994,610 962,822 967,518 1,065,010 945,471 960,271 963,893 1,032,953
Parks and recreation 35,371 50,677 126,473 125,996 121,929 132,909 108,307 105,248 106,183 97,896
Planning and development - - - - - - - - - -
Operating grants and contributions 5,036,389 3,000,719 2,513,938 2,441,864 7,509,005 6,179,709 3,360,731 5,419,715 3,067,581 2,215,247
Capital grants and contributions 1,662,014 2,192,974 1,685,423 542,980 3,702,428 4,139,036 899,522 4,136,749 2,165,548 533,169
Total governmental activities program revenues 9,351,322 8,520,362 7,191,277 5,922,048 14,291,619 12,883,090 5,736,998 12,558,678 8,183,246 5,877,407
Business-type activities:
Solid Waste 4,561,051$ 4,738,408$ 4,597,398$ 4,555,488$ 4,567,392$ 4,520,084$ 4,453,865$ 4,410,059$ 4,372,060$ 4,437,341$
Section Eight Housing 466 299 1,504 - - - - - - -
Civic Center (2,750) 15,423 29,784 35,670 36,725 40,148 43,486 41,266 38,265 34,038
Transit Boat Dock 41,068 72,788 79,362 43,534 - - - - - -
TISA - - - - - - - - - 99,603
Operating grants and contributions 2,118,215 1,903,339 2,057,051 1,965,868 1,962,125 1,845,549 1,744,364 1,956,995 1,727,238 1,647,981
Capital grants and contributions - - - - - - - - - 15,266
Total business-type activities program revenues 6,718,050 6,730,257 6,765,099 6,600,560 6,566,242 6,405,781 6,241,715 6,408,320 6,137,563 6,234,229
Total primary government program revenues 16,069,372$ 15,250,619$ 13,956,376$ 12,522,608$ 20,857,861$ 19,288,871$ 11,978,713$ 18,966,998$ 14,320,809$ 12,111,636$
Fiscal Year
-130-
TABLE 2
CITY OF PADUCAH, KENTUCKY
CHANGES IN NET POSITION
Last Ten Fiscal Years
(accrual basis of accounting)
Pages 2 of 2
2021 2020 2019 2018 (1)2017 2016 2015 (2)2014 2013 2012
Net (Expense)/Revenue
Governmental activities (44,796,938)$ (43,842,803)$ (44,240,338)$ (42,496,795)$ (27,330,865)$ (32,530,209)$ (33,556,653)$ (26,509,073)$ (29,273,543)$ (35,176,510)$
Business-type activities (183,219) (334,973) 42,129 312,956 617,392 641,774 480,988 485,236 59,230 168,184
Total primary government net (expense)(44,980,157)$ (44,177,776)$ (44,198,209)$ (42,183,839)$ (26,713,473)$ (31,888,435)$ (33,075,665)$ (26,023,837)$ (29,214,313)$ (35,008,326)$
General Revenues and Other Changes
in Net Position
Governmental activities:
Taxes and licenses:
Property taxes, levied for general purpose 5,915,288 5,670,956 5,449,122 5,248,369 4,996,242 4,943,962 4,726,244 4,622,292 4,502,276 4,267,812
Insurance premium tax 5,819,896 4,712,859 4,486,038 4,592,834 4,331,956 4,170,381 3,786,514 3,831,792 3,863,464 3,690,806
Gross receipts license tax 4,530,125 4,307,270 4,367,410 4,631,352 4,721,657 4,711,708 4,397,888 4,444,440 4,391,352 4,359,835
Employee license tax 22,064,353 21,490,918 21,648,742 21,054,644 20,803,763 20,130,249 19,092,912 18,114,396 18,336,124 18,095,182
Other taxes 3,818,918 3,060,362 2,941,096 3,044,203 2,933,407 2,759,902 2,964,685 2,785,333 2,799,043 2,711,924
Intergovernmental revenue - - - - - - - - - -
Unrestricted investment earnings 368,425 610,727 728,227 428,721 188,097 137,224 176,229 232,204 211,306 203,261
Miscellaneous - - 99,208 14,190 51,922 189,489 16,870 (482,137) 300,378 36,718
Insurance recoveries - - - - - - - - - 27,448
Litigation settlement - - - - - - - - - -
Transfers in/out 240,537 466,050 514,046 390,048 2,274,377 137,582 194,014 212,128 485,138 270,620
Total governmental activities 42,757,542 40,319,142 40,233,889 39,404,361 40,301,421 37,180,497 35,355,356 33,760,448 34,889,081 33,663,606
Business-type activities:
Unrestricted investment earnings 27,226 68,177 91,140 54,139 37,644 30,302 39,565 48,255 49,382 48,806
Miscellaneous 59,348 72,986 75,923 (13,063) 374,244 85,649 8,339 116,682 135,702 2,443
Transfers (240,527) (466,050) (514,046) (390,048) (2,274,377) (137,582) (194,014) (212,128) (485,138) (270,620)
Total business-type activities (153,953) (324,887) (346,983) (348,972) (1,862,489) (21,631) (146,110) (47,191) (300,054) (219,371)
Change in Net Position
Governmental activities:(2,039,396) (3,523,661) (4,006,449) (3,092,434) 12,970,556 4,650,288 1,798,703 7,251,375 5,615,538 (1,512,904)
Business-type activities:(337,172) (659,860) (304,854) (36,016) (1,245,097) 620,143 334,878 438,045 (240,824) (51,187)
Total primary government (2,376,568)$ (4,183,521)$ (4,311,303)$ (3,128,450)$ 11,725,459$ 5,270,431$ 2,133,581$ 7,689,420$ 5,374,714$ (1,564,091)$
(1)Significant change in governmental and business-type net position due to implementation of GASB No. 75 - Accounting and Financial Reporting for Other Postemployment Benefits other than Pensions.
(2)Significant change in governmental and business-type net position due to implementation of GASB No. 68 - Accounting and Financial Reporting for Pensions.
(accrual basis of accounting)
CHANGES IN NET POSITION
-131-
Fiscal Year
CITY OF PADUCAH, KENTUCKY
Last Ten Fiscal Years
TABLE 2
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
General Fund
Committed for:
Pension reserve 670,365$ 670,365$ -$ -$ -$ -$ -$ -$ -$ -$
Unassigned 21,538,628 18,974,268 19,184,079 17,697,273 15,330,645 13,198,126 12,549,232 12,694,610 12,311,565 11,321,438
Total general fund 22,208,993$ 19,644,633$ 19,184,079$ 17,697,273$ 15,330,645$ 13,198,126$ 12,549,232$ 12,694,610$ 12,311,565$ 11,321,438$
All Other Governmental Funds
Nonspendable:
Inventory 376,339$ 453,398$ 474,816$ 471,135$ 525,732$ 623,735$ 828,419$ 1,497,659$ 1,336,234$ 1,098,304$
Restricted for:
Program purposes 759,959 941,141 996,071 758,139 736,461 1,296,007 1,303,030 205,979 284,760 1,236,780
Capital improvements 19,779,154 19,977,142 181,628 1,330,513 1,532,244 - 1,269,045 2,168,201 1,301,421 286,276
Committed for:
Capital improvements 3,655,121 2,934,287 2,352,368 2,310,621 2,387,922 2,018,581 1,814,834 1,758,934 2,589,099 2,631,233
Assigned for:
Program purposes 1,835,723 1,599,371 1,491,921 1,323,941 1,325,941 1,049,802 951,296 802,692 752,691 472,235
Capital improvements 6,370,850 4,184,306 3,987,920 5,851,629 7,429,412 5,179,330 4,665,475 3,206,412 3,055,250 1,487,938
Total all other governmental funds 32,777,146$ 30,089,645$ 9,484,724$ 12,045,978$ 13,937,712$ 10,167,455$ 10,832,099$ 9,639,877$ 9,319,455$ 7,212,766$
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Fiscal Year
TABLE 3
CITY OF PADUCAH, KENTUCKY
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Revenues:
Taxes 9,774,901$ 8,652,093$ 7,803,520$ 7,741,994$ 7,310,257$ 6,976,933$ 6,987,173$ 6,713,889$ 6,583,690$ 6,343,608$
Licenses 32,871,864 30,962,169 30,987,476 30,817,507 30,360,825 29,606,552 27,804,759 26,987,110 27,197,290 26,753,432
Charges for services 922,955 918,894 980,827 1,037,668 964,766 884,259 848,971 851,080 815,791 817,607
Intergovernmental 1,806,439 1,305,247 1,246,666 1,243,856 1,140,622 1,132,852 1,244,417 2,624,363 1,240,312 1,191,835
Grants 4,565,348 2,832,657 2,580,700 1,056,687 6,476,765 8,892,529 2,496,329 5,923,651 3,737,402 1,699,399
Interest 312,932 495,449 594,569 364,975 144,079 115,922 148,411 199,583 175,371 162,580
Other 4,150,383 2,605,489 2,292,786 2,746,311 2,389,230 2,085,412 2,408,193 3,271,860 2,743,698 1,902,075
Total revenues 54,404,822 47,771,998 46,486,544 45,008,998 48,786,544 49,694,459 41,938,253 46,571,536 42,493,554 38,870,536
Expenditures:
General government 5,448,505 5,083,231 4,776,778 5,282,385 4,881,298 4,526,828 4,484,105 4,311,103 4,481,485 5,117,194
Public safety 21,741,834 20,699,568 20,216,219 19,755,167 18,923,070 18,435,365 18,524,763 18,475,471 18,174,349 18,479,428
Public service 6,006,971 6,638,775 7,135,831 6,856,203 6,515,997 6,106,773 6,165,664 6,323,481 5,710,018 5,596,702
Parks and recreation 2,945,053 3,240,206 3,255,263 3,129,032 3,012,236 2,929,404 2,842,460 2,602,348 2,426,234 2,677,781
Planning and development 2,482,941 1,976,496 1,290,569 1,071,878 936,855 910,379 950,297 2,086,527 1,776,897 2,372,314
Other 1,393,692 431,505 430,441 441,674 393,812 441,742 247,878 640,452 766,847 516,534
Capital outlay 4,499,609 6,386,992 10,433,993 5,077,017 10,287,203 13,305,919 4,708,663 11,926,435 4,324,821 2,104,993
Debt service:
Principal requirement 3,575,792 2,763,738 2,443,416 2,357,542 2,244,361 2,137,759 2,158,385 1,748,233 1,698,468 1,434,246
Debt issuance costs 49,076 182,105 86,283 - - - 51,461 109,292 - -
Interest and fiscal requirement 1,184,922 812,040 787,368 804,620 810,917 845,609 817,191 1,086,866 1,089,447 1,114,852
Total expenditures 49,328,395 48,214,656 50,856,161 44,775,518 48,005,749 49,639,778 40,950,867 49,310,208 40,448,566 39,414,044
Other Financing Sources (Uses):
Bonds issued 3,020,000 20,520,000 5,370,000 - - - 4,225,000 9,055,000 - -
Payment to bond escrow agent (3,187,734) - (2,815,573) - - - (4,143,964) (5,627,447) - -
Premium on debt issued 232,710 - 332,097 - - - - 220,683 - -
Discount on debt issued (11,955) (64,666) - - - - (29,576) (53,529) - -
Long-term debt draws/issued 48,236 463,262 133,749 - 3,000,000 - - - 308,112 101,983
Capital lease - - - - - - - - 405,796 405,796
Transfers in 10,982,495 9,681,148 10,644,129 6,330,766 10,377,609 10,034,851 7,785,410 9,148,761 7,462,944 5,888,847
Transfers out (10,908,318) (9,091,611) (10,369,233) (6,089,352) (8,255,627) (10,105,282) (7,780,785) (9,199,119) (7,125,024) (5,809,539)
Total other financing sources (uses)175,434 21,508,133 3,295,169 241,414 5,121,982 (70,431) 56,085 3,544,349 1,051,828 587,087
Net change in fund balances 5,251,861$ 21,065,475$ (1,074,448)$ 474,894$ 5,902,777$ (15,750)$ 1,043,471$ 805,677$ 3,096,816$ 43,579$
Capital outlay (1)4,056,766$ 5,253,907$ 7,057,338$ 4,871,811$ 8,180,134$ 9,718,561$ 1,481,948$ 10,843,726$ 4,034,424$ 2,156,290$
Debt service as a percentage
of noncapital expenditures 10.52%8.32%7.38%7.92%7.67%7.47%7.54%7.37%7.66%6.84%
(1) Capital outlay is reported on the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities.
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Fiscal Year
(modified accrual basis of accounting)
TABLE 4
CITY OF PADUCAH, KENTUCKY
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
Total
Estimated Direct
Fiscal Personal Actual Tax
Year Commercial Residential Property Franchise Total Value Rate Exemptions
2012 781,685,815 685,984,380 524,400,400 48,227,212 2,040,297,807 2,108,802,723 0.287 96.8%68,504,916
2013 787,762,105 731,842,861 564,154,697 60,279,730 2,144,039,393 2,214,978,356 0.288 96.8%70,938,963
2014 826,805,152 743,249,074 585,142,381 41,487,586 2,196,684,193 2,270,597,754 0.292 96.7%73,913,561
2015 851,731,625 751,761,832 582,368,709 73,944,847 2,259,807,013 2,333,746,718 0.291 96.8%73,939,705
2016 902,687,182 783,886,570 573,896,954 57,561,993 2,318,032,699 2,394,834,871 0.289 96.8%76,802,172
2017 900,450,880 802,111,012 603,335,847 66,110,416 2,372,008,155 2,448,169,297 0.290 96.9%76,161,142
2018 945,354,526 842,349,240 746,891,857 81,951,770 2,616,547,393 2,697,740,881 0.295 97.0%81,193,488
2019 959,205,670 882,316,666 550,296,896 65,404,364 2,457,223,596 2,541,130,248 0.291 96.7%83,906,652
2020 988,724,688 903,643,347 518,116,004 40,179,286 2,450,663,325 2,539,860,943 0.293 96.5%89,197,618
2021 1,041,983,926 936,331,898 584,105,652 107,578,333 2,669,999,809 2,758,847,489 0.295 96.8%88,847,680
Source: McCracken County Property Valuation Administrator
Notes: Property in McCracken county is reassessed once every four years on average.
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TABLE 5
CITY OF PADUCAH, KENTUCKY
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Estimated
Value
Percent
Assessed
ToAssessed Value
Real Estate
Total
Fiscal Real Direct Real Real Real Real
Year Estate Personal Rate Estate Personal Estate Personal Estate Personal Estate Personal
2012 0.250 0.390 0.287 0.504 0.504 0.747 0.747 0.018 0.018 0.098 0.119
2013 0.250 0.390 0.288 0.504 0.504 0.747 0.747 0.017 0.017 0.096 0.102
2014 0.255 0.390 0.292 0.504 0.504 0.767 0.767 0.017 0.017 0.095 0.101
2015 0.255 0.390 0.291 0.495 0.495 0.771 0.771 0.017 0.017 0.094 0.095
2016 0.255 0.390 0.289 0.524 0.524 0.800 0.800 0.017 0.017 0.098 0.102
2017 0.255 0.390 0.290 0.516 0.516 0.799 0.799 0.017 0.017 0.096 0.098
2018 0.255 0.390 0.295 0.520 0.530 0.797 0.797 0.016 0.016 0.094 0.094
2019 0.261 0.390 0.291 0.538 0.538 0.840 0.840 0.016 0.016 0.096 0.132
2020 0.267 0.390 0.293 0.538 0.538 0.864 0.864 0.016 0.016 0.101 0.142
2021 0.267 0.390 0.295 0.538 0.538 0.864 0.864 0.016 0.016 0.105 0.139
Source: McCracken County Property Valuation Administrator and City Tax Levy Ordinance.
General Fund
City Direct Rates
McCracken Co.City of Paducah
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McCracken Paducah
School Districts School Districts Junior College County
TABLE 6
CITY OF PADUCAH, KENTUCKY
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
(1)(2)
(1)(2)
Assessed Assessed
Taxpayer Valuation Valuation
Kentucky Oaks Mall 58,870,100$ 2.40%50,900,262$ 2.48%
Cpark Paducah LLC 20,111,900 0.82%
Paducah Medical Investors 13,440,090 0.55%13,440,090 0.65%
Ducmall LLC 13,119,800 0.54%14,374,800 0.70%
Woodstone Enterprises LP 12,429,000 0.51%
Wal Mart Real Estate Business 10,646,400 0.43%10,646,400 0.52%
Greenway Village LLC 10,070,624 0.41%
Superior Care Homes Properties 10,040,000 0.41%
S & R Investments 10,000,000 0.41%
WKO Holdings LLC 9,939,200 0.41%
Sams Real Estate Business Trust 9,222,955 0.45%
Computer Services Inc 9,083,185 0.44%
Wal-Mart Store 9,000,000 0.44%
USF Propco I LLC 8,156,900 0.40%
Lowes Home Centers, Inc.8,134,350 0.40%Brooks Properties, Inc.7,800,000 0.38%
TOTALS 168,667,114$ 6.88%140,758,942$ 6.86%
(1) Source - Property Valuation Administration; Assessed value as of January 1, 2020.
(2) Source - Property Valuation Administration; Assessed value as of January 1, 2011.
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Percentage of Percentage of
Total Assessed Total Assessed
Valuation Valuation
TABLE 7
CITY OF PADUCAH, KENTUCKY
PRINCIPAL TAXPAYERS - PROPERTY TAX
CURRENT YEAR AND NINE YEARS PRIOR
2021 2012
Total Collections to Date
(1)
(1)Percent of Percent of
Amount of Levy Total Levy
Collections Collected Collections Collected
4,214,882 4,119,689 97.7%90,693 4,210,382 99.9%
4,427,258 4,334,698 97.9%87,432 4,422,130 99.9%
4,593,600 4,509,874 98.2%77,861 4,587,735 99.9%
4,718,003 4,644,522 98.4%65,746 4,710,268 99.8%
4,879,858 4,802,067 98.4%67,044 4,869,111 99.8%
4,989,629 4,888,303 98.0%86,873 4,975,176 99.7%
5,212,183 5,120,761 98.2%67,498 5,188,259 99.5%
5,454,811 5,323,669 97.6%97,379 5,421,048 99.4%
5,647,745 5,506,011 97.5%73,161 5,579,172 98.8%
5,686,508 5,563,728 97.8%- 5,563,728 97.8%
(1) Includes current year real and personal property tax.
* Source - City of Paducah Finance Department.
2014
Fiscal
for the
2012
2013
TABLE 8
CITY OF PADUCAH, KENTUCKY
SECURED TAX LEVIES AND COLLECTIONS*
LAST TEN FISCAL YEARS
June 30,
Ended
Year
Fiscal Year
Collections
in Subsequent
Years
Collected within the
Fiscal Year of the Levy
Taxes Levied
2017
2015
2016
2019
-137-
2018
2020
2021
(1)Direct
Fiscal Taxes Tax
Year Collected Rate
2012 18,095,182 2.00%
2013 18,336,124 2.00%
2014 18,114,396 2.00%
2015 19,092,911 2.00%
2016 20,130,158 2.00%
2017 20,803,763 2.00%
2018 21,054,644 2.00%
2019 21,648,742 2.00%
2020 21,490,917 2.00%
2021 22,064,353 2.00%
200,831,190
(1) Source - City of Paducah Finance Department - Actual collections during the fiscal year.
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TABLE 9
CITY OF PADUCAH, KENTUCKY
EMPLOYEE LICENSE TAX COLLECTIONS
LAST TEN FISCAL YEARS
(1)Percentage of
Number of Percentage Taxes Total Employee
Filers of Total Collected License Tax
$0 - $50,000 2,231 97.64%10,515,193 47.66%
$50,001 - $100,000 26 1.14%1,792,486 8.12%
$100,001 - $500,000 23 1.01%4,258,719 19.30%
Greater than $500,000 5 0.22%5,497,955 24.92%
TOTALS 2,285 100.00%22,064,353$ 100.00%
(1)Percentage of
Number of Percentage Taxes Total Employee
Filers of Total Collected License Tax
$0 - $50,000 2,466 97.82%8,496,955 46.96%
$50,001 - $100,000 31 1.23%2,198,285 12.15%
$100,001 - $500,000 22 0.87%4,363,850 24.12%
Greater than $500,000 2 0.08%3,036,092 16.78%
TOTALS 2,521 100.00%18,095,182$ 100.00%
(1) Source - City of Paducah Finance Department - Actual collections during the fiscal year.
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Taxpayers
By Range
Taxpayers
By Range
2021
2012
TABLE 10
CITY OF PADUCAH, KENTUCKY
PRINCIPAL EMPLOYEE LICENSE TAXPAYERS
CURRENT YEAR AND NINE YEARS PRIOR
(1)
Ratio of (3)
Reported Net Net Net Debt as (2)
General Refunding Total Debt to Percentage Net
Fiscal Obligation Capital Revenue Primary Actual of Personal Debt Per
Year Bonds Lease Bonds Government Value Income Capita
2012 23,651,493 7,320,328 - - - 30,971,821 1.47 6.16%1,238
2013 22,361,906 6,920,838 - - - 29,282,744 1.32 5.82%1,170
2014 24,706,291 6,519,356 - - - 31,225,647 1.38 6.21%1,248
2015 23,320,347 6,101,064 - - - 29,421,411 1.26 5.85%1,176
2016 21,595,096 5,686,435 - - - 27,281,531 1.14 5.42%1,090
2017 19,815,809 8,218,304 - - - 28,034,113 1.15 5.57%1,120
2018 17,992,494 7,806,701 - - - 25,799,195 0.96 5.13%1,031
2019 19,863,092 6,451,453 - - - 26,314,545 1.04 5.23%1,052
2020 38,041,738 6,365,985 - - - 44,407,723 1.75 8.83%1,775
2021 34,831,438 6,063,429 - - - 40,894,867 1.48 8.13%1,507
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See Table 5 for estimated actual property value. This ratio is calculated using estimated property value for the prior year.
(2) See Table 16 for population data.
(3) See Table 16 for personal income data
TABLE 11
CITY OF PADUCAH, KENTUCKY
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Public
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Improvement
Debt
Net
Public
Debt
Improvement
(1)
Ratio of
Public Net
Convention &Rental Floodwall Improvement Public Pool Economic Riverfront Recreation Bonds to
Fiscal Art Center Building Rehabilitation Project Renovation Development and E911 Facility Actual
Year Bonds Bonds Bonds Bonds Bonds Bonds Equipment Bonds Total Value
2012 6,630,000 4,895,000 3,630,000 2,455,210 6,100,000 - - - - (58,717) 23,651,493 1.12 945
2013 6,220,000 4,655,000 3,370,000 2,341,790 5,825,000 - - - - (49,884) 22,361,906 1.01 894
2014 5,805,000 4,400,000 3,100,000 2,224,863 5,460,000 1,120,000 2,475,000 - - 121,428 24,706,291 1.09 987
2015 5,385,000 4,435,000 2,820,000 2,104,212 5,100,000 1,055,000 2,330,000 - - 91,135 23,320,347 1.00 932
2016 4,955,000 4,055,000 2,530,000 1,990,271 4,805,000 990,000 2,185,000 - - 84,825 21,595,096 0.90 863
2017 4,515,000 3,660,000 2,230,000 1,862,123 4,505,000 925,000 2,040,000 - - 78,686 19,815,809 0.81 792
2018 4,065,000 3,255,000 1,920,000 1,729,992 4,195,000 860,000 1,895,000 - - 72,502 17,992,494 0.67 719
2019 3,610,000 2,845,000 1,600,000 2,355,000 3,870,000 790,000 1,750,000 2,700,000 - 343,092 19,863,092 0.78 794
2020 3,140,000 2,420,000 1,265,000 2,045,000 3,560,000 720,000 1,600,000 2,555,000 20,520,000 216,738 38,041,738 1.50 1,520
2021 2,525,000 1,985,000 - 1,715,000 3,240,000 650,000 1,445,000 2,400,000 20,520,000 351,438 34,831,438 1.26 1,284
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See Table 5 for estimated actual property value. This ratio is calculated using estimated property value for the prior year.
(2) See Table 15 for population data.
TABLE 12
CITY OF PADUCAH, KENTUCKY
RATIO OF NET GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
Police and
Fire Pension
Fund
Bonds
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Capita
Amortization
of Discounts
and Premiums
(2)
Net
Bonds Per
Estimated
(1)Share of
Reported Percentage Direct and
Debt Applicable Overlapping
Outstanding to the City Debt
City of Paducah 40,894,867$ 100.00%40,894,867$
Paducah Independent School District 58,597,000 *100.00%58,597,000
McCracken County 19,663,685 *45.70%8,986,304
McCracken County Board of Education 80,525,000 *32.40%26,090,100
Overlapping debt 158,785,685 93,673,404
TOTAL DIRECT AND OVERLAPPING DEBT 199,680,552$ 134,568,271$
(1) Applicable percentage is determined by ratio of assessed valuation of property subject to taxation
in overlapping unit to valuation of property subject to taxation in reporting unit.
* Information from finance office at each location.
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TABLE 13
CITY OF PADUCAH, KENTUCKY
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2021
Net assessed value 2,669,999,809$
Add exemption 88,847,680
Total assessed value 2,758,847,489$
Debt limit - 10% of total assessed (1)275,884,749$
Debt outstanding:
General obligation bonds outstanding 34,831,438$
Note payable 6,063,429
Less debt not subject to limit -
Gross bonded debt 40,894,867
Less amount available in debt service
funds 1,505,449
Net bonded indebtedness subject to
limit 39,389,418
LEGAL DEBT MARGIN 236,495,331$
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Debt limit 275,884,749$ 253,986,094$ 254,113,025$ 244,995,800$ 244,792,901$ 239,483,487$ 233,374,672$ 227,059,775$ 221,497,836$ 212,207,634$
Total net debt
applicable to limit 39,389,418 43,136,434 25,136,858 24,778,288 27,011,206 26,489,770 28,769,092 30,721,830 28,966,286 30,936,733
LEGAL DEBT
MARGIN 236,495,331$ 210,849,660$ 228,976,167$ 220,217,512$ 217,781,695$ 212,993,717$ 204,605,580$ 196,337,945$ 192,531,550$ 181,270,901$
Total net debt
applicable to the
limited as a
percentage of
debt limit 14.28%16.98%9.89%11.03%11.06%12.33%13.08%14.58%14.13%15.11%
(1) "Cities shall not be authorized or permitted to incur indebtedness to an amount, including existing indebtedness, in the aggregate exceeding the following names maximum percentages on the value
of the taxable property therein, to be estimated by the assessment previous to the incurring of the indebtedness: Cities of the first and second classes, and of the third class having a population
exceeding fifteen hundred, ten per centum."
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Fiscal Year
TABLE 14
CITY OF PADUCAH, KENTUCKY
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(1)(2)
Personal
Income
25,024 503,179,300 20,430 41.4 2,682 8.0%
25,024 503,179,300 20,430 41.4 2,744 8.4%
25,024 503,179,300 20,430 41.4 3,138 8.2%
25,024 503,179,300 20,430 41.4 2,843 5.6%
25,024 503,179,300 20,430 41.4 3,139 6.2%
25,024 503,179,300 20,430 41.4 3,132 6.8%
25,024 503,179,300 20,430 41.4 2,835 6.4%
25,024 503,179,300 20,430 41.4 2,980 5.5%
25,024 503,179,300 20,430 41.4 3,232 5.4%
27,137 503,179,300 32,097 41.4 2,832 5.9%
Sources:
(1)Bureau of the Census Count - 2020
(2)Bureau of the Census Count - 2010
(3)Board of Education; represents elementary and secondary public schools.
(4)Kentucky Cabinet for Human Resources, Department for Employment Services.
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TABLE 15
CITY OF PADUCAH, KENTUCKY
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(1)(2)(3)(4)
Per Capita Median School Unemployment
Enrollment RateAgeIncome
2011-2012
2012-2013
2013-2014
2014-2015
Fiscal Year Population
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
Percentage of Percentage of
Total Total
Employees (1)Employment (2)Employees (1)Employment (2)
Baptist Healthcare Systems 1,474 5.65%
Bon Secours Mercy Health, Inc 1,448 5.55%
Wal-Mart Associates, Inc.993 3.81%1,098 3.69%
Paducah Board of Education 589 2.26%554 1.86%
Lowes of Paducah #465 396 1.52%
Kentucky Community & Technical College 375 1.44%507 1.70%
Baptist Health Medical Group 367 1.41%
Vi Wintech Window & Door 358 1.37%
City of Paducah 337 1.29%391 1.31%
Commonwealth of Kentucky 310 1.19%322 1.08%
Computer Services Inc 237 0.80%
Western Baptist Hospital 1,794 6.03%
Lourdes Hospital, Inc.1,541 5.18%
Paxton Media Group 249 0.84%
LYNX Services 266 0.89%
TOTALS 6,647 25.51%6,959 23.38%
(1) Source - City of Paducah Finance Department
(2) State of Kentucky - Office of Employment and Training. Ratio based on employment within County of McCracken.
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Employer
TABLE 16
CITY OF PADUCAH, KENTUCKY
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS PRIOR
20122021
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Governmental Activities
General government
General administration 11 10 12 12 12 11 11 11 12 12
Finance 11 12 11 11 11 11 11 11 11 11
Inspection 0 0 0 0 0 0 0 0 0 11
Information systems 4 4 6 5 5 5 5 5 6 6
Clerk/Customer Experience 5 5 0 0 0 0 0 0 0 0
Risk/Human resources 4 3 3 3 4 3 3 3 3 3
Public safety
Police 87 87 87 87 87 87 87 87 88 90
Fire 75 74 76 77 76 76 76 76 74 64.5
Public service
Streets 23.75 21.2 21.2 21.2 21.2 21 21 20 20 23
Facilities 14.25 12.8 12.8 12.8 12.8 12.5 12.5 13.5 13.5 11.5
Engineering 6.0 5.2 5.3 5.3 5.8 6.6 6.6 6.6 7.6 7.6
E911**23 23 22 22 22 0 0 0 0 0
Other 5 5 5 5 5 5 5 5 5 5
Parks and recreation 25.7 27.7 27 27 25 25 25 24 24 24
Planning and development 8 8 12 11 11 10 10 9 9 9
Other
Paducah Riverfront Dev. Authority 0 0 0 0 0 1 1 1 1 1
Renaissance 0 0 0 0 0 0 0 3 3 4
Boat dock 0.3 0.3 0 0 0 0 0 0 0 0
Fleet maintenance 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5
Business-type Activities
Solid waste 25.5 25.3 26.2 26.2 25.7 25.4 25.4 25.4 25.4 25.4
TOTAL PRIMARY GOVERNMENT 335 330 333 332 330 306 306 307 309 314.5
* Employee budget census.
** E911 became a City department effective 7/1/16.
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Fiscal Year
TABLE 17
CITY OF PADUCAH, KENTUCKY
CITY FULL-TIME EMPLOYEES BY FUNCTION*
Last Ten Fiscal Years
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
General government
Building and electrical
permits issued 946 972 1,130 1,179 1,285 1,344 1,175 1,251 1,202 1,232
Business licenses issued 3,263 3,787 3,401 4,240 4,234 3,826 3,729 3,717 3,966 3,956
Public safety
Police
Adult arrests 1,944 1,859 2,371 2,443 2,259 2,174 2,293 2,546 2,508 2,753
Murder 4 3 - 6 1 2 2 3 - 3
Rape 20 18 18 24 13 11 10 17 16 14
Robberies 13 16 29 17 29 42 41 36 38 14
Burglary 114 105 144 178 130 185 138 127 142 123
Auto theft 97 64 70 101 89 59 49 60 41 47
Larceny 824 833 1,115 1,064 1,027 1,173 1,138 1,090 1,110 1,005
Arson 8 11 9 10 6 7 2 3 5 7
Traffic accidents 1,791 1,706 1,901 1,770 1,826 1,936 1,722 1,664 1,573 1,666
Traffic violations 1,765 2,085 2,168 3,723 4,663 4,231 5,501 6,821 10,168 8,573
Fire
Emergency responses 3,010 3,300 3,235 3,320 3,275 3,201 2,956 2,935 3,054 3,164
Fires extinguished 178 154 108 118 135 124 118 115 105 138
Structure fires 77 60 35 39 36 42 42 35 33 53
Incidents with reported
losses 178 157 136 119 138 72 73 56 55 89
Medical/rescue 2,010 2,113 2,244 2,295 2,308 2,259 2,150 2,080 2,151 2,270
Tours/in-services/car
seats 142 229 276 229 262 305 400 378 570 524
Training man hours 11,651 10,755 9,372 10,755 8,378 10,589 10,860 8,959 9,155 7,232
Inspections 91 893 1,060 709 2,126 2,060 1,324 1,710 1,157 1,417
Refuse collection
Residential
Refuse collected (tons 45 38 37 36 36 41 34 36 36 34
per day)
Customers served 10,129 9,734 9,895 9,889 9,806 9,801 9,639 9,600 9,478 9,488
Commercial
Refuse collected (tons 66 65 69 70 70 61 64 61 65 71
per day)
Customers served 943 943 950 930 858 854 861 927 805 803
Public service
911 dispatches 81,504 90,603 90,191 94,187 94,053 85,380 83,465 83,614 92,786 79,333
Police 46,307 53,399 47,719 53,522 53,896 46,660 44,337 43,877 51,131 43,686
Fire 3,298 3,225 3,296 3,351 3,314 3,230 3,152 3,517 4,747 3,189
Other 31,899 33,979 39,176 37,314 36,843 35,490 35,976 36,220 36,908 32,458
* Information not available.
** Information from city departments.
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TABLE 18
CITY OF PADUCAH, KENTUCKY
OPERATING INDICATORS BY FUNCTION**
Last Ten Fiscal Years
Fiscal Year
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Public safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Fire
Stations 5 5 5 5 5 5 5 5 5 5
Refuse collection
Collection trucks
Residential 10 10 10 10 10 10 10 10 10 10
Commercial 4 4 4 4 4 4 4 4 4 4
Other public works
Streets (miles paved)218 218 218 218 218 218 218 218 218 218
Sidewalks (miles)47 47 47 47 47 47 47 47 47 47
Traffic signals 10 13 13 13 13 13 13 13 13 13
Parks and recreation
Parks 29 29 29 29 29 29 28 28 27 27
Acreage 960 960 960 960 960 960 960 960 960 1125
Community centers 2 2 2 2 2 2 2 2 2 2
Swimming pools 1 1 1 1 1 1 1 1 1 1
Public tennis courts 7 7 7 6 6 6 6 6 6 6
Public golf/disk golf courses 4 4 4 4 4 4 4 4 3 3
* Information from city departments.
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Fiscal Year
TABLE 19
CITY OF PADUCAH, KENTUCKY
CAPITAL ASSET STATISTICS BY FUNCTION*
Last Ten Fiscal Years
CITY OF PADUCAH, KENTUCKY
SINGLE AUDIT SECTION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
Federal
CFDA Pass-Through Pass-Through
Program Title:Number Grantor Number To Subrecipients Expenditures
Department of Housing and Urban
Development:
Direct Programs:
Section 8 Housing Choice Vouchers 14.871 N/A -$ 2,028,004$
COVID-19 Section 8 Housing Choice Vouchers 14.871 N/A - 27,496
Passed-through Kentucky Governors
Office for Local Development:
Community Development Block Grants 14.228 N/A 197,500 200,000
Total Department of Housing and Urban
Development 197,500 2,255,500
Department of Justice:
Direct Programs:
Bulletproof Vest Partnership Program 16.607 N/A - 2,268
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 N/A - 11,236
Total Department of Justice - 13,504
Department of Transportation:
Passed-through Kentucky Transportation Cabinet:
State and Community Highway Safety 20.600 PT-20-58 - 2,800
State and Community Highway Safety 20.600 PT-21-63 - 5,464
Highway Planning and Construction 20.205 N/A - 202,557
Highway Planning and Construction 20.205 N/A - 100,000
Total Department of Transportation - 310,821
U.S. Department of the Treasury
Direct Programs:
Equitable Sharing 21.016 N/A - 15,187
Passed-through Kentucky Department for
Local Government:
COVID-19 Coronavirus Relief Fund for States 20.019 C257-01 1,786,875
COVID-19 Coronavirus Relief Fund for States 20.019 C2-085-01 - 559,821
Total U.S. Department of the Treasury - 2,361,883
Department of National Endowment for the
Humanities:
Direct Programs:
Promotion of the Arts Grants to
Organizations and Individuals 45.024 N/A - 1,525
Total Department of National Endowment for the
Humanities - 1,525
Department of the Interior
Passed-through Kentucky Heritage Council:
Historic Preservation Fund Grants-In-Aid 15.904 N/A - 10,000
Historic Preservation Fund Grants-In-Aid 15.904 KY-20-10018 - 13,500
Total Department of the Interior - 23,500
Department of Homeland Security:
Passed-through Kentucky Division of
Emergency Management:
Disaster Grants - Public Assistance 97.036 N/A - 177,828
Disaster Grants - Public Assistance 97.036 N/A - 83,794
Disaster Grants - Public Assistance 97.036 N/A - 61,310
Homeland Security Grant Program 97.067 N/A - 442,064
Total Department of Homeland Security - 764,996
TOTAL EXPENDITURES OF FEDERAL AWARDS 197,500$ 5,731,729$
See accompanying notes to schedule of expenditures of federal awards.
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CITY OF PADUCAH, KENTUCKY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
Federal Grantor/Pass-Through Grantor/
CITY OF PADUCAH, KENTUCKY
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
Note 1 - Basis of Presentation:
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
the City of Paducah and is presented on the accrual basis of accounting. The information in this
schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements
for Federal Award (Uniform Guidance). Therefore, some amounts presented in this schedule may
differ from amounts presented in, or used in the preparation of, the financial statements.
Note 2 - Subrecipients:
The City of Paducah provided federal awards to subrecipients as follows:
Federal
CFDA Amount
Program Title Number Provided
Four Rivers Recovery Center 14.228 $197,500
Note 3 – Indirect Cost Rate:
The City of Paducah has not elected to use the 10% de minimis indirect cost rate as allowed under the
Uniform Guidance.
Note 4 – Reconciliation of Federal Awards to the Financial Statements:
Total Federal Awards $ 5,731,729
Federal Awards by Fund
General Fund $ 2,610,818
Capital Improvement Fund 852,724
Special Revenue Fund 212,687
Proprietary Fund 2,055,500
Total Federal Awards $ 5,731,729
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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND
ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable George Bray, Mayor
Members of the Board of Commissioners
City of Paducah
Paducah, Kentucky
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General
of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of the City of
Paducah, Kentucky, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which
collectively comprise City of Paducah, Kentucky’s basic financial statements, and have issued our report thereon dated
December 22, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Paducah, Kentucky’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of City of Paducah, Kentucky’s internal control. Accordingly, we do not
express an opinion on the effectiveness of City of Paducah, Kentucky’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements
on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that
there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies
and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these
limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Paducah, Kentucky’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly,
we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters
that is required to be reported under Government Auditing Standards.
100 South 4th Street Suite 300 Paducah, KY 42001
Phone: (270)443-4400 Fax: (270)443-0963 kempercpa.com
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Certified Public Accountants and Consultants
Paducah, Kentucky
December 22, 2021
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
Honorable George Bray, Mayor
Members of the Board of Commissioners
City of Paducah
Paducah, Kentucky
Report on Compliance for Each Major Federal Program
We have audited City of Paducah, Kentucky’s compliance with the types of compliance requirements described in the
OMB Compliance Supplement that could have a direct and material effect on each of City of Paducah, Kentucky’s
major federal programs for the year ended June 30, 2021. City of Paducah, Kentucky’s major federal programs are
identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal
awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of City of Paducah, Kentucky’s major federal
programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and
Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Paducah,
Kentucky’s compliance with those requirements and performing such other procedures as we considered necessary in
the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program.
However, our audit does not provide a legal determination of City of Paducah, Kentucky’s compliance.
Opinion on Each Major Federal Program
In our opinion, City of Paducah, Kentucky, complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major federal programs for the
year ended June 30, 2021.
Report on Internal Control Over Compliance
Management of City of Paducah, Kentucky, is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and performing our audit of
compliance, we considered City of Paducah, Kentucky’s internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each
major federal program and to test and report on internal control over compliance in accordance with the Uniform
Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of City of Paducah, Kentucky’s internal control over
compliance.
100 South 4th Street Suite 300 Paducah, KY 42001
Phone: (270)443-4400 Fax: (270)443-0963 kempercpa.com
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does
not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect
and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material
weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control over compliance that might be material
weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
Certified Public Accountants and Consultants
Paducah, Kentucky
December 22, 2021
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CITY OF PADUCAH, KENTUCKY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2021
Section I – Summary of Auditor’s Results
1. The independent auditor’s report expresses an unmodified opinion on whether the financial
statements of the City of Paducah, Kentucky were prepared in accordance with generally
accepted accounting principles.
2. No significant deficiencies relating to the audit of the financial statements are reported. No
material weaknesses relating to the audit of the financial statements are reported.
3. No instances of noncompliance material to the financial statements of the City of Paducah,
Kentucky, which would be required to be reported in accordance with Government Auditing
Standards, were disclosed during the audit.
4. No deficiencies relating to the audit of major federal award programs are reported. No material
weaknesses relating to the audit of major federal award programs are reported.
5. The auditor’s report on compliance for the major federal award programs for the City of Paducah,
Kentucky expresses an unmodified opinion on all major federal programs.
6. There are no findings to be reported in accordance with 2 CFR Section 200.516(a) in this
schedule.
7. The programs tested as major programs included:
Name CFDA
COVID-19 Coronavirus Relief Fund for States 20.019
8. The threshold used for distinguishing Types A and B programs was $750,000.
9. The City of Paducah, Kentucky did qualify to be audited as a low-risk auditee.
Section II – Findings – Financial Statements Audit
There are no findings related to the financial statements which are required to be reported in accordance
with Government Auditing Standards.
Section III – Findings and Questioned Costs – Major Federal Awards Programs
There are no findings or questioned costs related to the major federal programs which are required to be
reported in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles and Audit Requirements for Federal Award (Uniform Guidance).
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CITY OF PADUCAH, KENTUCKY
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
YEAR ENDED JUNE 30, 2020
Section II – Findings – Financial Statements Audit
There are no findings related to the financial statements which are required to be reported in accordance
with Government Auditing Standards.
Section III – Findings and Questioned Costs – Major Federal Awards Programs
There are no findings or questioned costs related to the major federal programs which are required to be
reported in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles and Audit Requirements for Federal Award (Uniform Guidance).
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