HomeMy WebLinkAboutJune-30-2025CITY OF PADUCAH,
KENTUCKY
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
FINANCE DEPARTMENT
CITY OF PADUCAH,
KENTUCKY
City of Paducah
Paducah, Kentucky
Annual Comprehensive Financial Report
Year Ended June 30, 2025
Issued by the
Finance Department
CITY OF PADUCAH, KENTUCKY
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
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 11-13
Required Supplementary Information:
Management’s Discussion and Analysis 14-29
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 1 30-31
Statement of Activities 2 32-33
Fund Financial Statements:
Governmental Funds:
Balance Sheet 3 34-35
Reconciliation of the Governmental Funds Balance
Sheet to Statement of Net Position 4 36-37
Statement of Revenues, Expenditures and Changes
in Fund Balances 5 38-39
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities 6 40-41
Statement of Revenues, Expenditures and Changes -
Budget and Actual - General Fund 7 42-45
Statement of Revenues, Expenditures and Changes -
Budget and Actual - Special Revenue Investment Fund 8 46
Statement of Revenues, Expenditures and Changes -
Budget and Actual - Special Revenue Opioid Settlement Fund 9 47
Proprietary Funds:
Statement of Net Position 10 48
Statement of Revenues, Expenses and Changes in
Net Position 11 49
Statement of Cash Flows 12 50
Fiduciary Funds:
Statement of Net Position 13 51
Statement of Changes in Net Position 14 52
Notes to Financial Statements 53-102
Required Supplementary Information:
Schedule of Changes in the Police and Firefighters’
Pension Trust Fund’s Net Pension Liability and Related Ratios A-1 103
Schedule of Police and Firefighters’ Pension Trust Fund
Contributions and Investment Returns A-2 104
Schedule of City’s Proportionate Share of the Net Pension Liability
County Employees’ Retirement System A-3 105
Exhibit No. Page No.
Schedule of City’s Contributions - Pensions
County Employees’ Retirement System A-4 106
Schedule of City’s Proportionate Share of the Net Medical Insurance
Plan Liability - County Employees’ Retirement System A-5 107
Schedule of City’s Contributions – Medical Insurance Plan
County Employees’ Retirement System A-6 108
Supplementary Information:
Bond Fund Detail Schedule of Revenues, Expenditures and Changes -
Budget and Actual B-1 109
General Capital Improvements Detail Schedule of
Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual B-2 110
Debt Service Fund Detail Schedule of Revenues,
Expenditures, and Changes in Fund Balance - Budget
and Actual B-3 111
Nonmajor Governmental Funds:
Combining Balance Sheet B-4 112-113
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances B-5 114-115
Detail Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual:
Municipal Aid Fund B-6 116
Emergency Communication Service Fund B-7 117
Court Awards Fund B-8 118
CDBG Grant Fund B-9 119
Bed Tax Fund B-10 120
Tax Increment Financing Fund B-11 121
Nonmajor Enterprise Funds:
Combining Statement of Net Position C-1 122
Combining Statement of Revenues, Expenses and
Changes in Fund Net Position C-2 123
Combining Statement of Cash Flows C-3 124
Internal Service Funds:
Combining Statement of Net Position D-1 125
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Position D-2 126
Combining Statement of Cash Flows D-3 127
Fiduciary Funds:
Combining Statement of Net Position -
Private-purpose Trust Funds E-1 128
Combining Statement of Changes in Net Position -
Private-purpose Trust Funds E-2 129
Table No. Page No.
Statistical Section:
Net Position by Component 1 130
Changes in Net Position 2 131-132
Fund Balances, Governmental Funds 3 133
Changes in Fund Balances, Governmental Funds 4 134
Assessed and Estimated Actual Value of
Taxable Property 5 135
Governments 6 136
Principal Taxpayers 7 137
Secured Tax Levies and Collections 8 138
Employee License Tax Collections 9 139
Table No. Page No.
Statistical Section:
Principal Employee License Taxpayers 10 140
Ratio of Outstanding Debt by Type 11 141
Ratio of Net General Bonded Debt Outstanding 12 142
Direct and Overlapping Governmental
Activities Debt 13 143
Legal Debt Margin Information 14 144
Demographic and Economic Statistics 15 145
Principal Employers 16 146
City Full-Time Employees by Function 17 147
Operating Indicators by Function 18 148
Capital Asset Statistics by Function 19 149
Single Audit Section:
Schedule of Expenditures of Federal Awards 150
Notes to the Schedule of Expenditures of Federal
Awards 151
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 152-153
Independent Auditor’s Report on Compliance for Each Major
Program and on Internal Control Over Compliance Required by
Uniform Guidance 154-155
Schedule of Findings and Questioned Costs 156
Schedule of Prior Audit Findings 157
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PADUCAH, KENTUCKY
INTRODUCTORY SECTION
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
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December 19, 2025
Honorable Mayor and Commissioners
City of Paducah
Paducah, Kentucky
We are pleased to submit Paducah's Annual Comprehensive Financial Report for the year ended June 30,
2025. 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, 2025,
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 ACFR.
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
Paducah has a mix of commercial, industrial, cultural, institutional, and hospitality-based businesses.
Healthcare and education services are among the top employers. The accredited Paducah Area Chamber of
Commerce is one of the largest in the state, and it recently won the Association of Chamber of Commerce
Executives 2025 Chamber of the Year.
CITY OF PADUCAH
Finance Department
P.O. Box 2267
Paducah, KY 42002-2267
270-444-8512
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With Paducah’s easy river access and rail service, the City is the headquarters for several river industry
giants including Ingram Barge, Marquette Transportation, James Marine, and Crounse Corporation.
Paducah is at the center of inland waterways linking cities including Pittsburgh and Minneapolis/St. Paul
to the Gulf of Mexico. The Paducah Riverport Authority is positioned for growth in the sector of intermodal
river transportation through the purchase of the largest flat-top tower crane in North America. In 2015, the
U.S. Department of Commerce Foreign Trade Zone Board approved the Riverport to establish a foreign-
trade zone, an incredible business tool.
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 485 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,
the McCracken County School System, Community Christian Academy, and by the 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
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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.
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, pickle ball, skate
boarding, soccer, hiking, picnicking, and music garden. 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.
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. Although the event is free, volunteers
collect cash donations 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 an 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 and its employees. 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 Annual
Comprehensive 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.
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
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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. 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 FY2025, 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 FY2025 this
contribution was $295 thousand. This amount was $352 thousand in FY2024.
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 FY2025 budget process, the
Commission reviewed numerous decision packages proposed for the Investment Fund Budget; expenditures
totaling approximately $8.3 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:
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. 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.
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Paducah Sports Park. In September 2022, the City entered into an agreement with McCracken County and
McCracken County Sports Tourism Commission for the development of the Paducah Sports Park.
Construction contracts totaling $57 million were approved in June 2024, contributing to a total project cost
of approximately $70 million. After the construction period, the goal is for the facility to open in spring
2026. The McCracken County Sports Tourism Commission estimates that, with an expectation of holding
35-40 tournaments per year, the facility could generate a local economic impact of approximately $130
million in its first five years of use.
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 29,620 persons employed (McCracken County) as
of June 30, 2025. The June 2025 unemployment rate was 5.1% (McCracken County), which is an increase
from 4.9% in the prior year, and higher than the June 2024 federal unemployment rate of 4.1%.
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.
AWARDS AND ACKNOWLEDGEMENTS
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
annual comprehensive financial report for the fiscal year ended June 30, 2024. This was the thirty-fourth
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 annual comprehensive 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 annual comprehensive 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.
The City also received its second GFOA Award for Outstanding Achievement in Popular Annual Financial
Reporting for its Popular Annual Financial Report for the fiscal year ended June 30, 2024. The Award for
Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award
recognizing conformance with the highest standards for preparation of state and local government popular
reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting,
a government must publish a Popular Annual Financial Report whose contents conform to program
standards of creativity, presentation, understandability, and reader appeal. The Award for Outstanding
Achievement in Popular Annual Financial Reporting is valid for a period of one year only. We believe our
current reports continue to conform to the reporting requirements, and we will be submitting it to the GFOA
to determine its eligibility for another award.
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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
and support in planning and conducting the financial operations of the City in a responsible and progressive
manner.
Respectfully submitted,
Audra Kyle, CPA
Finance Director
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- Technology
Department
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 Buzz Smith
Commissioner Dujuan Thomas
CITY MANAGER
Daron Jordan
Assistant City Manager Michelle Smolen
Finance Director Audra Kyle, CPA
Police Chief Brian Laird
Fire Chief Steve Kyle
City Engineer Greg Guebert
Public Works Director Chris Yarber
Assistant Public Works Director Randy Crouch
Planning Director Carol Gault
Parks & Recreation Director Amie Clark
Technology Department Director Eric Stuber
City Clerk Lindsay Parish
Human Resources Director Stefanie Wilcox
Communications Manager Pam Spencer
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Paducah
Kentucky
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
CITY OF PADUCAH, KENTUCKY
FINANCIAL SECTION
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
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INDEPENDENT AUDITOR’S REPORT
Honorable George Bray, Mayor
Members of the Board of Commissioners
City of Paducah
Paducah, Kentucky
Report on the Audit of the Financial Statements
Opinions
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, 2025, and the related notes to the financial statements,
which collectively comprise the City of Paducah, Kentucky’s basic financial statements as listed in the table of
contents.
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, 2025, and the respective changes in financial position and, where applicable, cash flows thereof and the
respective budgetary comparison for the General Fund, Special Revenue Investment Fund, and Special Revenue
Opioid Settlement Fund for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
We did not audit the financial statements of Paducah Water Works, which represent 100 percent, 100 percent, and
100 percent, respectively, of the assets, net position, and revenues of the discretely presented component unit as of
June 30, 2025. Those statements were audited by other auditors whose report has been furnished to us and our
opinion, insofar as it relates to the amounts included for the discretely presented component unit, is based solely on
the report of other auditors.
Basis for Opinions
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. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City of Paducah, Kentucky and to meet our ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinions.
Responsibilities of Management 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, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City of Paducah, Kentucky’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
100 South 4th Street ▪ Suite 300 ▪ Paducah, KY 42001
Phone: (270)443-4400 Fax: (270)443-0963 kempercpa.com
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards
will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user
based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
Exercise professional judgement and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 City of Paducah, Kentucky’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City of Paducah, Kentucky’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we
identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion
and analysis, schedules of net pension and OPEB liabilities and contributions on pages 14 through 29 and 103
through 108 be presented to supplement the basic financial statements. Such information is the responsibility of
management and, 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.
Supplementary 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 accompanying budgetary comparison schedules,
combining and individual nonmajor funds, budgetary comparison schedules for the nonmajor funds, nonmajor
enterprise, internal service and fiduciary financial statements on pages 109 through 129; and the schedule of
expenditures of federal awards on pages 150 through 151, as required by Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , are
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presented for purposes of additional analysis and are not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The 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 accompanying budgetary comparison schedules, the combining and individual nonmajor funds, 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.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the introductory and statistical sections but does not include the basic financial statements and our auditor’s report
thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express
an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements,
or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2025, 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 the effectiveness of the City of Paducah,
Kentucky’s 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 19, 2025
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
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CITY OF PADUCAH, KENTUCKY
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2025
The City of Paducah (“City”) offers the Management’s Discussion and Analysis to provide readers a narrative
overview and analysis of City financial activities for fiscal year ended June 30, 2025. It is intended to
complement the financial statements that follow and should be read in conjunction with those statements.
Financial Highlights
Government-wide Highlights
The City’s total net position increased by approximately $31.6 million.
Governmental activities reported a net position of $75.2 million, while business-type activities ended
the year with $2.8 million in net position.
The significant increase in governmental net position was primarily due to the U.S. Army Corps of
Engineers’ $22.8 million investment in the recently completed Floodwall Rehabilitation Project.
Fund-Level Highlights
Governmental funds ended the year with a combined fund balance of $88.5 million, an increase of $26.5
million from prior year.
The significant increase in fund balance was primarily due to the issuance of $25.8 in general obligation
bonds for the remaining share of the City’s contribution to the construction of the Paducah Sports Park,
which is expected to be completed in FY2026.
The General Fund closed with $25.7 million in unassigned fund balance, which is available for spending
at the City’s discretion. Cash and cash equivalents are approximately $22.4 million. When compared
to final total appropriations, the General Fund cash balance is 39%, which translates to 142 days of total
General Fund expenditures (including interfund transfers).
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 and 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 reported in the
Statement of Activities for some items that will only result in cash flows in the future.
These statements distinguish between 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
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governmental activities include general government, public safety, public service, parks and recreation,
planning and development, and interest on long-term debt. Business-type activities of the City include Solid
Waste, Section 8 Housing, 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 30-33 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, 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 twelve (12) individual governmental funds. Information is presented separately in
the Balance Sheet – Governmental Funds and in the Statement of Revenues, Expenditures, and Changes
in Fund Balances – Governmental Funds for all of the major funds: General, General Capital
Improvements, Special Revenue Investment, Opioid Settlement Fund, Bond Fund and Debt Service
Funds. Data from the other six (6) 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 112-121.
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 36-37) and Exhibit 6 (pages 40-41) 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 34-41 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 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 three enterprise funds to account for Solid Waste, Section 8 Housing, and Transient
Boat Dock. None of these funds typically receive an operating subsidy from the General Fund;
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however, a $304 thousand transfer was made to the Transient Boat Dock Fund in FY2025 for
major repairs to the dock.
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 30-33.
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 122-124 of this report. Individual data for the internal service
funds is likewise presented in the form of combining statements on pages 125-127 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 one of the City’s two fiduciary funds
(Police and Firefighters’ Retirement) is presented in the notes to the financial statements on pages 89-90.
Individual data for the Cemetery and Parks Trusts Fund is presented on pages 128-129 of this report.
C. Notes to the Financial Statements
The notes provide additional information that is essential to fully understand data provided in the
government-wide and fund financial statements. Notes to the financial statements can be found on pages
53-102 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.
Combining fund statements and schedules can be found on pages 109-129 of this report.
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 $78 million, an increase of $31.6
million from prior year.
For FY2025, the largest portion of the City’s net position ($99.5 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.
As of June 30, 2025, 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.
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City of Paducah, Kentucky
Net Position
June 30
Governmental Activities Business-Type Activities Total Primary Government
2025 2024 2025 2024 2025 2024
Current Assets $ 115,056,203 $87,524,257 $ 4,852,789 $ 4,719,931 $119,908,992 $ 92,244,188
Capital Assets 109,343,005 83,207,702 3,162,977 2,606,100 112,505,982 85,813,802
Other noncurrent assets 4,879,958 5,478,812 63,356
53,348 4,943,314 5,532,160
Total Assets 229,279,166 176,210,771 8,079,122 7,379,379 237,358,288 183,590,150
Deferred Outflows of
Resources 13,742,481 14,157,378 452,428 577,989 14,194,909 14,735,367
Current Liabilities 14,654,591 10,891,480 529,628
1,033,095 15,184,219 11,924,575
Noncurrent liabilities 120,764,355 98,774,113 4,375,447 4,648,764 125,139,802 103,422,877
Total Liabilities 135,418,946 109,665,593 4,905,075 5,681,859 140,324,021 115,347,452
Deferred Inflows of Resources 32,392,463 35,446,822 853,154 1,150,373 33,245,617 36,597,195
Net position:
Net Invested in Capital Assets 96,401,070 70,081,507 3,086,729 2,481,099 99,487,799 72,562,606
Restricted 6,565,593 5,727,883 91,090 49,510 6,656,683 5,777,393
Unrestricted (27,756,425) (30,553,656) (404,498)
(1,405,473) (28,160,923) (31,959,129)
TOTAL NET POSITION $ 75,210,238 $ 45,255,734 $ 2,773,321 $ 1,125,136 $ 77,983,559 $ 46,380,870
The exhibit below charts the City’s total net position for the past ten years. (Prior years have not been restated
for new standard implementation or error correction in this discussion).
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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. The initial year generated a $20 million liability and thus the
notable decrease in net position that year. Annual adjustments to these liabilities, as well as the liabilities related
to the City’s participation in the County Employee Retirement System (which was implemented in FY2015
under GASB 68) continued to drive net position down from FY2019 through FY2021. These liabilities have
been the primary factor in generating negative unrestricted net position since their introduction to the financial
statements. This does not represent a cash deficit and is common among Kentucky cities participating in CERS.
Fiscal year 2022 marked the beginning of recovery from the Covid pandemic, which continued through FY2024.
Conservative revenue projections, careful operational spending, and the investment of ARPA funds into
stormwater improvements placed the City in a positive trajectory during this time. In addition, sizable FEMA
mitigation grants were received and utilized for stormwater improvements and future flood mitigation projects
in this period. In FY2024, additional recovery was realized as CERS and OPEB had a more favorable return on
investments, which lowered the City’s required pension expense and liability by approximately $4.5 million.
There was a dramatic increase in net position this fiscal year. As mentioned in Government-wide Highlights,
the U.S. Army Corps of Engineers (USACE) has made a significant investment in the City’s 12.5-mile long
floodwall and levee system. In 2017, a Project Partnership Agreement was made between the Department of the
Army and the City for Phase 2 of the Ohio River Shoreline, Paducah KY Reconstruction Project. The portion
completed through the City, which included Pump Stations #2 and #9, flap gates, and seal closures is
substantially finished, and those improvements were added to the City’s infrastructure in prior years. In June
2025, the City received cost data from USACE for their 65% share of total project costs totaling $22,844,492.
These improvements were accepted by the City in FY2025, resulting in a sharp rise to net position. In addition,
CERS and OPEB had favorable actuarial outcomes this fiscal year, which lowered the City’s required pension
expense and liability by over $6.2 million.
A. Analysis of the City’s Operations
The following table provides a summary of the City’s operations for the years ended June 30, 2025 and
2024. Governmental activities increased the City’s net position by $29,954,504, and business-type activities
increased the City’s net position by $1,648,185.
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City of Paducah, Kentucky
Changes in Net Position
June 30
Governmental Activities Business-Type Activities Total Primary Government
Revenues: 2025 2024 2025 2024 2025 2024
Program revenues:
Charges for services $ 5,625,233 $ 3,592,106 $ 6,008,164 $ 5,017,009 $ 11,633,397 $ 8,609,115
Operating grants/contributions 3,328,848 7,594,357
2,648,900
2,557,918 5,977,748 10,152,275
Capital grants/contributions 29,472,188 2,777,103 598,756 - 30,070,944 2,777,103
General revenues:
Property taxes 7,181,645 6,778,826 - - 7,181,645 6,778,826
Franchise taxes 366,357 237,226 - - 366,357 237,226
Telecommunications tax 450,008 578,579 - - 450,008 578,579
Insurance premium tax 7,102,699 7,424,599 - - 7,102,699 7,424,599
Vehicle tax 996,255 965,620 - - 996,255 965,620
Bank tax 410,553 402,883 - - 410,553 402,883
Gross receipts license tax 4,779,042 5,137,856 - - 4,779,042 5,137,856
Employee license tax 27,213,450 24,835,738 - - 27,213,450 24,835,738
Transient room tax 1,804,696 1,802,253 - - 1,804,696 1,802,253
Other taxes 449,336 462,472 - - 449,336 462,472
Unrestricted investment
earnings 3,459,440 2,866,207 157,971 169,462 3,617,411 3,035,669
Gain/(Loss) on sale of capital
assets 2,557 (270,959) 105,484 57,081 108,041
(213,878)
Miscellaneous - - - - - -
Total revenues 92,642,307 65,184,866 9,519,275 7,801,470 102,161,582 72,986,336
Expenses:
General government 13,787,393 11,710,196 - - 13,787,393 11,710,196
Public safety 23,732,408 24,262,599 - - 23,732,408 24,262,599
Public service 9,065,508 6,965,473 - - 9,065,508 6,965,473
Park & recreation 4,239,585 4,295,705 - - 4,239,585 4,295,705
Planning & development 11,088,437 4,599,675 - - 11,088,437 4,559,675
Interest on long-term debt 790,372 434,403 - - 790,372 434,403
Solid Waste - - 5,127,128 4,705,558 5,127,128 4,705,558
Section 8 Housing - - 2,602,010 2,487,323 2,602,010 2,487,323
Transient Boat Dock - - 126,052 101,929 126,052 101,929
Total expenses 62,703,703 52,228,051 7,855,190 7,294,810 70,558,893 59,522,861
Increase (decrease) in Net
position before transfers 29,938,604 12,956,815 1,664,085 506,660 31,602,689 13,463,475
Transfers 15,900 320,000 (15,900) (320,000) - -
Change in net position 29,954,504 13,276,815 1,648,185 186,660 31,602,689 13,463,475
Net position, July 1 45,255,734 31,978,919 1,125,136 938,476 46,380,870 32,917,395
NET POSITION, JUNE 30 $ 75,210,238 $ 45,255,734 $ 2,773,321 $ 1,125,136 $ 77,983,559 $ 46,380,870
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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. Fiscal year 2025 has been a very unusual year, in that the $22.8
million contribution from the USACE resulted in significant program revenue for General Government
activities. Aside from this uncommon item, 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 2025.
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In fiscal year 2025, the City derived approximately 55% 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 $39.1 million. This combined category of revenue increased 4.5%
from prior year, primarily driven by payroll withholding tax which was up $2.4 million, or 9.6%, from prior
year. Increases were experienced consistently across all four quarters and do not appear to be the result of
one significant taxpayer’s activity, but the result of multiple entities having increases from the prior year.
Typically, taxes/licenses comprise 70-75% of revenue. However, in FY2025 the $22.8 million floodwall
improvement contribution from the USACE is reported in Capital Grants/Contributions, significantly
impacting revenue composition percentages.
Gross receipts license revenue decreased by $359 thousand, or 7%. In 2025, the IRS extended the federal
filing deadline for tax year 2024 from April 15 to November 3 due to a series of natural disasters. To keep
our processes aligned with federal requirements, we did not assess penalties or interest during this period.
While most taxpayers continued to file by the traditional April deadline, some businesses did take advantage
of the extended time frame. Taking these collections into consideration, gross receipts remained relatively
unchanged from the prior year.
Property taxes continue to be a stable source of revenue, comprising 8% of total revenue in FY2025. This
is the fourth year in a row that the City has taken the 4% maximum allowed, leading to an increase in real
estate tax revenue.
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. The Solid Waste Fund reflected positive results for FY2025.
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Solid Waste revenues have remained very stable over time, as there is a fairly constant number of customers
with an established monthly rate for most of the services provided. However, the two primary operating
expenses, personnel and transfer fees, continue to increase. As a result, a rate increase was put into effect
on 7/1/2024. This legislation phases in the increase over 2 years, with an allowance for a CPI fee adjustment
beginning in the third year. This was the first rate increase for residential customers since 2009 and for
commercial customers since 2017. Additional revenue realized from the FY2025 rate increase was
approximately $691,000, or 28%, for residential refuse fees and $285,000, or 12%, for commercial fees.
These fees covered the increase in expenses from the prior year and places the fund into a positive trajectory
for sustaining operations into the future.
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 FY2025 was $320,000.
Analysis of the remaining business-type activities is included in Section IV-B of this report.
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.
At the end of the fiscal year, the City governmental funds reported combined ending fund balances of
$88,471,454, of which $38,378,949 is restricted, $2,147,778 is committed, $21,678,011 is assigned, and
$550,165 is non-spendable (inventory). Approximately 29%, or $25,716,551, is unassigned fund balance,
all of which is contained in the General Fund. These funds are available for spending at the City’s discretion
but only up to the amount represented by cash. At year-end there was $22.4 million available as General
Fund cash. City fiscal policy (Ordinance 2024-06-8815) requires that an amount not less than 10% of the
General Fund’s budgeted expenditures remain undesignated in the fund balance, or $5.8 million, which
leaves $16.6 million available for fiscal year 2025.
General Fund unassigned fund balance decreased by $5.8 million in fiscal year 2025. The FY2025 budget
authorized an $8.3 million spend down of unassigned fund balance for various projects including: Riverfront
Park development, street improvements, City-owned facility improvements, and set-aside funds for future
City-owned facility replacement. The $8.3 million planned decrease in fund balance was offset by various
items to arrive at the net change of $5.8 million. The primary driver was E911 subsidy funds in the amount
of $1.5 million that were budgeted but not utilized. In addition, revenue in excess of projections in various
categories, along with unrealized payroll expense from open positions in multiple departments, resulted in
an accumulation of unused funds.
The Investment Fund had a fund balance of $2.1 million at fiscal year-end, 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. Fund balance
for this fund decreased by $2.2 million in FY2025. Like the General Fund, the FY2025 budget authorized
a spend down of unassigned fund balance. The $1.6 million appropriation from fund balance included $1
million for the City’s Southside Redevelopment project, as well as an increase to the annual street
rehabilitation program in the amount of $500 thousand. In September 2024, the City approved a $958,404
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appropriation to reimburse the Paducah-McCracken County Industrial Development Authority (IDA) for
site preparation including clearing, grubbing, earthwork, and engineering inspections at the Triple Rail Site
in West Paducah.
The fund balance of the Opioid Settlement Fund at fiscal year-end is $1.6 million, all of which is restricted
for opioid addiction reduction efforts. In FY2025, the City hired a Deflection Specialist whose salary is 75%
funded by opioid abatement settlement funds and is currently the only expenditure from this fund. Paired
with a Deflection Officer, this team is working to reduce police contacts with people who may have mental
health and/or substance abuse crises by building relationships with these individuals and connecting them
with community stakeholders who promote recovery and mental health stability. As settlement funds
continue to be received and the fund balance grows, the Commission is formulating a plan on how to further
utilize these monies.
The Bond Fund had a fund balance of $35.1 million at fiscal year-end, all of which is restricted for capital
projects. In January 2025 the City issued general obligation bonds of $25.8 million to finance both a portion
of the Riverfront Park development, as well as the City’s remaining share of the Paducah Sports Park
construction. During this year the Sports Park entered into the heavy construction phase, resulting in $8.3
million in expenditures.
The fund balance of the General Capital Improvements Fund at the end of fiscal year 2025 is $19.2 million,
an increase of $13.3 million from the prior year. Funding totaling $5.5 million was injected into the City’s
Riverfront Park project this fiscal year: $3.5 million from the Kentucky Department for Local Government
and a $2 million transfer from the General Fund. Fund balance appropriations for the fiscal year similarly
led to a $2.2 million transfer into the fund for facility replacement set-aside, $1 million for existing facility
improvements, and $1 million injection for Southside Redevelopment. The majority of these funds will be
expended in FY2026. Also, in lieu of borrowing, a transfer of $2 million was made to the fund for repayment
of a public space/parking lot project that was completed in prior years. Other transfers were made for various
capital projects that are smaller in nature and will be expended in future years.
The Debt Service Fund had a fund balance of $2.2 million at fiscal year-end, increasing $494,467 from the
prior year. Typically, there are no notable changes to this restricted fund balance, as transfers are normally
made from other funds as required. However, this fiscal year the annual distribution of the City’s portion
of transient room tax dedicated to repayment of the 2025A bond issue was in excess of the initial debt service
payment (interest only) due in June. These funds will be carried over for the next debt service payment on
these bonds in FY2026.
Nonmajor governmental funds had a net increase of $732 thousand to fund balance. The notable increases
for these funds were in the Emergency Communication Service Fund and Grant Fund. In FY2025, the City
approved lease agreements for the use of two tower locations identified in the 911 radio upgrade, resulting
in other financing sources of $948 thousand. This offset the fund’s operating loss, leading to a net increase
of $444 thousand for the fund. The Grant Fund received a $250 thousand transfer from the Investment Fund
as the City’s pledge for matching funds on a $1.3 million Humanities in Place grant from the Mellon
Foundation. The City is passing this grant through to the Upper Town Heritage Foundation to support the
Hotel Metropolitan located in Paducah.
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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 $1,885,825
Section 8 Housing 33,179
Transient Boat Dock 355,773
Combined total net position change for the three funds was an increase of $1.7 million. The largest
proprietary fund, Solid Waste, was discussed under Business Type Activities (Section III-C). The operations
of the nonmajor enterprise funds this fiscal year went primarily as expected. As mentioned in the discussion
of Business-Type Activities, the Transient Dock Fund received a General Fund transfer in the amount of
$304,100 for pumps and decking repairs that will be completed in FY2026.
General Fund Budgetary Highlights
Total actual expenditures exceeded final appropriations (including operating transfers out) by $20.6 million. As
discussed in the Government-Wide Financial Analysis, the City accepted floodwall improvements done by the
USACE for $22,844,492. For presentation in the fund statements, this transaction is reflected as both a revenue
(donation) and expense (public service). This was recorded as a year-end adjustment for financial presentation
purposes only, and, therefore, was not budgeted.
Other year-end adjustments had an impact on budgetary comparisons as well. Intergovernmental expense of
$372,242 represents a tax levied and collected by the City for Paducah Junior College. The City does not budget
for this expenditure. In addition, the City also does not budget for adjustments related to Subscription-Based
Information Technology Arrangements (SBITA). For the fund statements/budgetary basis reporting, this
resulted in principal and interest requirements of $1,123,774, and also includes $461,481 reclassed from software
maintenance operating accounts.
Excluding these above-mentioned year-end accounting adjustments, final department appropriations exceeded
actual by approximately $3.3 million, or 4%. The majority of this difference is due to the $1.5 million in
appropriations for subsidy of 911 communication operations that was not utilized. In June 2024, the City passed
an ordinance to establish a fee on all occupied real estate parcels to fund this service. The parcel fee replaced
the existing land-line telephone fee – a revenue source that had declined immensely over recent years, generating
substantial subsidy requirements from the General Fund. Salaries/wages and related benefit slippage from
unfilled positions comprise $845 thousand of the difference, along with $175 thousand of unspent contingency
funds. The remaining areas of positive budget variance within operations appear to be scattered across many
areas and not limited to a particular department or line item.
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, 2025, is
$99.5 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, 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 2025, project and equipment additions totaled over $37.1 million (excludes right-to-use lease assets
- 25 -
and subscription-based information technology arrangements (SBITA)). Multiple projects totaling $8.3
million remained in construction in progress at year-end.
Some of the largest capital-type project additions, in terms of dollars in fiscal year 2025, are shown in the
following table:
Floodwall rehabilitation $24,678,093
Riverfront Park Improvements (Construction in Progress) 2,479,196
S. 25th Street Improvements 2,401,437
S. 24th Street Improvements (Construction in Progress) 789,460
Allie Morgan Building Rehabilitation 872,635
Pumper truck 679,587
Compost grinder & stacker 749,275
Sweeper truck 349,565
In the upcoming years, several street, building improvement, 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
2025 2024 2025 2024 2025 2024
Land $ 10,267,997 $ 10,267,997 $ 68,886 $ 68,886 $ 10,336,883 $ 10,336,883
Land improvements 22,450,558 24,023,963 - - 22,450,558 24,023,963
Construction in
progress 8,320,133 9,486,147 - - 8,320,133 9,486,147
Buildings and
improvements 9,159,205 8,540,059 179,000 188,554 9,338,205 8,728,613
Infrastructure 47,012,066 21,629,664 - - 47,012,066 21,629,664
Equipment 4,013,729 3,302,314 2,027,958 1,107,309 6,041,687 4,409,623
Furnishings and
fixtures 58,647 39,221 - - 58,647 39,221
Vehicles 4,780,859 3,583,008 814,690 1,120,613 5,595,549 4,703,621
Leases 1,173,987 - -- 1,173,987 -
SBITA 2,105,824 2,335,329 72,443 120,738 2,178,267 2,456,067
TOTALS $ 109,343,005 $ 83,207,702 $ 3,162,977 $ 2,606,100 $112,505,982 $85,813,802
Additional information on City capital assets can be found in Note 3 in the notes to financial statements on
pages 69-71.
- 26 -
B. Long-Term Debt
At year-end, the City had $60,318,669 in outstanding bonds and notes payable, compared to $35,904,467 at
June 30, 2024, with maturities extending through 2045.
Governmental Activities
2025 2024
Convention Center Renovation – 2008 $638,044 $809,048
Public Pool Renovations – 2013A 345,000 425,000
Refinanced Public Projects – 2014A 1,875,000 2,220,000
Refinanced Police/Firefighter Pension Fund Liability – 2014B 180,000 610,000
CFSB Agreement - 2017 2,614,083 2,666,440
Riverfront and 911 Equipment – 2018A 1,710,000 1,895,000
Kentucky Infrastructure Authority – 2018 3,635,263 3,827,800
Refinanced KLC and Floodwall Rehabilitation – 2018B 655,000 810,000
Recreation Facility – 2020A 19,785,000 20,260,000
Refinanced Convention Center – 2020B 535,000 1,055,000
Refinanced Murray State University Agreement – 2022A 985,683 1,105,289
Sports Facility and Riverfront Park – 2025A 25,815,000 -
Net Premiums/Discounts 1,545,596 220,890
TOTALS $60,318,669 $35,904,467
The City had one new debt issue during FY2025.
Sports Park and Riverfront Park. In January 2025 (2025A), the City issued general obligation bonds of
$25,815,000 to finance the completion of the construction of a municipal sports park, as well as the
completion of Riverfront Park improvements.
Debt issues prior to July 1, 2024 are described below:
Refinanced Murray State University (MSU) Agreement. In January 2022 (2022A), McCracken County
issued general obligation refunding bonds to advance refund the original 2011 series bonds issued. The
City’s portion of this amount was $1,330,614.
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.
Municipal Sports and Recreational Facility. In February 2020 (2020A), 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 (2018A), 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 (2018B), 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.
- 27 -
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 (2014B), 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.
Public Improvement Projects – Refinance. In May 2014 (2014A), 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.
Public Pool Renovations. In September 2013 (2013A), $1.12 million in general obligation bonds were
issued to finance Noble Park’s pool renovation project.
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 $338,303,553. The City’s latest bond rating by Standard &
Poor’s is AA-.
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
2025, just under 2.5% of the General Fund budget was expended for debt service.
Additional information on the City’s long-term debt can be found in Note 3 in the notes to financial
statements on pages 73-77.
Other Potentially Significant Matters.
A. Paducah Sports Park. In the interlocal agreement entered among the City, County and McCracken County
Sports Tourism Commission (STC) for the development of the Paducah Sports Park, both the City and
County commit to being equal partners, both financial and participatory, through the life of the agreement.
The City and County have devoted existing land and facilities to the project, including the Bluegrass Downs
property (owned by the County) and Stuart Nelson Park (owned by the City). Total project costs are
estimated to be $70 million. The City is currently using $12.5 million of existing bond proceeds (Series
2020A GOB) for its half of the first tranche of funding for design and construction. The City’s remaining
balance of construction costs ($22.5 million) was obtained this fiscal year with the issuance of additional
bonds (Series 2025A GOB). The agreement states that the STC will restrict 80% of transient room taxes
received for debt service payments, and will continue to do so until the debt is paid in full. Any shortfalls
during this time will be shared equally by the City and County. Although the City is hopeful that these
restricted funds will cover a significant portion of debt service payments over the life of the bonds, the
amount of shortfall is uncertain. Similarly, during subsequent operation of the facilities, if, in any fiscal
year during the term of the agreement, the STC incurs a shortfall of operating revenue to cover expenses
attributable to the operation of the athletic complex, the City and County shall each make up one-half of the
shortfall. While the pro forma produced for this project indicates profitability early in the complex’s
- 28 -
operations, the City does have this potential liability through the life of the agreement. The initial agreement
period is 20 years.
B. City Facilities. In 2019, the City engaged an engineering firm to assist in the assessment of 14 City facilities.
The assessment team began with touring each building and scoring the various components and systems in
each facility from 1 to 5 (excellent to poor). The team then developed a list of needs and a 10-year plan for
each building ranging from immediate needs that are recommended to be completed in 1 to 3 years, and
long-range that could by completed in years 4 through 10. The Facilities Survey and Plan was presented to
the Commission in summer 2020. This survey revealed that the average score for all 14 buildings was 3.5,
which is between average and below average. The facilities with the lowest scores were Fire Station No. 1,
Fire Station No. 4, Parks & Recreation Building, Police Station, and the Robert Cherry Civic Center.
Since the initiation of facility improvement/set-aside projects in FY2022, appropriations have led to a total
investment of over $5 million to address both refurbishments and facility replacement. Completed projects
include the renovation of the Robert Cherry Civic Center, which has allowed Parks administrative staff to
relocate from the Parks & Recreation Building. Major renovations have also been completed at Fire Station
#2 and the technology division of the Allie Morgan Building. Unfortunately, additional facility concerns
were raised this fiscal year with regard to the City Hall concrete cantilever. Understanding that it is the
Commission’s intent to remain in the current City Hall for the long term, an evaluation is being conducted
as to how to best address the issue with assurance that the building remains safe, functional, and aligned
with future use.
Because of the enormity of some of this and other problems identified, additional financing options in the
future to supplement the funds currently being set-aside will need to be a consideration.
C. Stormwater. Because of Paducah’s location on the Ohio River’s floodplain, nearly 204,000 square miles
of land drain to Paducah. Paducah has 110 miles of storm sewer and 69 miles of combined sewer.
Unfortunately, much of the City’s development occurred at a time when stormwater management was not a
priority and the current development ordinances were not in place. The current system is aging, with the
majority of Paducah’s storm sewers between 60 to 100 years old. In March 2017, the City contracted with
an engineering firm to complete a Comprehensive Stormwater Master Plan for Paducah. The Master Plan’s
first phase identified approximately $43 million in flood mitigation projects located within ten priority areas
in the City. The Master Plan’s second phase included the development of annual operation and maintenance
costs and the costs for repair and replacement of existing infrastructure, the projection of future funding
needs, funding alternatives and rate options, billing system options, a rate comparison, and a storm water
utility ordinance. The development of a stormwater utility, along with a stormwater infrastructure fee of
$6.13 per month per Equivalent Residential Unit (ERU) was proposed in 2019. This has not been
implemented.
The lack of a dedicated funding source for the City to solve drainage problems, repair and maintain existing
storm infrastructure, and comply with federal regulatory requirements associated with water quality, has led
to the City tackling individual projects as funding allows. In recent years the City has received 3 FEMA
Disaster Relief funded projects, one of which was utilized to partially fund the replacement of a dilapidated
bridge that has been affected by flooding and severe weather events. The City also appropriated $4 million
in ARPA funds to stormwater improvements. A portion of the ARPA funds were used for this bridge project,
along with another project that involves the purchase of land by the City to create a 4-acre stormwater
detention area to help reduce residential flooding along Cross Creek. Although progress has been made with
current projects, funding sources for future projects are uncertain.
- 29 -
Requests for Information
This financial report is designed to provide a general financial overview for those interested in the City of
Paducah government finances. Questions or requests for additional financial information may be addressed to:
Audra Kyle, Finance Director, City of Paducah, 300 South 5th Street, Paducah, KY 42003.
CITY OF PADUCAH, KENTUCKY
BASIC FINANCIAL STATEMENTS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
THIS PAGE INTENTIONALLY LEFT BLANK
Exhibit 1
Component
Unit
Paducah
Governmental Business-type Water Works
Current Assets: Activities Activities Total Authority
Cash and cash equivalents 55,604,314$ 3,681,382$ 59,285,696$ 4,240,620$
Investments 36,082,430 - 36,082,430 -
Receivables, net:
Notes 1,219,767 - 1,219,767 -
Accounts 10,271,714 654,310 10,926,024 1,740,111
Leases 530,007 - 530,007 34,775
Grants 2,598,616 - 2,598,616 -
Interest 23,293 - 23,293 -
Property tax 7,810,725 - 7,810,725 -
Other - - - 782,167
Internal balances (498,544) 498,544 - -
Inventory 640,968 18,553 659,521 2,009,006
Prepaid expenses 772,913 - 772,913 90,714
Other current assets - - - 476,715
Total current assets 115,056,203 4,852,789 119,908,992 9,374,108
Noncurrent Assets:
Notes receivable 2,561,816 - 2,561,816 -
Lease receivable 1,824,745 - 1,824,745 -
Prepaid OPEB obligation 493,397 63,356 556,753 197,486
Capital assets:
Land and construction in progress 18,588,130 68,886 18,657,016 2,296,273
Depreciable capital assets 90,754,875 3,094,091 93,848,966 77,412,337
Cash, designated - - - 8,066,914
Other assets - - - 307,666
Total noncurrent assets 114,222,963 3,226,333 117,449,296 88,280,676
Total assets 229,279,166 8,079,122 237,358,288 97,654,784
Deferred Outflows of Resources:
Deferred pension related outflows 10,394,605 335,722 10,730,327 1,559,137
Deferred OPEB related outflows 3,316,113 116,706 3,432,819 552,178
Deferred charges on refunding 31,763 - 31,763 -
Total deferred outflows of resources 13,742,481 452,428 14,194,909 2,111,315
See accompanying notes to the basic financial statements.
CITY OF PADUCAH, KENTUCKY
STATEMENT OF NET POSITION
JUNE 30, 2025
ASSETS
-30-
Primary Government
Component
Unit
Paducah
Governmental Business-type Water Works
Current Liabilities: Activities Activities Total Authority
Voucher and accounts payable 4,712,978 270,971 4,983,949 1,214,124
Accrued payables 2,251,618 71,015 2,322,633 1,054,807
Unearned revenue 732,800 47,551 780,351 -
Accrued compensated absences 1,918,273 89,684 2,007,957 382,313
Accrued interest 402,254 - 402,254 11,454
Notes payable due within one year 548,576 - 548,576 494,242
Bonds payable due within one year 3,040,000 - 3,040,000 -
Lease & SBITA payable due within one year 1,048,092 50,407 1,098,499 596,525
Replacement reserve - - - 277,100
Other current liabilities - - - 175,123
Total current liabilities 14,654,591 529,628 15,184,219 4,205,688
Noncurrent Liabilities:
Accrued compensated absences 1,361,141 98,817 1,459,958 259,141
Landfill post-closure costs - 2,062,500 2,062,500 -
Net pension liability 58,598,765 2,188,289 60,787,054 6,820,971
Net other post employment benefits liability 1,881,112 - 1,881,112 -
Lease & SBITA payable 2,193,244 25,841 2,219,085 133,982
Notes payable 7,324,497 - 7,324,497 3,349,898
Bonds payable 49,405,596 - 49,405,596 -
Total noncurrent liabilities 120,764,355 4,375,447 125,139,802 10,563,992
Total liabilities 135,418,946 4,905,075 140,324,021 14,769,680
Deferred Inflows of Resources
Deferred revenues - leases 2,208,630 - 2,208,630 35,251
Deferred revenues - property taxes 7,557,323 - 7,557,323 -
Deferred pension related inflows 7,581,128 239,563 7,820,691 1,460,854
Deferred OPEB related inflows 15,045,382 613,591 15,658,973 2,257,866
Total deferred inflows of resources 32,392,463 853,154 33,245,617 3,753,971
Net invested in capital assets 96,401,070 3,086,729 99,487,799 75,133,963
Restricted for:
Housing and program projects 4,703,528 27,734 4,731,262 -
Capital projects & infrastructure 1,134,317 - 1,134,317 -
Public safety 234,351 - 234,351 -
OPEB 493,397 63,356 556,753 -
Unrestricted (27,756,425) (404,498) (28,160,923) 6,108,485
TOTAL NET POSITION 75,210,238$ 2,773,321$ 77,983,559$ 81,242,448$
See accompanying notes to the basic financial statements.
-31-
LIABILITIES
NET POSITION
Primary Government
Exhibit 2
FUNCTIONS/PROGRAMS Operating
Charges for Grants and
Primary Government:Expenses Services Contributions
Governmental activities:
General government 13,787,393$ 1,385,771$ 563,156$ 22,847,492$
Public safety 23,732,408 2,913,587 1,011,249 302,042
Public service 9,065,508 1,145,205 379,275 -
Parks and recreation 4,239,585 180,670 - 31,600
Planning and development 11,088,437 - 1,375,168 6,291,054
Interest on long-term debt 790,372 - - -
Total governmental activities (See Note 1) 62,703,703 5,625,233 3,328,848 29,472,188
Business-type activities:
Solid Waste 5,127,128 5,886,446 65,326 598,756
Section 8 Housing 2,602,010 1,317 2,583,574 -
Transient Boat Dock 126,052 120,401 - -
Total business-type activities 7,855,190 6,008,164 2,648,900 598,756
TOTAL PRIMARY GOVERNMENT 70,558,893$ 11,633,397$ 5,977,748$ 30,070,944$
Component Unit:
Authorities:
Paducah Water Works Authority 12,090,221$ 16,330,930$ -$ 1,223,559$
TOTAL COMPONENT UNITS 12,090,221$ 16,330,930$ -$ 1,223,559$
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 and fees
Unrestricted investment earnings
Sale of assets
Total general revenues
Transfers
Total general revenues and transfers
Change in net position
Change for compensated absenses (Note 12)
Net position - beginning
Net position - ending
See accompanying notes to the basic financial statements.
CITY OF PADUCAH, KENTUCKY
Grants and
FOR THE YEAR ENDED JUNE 30, 2025
STATEMENT OF ACTIVITIES
Program Revenues
Capital
-32-
Contributions
Component Unit
Governmental Business-type Paducah Water
Activities Activities Total Works Authority
11,009,026$ -$ 11,009,026$ -$
(19,505,530) - (19,505,530) -
(7,541,028) - (7,541,028) -
(4,027,315) - (4,027,315) -
(3,422,215) - (3,422,215) -
(790,372) - (790,372) -
(24,277,434) - (24,277,434) -
- 1,423,400 1,423,400 -
- (17,119) (17,119) -
- (5,651) (5,651) -
- 1,400,630 1,400,630 -
(24,277,434) 1,400,630 (22,876,804) -
- - - 5,464,268
- - - 5,464,268
7,181,645 - 7,181,645 -
7,102,699 - 7,102,699 -
4,779,042 - 4,779,042 -
27,213,450 - 27,213,450 -
366,357 - 366,357 -
450,008 - 450,008 -
996,255 - 996,255 -
410,553 - 410,553 -
1,804,696 - 1,804,696 -
449,336 - 449,336 -
3,459,440 157,971 3,617,411 509,344
2,557 105,484 108,041 393,068
54,216,038 263,455 54,479,493 902,412
15,900 (15,900) - -
54,231,938 247,555 54,479,493 902,412
29,954,504 1,648,185 31,602,689 6,366,680
(214,334)
45,255,734 1,125,136 46,380,870 75,090,102
75,210,238$ 2,773,321$ 77,983,559$ 81,242,448$
Net (Expense) Revenue and Changes in Net Position
Primary Government
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CITY OF PADUCAH, KENTUCKY
BASIC FINANCIAL STATEMENTS
FUND FINANCIAL STATEMENTS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
THIS PAGE INTENTIONALLY LEFT BLANK
Exhibit 3
Opioid
General Settlement
Fund Fund
Assets
Cash and cash equivalents 22,361,728$ 1,149,027$ 1,375,922$
Investments - - -
Receivables:
Accounts 7,584,322 - 3,069,780
Leases 2,354,752 - -
Grants 75,901 - -
Property taxes (net of
allowances for uncollectibles)7,823,725 - -
Inventory - - -
Due from other funds - 1,369,675 -
Total assets 40,200,428$ 2,518,702$ 4,445,702$
Liabilities
Voucher and accounts payable 760,965$ 370,924$ -$
Accrued payroll and payroll taxes 2,032,843 - 2,540
Due to other funds 1,369,675 - -
Due to other taxing agencies 97,287 - -
Unearned revenue - other - - -
Accrued compensated absences 294,313 - -
Total liabilities 4,555,083 370,924 2,540
Deferred Inflows of Resources
Unavailable revenue - leases 2,208,630 - -
Unavailable revenue - opioid settlement - - 2,865,747
Unavailable revenue - property taxes 7,720,164 - -
Total deferred inflows of resources 9,928,794 - 2,865,747
Fund Balances:
Nonspendable:
Inventory - - -
Restricted for:
Highways and streets - - -
Public safety - - -
Program purposes - - 1,577,415
Capital improvements - - -
Committed for:
Capital improvements - 2,147,778 -
Assigned for:
Public safety - - -
Debt service - - -
Capital improvements - - -
Unassigned:
General Fund 25,716,551 - -
Total fund balances 25,716,551 2,147,778 1,577,415
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 40,200,428$ 2,518,702$ 4,445,702$
See accompanying notes to the basic financial statements.
Special Revenue
CITY OF PADUCAH, KENTUCKY
JUNE 30, 2025
GOVERNMENTAL FUNDS
BALANCE SHEET
-34-
Fund
Investment
General Debt
Bond Capital Service
Fund Improvements Fund
30,254$ 17,713,985$ 2,224,625$ 3,743,991$ 48,599,532$
36,082,430 - - - 36,082,430
- - - 249,990 10,904,092
- - - - 2,354,752
- 2,521,515 - 1,200 2,598,616
- - - - 7,823,725
- 550,165 - - 550,165
- - - - 1,369,675
36,112,684$ 20,785,665$ 2,224,625$ 3,995,181$ 110,282,987$
1,061,828$ 1,549,882$ -$ 652,037$ 4,395,636$
- - - 91,898 2,127,281
- - - - 1,369,675
- - - - 97,287
- 2,984 - 729,816 732,800
- - - - 294,313
1,061,828 1,552,866 - 1,473,751 9,016,992
- - - - 2,208,630
- - - - 2,865,747
- - - - 7,720,164
- - - - 12,794,541
- 550,165 - - 550,165
- - - 1,134,317 1,134,317
- - - 234,351 234,351
- - - 382,010 1,959,425
35,050,856 - - - 35,050,856
- - - - 2,147,778
- - - 770,752 770,752
- - 2,224,625 - 2,224,625
- 18,682,634 - - 18,682,634
- - - - 25,716,551
35,050,856 19,232,799 2,224,625 2,521,430 88,471,454
36,112,684$ 20,785,665$ 2,224,625$ 3,995,181$ 110,282,987$
Total
FundsFunds
-35-
Nonmajor
Governmental Governmental
Exhibit 4
Total fund balance - total governmental funds 88,471,454$
Amounts reported for governmental activities in the Statement
of Net Position are different because:
149,841
2,881,583
23,293
109,343,005
493,397
$ 31,763
(15,045,382)
3,316,113
(7,581,128)
10,394,605 (8,884,029)
See accompanying notes to the basic financial statements. (Continued)
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 receivableon the long-termnotes receivableis not reported on
the governmentalfunds balance sheet since neither the note receivable
nor the interest is available to pay current period expenditures.
JUNE 30, 2025
The long-term notes receivable are not reported in the governmental
funds balance sheet since they are not available to pay current period
expenditures.
-36-
Deferred refunding costs and deferred pension activity in
governmentalactivities are not current financialresources or payables
and, therefore, are not reported in the governmental funds balance
sheet:
Capital assets used in governmentalactivities are not current financial
resources and, therefore, are not reported in the governmentalfunds
balance sheet. This amount includescapital assets of Internal Service
Funds.
Deferred pension related outflows
Deferred refunding costs
Deferred pension related inflows
Deferred OPEB related inflows
Deferred OPEB related outflows
Prepaid OPEB obligations are not reported in the governmentalfunds
balance sheet since they are not available to pay current period
expenditures.
Exhibit 4
(Continued)
2,865,747$
(2,940,330)
(402,254)
$ 4,636,668
119,403,214 (124,039,882)
8,136,119$
Current liabilities (389,162)
(498,544) 7,248,413
NET POSITION OF GOVERNMENTAL ACTIVITIES 75,210,238$
See accompanying notes to the basic financial statements
-37-
Due within one year
Due after one year
Current assets
Net amount allocated to
Internal service funds are used by managementto 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:
business-type activities
Long-term pensions, OPEB, leases, SBITA, bonds and notes 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, leases, SBITA, 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.
JUNE 30, 2025
Unearned revenues from opioid settlement are not available in the
current period and, therefore, are deferred in the governmentalfunds
balance sheet.
Exhibit 5
Opioid
General Investment Settlement
Revenues:Fund Fund Fund
Taxes 9,653,772$ -$ -$
Licenses 33,384,231 6,762,425 -
Charges for services 861,798 - -
Intergovernmental - - -
Grants 969,064 - -
Interest 1,909,280 - 58,778
Property upkeep, donations, rentals, sales and other fees 24,145,340 - 342,728
Total revenues 70,923,485 6,762,425 401,506
Expenditures:
Current operations:
General government 7,077,101 - -
Public safety 24,484,708 - -
Public service 29,450,005 - 43,402
Parks and recreation 3,655,972 - -
Planning and development - 1,994,233 -
Intergovernmental and other 457,523 - -
Capital outlay - - -
Debt service:
Principal requirement 1,117,931 - -
Debt issuance costs - - -
Interest requirement 78,166 - -
Total expenditures 66,321,406 1,994,233 43,402
Excess (deficiency) of revenues over expenditures 4,602,079 4,768,192 358,104
Other Financing Sources (Uses):
Issuance of long term debt - - -
Leases & subscription-based information technology arrangements 990,377 - -
Premium on debt issued - - -
Discount on debt issued - - -
Transfers in 627,053 70,000 -
Transfers out (12,040,165) (7,074,168) -
Total other financing sources (uses)(10,422,735) (7,004,168) -
Net change in fund balances (5,820,656) (2,235,976) 358,104
Fund balances - beginning 31,537,207 4,383,754 1,219,311
Fund balances - ending 25,716,551$ 2,147,778$ 1,577,415$
See accompanying notes to the basic financial statements.
CITY OF PADUCAH, KENTUCKY
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Special Revenue
-38-
General Debt
Bond Capital Service
Fund Improvements Fund
-$ -$ -$ 2,074,793$ 11,728,565$
- - - - 40,146,656
- - - 457,577 1,319,375
- 44,820 1,361,598 513,318 1,919,736
- 6,378,928 - 334,225 7,682,217
936,621 - 92,990 141,111 3,138,780
- 378,229 - 2,675,276 27,541,573
936,621 6,801,977 1,454,588 6,196,300 93,476,902
- - - - 7,077,101
- - - 4,020,977 28,505,685
- - - 2,731,715 32,225,122
- - - - 3,655,972
8,265,699 - - 2,017,396 12,277,328
- - - - 457,523
- 6,508,627 - - 6,508,627
- - 2,725,504 27,767 3,871,202
247,444 - - - 247,444
- - 1,252,341 29,233 1,359,740
8,513,143 6,508,627 3,977,845 8,827,088 96,185,744
(7,576,522) 293,350 (2,523,257) (2,630,788) (2,708,842)
25,815,000 - - - 25,815,000
- - - 948,223 1,938,600
1,532,035 - - - 1,532,035
(96,517) - - - (96,517)
19,131 14,773,154 3,017,724 2,616,648 21,123,710
- (1,811,158) - (202,523) (21,128,014)
27,269,649 12,961,996 3,017,724 3,362,348 29,184,814
19,693,127 13,255,346 494,467 731,560 26,475,972
15,357,729 5,977,453 1,730,158 1,789,870 61,995,482
35,050,856$ 19,232,799$ 2,224,625$ 2,521,430$ 88,471,454$
-39-
Governmental
Total
FundsFunds
Nonmajor
Governmental
Exhibit 6
Net change in fund balances - total governmental funds 26,475,972$
Amounts reported for governmental activities in the Statement
of Activities are different because:
Opioid settlement revenues are deferred in the governmental funds until available. (273,122)
32,478,264
(312,357)
(7,586)
5,133,424
(29,189,118)
(90,101)
See accompanying notes to the basic financial statements. (Continued)
Only the loss on the disposal of capital assets and abandonedcapital projects are
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 and projects 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
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 deferredoutflowsof resources in
the government-widestatements and accrued pension and OPEB expenses are
recorded when incurred.
Proceeds of the issuance of debt including bond premium and discount,leases,
and subscription based information technology leases provides current financial
resources and is reported as an other financing source in governmental funds.
-40-
FOR THE YEAR ENDED JUNE 30, 2025
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 amountincludesInternalServiceFund's capital
outlays of $2,206,860.
Payments on property taxes recognized as revenues when received in the
governmentalfunds and as leviedin the government-widestatements. This is the
amount of cash collections that exceeded accrued property tax revenues.
Exhibit 6
(Continued)
(6,208,202)
3,871,201
(77,039)
(451,805)
87,743
(239,910)$
77,645
Capital outlays (2,206,860)
886,355 (1,482,770)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 29,954,504$
See accompanying notes to the basic financial statements.
Governmentalfunds 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
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
Long-term accrued compensated absences do not require the use of current
financial resources and, therefore, are not reported as expenditures in
governmental funds.
Depreciation expense on capital assets is reported in the government-wide
Statement of Activitiesand Changes in Net Position, but does not require the use
of current financial resources. Therefore, depreciationexpenseis not reported as
an expenditure in governmental funds. This amount includes Internal Service
Funds' depreciation expense of $886,355.
Principal paymentsof debt and paymentto escrowagent for refundingrequirethe
use of current financial resources and, therefore, are reported as expendituresin
governmentalfunds. However, these payments of debt do not affect net position
in the government-wide Statement of Activities.
Accrued interest payments on debt do not require the use of current financial
resources. Interest expense is reported net of the change in accrued interest
payable in the government-wide Statement of Activities.
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF PADUCAH, KENTUCKY
-41-
Internal service funds are used by management to charge the costs of certain
activities, such as insurance and fleet management,to individualfunds. The net
revenueof the Internal Service Funds is reported with governmentalactivitiesnet
of the amount allocated to business-type activities and depreciation expense.
These amounts are as follows:
Change in net position
business-type activities
Depreciation expense
Net of amount allocated to
Exhibit 7
Variance with
Final Budget
Positive
Original Final (Negative)
Revenues:
Taxes:
Real and personal,
current year 8,034,095$ 8,034,095$ 8,096,963$ 62,868$
Real and personal,
prior year 30,000 30,000 31,702 1,702
Franchise 350,000 350,000 366,357 16,357
Bank taxes 405,000 405,000 410,553 5,553
In lieu of tax payment 295,000 295,000 303,701 8,701
Penalty, interest and
advertising 60,000 60,000 72,254 12,254
Paducah Junior College
tax collections - - 372,242 372,242
Total taxes 9,174,095 9,174,095 9,653,772 479,677
Licenses:
Business licenses 5,450,000 5,450,000 4,779,042 (670,958)
Employee earnings 20,300,000 20,300,000 20,451,024 151,024
Cable franchise fees 343,000 343,000 294,722 (48,278)
Penalties 325,000 325,000 361,037 36,037
Alcoholic beverages 185,000 185,000 170,557 (14,443)
Insurance premium tax 6,500,000 6,500,000 7,102,699 602,699
Building permits 136,000 136,000 195,784 59,784
Electrical permits 65,000 65,000 69,078 4,078
Zoning change fees 9,000 9,000 8,650 (350)
Miscellaneous building
and electrical fees 4,000 4,000 3,500 (500)
Payroll tax sharing with County (26,500) (26,500) (51,862) (25,362)
Total licenses 33,290,500 33,290,500 33,384,231 93,731
Charges for services:
Tax collection fee 270,600 270,600 277,224 6,624
Administrative charge 363,800 363,800 366,292 2,492
Base court revenue 35,000 35,000 37,611 2,611
Recreation fees 142,000 142,000 180,671 38,671
Total charges for services 811,400 811,400 861,798 50,398
See accompanying notes to the basic financial statements. (Continued)
ActualBudgeted Amounts
-42-
CITY OF PADUCAH, KENTUCKY
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2025
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 458,000$ 458,000$ 441,280$ (16,720)$
Fire State Incentive 375,000 375,000 400,340 25,340
Police supplemental grants - - 127,444 127,444
Other grants 158,305 158,305 - (158,305)
Total grants 991,305 991,305 969,064 (22,241)
Interest 1,403,600 1,403,600 1,909,280 505,680
Other:
Property rent and sales 881,951 869,981 773,639 (96,342)
Property upkeep and
maintenance 116,380 116,380 122,318 5,938
E911 - GIS 37,200 37,200 37,212 12
Donations, fines and other 168,500 171,500 23,212,171 23,040,671
Total other 1,204,031 1,195,061 24,145,340 22,950,279
Total revenues 46,874,931 46,865,961 70,923,485 24,057,524
Expenditures:
General government:
General administration:
Mayor and Commissioners 304,218 331,623 316,437 15,186
City Manager 865,172 884,807 871,518 13,289
City Clerk 528,632 531,632 478,686 52,946
Corporate Counsel 250,000 333,430 332,369 1,061
Non-departmental 860,000 866,820 659,215 207,605
Memberships and contingency 5,800 7,830 7,582 248
Civic beautification 5,000 6,600 6,554 46
Total general administration 2,818,822 2,962,742 2,672,361 290,381
Finance:
Finance administration 389,698 405,688 393,772 11,916
Accounting and payroll 508,422 509,167 492,968 16,199
Revenue collection 624,862 606,267 578,898 27,369
Total finance 1,522,982 1,521,122 1,465,638 55,484
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, 2025
FUND BALANCE - BUDGET AND ACTUAL
-43-
Exhibit 7
(Continued)
Variance with
Final Budget
Actual Positive
General government:Original Final Amounts (Negative)
Planning:
Administration 286,599$ 288,624$ 269,834$ 18,790$
Planning 619,294 617,269 470,146 147,123
Total planning 905,893 905,893 739,980 165,913
Radio and rental property 179,517 167,547 103,272 64,275
Human rights 15,215 15,215 14,023 1,192
Information systems 2,033,876 1,910,811 1,081,402 829,409
Human resources/risk management 707,568 710,568 690,425 20,143
Total general government 8,183,873 8,193,898 6,767,101 1,426,797
Public safety:
Police:
Police administration 1,923,233 1,896,550 2,069,975 (173,425)
Patrol 8,900,655 8,427,455 8,321,880 105,575
Investigations 2,898,304 2,668,169 2,518,122 150,047
School resource officer 341,317 295,832 275,232 20,600
Total police 14,063,509 13,288,006 13,185,209 102,797
Fire:
Fire administration 930,763 915,974 1,015,104 (99,130)
Suppression 9,246,338 8,969,796 8,696,216 273,580
Prevention and inspection 1,517,083 1,516,936 1,383,144 133,792
Training 205,251 211,217 205,035 6,182
Total fire 11,899,435 11,613,923 11,299,499 314,424
Total public safety 25,962,944 24,901,929 24,484,708 417,221
Public service:
Public works:
Street maintenance 2,666,769 2,472,504 2,403,314 69,190
Street lighting 800,000 750,000 744,203 5,797
Facility maintenance 1,508,735 1,295,910 1,208,613 87,297
Total public works 4,975,504 4,518,414 4,356,130 162,284
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, 2025
-44-
Exhibit 7
(Continued)
Variance with
Final Budget
Actual Positive
Public service:Original Final Amounts (Negative)
Engineering services:
Engineering services 1,142,711$ 989,806$ 902,918$ 86,888$
Flood control 941,137 1,423,457 24,190,957 (22,767,500)
Total engineering services 2,083,848 2,413,263 25,093,875 (22,680,612)
Total public service 7,059,352 6,931,677 29,450,005 (22,518,328)
Parks and recreation:
Parks and recreation administration 979,243 833,904 804,656 29,248
Grounds maintenance 2,004,361 1,680,116 1,609,849 70,267
Pools and recreation programs 1,482,452 1,327,876 1,241,467 86,409
Total parks and recreation 4,466,056 3,841,896 3,655,972 185,924
Intergovernmental and other:
Cable authority 85,325 85,325 85,281 44
Intergovernmental expense - - 372,242 (372,242)
Total intergovernmental and other 85,325 85,325 457,523 (372,198)
Debt service
Principal requirement - - 1,117,931 (1,117,931)
Interest requirement - - 78,166 (78,166)
Total debt service - - 1,196,097 (1,196,097)
Total expenditures 45,757,550 43,954,725 66,011,406 (22,056,681)
Excess (deficiency) of revenues
over expenditures 1,117,381 2,911,236 4,912,079 2,000,843
Other financing sources (uses):
Long-term debt issued - - 990,377 990,377
Transfers in 595,570 612,410 791,738 179,328
Transfers out (12,059,746) (13,991,631) (12,514,850) 1,476,781
Total other financing sources (uses) (11,464,176) (13,379,221) (10,732,735) 2,646,486
Net change in fund balance (10,346,795) (10,467,985) (5,820,656) 4,647,329
Fund balance - beginning 31,537,207 31,537,207 31,537,207 -
Fund balance - ending 21,190,412$ 21,069,222$ 25,716,551$ 4,647,329$
See accompanying notes to the basic financial statements.
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
-45-
CITY OF PADUCAH, KENTUCKY
Budgeted Amounts
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2025
Exhibit 8
Variance with
Final Budget
Positive
Original Final (Negative)
Revenues:
Licenses:
Employee earnings 6,750,000$ 6,750,000$ 6,762,425$ 12,425$
Total licenses 6,750,000 6,750,000 6,762,425 12,425
Total revenues 6,750,000 6,750,000 6,762,425 12,425
Expenditures:
General government:
Planning and development:
Economic development 1,590,400 2,268,855 1,994,233 274,622
Total expenditures 1,590,400 2,268,855 1,994,233 274,622
Excess (deficiency) of revenues
over expenditures 5,159,600 4,481,145 4,768,192 287,047
Other financing sources (uses):
Transfers in - 70,000 70,000 -
Transfers out (6,724,930) (7,074,879) (7,074,168) 711
Total other financing sources (uses) (6,724,930) (7,004,879) (7,004,168) 711
Net change in fund balance (1,565,330) (2,523,734) (2,235,976) 287,758
Fund balance - beginning 4,383,754 4,383,754 4,383,754 -
Fund balance - ending 2,818,424$ 1,860,020$ 2,147,778$ 287,758$
See accompanying notes to the basic financial statements.
ActualBudgeted Amounts
-46-
Amounts
CITY OF PADUCAH, KENTUCKY
SPECIAL REVENUE INVESTMENT FUND
FOR THE YEAR ENDED JUNE 30, 2025
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
Exhibit 9
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:
Interest -$ -$ 58,778$ 58,778$
Other 105,140 105,140 342,728 237,588
Total revenues 105,140 105,140 401,506 296,366
Expenditures:
Public service - 43,430 43,402 28
Total expenditures - 43,430 43,402 28
Excess (deficiency) of revenues over
expenditures 105,140 61,710 358,104 296,394
Other Financing Sources (Uses):
Operating transfers out (64,200) (20,770) - 20,770
Total other financing sources (uses) (64,200) (20,770) - 20,770
Net change in fund balance 40,940$ 40,940$ 358,104 317,164$
Fund balance - beginning 1,219,311
Fund balance - ending 1,577,415$
See accompanying notes to the basic financial statements.
-47-
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF PADUCAH, KENTUCKY
OPIOID SETTLEMENT 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 3,021,907$ 659,475$ 3,681,382$ 7,004,780$
Accounts receivable 654,310 - 654,310 267,623
Prepaid expenses - - - 772,913
Inventory - 18,553 18,553 90,803
Total current assets 3,676,217 678,028 4,354,245 8,136,119
Noncurrent Assets:
Prepaid OPEB obligation 58,457 4,899 63,356 24,753
Net capital assets:
Land and construction in progress 68,886 - 68,886 -
Depreciable capital assets 3,093,545 546 3,094,091 4,992,258
Total noncurrent assets 3,220,888 5,445 3,226,333 5,017,011
Total assets 6,897,105 683,473 7,580,578 13,153,130
Deferred Outflows of Resources:
Deferred pension related outflows 308,272 27,450 335,722 136,019
Deferred OPEB related outflows 107,682 9,024 116,706 45,597
Total deferred outflows of resources 415,954 36,474 452,428 181,616
Current Liabilities:
Voucher and accounts payable 185,577 85,394 270,971 317,343
Accrued payroll and payroll taxes 70,111 904 71,015 27,048
Accrued compensated absences 86,925 2,759 89,684 44,771
Unearned revenue 47,551 - 47,551 -
SBITA payable 50,407 - 50,407 -
Total current liabilities 440,571 89,057 529,628 389,162
Noncurrent Liabilities:
Net pension liability 2,019,066 169,223 2,188,289 854,963
Landfill post-closure costs 2,062,500 - 2,062,500 -
SBITA liability 25,841 - 25,841 -
Accrued compensated absences 91,784 7,033 98,817 -
Total noncurrent liabilities 4,199,191 176,256 4,375,447 854,963
Total liabilities 4,639,762 265,313 4,905,075 1,244,125
Deferred Inflows of Resources
Deferred pension related inflows 221,037 18,526 239,563 93,597
Deferred OPEB related inflows 566,435 47,156 613,591 239,640
Total deferred inflows of resources 787,472 65,682 853,154 333,237
Net invested in capital assets 3,086,183 546 3,086,729 4,992,258
Restricted - Housing - 27,734 27,734 -
Restricted - OPEB 58,457 4,899 63,356 24,753
Unrestricted (1,258,815) 355,773 (903,042) 6,740,373
TOTAL NET POSITION 1,885,825$ 388,952$ 2,274,777 11,757,384$
Reconciliation to government-wide statements of net pos ition:
Adjustment to reflect the consolidation of Internal Service Funds'
activities related to Enterprise Funds 498,544
NET POSITION OF BUSINESS-TYPE ACTIVITIES 2,773,321$
See accompanying notes to the basic financial statements.
Governmental
Activities
CITY OF PADUCAH, KENTUCKY
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2025
-48-
Business-type Activities
ASSETS
LIABILITIES
NET POSITION
Funds
Service
Internal
Exhibit 11
Nonmajor
Solid Enterprise
Operating Revenues: Waste Funds Totals
Charges for services - internal -$ 120,401$ 120,401$ 6,363,670$
Charges for services - external 5,884,684 - 5,884,684 330,157
Miscellaneous 1,762 1,317 3,079 -
Total operating revenues 5,886,446 121,718 6,008,164 6,693,827
Operating Expenses:
Cost of sales and service 4,335,693 2,727,855 7,063,548 6,492,581
Depreciation and amortization 687,911 208 688,119 886,355
Total operating expenses 5,023,604 2,728,063 7,751,667 7,378,936
Operating income (loss)862,842 (2,606,345) (1,743,503) (685,109)
Nonoperating Revenues (Expenses):
Grants - program purpose 664,082 2,583,574 3,247,656 -
Interest and investment income 142,102 15,869 157,971 320,662
Gain (loss) on disposal of property
and equipment 105,484 - 105,484 82,034
Interest expense (3,579) - (3,579) -
Total nonoperating revenues (expenses)908,089 2,599,443 3,507,532 402,696
Income (loss) before contributions and
transfers 1,770,931 (6,902) 1,764,029 (282,413)
Contributions and Transfers:
Transfers in - 304,100 304,100 133,873
Transfers out (342,299) - (342,299) (91,370)
Total contributions and transfers (342,299) 304,100 (38,199) 42,503
Change in net position 1,428,632 297,198 1,725,830 (239,910)
Net position - beginning 457,193 91,754 11,997,294
Net position - ending 1,885,825$ 388,952$ 11,757,384$
Reconciliation to government-wide statements of net position:
Adjustment to reflect the consolidation of Internal Service Funds'
activities related to Enterprise Funds (77,645)
CHANGE IN NET POSITION OF BUSINESS-TYPE ACTIVITIES 1,648,185$
See accompanying notes to the basic financial statements.
Governmental
CITY OF PADUCAH, KENTUCKY
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Internal
Service
Funds
-49-
ActivitiesBusiness-type Activities
Exhibit 12
Nonmajor
Solid Enterprise
Cash Flows from Operating Activities: Waste Funds Totals
Cash received from customers 5,259,381$ 120,401$ 5,379,782$ -$
Cash received from interfund services provided - - - 6,620,365
Payments to suppliers (2,595,003) - (2,595,003) 590,283
Payments to employees (1,410,762) (68,044) (1,478,806) (706,133)
Claims paid - - - (3,611,419)
Payments to internal service funds (654,646) - (654,646) -
Other receipts 1,762 1,317 3,079 -
Other payments - (2,689,520) (2,689,520) (2,173,177)
Net cash provided (used) by operating activities 600,732 (2,635,846) (2,035,114) 719,919
Cash Flows from Noncapital Financing Activities:
Grants - program purpose 664,082 2,583,574 3,247,656 -
Transfers from other funds - 304,100 304,100 133,873
Transfers to other funds (342,299) - (342,299) (91,370)
Net cash provided (used) by noncapital
financing activities 321,783 2,887,674 3,209,457 42,503
Cash Flows from Capital and Related
Financing Activities:
Principal paid on debt (50,407) - (50,407) -
Interest on SBITA (3,579) - (3,579) -
Purchase of capital assets (1,244,996) - (1,244,996) (2,206,860)
Proceeds from sale of capital assets 105,484 - 105,484 126,687
Net cash provided (used) by capital and
related financing activities (1,193,498) - (1,193,498) (2,080,173)
Cash Flows from Investing Activities:
Interest on cash and investments 142,102 15,869 157,971 320,662
Net cash provided (used) by investing
activities 142,102 15,869 157,971 320,662
Net increase (decrease) in cash and cash
equivalents (128,881) 267,697 138,816 (997,089)
Cash and cash equivalents, July 1, 2024 3,150,788 391,778 3,542,566 8,001,869
CASH AND CASH EQUIVALENTS,
JUNE 30, 2025 3,021,907$ 659,475$ 3,681,382$ 7,004,780$
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities:
Operating income (loss) 862,842$ (2,606,345)$ (1,743,503)$ (685,109)$
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation and amortization 687,911 208 688,119 886,355
Change in assets and liabilities:
Receivables (67,783) - (67,783) (73,462)
Prepaid expenses - - - 679,587
Inventories - (3,904) (3,904) (16,288)
Unearned revenues (557,520) - (557,520) -
Pension obligation and related deferrals (258,788) (9,702) (268,490) (105,924)
OPEB obligation and related deferrals (191,301) (12,963) (204,264) (77,435)
Account and accrued payables 125,371 (3,140) 122,231 112,195
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES 600,732$ (2,635,846)$ (2,035,114)$ 719,919$
See accompanying notes to the basic financial statements.
CITY OF PADUCAH, KENTUCKY
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
-50-
Governmental
Activities
Internal
Service
Business-type Activities
Funds
Exhibit 13
Private-
Pension purpose
Funds Trusts
Cash and cash equivalents 752$ 17,871$
Receivables:
Interest 11,235 -
Investments at fair value
Money market funds 36,684 -
Mutual funds 3,564,267 1,206,581
Total assets 3,612,938 1,224,452
Voucher and accounts payable 1,687 -
Total liabilities 1,687 -
Net position restricted for pensions 3,611,251$
Restricted for other purposes 1,224,452$
See accompanying notes to the basic financial statements.
-51-
ASSETS
LIABILITIES
CITY OF PADUCAH, KENTUCKY
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2025
NET POSITION
Primary Government
Exhibit 14
Private-
Pension purpose
Additions: Funds Trusts
Contributions:
Employer 311,849$ -$
Private donations - 9,442
Total contributions 311,849 9,442
Investment income:
Net increase (decrease) in
fair value of investments 185,059 39,760
Interest and dividends 119,575 77,796
Net investment income 304,634 117,556
Total additions 616,483 126,998
Deductions:
Benefits 704,800 -
Capital outlay - 51,301
Administrative expenses 41,760 20,483
Total deductions 746,560 71,784
Change in net position (130,077) 55,214
Net position - beginning 3,741,328 1,169,238
Net position - ending 3,611,251$ 1,224,452$
See accompanying notes to the basic financial statements.
-52-
STATEMENT OF CHANGES IN NET POSITION
CITY OF PADUCAH, KENTUCKY
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF PADUCAH, KENTUCKY
NOTES TO THE FINANCIAL STATEMENTS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
- 53 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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)
- 54 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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 does 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.
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.
(Continued)
- 55 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Account Policies:
Basis of Presentation
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 Opioid Settlement Fund – To account for restricted funds from opioid settlement for
opioid remediation activities.
Bond Fund – To account for restricted funds from bond issues used for infrastructure capital projects
within the Paducah area.
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)
- 56 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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. One of these funds, the Police and Firefighters’ Pension
Fund (PFPF), is a single-employer defined benefit fund and is administered by the City. 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, custodial, 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, custodial, pension, and private-
purpose trust fund equity is classified as net position.
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)
- 57 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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, custodial, 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)
- 58 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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 8
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, 2025.
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. Money market and short-
term certificates of deposit 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)
- 59 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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, opioid settlement, 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 on page 75. 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 $90,803 held for consumption and re-sell, real
property of $550,165 held for urban development, and $18,553 fuel inventory for boat dock. 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.
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.
(Continued)
- 60 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies:
Capital Assets
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.
Right to Use Assets
The City has recorded right to use lease assets, which are initially measured at an amount equal to the
initial measurement of the related lease or subscription liability plus any lease or subscription payments
made prior to the term, less incentives, and plus any ancillary charges necessary to place the lease or
subscription into service. The right to use assets are amortized on a straight-line basis over the life of the
related lease or subscription.
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, represent
a consumption of net assets that applies to future period 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)
- 61 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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, represent an
acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources
(revenue) until that time. The City has three types of items reported in this category. These are receipt of
property taxes levied during the fiscal year for the next fiscal year, inflows related to the City’s pension
and OPEB plans that qualify for reporting in this category – deferred pension and OPEB related inflows,
and lessor of facilities and real property to other organizations.
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. Future cash receipts under non-
cancelable leases measured at present value are deferred inflow of resources and amortized in future
periods as a component of operation income.
Fund Financial Statements
The government has three types of items, which arise only under a modified accrual basis of accounting,
that qualify 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 three sources: leases, opioid settlement, and property taxes. These amounts are deferred and
recognized as an inflow of resources in the period that the amount becomes available.
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.
Compensated Absences
Compensated absences include accumulated unpaid vacation, sick pay, and other employee benefit
amounts. 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 and notes
payable.
(Continued)
- 62 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies:
Long-Term Debt
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.”
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.
(Continued)
- 63 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies:
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.
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 Funds – 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.
(Continued)
- 64 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 1 – Summary of Significant Accounting Policies:
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.
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 8 Housing Choice Voucher Program Subsidize Rental Costs for Low-
Income Families
Opioid Settlement Revenue Opioid Remediation Activities
State Tax Increment Financing Public Capital Improvements within the
boundary of the TIF district
Emergency Communication Revenue E-911 Emergency Services
Transient Room Tax Debt Obligations and Tourism Activities
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, 2025, 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)
- 65 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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 19, 2025, the date financial statements were available to be
issued.
Effective July 1, 2025, Section 8 Housing consolidated with the Housing Authority of Paducah and is no
longer a part of the City of Paducah, Kentucky. The consolidation did not impact the financial statements
as of June 30, 2025.
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, 2025, are as follows:
Description Date
Assessment and enforceable lien January 1, 2024
Levy September 17, 2024
Face value amount payment dates 1st half by November 1, 2024
2nd half by February 1, 2025
Delinquent date - 10% penalty
plus 1/2% per month 1st half - November 30, 2024
2nd half - February 28, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
The following notes present detailed information to support the amounts reported in the basic financial
statements for its various assets, liabilities, equity, revenues, and expenditures/expenses.
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 to 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.
(Continued)
- 66 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Deposits
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, 2025, 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 $59,304,319 and
$60,338,334, 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.
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.
(Continued)
- 67 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Investment Policies
City Policy
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, 2025:
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 $ - NR $ - $ - $ - NA
Money market 36,082,430 NR 36,082,430 - - NA
TOTAL GOVERNMENTAL AND
BUSINESS FUNDS $36,082,430
Fiduciary and Private
Purpose Trust Funds
Cash equivalents $ 36,684 NR $ 36,684 $ - $ - NA
Common stock - NR - - - NA
Mutual funds
Bond 1,602,317 NR 1,602,317 - - 7.20
Equity 2,500,972 NR 2,500,972 - - NA
International 667,559 NR 667,559 - NA
TOTAL FIDUCIARY AND
PRIVATE PURPOSE
TRUST FUNDS $ 4,807,532
(1) Ratings are provided where applicable to indicate associated Credit Risk. NA indicates not applicable. NR indicates that the instrument is
not rated.
(2) Maturities are provided for debt instruments with maturity dates. NA indicates not applicable.
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.
(Continued)
- 68 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Investment Policies
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.
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)
- 69 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Capital Assets
Capital asset activity for the year ended June 30, 2025, was as follows:
Balance Balance
Primary Government: July 1, 2024 Additions Deductions June 30, 2025
Capital assets, not being depreciated:
Land $10,267,997 $ - $ - $10,267,997
Construction in progress 9,486,147 4,165,162 5,331,176 8,320,133
Total capital assets, not being
depreciated 19,754,144 4,165,162 5,331,176 18,588,130
Capital assets, being depreciated:
Land improvements 35,477,375 64,521 219,321 35,322,575
Buildings and improvements 23,813,318 1,013,339 - 24,826,657
Infrastructure 58,993,107 27,132,630 - 86,125,737
Equipment 12,126,611 1,389,838 724,876 12,791,573
Furnishings and fixtures 293,262 29,932 14,016 309,178
Vehicles 12,860,493 2,075,418 632,669 14,303,242
Right-to-use leased assets - 1,276,307 - 1,276,307
Right-to-use subscriptions 3,538,509 662,293 - 4,200,802
Totals at historical cost 147,102,675 33,644,278 1,590,882 179,156,071
Less accumulated depreciation and amortization:
Land improvements 11,453,412 1,549,545 130,940 12,872,017
Buildings and improvements 15,273,259 394,193 - 15,667,452
Infrastructure 37,363,443 1,750,228 - 39,113,671
Equipment 8,824,297 676,697 723,150 8,777,844
Furnishings and fixtures 254,041 10,506 14,016 250,531
Vehicles 9,277,485 832,915 588,017 9,522,383
Right-to-use leased assets - 102,320 - 102,320
Right-to-use subscriptions 1,203,180 891,798 - 2,094,978
Total accumulated depreciation
and amortization 83,649,117 6,208,202 1,456,123 88,401,196
Total capital assets, being
depreciated, net 63,453,558 27,436,076 134,759 90,754,875
PRIMARY GOVERNMENT
ACTIVITIES CAPITAL
ASSETS, NET $83,207,702 $31,601,238 $ 5,465,935 $109,343,005
There were no abandoned projects included in deductions of construction-in-progress. During the year ended
June 30, 2025, the City received floodwall improvements in the amount of $22,844,492 from the U.S. Army
Corps of Engineers.
(Continued)
- 70 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Capital Assets
Depreciation and amortization expense was charged to governmental activities as follows:
General government:
General administration $ 431,845
Cable authority 4,722
Finance 222,202
Planning 1,571
Information systems 148,088
Fleet maintenance 7,703
Total general government 816,131
Public safety:
Police 652,200
Fire 187,949
Emergency 911 235,628
Fleet lease trust 878,652
Total public safety 1,954,429
Public service:
Public works 12,952
Engineering 405,274
Total public service 418,226
Parks and recreation 1,269,941
Planning and development 1,749,475
TOTAL DEPRECIATION AND AMORTIZATION EXPENSE –
GOVERNMENTAL ACTIVITIES $6,208,202
Depreciation and amortization expense was charged to business-type activities as follows:
Solid Waste Fund $ 687,911
Section 8 Housing 208
TOTAL DEPRECIATION AND AMORTIZATION EXPENSE –
BUSINESS-TYPE ACTIVITIES $ 688,119
(Continued)
- 71 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Capital Assets
Balance Balance
Business-type Activities: July 1, 2024 Additions Deductions June 30, 2025
Capital assets, not being depreciated:
Land $ 68,886 $ - $ - $ 68,886
Construction in progress - - - -
Total capital assets, not being
depreciated 68,886 - - 68,886
Capital assets, being depreciated:
Buildings and improvements 301,543 - - 301,543
Equipment 2,934,927 1,244,996 106,320 4,073,603
Vehicles 4,432,769 - 249,555 4,183,214
Right-to-use subscriptions 217,328 - - 217,328
Totals at historical cost 7,886,567 1,244,996 355,875 8,775,688
Less accumulated depreciation and amortization:
Buildings and improvements 112,989 9,554 - 122,543
Equipment 1,827,618 324,347 106,320 2,045,645
Vehicles 3,312,156 305,923 249,555 3,368,524
Right-to-use subscriptions 96,590 48,295 - 144,885
Total accumulated depreciation
and amortization 5,349,353 688,119 355,875 5,681,597
Total capital assets, being
depreciated, net 2,537,214 556,877 - 3,094,091
BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS, NET $ 2,606,100 $ 556,877 $ - $ 3,162,977
Balance Balance
Discretely Presented July 1, 2024 Increases Decreases June 30, 2025
Component Units:
Capital assets, not being depreciated:
Land & construction in progress $ 4,249,603 $ - $1,953,330 $ 2,296,273
Capital assets, being depreciated:
Utility plant 131,208,561 7,041,537 767,638 137,482,460
Right-to-use subscriptions 228,641 949,414 187,014 991,041
Totals at historical cost 131,437,202 7,990,951 954,652 138,473,501
Less accumulated depreciation and amortization:
Utility plant 58,141,457 3,242,078 556,361 60,827,174
Right-to-use subscriptions 147,335 273,669 187,014 233,990
Total accumulated depreciation
and amortization 58,288,792 3,515,747 743,375 61,061,164
Total capital assets, being
depreciated, net 73,148,410 4,475,204 211,277 77,412,337
COMPONENT UNIT
CAPITAL ASSETS, NET $ 77,398,013 $ 4,475,204 $2,164,607 $ 79,708,610
Depreciation and amortization expense, charged to functions/programs of discretely presented major
component units as follows:
Paducah Water Works $ 3,515,747
(Continued)
- 72 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Deferred Outflows/Inflows of Resources
A summary of change in deferred outflows/inflows of resources is as follows:
Balance
July 1, 2024
Additions
Reductions
Balance
June 30, 2025
Governmental Activities
Deferred outflows of resources
Deferred charge on refunding $ 54,832 $ - $ (23,069) $ 31,763
Pension related deferred outflows 10,642,075 2,591,536 (2,839,006) 10,394,605
OPEB related deferred outflows 3,460,471 1,377,973 (1,522,331) 3,316,113
Total deferred outflows of resources $ 14,157,378 $ 3,969,509 $ (4,384,406) $ 13,742,481
Deferred inflows of resources
Pension related deferred inflows $ 7,765,672 $ 3,627,550 $ (3,812,094) $ 7,581,128
OPEB related deferred inflows 17,997,801 1,763,405 (4,715,824) 15,045,382
Unavailable revenues – property taxes 7,181,165 7,557,323 (7,181,165) 7,557,323
Leases 2,502,184 86,916 (380,470) 2,208,630
Total deferred outflows of resources $ 35,446,822 $ 13,035,194 $ (16,089,553) $ 32,392,463
Business-type Activities
Deferred outflows of resources
Pension related deferred outflows $ 408,185 $ 80,792 $ (153,255) $ 335,722
OPEB related deferred outflows 169,804 58,671 (111,769) 116,706
Total deferred outflows of resources $ 577,989 $ 139,463 $ (265,024) $ 452,428
Deferred inflows of resources
Pension related deferred inflows $ 289,428 $ 156,777 $ (206,642) $ 239,563
OPEB related deferred inflows 860,945 68,306 (315,660) 613,591
Total deferred outflows of resources $ 1,150,373 $ 225,083 $ (522,302) $ 853,154
Arbitrage Rebate Liability
The Tax Recovery Act of 1986 established regulations for the rebate of arbitrage earnings to the federal
government on certain local government bonds. Issuing governments must calculate and remit annually
any rebate due at least every five years. There is no arbitrage rebate liability as of June 30, 2025.
Accounts Payable
Payables in the governmental and proprietary funds are composed of payables to vendors and accrued
expenditures.
(Continued)
- 73 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
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, 2025, the governmental long-term liabilities consisted of the following:
General obligation bonds:
Current portion $ 3,040,000
Noncurrent portion 49,405,596
TOTAL GENERAL OBLIGATION
BOND COSTS, NET OF PREMIUMS AND DISCOUNTS $ 52,445,596
Note payable:
Current portion $ 548,576
Noncurrent portion 7,324,497
TOTAL NOTE PAYABLE PAYMENTS $ 7,873,073
Leases and subscription-based information technology arrangements:
Current portion $ 1,048,092
Noncurrent portion 2,193,244
TOTAL LEASES AND SUBSCRIPTION-BASED
INFORMATION TECHNOLOGY ARRANGEMENTS $ 3,241,336
Accrued compensated absences:
Current portion $ 1,918,273
Noncurrent portion 1,361,141
TOTAL ACCRUED COMPENSATED
ABSENCES $ 3,279,414
Business-type Activities
As of June 30, 2025, the long-term liabilities payable from proprietary fund resources consisted of the
following:
Leases and subscription-based information technology arrangements:
Current portion $ 50,407
Noncurrent portion 25,841
TOTAL LEASES AND SUBSCRIPTION-BASED
INFORMATION TECHNOLOGY ARRANGEMENTS $ 76,248
Accrued compensated absences:
Current portion $ 89,684
Noncurrent portion 98,817
TOTAL ACCRUED COMPENSATED
ABSENCES $ 188,501
(Continued)
- 74 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Long-Term Liabilities
General Obligation Bonds
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 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.
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 a Municipal Sports and Recreational Facility jointly with McCracken County,
Kentucky. These assets will be donated to the McCracken County Sports Tourism Commission. 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.
Series 2025A Bond Issue – The City of Paducah issued general obligation bonds of $25,815,000 in
January 2025, of which $4.5 million was used for the Riverfront Park Development project and the
remaining used to finance a municipal sports park complex jointly with McCracken County, Kentucky.
These assets will be donated to the McCracken County Sports Tourism Commission. Interest rates are
fixed ranging from 4.0% to 5.0%. 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. (Continued)
- 75 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Long-Term Liabilities
Notes Payable – Direct Borrowing
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. On January 22, 2022, McCracken County
issued general obligation refunding bonds to advance refund the original 2011 series bonds issued. The
City’s portion of this amount was $1,330,614. The reacquisition price exceeded the net carrying amount of
the City’s old debt by $10,910. This amount was deferred and amortized over the remaining life of the
refunded debt. This advance refunding reduced the City’s future total debt service payments to McCracken
County over the next 10 years by $140,101 with a resulting net economic gain of $132,010. The note
matures on December 1, 2031 and has interest rates of 4.0% and are backed by the full faith and credit of
the City.
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 an interest rate of
1.98% and is 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. The 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 is 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, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Long-Term Liabilities
Changes in Long-Term Liabilities
The following is a summary of changes in long-term debt for the year ended June 30, 2025:
Beginning Ending Due within
Type of Liability: Balance Additions Reductions Balance One Year
Governmental activities:
General obligation bonds:
Recreation Facility $20,260,000 $ - $ (475,000) $ 19,785,000 $ 755,000
Sports Facility - 25,815,000 - 25,815,000 780,000
Refinanced Pension 610,000 - (430,000) 180,000 180,000
Refinanced Convention Center 1,055,000 - (520,000) 535,000 535,000
Public Pool Renovations 425,000 - (80,000) 345,000 80,000
Refinancing Public Projects 2,220,000 - (345,000) 1,875,000 355,000
Riverfront and 911 Equipment 1,895,000 - (185,000) 1,710,000 195,000
Refunding Floodwall issue 810,000 - (155,000) 655,000 160,000
Premiums 281,583 1,491,361 (86,599) 1,686,345 -
Discounts (60,693) (93,954) 13,898 (140,749) -
Total bonds payable 27,495,890 27,212,407 (2,262,701) 52,445,596 3,040,000
Notes payable – direct borrowing:
Kentucky Infrastructure
Authority 3,827,800 - (192,537) 3,635,263 195,489
Kentucky Association of
Counties 809,048 - (171,004) 638,044 176,332
Murray State University
Agreement 1,105,289 - (119,606) 985,683 124,488
CFSB Agreement 2,666,440 - (52,357) 2,614,083 52,267
Total notes payable 8,408,577 - (535,504) 7,873,073 548,576
Leases & subscription-based
information technology
arrangements 2,448,434 1,938,600 (1,145,698) 3,241,336 1,048,092
Accrued compensated
absences 2,846,947 432,467 - 3,279,414 1,918,273
TOTAL GENERAL LONG-
TERM LIABILITIES $41,199,848 $29,583,474 $ (3,943,903) $ 66,839,419 $ 6,554,941
Business-type activities:
Leases & subscription-based
information technology
arrangements $ 125,001 $ - $ (48,753) $ 76,248 $ 50,407
Accrued compensated
absences 143,745 44,756 - 188,501 89,684
TOTAL BUSINESS LONG-
TERM LIABILITIES $ 268,746 $ 44,756 $ (48,753) $ 264,749 $ 140,091
(Continued)
- 77 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Long-Term Liabilities
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 $109,343,005
Less:
19.75% of the outstanding 2020B
General obligation bonds $ (105,663)
Net of the County's portion 52,832
(52,831)
78% of the outstanding 2014A
General obligation bonds (1,462,500)
100% of the outstanding 2013A
General obligation bonds (345,000)
100% of the outstanding 2018A
General obligation bonds (1,710,000)
100% of the outstanding 2018B
General obligation bonds (655,000)
9.30% of the outstanding 2020A
General obligation bonds (1,840,005)
0% of the outstanding 2025A
General obligation bonds -
100% of the outstanding KY
Infrastructure Authority (3,635,263)
100% of the leases and subscription-based
information technology arrangements (3,241,336)
Net investment in capital assets $96,401,070
Annual Debt Service Requirements
The annual debt service requirements to maturity for bonds and notes as of June 30, 2025, are as follows:
Year Ending
June 30 Principal Interest
2026 $ 3,769,870 $ 1,978,326
2027 3,679,430 1,845,296
2028 3,794,858 1,714,020
2029 3,900,598 1,581,161
2030 4,224,732 1,472,102
2031-2035 14,986,228 5,821,764
2036-2040 16,431,400 2,866,458
2041-2045 9,531,553 1,380,677
TOTALS $60,318,669 $18,659,804
(Continued)
- 78 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Long-Term Liabilities
Net Pension/OPEB Liabilities
Typically, the net pension and other post employment benefits liabilities have been paid by the General
Fund, Section 8 Housing Fund, Solid Waste Fund, and Fleet Maintenance Fund.
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. Amounts accrued at June 30, 2025 are as
follows:
Governmental Business-type
Activities Activities
Accrued sick leave $ 977,418 $ 68,120
Accrued vacation leave 2,301,996 120,381
Totals 3,279,414 188,501
Less current portion (1,918,273) (89,684)
LONG-TERM PORTION $1,361,141 $ 98,817
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. There were no termination benefits paid during the year ended June
30, 2025. 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, 2025, $165,807 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, 2025, 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.
(Continued)
- 79 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 3 – Detail Notes on Transaction Classes/Accounts:
Interfund Transactions and Balances
Interfund transfers during the year ended June 30, 2025, were as follows:
Interfund Interfund
Governmental Funds: Transfers In Transfers Out
General Fund $ 627,053 $12,040,165
Special Revenue Investment Fund 70,000 7,074,168
Special Revenue Bond Fund 19,131 -
Capital Project Fund 14,773,154 1,811,158
Debt Service Fund 3,017,724 -
Nonmajor Governmental Funds 2,616,648 202,523
Internal Service Funds 133,873 91,370
Fiduciary Funds 310,000 -
Proprietary Funds:
Solid Waste - 342,299
Nonmajor Proprietary Funds 304,100 -
TOTALS $21,561,683 $21,561,683
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 include $210,063 for E911 support;
$1,441,667 for debt service; and $9,745,299 for capital projects. Significant transfers from the special
revenue investment fund include $2,000,000 for municipal aid street resurfacing program; $1,373,534 for
debt service; and $3,580,634 for capital projects. Significant transfers from the solid waste fund include
$320,000 for general fund operations support.
Due To/From Balances
Due to/from balances used to cover current operating expenses were as follows as of June 30, 2025:
Due To Due From
General Fund $1,369,675 $ -
Special Revenue Investment Fund - 1,369,675
TOTALS $1,369,675 $1,369,675
Note 4 – Pension Plans - City of Paducah:
The City provides retirement benefits to its employees through two pension funds. One of the funds is a
single-employer defined benefit funds and is administered by the City. This fund is a Police and
Firefighters’ Pension Fund (PFPF). 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:
(Continued)
- 80 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 4 – Pension Plans - City of Paducah:
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
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
(Continued)
- 81 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 4 – Pension Plans - City of Paducah:
Cost-Sharing Multiple-Employer Defined Benefit Plan
County Employees’ Retirement System
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 1 5% 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 19.71% for non-hazardous employees and 36.49% for hazardous employees for the year ended
June 30, 2025. Non-hazardous and hazardous employee plans are administered separately.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions
At June 30, 2025, 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 $ 19,229,933
City’s hazardous proportionate share of the CERS net pension liability 39,875,604
Total CERS net pension liability associated with the City $ 59,105,537
The net pension liability for each plan was measured as of June 30, 2024, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of that date.
(Continued)
- 82 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 4 – Pension Plans - City of Paducah:
Cost-Sharing Multiple-Employer Defined Benefit Plan
County Employees’ Retirement System
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, 2025, the City’s non-hazardous proportion was 0.321548% percent and hazardous
proportion was 1.5504% percent.
For the year ended June 30, 2025, the City recognized pension expense of $4,125,265 ($988,286 for
non-hazardous and $3,136,979 for hazardous) related to CERS pension plans. At June 30, 2025, 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
$ 930,764
$ -
$ 2,591,012
$ -
Changes in assumptions - 868,815 - 2,250,507
Net difference between projected and
actual earnings on pension plan
investments
- 1,236,381
- 2,128,259
Changes in proportion and differences
between City contributions and
proportionate share of contributions
98,459 -
744,620 1,290,178
1,029,223 2,105,196 3,335,632 5,668,944
City contributions subsequent to the
measurement date
2,090,132
-
4,275,340
-
Total $ 3,119,355 $ 2,105,196 $ 7,610,972 $ 5,668,944
The City reported $6,365,472 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, 2026. 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
2026 $ (703,527) $ (1,350,917)
2027 378,373 (153,186)
2028 (475,279) (405,839)
2029 (275,540) (423,370)
(Continued)
- 83 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 4 – Pension Plans - City of Paducah:
Cost-Sharing Multiple-Employer Defined Benefit Plan
County Employees’ Retirement System
Actuarial assumptions - The total pension liability in the June 30, 2025 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
6.50%
6.50%
For CERS, mortality rates for the period after service retirement are according to the MP-2014
mortality improvement scale using a base year of 2010 for all active and retired employees and
beneficiaries. The MP-2014 mortality improvement scale using a base year of 2019 set forward 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, 2025
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
Public Equity 50.00% 4.15%
Private Equity 10.00% 9.10%
Specialty Credit 10.00% 3.82%
Core Fixed Income 10.00% 2.85%
Real Estate 7.00% 4.90%
Real Return 13.00% 5.35%
Cash 0.00% 1.70%
Total 100.00%
Discount rate - The discount rate used to measure the total pension liability was 6.50%. 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 6.50%. 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 5.50% 6.50% 7.50%
Non-hazardous’ proportionate share of
net pension liability
$24,790,526
$19,229,933
$14,616,106
Hazardous’ proportionate share of
net pension liability
$51,335,675
$39,875,604
$30,519,084
(Continued)
- 85 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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 Fund - Police and Firefighters' Pension Fund (PFPF)
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 City of Paducah Police and Firefighters’ Pension Fund Board is responsible for
establishing or amending contribution rates and requirements for their plan.
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.
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, 2025. 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.
Membership Information:
Membership consisted of the following at June 30, 2025:
PFPF
Active participants -
Beneficiaries 15
Retired participants 11
TOTAL PARTICIPANTS 26
The plan is closed to new members.
(Continued)
- 86 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 4 – Pension Plans - City of Paducah:
Single Employer Defined Benefit Fund - Police and Firefighters' Pension Fund (PFPF)
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%.
Funding policy:
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.
Changes in PFPF’s Net Pension Liability is as follows:
Total
Pension
Liability
Plan
Net
Position
Net
Pension
Liability
(a) (b) (a) – (b)
Balance – June 30, 2024 $ 5,688,471 $ 3,741,328 $ 1,947,143
Service cost - - -
Interest expense 346,845 - 346,845
Experience losses (gains) (37,748) - (37,748)
Change in assumptions - - -
Contributions – City - 311,849 (311,849)
Contributions – Members - - -
Investment income - 304,634 (304,634)
Benefits paid (704,800) (704,800) -
Plan administrative expenses - (41,760) 41,760
Net change (395,703) (130,077) (265,626)
Balance – June 30, 2025 $ 5,292,768 $ 3,611,251 $ 1,681,517
Plan net position as a percentage of the
total pension liability
68.23%
For the year ended June 30, 2025, the City recognized pension expense of $216,527 for PFPF.
(Continued)
- 87 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 4 – Pension Plans - City of Paducah:
Single Employer Defined Benefit Fund - Police and Firefighters' Pension Fund (PFPF)
At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources
related to the PFPF pension plan from the following sources:
PFPF
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
- 46,551
Total $ - $ 46,551
Amounts reported as deferred outflows of resources and deferred inflows related to pensions will be
recognized in pension expense as follows:
Year Ending
June 30 PFPF
2026 $ 103,600
2027 (83,716)
2028 (53,619)
2029 (12,816)
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
Valuation date 7/1/2025
Actuarial cost method Entry age normal
Amortization method Level dollar closed
Remaining amortization period 9 Years
Asset valuation method Fair value
(Continued)
- 88 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 4 – Pension Plans - City of Paducah:
Single Employer Defined Benefit Fund - Police and Firefighters' Pension Fund (PFPF)
Actuarial assumptions:
Investment rate of return 6.50% (3)
Projected salary increases (2)
Inflation rates adjustments (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:
1971 Group annuity mortality (GAM) table
UP-1984 table set forward 5 years for participants retiring due to disability
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, 2025 PFPF plan year, the assumed rate of
return was 6.50%.
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, 2025 was 6.50%.
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 $ 2,030,922 $ 1,681,517 $ 1,371,416
(Continued)
- 89 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 4 – Pension Plans - City of Paducah:
Single Employer Defined Benefit Fund - Police and Firefighters' Pension Fund (PFPF)
Financial Reports:
The Police and Firefighters' Pension Fund (PFPF) plan does not issue stand-alone financial reports. The
Plan’s financial statements are as follows:
STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUND
JUNE 30, 2025
PFPF
Assets
Cash and cash equivalents $ 752
Receivables:
Interest 11,235
Investments at fair value
Money market accounts 36,684
Mutual funds 3,564,267
Total assets 3,612,938
Liabilities
Vouchers and accounts payable 1,687
Net Position
Held in trust for pension benefits $ 3,611,251
(Continued)
- 90 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 4 – Pension Plans - City of Paducah:
Single Employer Defined Benefit Fund - Police and Firefighters' Pension Fund (PFPF)
STATEMENT OF CHANGES IN NET POSITION
PENSION TRUST FUND
JUNE 30, 2025
PFPF
Additions:
Contributions
Employer $ 311,849
Plan members -
Total contributions 311,849
Investments earnings:
Net change in fair value of investments 185,059
Interest and dividends 119,575
Net investment earnings 304,634
Total additions 616,483
Deductions:
Benefits 704,800
Administrative expenses 41,760
Total deductions 746,560
Change in net position (130,077)
Net position - beginning 3,741,328
Net position - ending $ 3,611,251
Summary of Pension Expense:
As of June 30, 2025, the City’s pension expense associated with the two pension plans are summarized
as follows:
Governmental
Activities
Business-Type
Activities
Total
CERS – Non-hazardous
$ 875,823
$ 112,463
$ 988,286
CERS – Hazardous 3,136,979 - 3,136,979
PFPF 216,527 - 216,527
Total $ 4,229,329 $ 112,463 $ 4,341,792
(Continued)
- 91 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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
0.00% of non-hazardous covered payroll and 2.12% of hazardous covered payroll for the fiscal year ended
June 30, 2025.
At June 30, 2025, 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, 2024, 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, 2024, the City’s non-hazardous proportion
was 0.32186 percent and hazardous proportion was 1.55076 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 (asset)
$ (556,753)
City’s hazardous proportionate share of the CERS
medical insurance liability (asset)
1,881,112
Total CERS medical insurance liability (asset) associated with the City $ 1,324,359
(Continued)
- 92 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 5 – Other Postemployment Benefits (OPEB):
For the year ended June 30, 2025, the City recognized an OPEB expense of $(2,912,151) ($1,313,904 non-
hazardous and $1,598,247 hazardous, respectively). At June 30, 2025, 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
$ 308,881
$ 4,380,556
$ 509,394
$ 6,885,299
Changes in assumptions 504,486 392,849 1,275,941 1,655,500
Net difference between projected
and actual earnings on pension
plan investments
- 508,071
- 1,182,067
Changes in proportion and
differences between City
contributions and
proportionate share of
contributions
60,802 77,107
384,372 577,522
874,169 5,358,583 2,169,707 10,300,388
City contributions subsequent to
the measurement date
151,417
-
237,526
-
Total $ 1,025,586 $ 5,358,583 $ 2,407,233 $10,300,388
The City reported $248,387, including implicit subsidies of $10,861, 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, 2026. 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
2026 $ (1,808,209) $ (2,281,595)
2027 (1,416,717) (1,764,258)
2028 (1,212,852) (2,589,170)
2029 (46,636) (1,636,596)
2030 - 140,938
(Continued)
- 93 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 5 – Other Postemployment Benefits (OPEB):
Actuarial assumptions – The total OPEB liability in the June 30, 2024 actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the measurement:
Investment rate of return 6.50%
Projected salary increases 3.30% - 10.30%, varies by service for non-hazardous
3.55% - 19.05%, varies by service for hazardous
Inflation rate 2.30%
Real wage growth 2.00%
Healthcare cost trend rates
Under 65 6.20% at January 1, 2024 decreasing to an ultimate rate of
4.05% over a period of 12 years
Ages 65 and Older 9.00% at January 1, 2024 decreasing to an ultimate rate of
4.05% over a period of 12 years
Municipal Bond Index Rate 3.97%
Discount Rate 5.99% and 6.02% 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
Public Equity 50.00% 4.15%
Private Equity 10.00% 9.10%
Specialty Credit 10.00% 3.82%
Core Fixed Income 10.00% 2.85%
Real Estate 7.00% 4.90%
Real Return 13.00% 5.35%
Cash 0.00% 1.70%
Total 100.00% (Continued)
- 94 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 5 – Other Postemployment Benefits (OPEB):
Discount rate - The discount rate used to measure the total OPEB liability was 5.99% for non-hazardous
and 6.02% 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 (asset) of
the System, calculated using the discount rate of 5.99% for non-hazardous and 6.02% for hazardous, as
well as what the City’s proportionate share of the collective net OPEB liability (asset) would be if it were
calculated using a discount rate that is 1-percentage-point lower (4.99% for non-hazardous and 5.02% for
hazardous) or 1-percentage-point higher (6.99% for non-hazardous and 7.02% for hazardous) than the
current rate:
1%
Decrease
Current
Discount
Rate
1%
Increase
CERS
Non-hazardous’ proportionate share of
net OPEB liability (asset)
$ 752,794
$ (556,753)
$(1,657,824)
Hazardous’ proportionate share of
net OPEB liability (asset)
$ 5,198,514
$ 1,881,112
$ (891,221)
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 (asset), as well as what the City’s proportionate share of the collective net OPEB liability
(asset) 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 (asset)
$(1,339,483)
$ (556,753)
$ 355,069
Hazardous’ proportionate share of
net OPEB liability (asset)
$ (291,611)
$ 1,881,112
$ 4,420,551
Note 6 – Appropriations Deficit:
No departments that adopted budgets annually had excess expenditures over appropriations for the fiscal
year ended June 30, 2025.
(Continued)
- 95 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 7 – Component Unit Long-Term Liabilities:
Long-term liabilities of the discretely presented component units consist of the following at June 30, 2025:
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, 2025, are as follows:
.25%
Year Ending Service R & M
June 30 Principal Interest Fee Reserve Total
2026 $ 494,242 $ 48,260 $ 9,302 $ 11,200 $ 563,004
2027 500,054 42,448 8,062 11,200 561,764
2028 505,939 36,563 6,810 - 549,312
2029 511,898 30,603 5,541 - 548,042
2030 517,934 24,568 4,258 - 546,760
2031-2035 1,041,500 58,119 8,625 - 1,108,244
2036-2037 272,573 5,989 856 - 279,418
TOTALS $3,844,140 $246,550 $ 43,454 $ 22,400 $4,156,544
The calculation to reconcile amounts in this schedule to the “net investment in capital assets” for the
discretely presented component units is:
Net Capital Assets $79,708,610
Less:
100% of lease and subscription-based
information technology liabilities (730,507)
100% of the outstanding KY
Infrastructure Authority notes payable (3,844,140)
Net investment in capital assets $75,133,963
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.
(Continued)
- 96 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 8 – Commitments and Contingencies:
Construction Commitments
The City has various on-going contracts for construction, renovations, paving materials, equipment, and
labor. As of June 30, 2025, the most significant construction commitments were as follows:
Cumulative Estimated
Costs Incurred Total Costs
Comprehensive Stormwater Master Plan Study $ 975,891 $ 1,047,040
24th/25th Street Improvement 287,033 314,516
Floodwall Rehab 1,726,009 1,895,450
Riverfront Development 3,996,946 22,523,145
$ 6,985,879 $25,780,151
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
2022 - 2023 $ - $ 23,777 $ 23,777 $ -
2023 - 2024 - 87,077 87,077 -
2024 - 2025 - 60,683 60,683 -
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, 2025, that amount
was $2,756,404. 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 $306,819 as of June 30, 2025.
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
2022 - 2023 $ 219,192 $ 2,617,451 $2,567,677 $ 268,966
2023 - 2024 268,966 2,419,599 2,536,599 151,966
2024 - 2025 151,966 3,224,676 3,069,823 306,819
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. (Continued)
- 97 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 10 – Leases and Subscription-Based Information Technology Arrangements:
Lease Receivable
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.
The City also leases certain other property to various lessees under non-cancelable agreements that have 3
– 10 year terms with expiration dates through December 31, 2031. Each of the agreements provides an
option for renewal for an additional 3 – 10 year term. During the year ended June 30, 2025, the City
recognized lease income of $515,570 and interest income of $84,688.
The following is an analysis of property leased under these leases at June 30, 2025:
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, 2025, on leased property was $-.
The following is a schedule of future lease receivable principal and interest payments from leases as of
June 30, 2025:
Year Ending
June 30
Principal
Interest
Total
2026 $ 530,007 $ 72,346 $ 602,353
2027 419,526 54,831 474,357
2028 384,846 41,202 426,048
2029 397,939 28,109 426,048
2030 411,476 14,572 426,048
2031-2035 210,958 2,066 213,024
Total $2,354,752 $ 213,126 $ 2,567,878
Lease Liability
The City, as a lessee, has entered into three agreements to lease equipment and recognizes a lease liability
and right to use assets for said leases. The lease liabilities are based on the present value of the lease
payments expected to be paid during the lease term. The right to use assets are valued at the lease liability
in addition to accumulated amortization expense recognized throughout the life of the leases.
The total of the City’s right to use assets are recorded at a cost of $1,276,307, less accumulated
amortization of $102,320.
(Continued)
- 98 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 10 – Leases and Subscription-Based Information Technology Arrangements:
Lease Liability
The future minimum lease obligations are as follows:
Year Ending
June 30
Principal
Interest
Total
2026 $ 99,368 $ 58,214 $ 157,582
2027 108,318 53,044 161,362
2028 117,900 47,411 165,311
2029 128,153 41,284 169,437
2030 66,798 34,628 101,426
2031-2035 437,758 111,833 549,591
2036-2039 217,923 18,525 236,448
Total $1,176,218 $ 364,939 $ 1,541,157
Subscription-Based Information Technology Arrangements
The City has entered into subscription-based information technology arrangements (SBITAs) involving:
Police document management software
Police in-car video software
Police interview video software
Police license plate reader systems
Body cameras for the fire department
Solid waste fleet tracking software
Finance software
Document management software
The total of the City’s governmental subscription assets are recorded at a cost of $4,200,802, less
accumulated amortization of $2,094,978. The total of the City’s business-type subscription assets are
recorded at a cost of $217,328, less accumulated amortization of $144,885.
For governmental activities, the future subscription payments under SBITA agreements are as follows:
Year Ending
June 30
Principal
Interest
Total
2026 $ 948,724 $ 71,528 $ 1,020,252
2027 443,619 41,583 485,202
2028 349,886 24,460 374,346
2029 322,889 11,457 334,346
Total $2,065,118 $ 149,028 $ 2,214,146
For business-type activities, the future subscription payments under SBITA agreements are as follows:
Year Ending
June 30
Principal
Interest
Total
2026 $ 50,407 $ 1,925 $ 52,332
2027 25,841 325 26,166
Total $ 76,248 $ 2,250 $ 78,498
In addition to the amounts presented above, the City also had outflows of resources during the fiscal year
totaling $252,809 that were not included in the measurement of the subscription liability. This total
consists of payments related to arrangements that either have interminable subscription terms or that are
prepaid and otherwise meet SBITA recognition criteria but are below the City’s capitalization threshold.
(Continued)
- 99 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
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.
For the year ended June 30, 2025, the City abated property taxes totaling $45,324 under this program,
including the following tax abatement agreements:
Recipient Development Agreement
Ordinance
Abatement Amount
Current
Year
Inception to
Date
Higdon
Development
Ridgewood In-fill,
phase 2 2019-4-8573 $11,377 $28,747
Higdon
Development
Ridgewood In-fill,
phase 1 2019-4-8573 $19,804 $105,773
Greenway Village,
LLC
Greenway Village In-
fill, phase 2 2019-4-8572 $12,005 $66,200
Willett Enterprises La Barri Subdivision
In-fill 2023-11-8796 $2,138 $2,138
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, 2025, the City rebated employee local payroll taxes totaling $4,890 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 $4,890 $101,249
(Continued)
- 100 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 11 – Tax Abatements:
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 (Pebco) 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 Pebco facility on Coleman Road for 25 years, through 2029.
For the year ended June 30, 2025, the City shared payroll tax revenue totaling $14,317 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 $14,317 $247,748
Remote Worker Incentive Program –
Ordinance 2021-08-8700 authorized this program, with a goal of attracting full-time remote workers 100
miles or more outside Paducah, by offering to those that qualify relocation expense, internet access,
community connections with memberships, and local payroll tax waiver for a 12-month period.
For the year ended June 30, 2025, the City provided funding totaling $19,680 under this program, as
follows:
Various Recipients Start Date
Program Expenditures
Current Year Inception to
Date
Remote Workers July 2021 $19,680 $69,440
Annexation Incentives –
The City of Paducah enacted Ordinance 2022-1-8719 to encourage residential, commercial, and industrial
growth. To take advantage of this incentive program, real estate must be annexed consensually into the
City, pursuant to KRS 81A.412. The incentive program may include any of the following incentives: a)
property tax reimbursement – for up to 5 years, all City real estate property taxes may be reimbursed
(abated) to the property owner; b) free sanitation service – the property owner may be eligible for free
sanitation services for one year; and c) closing cost reimbursement - the property owner may be reimbursed
for closing cost not to exceed $1,000. The City real estate property tax abatement is limited to the actual
City of Paducah real estate property taxes collected in any given year as outlined in the individual
memorandum of agreement with the City.
(Continued)
- 101 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 11 – Tax Abatements:
Annexation Incentives –
For the year ended June 30, 2025, the City abated property taxes totaling $11,498 under this program,
including the following tax abatement agreements:
Recipient Development/Location Agreement
Ordinance
Abatement Amount
Current
Year
Inception to
Date
Overland Group,
LLC Taco John – West 60 2022-1-8719 $3,758 $7,423
Overland Group,
LLC Sonic Drive-In – West 60 2022-1-8719 $3,731 $11,093
William Evans 1630 N. Friendship 2022-1-8719 $554 $1,330
J. A Bell Olivet Church Road 2022-1-8719 $462 $1,003
Daniel Jones 2631 Holt Road 2023-3-8762 $2,772 $2,772
George Sullivan 252 Locust Avenue 2023-5-8775 $221 $221
Note 12 – Implementation of GASB Pronouncements
Accounting Pronouncements Adopted during the Fiscal Year ended June 30, 2025
The financial statements of the City are prepared in conformity with GAAP as applied to government units.
GASB is the accepted standard-setting body for establishing governmental accounting and financial
reporting principles. During the current year, the City adopted the following GASB pronouncements:
Statement No. 101 – Compensated Absences
The City adopted the provisions of GASB Statement No. 101, Compensated Absences. The primary
objective of this Statement is to better meet the information needs of financial statement users by updating
the recognition and measurement guidance for compensated absences. This pronouncement impacted the
recognition of a compensated absence liability. The standard requires a compensated absence liability to be
recognized for (1) leave that has not been used and is attributable to services already rendered, accumulates,
and is more likely than not to be used for time off or otherwise paid in cash or settled through noncash
means and (2) leave that has been used but not yet paid in cash or settled though noncash means. This
pronouncement also impacts the note disclosure of the City’s accrued compensated absences (see note 3).
The pronouncement allows the disclosure to present the net change in the liability, instead of the gross
increases and decreases. Also, the City is no longer required to disclose which governmental funds typically
have been used to liquidate the compensated absences liability. There was no prior period restatement due
to the adoption of GASB Statement No. 101.
(Continued)
- 102 -
CITY OF PADUCAH, KENTUCKY
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2025
Note 12 – Implementation of GASB Pronouncements
Accounting Pronouncements Adopted during the Fiscal Year ended June 30, 2025
Statement No. 101 – Compensated Absences (continued)
Component Unit
Paducah Water Works adopted the provisions of GASB Statement No. 101, Compensated Absences. The
implementation of the new standard resulted in a decrease of beginning net position of $214,334.
Statement No. 102 – Certain Risk Disclosures
The City adopted the provisions of GASB Statement No. 102, Certain Risk Disclosures. The primary
objective of this Statement is to provide users of government financial statements with essential information
about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The
implementation of GASB Statement 102 had no significant impact on the City’s financial statements.
Future Implementation of GASB Pronouncements
In addition to the pronouncements discussed previously, GASB has issued additional guidance for state and
local governments that are not yet effective. The City is currently reviewing the provisions of the following
pronouncements to determine the impact of implementation in future periods.
Statement No. 103 – Financial Reporting Model Improvements (FY2026)
Statement No. 104 – Disclosure of Certain Capital Assets (FY2026)
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Total pension liability
Service cost -$ -$ -$ -$ -$ 10,901$ 10,267$ 7,678$ 7,038$ 7,183$
Interest 346,845 373,338 414,475 444,380 457,312 472,881 527,900 560,538 626,531 686,614
Changes in benefit terms - - - - - - - - - -
Differences between expected and actual experience (37,748) (41,299) (238,809) (16,133) 301,216 249,805 (384,990) (2,758) (278,063) (111,824)
Changes in assumptions - - - - - - - - 148,359 156,880
Benefit payments/refunds (704,800) (774,453) (842,634) (934,025) (980,992) (965,299) (1,033,958) (1,101,201) (1,223,078) (1,308,290)
Net change in total pension liability (395,703) (442,414) (666,968) (505,778) (222,464) (231,712) (880,781) (535,743) (719,213) (569,437)
Total pension liability - beginning 5,688,471 6,130,885 6,797,853 7,303,631 7,526,025 7,757,737 8,638,518 9,174,261 9,893,474 10,462,911
Total pension liability - ending (a)5,292,768$ 5,688,471$ 6,130,885$ 6,797,853$ 7,303,561$ 7,526,025$ 7,757,737$ 8,638,518$ 9,174,261$ 9,893,474$
Plan fiduciary net position
Contributions - employer 311,849$ 427,908$ 263,595$ 310,000$ 349,548$ 345,049$ 366,129$ 380,168$ 436,575$ 420,352$
Contributions - member - - - - - 4,394 6,448 6,325 4,001 4,494
Net investment income 304,634 446,047 394,308 (609,641) 1,165,249 280,927 461,503 492,276 766,509 165,489
Benefit payments/refunds (704,800) (774,453) (842,634) (934,025) (980,922) (965,299) (1,033,958) (1,101,201) (1,223,078) (1,308,290)
Administrative expenses (41,760) (41,135) (41,034) (44,556) (43,063) (42,185) (43,503) (44,419) (44,786) (46,422)
Other - - - - - - - - - -
Net change in plan fiduciary net position (130,077) 58,367 (225,765) (1,278,222) 490,812 (377,114) (243,381) (266,851) (60,779) (764,377)
Plan fiduciary net position - beginning 3,741,328 3,682,961 3,908,726 5,186,948 4,696,136 5,073,250 5,316,631 5,583,482 5,644,261 6,408,638
Plan fiduciary net position - ending (b)3,611,251$ 3,741,328$ 3,682,961$ 3,908,726$ 5,186,948$ 4,696,136$ 5,073,250$ 5,316,631$ 5,583,482$ 5,644,261$
Net pension liability ending (a) - (b)1,681,517$ 1,947,143$ 2,447,924$ 2,889,127$ 2,116,613$ 2,829,889$ 2,684,487$ 3,321,887$ 3,590,779$ 4,249,213$
Plan fiduciary net position as a percentage of total pension liability 68%66%60%57%71%62%65%62%61% 57%
Covered payroll n/a n/a n/a n/a n/a 54,921$ 80,600$ 79,064$ 50,009$ 56,175$
Net pension liability as a percentage of covered payroll n/a n/a n/a n/a n/a 5153% 3331% 4202% 7180% 7564%
-103-
Exhibit A-1
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE POLICE AND FIREFIGHTERS' PENSION
Last Ten Fiscal Years Ending June 30
TRUST FUND'S NET PENSION LIABILITY AND RELATED RATIOS
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially determined contribution 295,010$ 352,307$ 385,517$ 262,036$ 332,386$ 315,257$ 368,373$ 380,168$ 434,758$ 416,844$
Contributions in relation to the actuarially
determined contribution 311,849 427,908 263,595 310,000 349,548 345,049 366,129 376,148 436,575 420,352
Contribution deficiency (excess)(16,839)$ (75,601)$ 121,922$ (47,964)$ (17,162)$ (29,792)$ 2,244$ 4,020$ (1,817)$ (3,508)$
Covered payroll n/a n/a n/a n/a n/a 54,921$ 80,600$ 79,064$ 50,009$ 56,175$
Contributions as a percentage of covered payroll n/a n/a n/a n/a n/a 628% 454% 476% 873% 748%
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Annual money-weighted rate of return,
net of investment expense 8.63% 12.76% 10.93% -12.59% 26.61% 5.92% 9.28% 9.44% 14.61% 2.78%
Exhibit A-2
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF POLICE AND FIREFIGHTERS' PENSION TRUST FUND
CONTRIBUTIONS AND INVESTMENT RETURNS
Last Ten Fiscal Years Ending June 30
Schedule of Contributions
Schedule of Investment Returns
-104-
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
2025 0.3215% 19,229,933$ 10,092,543$ 190.5361% 61.6065%
2024 0.3186% 20,442,739$ 9,250,047$ 221.0015% 57.4759%
2023 0.3159% 22,840,791$ 8,742,004$ 261.2764% 52.4175%
2022 0.3250% 20,724,296$ 8,315,793$ 249.2161% 57.3282%
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%
CERS Hazardous
2025 1.5504% 39,875,604$ 11,618,663$ 343.2030% 57.0538%
2024 1.5192% 40,956,850$ 10,666,468$ 383.9776% 52.9596%
2023 1.5724% 47,981,053$ 10,240,852$ 468.5260% 47.1123%
2022 1.6275% 43,326,429$ 9,731,752$ 445.2069% 52.2617%
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%
*The amounts presented were determined as of the measurement date June 30 of the prior year.
Exhibit A-3
-105-
CITY OF PADUCAH, KENTUCKY
SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
COUNTY EMPLOYEES' RETIREMENT SYSTEM
LAST TEN FISCAL YEARS*
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
2025 2,090,131$ 2,090,131$ -$ 10,577,036$ 19.7610%
2024 2,355,600$ 2,355,600$ -$ 10,092,543$ 23.3400%
2023 2,164,511$ 2,164,511$ -$ 9,250,047$ 23.4000%
2022 1,991,428$ 1,991,428$ -$ 8,742,004$ 22.7800%
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%
CERS Hazardous
2025 4,275,340$ 4,275,340$ -$ 11,638,812$ 36.7335%
2024 4,806,871$ 4,806,871$ -$ 11,618,663$ 41.3720%
2023 4,566,315$ 4,566,315$ -$ 10,666,468$ 42.8100%
2022 3,645,743$ 3,645,743$ -$ 10,240,852$ 35.6000%
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%
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, 2019.
The amortization period of the unfunded accrued liability was reset to a closed 30 year period for the year ended June 30, 2019.
The investment rate of return increased to 6.50% from 6.25% at the prior measurement date.
The discount rate remained unchanged at 6.50% from the prior measurement date.
The inflation rate remained unchanged at 2.30% from the prior measurment date.
Projected salary increases remained unchanged at 3.30% to 10.30% for non-hazardous and 3.55% to 19.05% for hazardous.
Exhibit A-4
-106-
Notes to Required Supplementary Information
For the Year Ended June 30, 2024
CITY OF PADUCAH, KENTUCKY
SCHEDULE OF CITY'S CONTRIBUTIONS
COUNTY EMPLOYEES' RETIREMENT SYSTEM
LAST TEN 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, 2024:
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
2025 0.3219%(556,753)$ 10,092,543$ -5.5165% 104.8943%
2024 0.3186%(439,857)$ 9,250,047$ -4.7552% 104.2348%
2023 0.3159% 6,235,001$ 8,742,004$ 71.3223% 60.9476%
2022 0.3250% 6,221,407$ 8,315,793$ 74.8144% 62.9072%
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
2025 1.5508% 1,881,112$ 11,618,663$ 16.1904% 93.5259%
2024 1.5182% 2,077,282$ 10,666,468$ 19.4749% 92.2743%
2023 1.5717% 13,387,551$ 10,240,852$ 130.7269% 64.1271%
2022 1.6275% 13,159,206$ 9,731,752$ 135.2193% 66.8131%
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.
-107-
Exhibit A-5
CITY OF PADUCAH, KENTUCKY
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET MEDICAL INSURANCE LIABILITY
COUNTY EMPLOYEES' RETIREMENT SYSTEM
LAST EIGHT 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
2025 -$ -$ -$ 10,577,036$ 0.0000%
2024 -$ -$ -$ 10,092,543$ 0.0000%
2023 313,577$ 313,577$ -$ 9,250,047$ 3.3900%
2022 364,542$ 364,542$ -$ 8,742,004$ 4.1700%
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%
CERS Hazardous
2025 248,387$ 248,387$ -$ 11,638,812$ 2.1341%
2024 301,672$ 301,672$ -$ 11,618,663$ 2.5964%
2023 723,187$ 723,187$ -$ 10,666,468$ 6.7800%
2022 894,026$ 894,026$ -$ 10,240,852$ 8.7300%
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%
*
Changes of benefit terms:
None
Changes of assumptions:
Valuation date June 30, 2022
Actuarial cost method Entry Age Normal
Amortization method Level Percent of Payroll
Amortization period 30 years, closed
Asset valuation method
Payroll growth rate 2.00%
Investment return 6.50%
Inflation 2.30%
Single discount rate 5.99% for nonhazardous and 6.02% for hazardous; increase from 5.93% and 5.97%
Mortality
Healthcare trend rates (Pre-65)
Healthcare trend rates (Post-65)
LAST EIGHT FISCAL YEARS*
Exhibit A-6
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, 2024
-108-
Initial trend starting at 6.20% at January 1, 2024, gradually decreasing to an ultimate trend rate of 4.05%
over a period of 12 years.
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.
Initial trend starting at 9.00% at January 1, 2024, and gradually decreasing to an ultimate trend rate of
4.05% over a period of 12 years.
20% of the difference between the market value of assets and the expected actuarial value of assets is
recognized
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, 2024:
CITY OF PADUCAH, KENTUCKY
SUPPLEMENTARY INFORMATION
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
Exhibit B-1
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Interest 400,000$ 936,621$ 536,621$
Total revenues 400,000 936,621 536,621
Expenditures:
Debt issuance costs - 247,444 (247,444)
Planning and development 11,929,000 8,265,699 3,663,301
Total expenditures 11,929,000 8,513,143 3,415,857
Excess (deficiency) of revenues over
expenditures (11,529,000) (7,576,522) 3,952,478
Other Financing Sources (Uses):
Issuance of long term debt - 25,815,000 25,815,000
Premium on debt issued - 1,532,035 1,532,035
Discount on debt issued - (96,517) (96,517)
Transfers in - 19,131 19,131
Transfers out (3,071,000) - 3,071,000
Total other financing sources (uses)(3,071,000) 27,269,649 30,340,649
Net change in fund balance (14,600,000)$ 19,693,127 34,293,127$
Fund balance - beginning 15,357,729
Fund balance - ending 35,050,856$
See auditors report on pages 11-13.
-109-
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF PADUCAH, KENTUCKY
BOND FUND
DETAIL SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Exhibit B-2
Variance with
Final Budget
Final Positive
Budget (Negative)
Revenues:
Intergovernmental 44,820$ 44,820$ -$
Grants 14,220,490 6,378,928 (7,841,562)
Property upkeep, rentals, sales and other 378,222 378,229 7
Total revenues 14,643,532 6,801,977 (7,841,555)
Expenditures:
Capital outlay 39,041,879 6,508,627 32,533,252
Excess (deficiency) of revenues over
expenditures (24,398,347) 293,350 24,691,697
Other Financing Sources (Uses):
Issuance of long term debt 41,289 - (41,289)
Transfers in 21,905,948 14,773,154 (7,132,794)
Transfers out (3,053,802) (1,811,158) 1,242,644
Total other financing sources 18,893,435 12,961,996 (5,931,439)
Net change in fund balance (5,504,912)$ 13,255,346 18,760,258$
Fund balance - beginning 5,977,453
Fund balance - ending 19,232,799$
See auditors report on pages 11-13.
-110-
Actual
CITY OF PADUCAH, KENTUCKY
DETAIL SCHEDULE OF REVENUES, EXPENDITURES, AND
GENERAL CAPITAL IMPROVEMENTS FUND
FOR THE YEAR ENDED JUNE 30, 2025
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Exhibit B-3
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Intergovernmental 1,017,585$ 1,361,598$ 344,013$
Interest 30,000 92,990 62,990
Total revenues 1,047,585 1,454,588 407,003
Expenditures:
Debt service:
Principal requirement 2,725,640 2,725,504 136
Interest and fiscal requirement 1,253,055 1,252,341 714
Total expenditures 3,978,695 3,977,845 850
Excess (deficiency) of revenues over
expenditures (2,931,110) (2,523,257) 407,853
Other Financing Sources (Uses):
Transfers in 2,961,370 3,017,724 56,354
Transfers out - - -
Total other financing sources 2,961,370 3,017,724 56,354
Net change in fund balance 30,260$ 494,467 464,207$
Fund balance - beginning 1,730,158
Fund balance - ending 2,224,625$
See auditors report on pages 11-13.
-111-
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, 2025
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PADUCAH, KENTUCKY
SUPPLEMENTARY INFORMATION
NONMAJOR GOVERNMENTAL FUNDS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
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.
Tax Increment Financing Fund – to account for restricted revenues from taxes.
Exhibit B-4
Court
Awards
Fund
Cash and cash equivalents 1,133,768$ 898,604$ 644,809$
Receivables, net:
Accounts 39,551 210,439 -
Grants - - -
TOTAL ASSETS 1,173,319$ 1,109,043$ 644,809$
Liabilities:
Voucher and accounts payable 39,002$ 202,577$ 410,458$
Accrued payroll and payroll taxes - 91,898 -
Unearned revenues - 43,816 -
Total liabilities 39,002 338,291 410,458
Fund Balances:
Restricted for:
Highway and streets 1,134,317 - -
Public safety - - 234,351
Program purposes - - -
Assigned for:
Public safety - 770,752 -
Total fund balances 1,134,317 770,752 234,351
TOTAL LIABILITIES AND
FUND BALANCES 1,173,319$ 1,109,043$ 644,809$
See auditors report on pages 11-13.
CITY OF PADUCAH, KENTUCKY
-112-
FUND BALANCES
AND
Aid Program
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
Special Revenue Funds
ASSETS
Emergency
LIABILITIES
Municipal
Service Fund
Communication
Bed Tax Increment
Grant Tax Financing
Fund Fund Fund
960,542$ -$ 106,268$ 3,743,991$
- - - 249,990
1,200 - - 1,200
961,742$ -$ 106,268$ 3,995,181$
-$ -$ -$ 652,037$
- - - 91,898
686,000 - - 729,816
686,000 - - 1,473,751
- - - 1,134,317
- - - 234,351
275,742 - 106,268 382,010
- - - 770,752
275,742 - 106,268 2,521,430
961,742$ -$ 106,268$ 3,995,181$
-113-
Governmental
Total Nonmajor
Special Revenue Funds
Funds
Exhibit B-5
Court
Awards
Revenues: Fund
Taxes -$ 196,717$ -$
Charges for services - 457,577 -
Intergovernmental 513,318 - -
Parcel fees - 2,408,629 -
Grants - 79,340 42,185
Interest 45,952 41,456 27,961
Miscellaneous 3,000 263,647 -
Total revenues 562,270 3,447,366 70,146
Expenditures:
Current operations:
Public safety - 3,962,656 58,321
Public service 2,731,715 - -
Planning and development - - -
Debt service:
Principal requirement - 27,767 -
Interest and fiscal requirement - 29,233 -
Total expenditures 2,731,715 4,019,656 58,321
Excess (deficiency) of revenues
over expenditures (2,169,445) (572,290) 11,825
Other Financing Sources (Uses):
Issuance of leases - 948,223 -
Transfers in 2,156,585 210,063 -
Transfers out - (142,361) -
Total other financing sources (uses) 2,156,585 1,015,925 -
Net change in fund balances (12,860) 443,635 11,825
Fund balances - beginning 1,147,177 327,117 222,526
Fund balances - ending 1,134,317$ 770,752$ 234,351$
See auditors report on pages 11-13.
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Emergency
Service Fund
Special Revenue Funds
-114-
Aid Program
Municipal
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
Communication
Bed Tax Increment
Grant Tax Financing
Fund Fund Fund
-$ 1,804,696$ 73,380$ 2,074,793$
- - - 457,577
- - - 513,318
- - - 2,408,629
212,700 - - 334,225
25,742 - - 141,111
- - - 266,647
238,442 1,804,696 73,380 6,196,300
- - - 4,020,977
- - - 2,731,715
212,700 1,804,696 - 2,017,396
- - - 27,767
- - - 29,233
212,700 1,804,696 - 8,827,088
25,742 - 73,380 (2,630,788)
- - - 948,223
250,000 - - 2,616,648
- - (60,162) (202,523)
250,000 - (60,162) 3,362,348
275,742 - 13,218 731,560
- - 93,050 1,789,870
275,742$ -$ 106,268$ 2,521,430$
Total Nonmajor
Funds
-115-
Governmental
Special Revenue Funds
Exhibit B-6
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Intergovernmental 580,000$ 513,318$ (66,682)$
Interest 55,000 45,952 (9,048)
Other - 3,000 3,000
Total revenues 635,000 562,270 (72,730)
Expenditures:
Public service 2,733,290 2,731,715 1,575
Excess (deficiency) of revenues over
expenditures (2,098,290) (2,169,445) (71,155)
Other Financing Sources (Uses):
Transfers in 2,231,585 2,156,585 (75,000)
Transfers out - - -
Total other financing sources (uses)2,231,585 2,156,585 (75,000)
Net change in fund balance 133,295$ (12,860) (146,155)$
Fund balance - beginning 1,147,177
Fund balance - ending 1,134,317$
See auditors report on pages 11-13.
-116-
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF PADUCAH, KENTUCKY
MUNICIPAL AID PROGRAM 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:
Local contributions 295,000$ 196,717$ (98,283)$
Telephone surcharges 407,000 457,577 50,577
Parcel fees - 2,408,629 2,408,629
Grants 79,252 79,340 88
Interest 9,817 41,456 31,639
Miscellaneous 1,297,000 263,647 (1,033,353)
Total revenues 2,088,069 3,447,366 1,359,297
Expenditures:
Public safety 3,658,649 3,962,656 (304,007)
Debt service:
Principal requirement - 27,767 (27,767)
Interest and fiscal requirement - 29,233 (29,233)
Total expenditures 3,658,649 4,019,656 (361,007)
Excess (deficiency) of revenues over
expenditures (1,570,580) (572,290) 5,590,236
Other Financing Sources (Uses):
Issuance of leases - 948,223 948,223
Transfers in 1,713,000 210,063 (1,502,937)
Transfers out (142,420) (142,361) 59
Total other financing sources (uses)1,570,580 1,015,925 (554,655)
Net change in fund balance -$ 443,635 5,035,581$
Fund balance - beginning 327,117
Fund balance - ending 770,752$
See auditors report on pages 11-13.
-117-
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF PADUCAH, KENTUCKY
EMERGENCY COMMUNICATION SERVICE FUND
DETAIL SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Exhibit B-8
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Grants 30,000$ 42,185$ 12,185$
Interest 25,000 27,961 2,961
Total revenues 55,000 70,146 15,146
Expenditures:
Public safety 116,165 58,321 57,844
Excess (deficiency) of revenues over
expenditures (61,165) 11,825 72,990
Net change in fund balance (61,165)$ 11,825 72,990$
Fund balance - beginning 222,526
Fund balance - ending 234,351$
See auditors report on pages 11-13.
-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, 2025
Exhibit B-9
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Grants 2,547,500$ 212,700$ (2,334,800)$
Interest 25,742 25,742 -
Total revenues 2,573,242 238,442 (2,334,800)
Expenditures:
Planning and development 2,823,242 212,700 2,610,542
Excess (deficiency) of revenues over
expenditures (250,000) 25,742 (4,945,342)
Other Financing Sources (Uses):
Transfers in 250,000 250,000 -
Transfers out - - -
Total other financing sources (uses)250,000 250,000 -
Net change in fund balance -$ 275,742 (4,945,342)$
Fund balance - beginning -
Fund balance - ending 275,742$
See auditors report on pages 11-13.
-119-
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF PADUCAH, KENTUCKY
GRANT FUND
DETAIL SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Exhibit B-10
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Taxes 1,850,650$ 1,804,696$ (45,954)$
Total revenues 1,850,650 1,804,696 (45,954)
Expenditures:
Planning and development 1,850,650 1,804,696 45,954
Excess (deficiency) of revenues over
expenditures - - -
Other Financing Sources (Uses):
Operating transfers in - - -
Operating transfers out - - -
Net change in fund balance -$ - -$
Fund balance - beginning -
Fund balance - ending -$
See auditors report on pages 11-13.
-120-
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF PADUCAH, KENTUCKY
BED TAX FUND
DETAIL SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Exhibit B-11
Variance with
Final Budget
Final Positive
Budget Actual (Negative)
Revenues:
Taxes 87,250$ 73,380$ (13,870)$
Total revenues 87,250 73,380 (13,870)
Expenditures:
Planning and development - - -
Excess (deficiency) of revenues over
expenditures 87,250 73,380 (13,870)
Other Financing Sources (Uses):
Operating transfers in 100,000 - (100,000)
Operating transfers out (66,250) (60,162) 6,088
Total other financing sources (uses)33,750 (60,162) (93,912)
Net change in fund balance 121,000$ 13,218 (107,782)$
Fund balance - beginning 93,050
Fund balance - ending 106,268$
See auditors report on pages 11-13.
-121-
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF PADUCAH, KENTUCKY
TAX INCREMENT FINANCING FUND
DETAIL SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PADUCAH, KENTUCKY
SUPPLEMENTARY INFORMATION
NONMAJOR PROPRIETARY FUNDS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
COMBINING FINANCIAL STATEMENTS
NONMAJOR PROPRIETARY FUNDS
Section 8 Housing Fund – to account for the housing choice voucher program grant governed by the United
States Department of Housing and Urban Development.
Transient Dock Fund – to account for the operation of the Transient Dock.
Exhibit C-1
Transient
Dock
Current Assets: Fund
Cash and cash equivalents 313,042$ 346,433$ 659,475$
Inventory - 18,553 18,553
Total current assets 313,042 364,986 678,028
Noncurrent Assets:
Prepaid OPEB obligation 4,899 - 4,899
Net depreciable capital assets 546 - 546
Total noncurrent assets 5,445 - 5,445
Total assets 318,487 364,986 683,473
Deferred Outflows of Resources:
Deferred pension related outflows 27,450 - 27,450
Deferred OPEB related outflows 9,024 - 9,024
Total deferred outflows of resources 36,474 - 36,474
Current Liabilities:
Voucher and accounts payable 77,085 8,309 85,394
Accrued payroll - 904 904
Accrued compensated absences 2,759 - 2,759
Total current liabilities 79,844 9,213 89,057
Noncurrent Liabilities:
Net pension liability 169,223 - 169,223
Accrued compensated absences 7,033 - 7,033
Total noncurrent liabilities 176,256 - 176,256
Total liabilities 256,100 9,213 265,313
Deferred Inflows of Resources
Deferred pension related inflows 18,526 - 18,526
Deferred OPEB related inflows 47,156 - 47,156
Total deferred inflows of resources 65,682 - 65,682
Net invested in capital assets 546 - 546
Restricted - Housing 27,734 - 27,734
Restricted - OPEB 4,899 - 4,899
Unrestricted - 355,773 355,773
TOTAL NET POSITION 33,179$ 355,773$ 388,952$
See auditors report on pages 11-13.
LIABILITIES
NET POSITION
-122-
Total Nonmajor
Enterprise
Funds
Section 8
Housing
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
JUNE 30, 2025
ASSETS
Exhibit C-2
Transient
Dock
Operating Revenues:Fund
Charges for services -$ 120,401$ 120,401$
Miscellaneous 1,317 - 1,317
Total operating income 1,317 120,401 121,718
Operating Expenses:
Cost of sales and service 2,601,802 126,053 2,727,855
Depreciation and amortization 208 - 208
Total operating expenses 2,602,010 126,053 2,728,063
Operating income (loss)(2,600,693) (5,652) (2,606,345)
Non-Operating Revenues (Expenses):
Grants - program purpose 2,583,574 - 2,583,574
Interest and investment income 34 15,835 15,869
Total nonoperating revenues
(expenses) 2,583,608 15,835 2,599,443
Income (loss) before contributions and
transfers (17,085) 10,183 (6,902)
Contributions and Operating Transfers:
Transfers in - 304,100 304,100
Transfers out - - -
Total contributions and operating transfers - 304,100 304,100
Change in net position (17,085) 314,283 297,198
Net position - beginning 50,264 41,490 91,754
Net position - ending 33,179$ 355,773$ 388,952$
See auditors report on pages 11-13.
COMBINING STATEMENT OF REVENUES, EXPENSES
CITY OF PADUCAH, KENTUCKY
Total Nonmajor
Enterprise
-123-
FOR THE YEAR ENDED JUNE 30, 2025
NONMAJOR PROPRIETARY FUNDS
AND CHANGES IN NET POSITION
Funds
Section 8
Housing
Exhibit C-3
Transient
Dock
Cash Flows from Operating Activities:Fund
Cash received from customers -$ 120,401$ 120,401$
Payments to employees (46,916) (21,128) (68,044)
Other receipts 1,317 - 1,317
Housing assistance and other payments (2,586,987) (102,533) (2,689,520)
Net cash provided (used) by operating activities (2,632,586) (3,260) (2,635,846)
Cash Flows from Noncapital
Financing Activities:
Grants - program purpose 2,583,574 - 2,583,574
Transfers from other funds - 304,100 304,100
Transfers to other funds - - -
Net cash provided (used) by noncapital
financing activities 2,583,574 304,100 2,887,674
Cash Flows from Capital and Related
Financing Activities:
Proceeds from sale of assets - - -
Acquisition and construction
of capital assets - - -
Net cash provided (used) by capital and
related financing activities - - -
Cash Flows from Investing Activities:
Interest on cash and investments 34 15,835 15,869
Net cash provided (used) by investing
activities 34 15,835 15,869
Net increase (decrease) in cash and cash
equivalents (48,978) 316,675 267,697
Cash and cash equivalents, July 1, 2024 362,020 29,758 391,778
CASH AND CASH EQUIVALENTS,
JUNE 30, 2025 313,042$ 346,433$ 659,475$
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Operating income (loss)(2,600,693)$ (5,652)$ (2,606,345)$
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation and amortization 208 - 208
Change in assets and liabilities:
Inventory - (3,904) (3,904)
OPEB obligation and related deferrals (12,963) - (12,963)
Pension obligation and related deferrals (9,702) - (9,702)
Accounts payable and accrued expenses (9,436) 6,296 (3,140)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES (2,632,586)$ (3,260)$ (2,635,846)$
See auditors report on pages 11-13.
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
-124-
Section 8
Housing
Total Nonmajor
Enterprise
Funds
CITY OF PADUCAH, KENTUCKY
SUPPLEMENTARY INFORMATION
INTERNAL SERVICE FUNDS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
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 300$ 3,492,817$ 924,000$ 2,587,663$ 7,004,780$
Receivables, net 80,828 4,150 - 182,645 267,623
Prepaid expense - 772,913 - - 772,913
Inventories 90,803 - - - 90,803
Total current assets 171,931 4,269,880 924,000 2,770,308 8,136,119
Noncurrent Assets:
Prepaid OPEB obligations 24,753 - - - 24,753
Net depreciable capital assets 62,160 4,930,098 - - 4,992,258
Total noncurrent assets 86,913 4,930,098 - - 5,017,011
Total assets 258,844 9,199,978 924,000 2,770,308 13,153,130
Deferred Outflows of Resources:
Deferred pension related outflows 136,019 - - - 136,019
Deferred OPEB related outflows 45,597 - - - 45,597
Total deferred outflows of resources 181,616 - - - 181,616
Current Liabilities:
Voucher and accounts payable 10,091 - 433 306,819 317,343
Accrued payroll and payroll taxes 27,048 - - - 27,048
Accrued compensated absences 44,771 - - - 44,771
Total current liabilities 81,910 - 433 306,819 389,162
Noncurrent Liabilities:
Pension obligations 854,963 - - - 854,963
Total noncurrent liabilities 854,963 - - - 854,963
Total liabilities 936,873 - 433 306,819 1,244,125
Deferred Inflows of Resources
Deferred pension related inflows 93,597 - - - 93,597
Deferred OPEB related inflows 239,640 - - - 239,640
Total deferred inflows of resources 333,237 - - - 333,237
Net invested in capital assets 62,160 4,930,098 - - 4,992,258
Restricted - OPEB 24,753 - - - 24,753
Unrestricted (916,563) 4,269,880 923,567 2,463,489 6,740,373
TOTAL NET POSITION (829,650)$ 9,199,978$ 923,567$ 2,463,489$ 11,757,384$
See auditors report on pages 11-13.
-125-
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2025
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 727,755$ 1,180,428$ 1,281,043$ 3,174,444$ 6,363,670$
Charges for services - external - - - 330,157 330,157
Total operating revenues 727,755 1,180,428 1,281,043 3,504,601 6,693,827
Operating Expenses:
Vehicle maintenance 590,603 - - - 590,603
Administrative - 59,251 - 730,554 789,805
Insurance premium, claims and medical - - 1,345,901 3,766,272 5,112,173
Depreciation 7,703 878,652 - - 886,355
Total operating expenses 598,306 937,903 1,345,901 4,496,826 7,378,936
Operating income (loss)129,449 242,525 (64,858) (992,225) (685,109)
Nonoperating Revenues and (Expenses):
Interest and investment income - 170,133 - 150,529 320,662
Gain (loss) on disposal of property
and equipment 10,020 72,014 - - 82,034
Total nonoperating revenues
(expenses)10,020 242,147 - 150,529 402,696
Income (loss) before transfers 139,469 484,672 (64,858) (841,696) (282,413)
Contributions and Transfers:
Transfers in 76,893 - 56,980 - 133,873
Transfers out - - - (91,370) (91,370)
Total contributions and operating transfers 76,893 - 56,980 (91,370) 42,503
Change in net position 216,362 484,672 (7,878) (933,066) (239,910)
Net position - beginning (1,046,012)8,715,306 931,445 3,396,555 11,997,294
Net position - ending (829,650)$ 9,199,978$ 923,567$ 2,463,489$ 11,757,384$
See auditors report on pages 11-13.
-126-
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, 2025
Exhibit D-3
Health
Fleet Lease Insurance Insurance Combined
Cash Flows from Operating Activities: Trust Fund Fund Total
Receipts from other funds for services 737,077$ 1,176,278$ 1,281,102$ 3,425,908$ 6,620,365$
Payments to suppliers (89,304) 679,587 - - 590,283
Payments to employees (706,133) - - - (706,133)
Insurance premium, claims and medical - - - (3,611,419) (3,611,419)
Other payments - (59,251) (1,383,372) (730,554) (2,173,177)
Net cash provided (used) by operating activities (58,360) 1,796,614 (102,270) (916,065) 719,919
Cash Flows from Noncapital Financing
Activities:
Transfers from other funds 76,893 - 56,980 - 133,873
Transfers to other funds - - - (91,370) (91,370)
Net cash provided (used) by noncapital
financing activities 76,893 - 56,980 (91,370) 42,503
Cash Flows from Capital and Related
Financing Activities:
Proceeds from sale of capital assets 10,020 116,667 - - 126,687
Purchase of capital assets (33,289) (2,173,571) - - (2,206,860)
Net cash provided (used) by capital and
related financing activities (23,269) (2,056,904) - - (2,080,173)
Cash Flows from Investing Activities:
Interest and dividends - 170,133 - 150,529 320,662
Net cash provided (used) by investing activities - 170,133 - 150,529 320,662
Net increase (decrease) in cash
and cash equivalents (4,736) (90,157) (45,290) (856,906) (997,089)
Cash and cash equivalents, July 1, 2024 5,036 3,582,974 969,290 3,444,569 8,001,869
CASH AND CASH EQUIVALENTS,
JUNE 30, 2025 300$ 3,492,817$ 924,000$ 2,587,663$ 7,004,780$
Reconciliation of Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Operating income (loss)129,449$ 242,525$ (64,858)$ (992,225)$ (685,109)$
Adjustments to reconcile operating
income (loss) to net cash provided
(used) by operating activities:
Depreciation and amortization 7,703 878,652 - - 886,355
Change in assets and liabilities:
Receivables 9,322 (4,150) 59 (78,693) (73,462)
Prepaid expense - 679,587 - - 679,587
Inventories (16,288) - - - (16,288)
OPEB obligation and related deferrals (77,435) - - - (77,435)
Pension obligation and related deferrals (105,924) - - - (105,924)
Accounts payable and accrued expenses (5,187) - (37,471) 154,853 112,195
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES (58,360)$ 1,796,614$ (102,270)$ (916,065)$ 719,919$
See auditors report on pages 11-13.
-127-
Fleet
Maintenance
CITY OF PADUCAH, KENTUCKY
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF PADUCAH, KENTUCKY
SUPPLEMENTARY INFORMATION
FIDUCIARY FUNDS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
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 17,871$
Investments at fair value
Mutual funds 1,206,581
Total assets 1,224,452
Accounts payable -
Restricted for other purposes 1,224,452$
See auditors report on pages 11-13.
-128-
ASSETS
LIABILITIES
NET POSITION
JUNE 30, 2025
STATEMENT OF NET POSITION
CITY OF PADUCAH, KENTUCKY
FIDUCIARY FUNDS - PRIVATE-PURPOSE TRUST FUNDS
Exhibit E-2
Cemetery
and
Park
Additions:Trusts
Contributions:
Private donations 9,442$
Total contributions 9,442
Investment earnings:
Change in fair value of investments 39,760
Interest and dividends 77,796
Net investment earnings 117,556
Total additions 126,998
Deductions:
Capital outlay 51,301
Administrative expenses 20,483
Total deductions 71,784
Change in net position 55,214
Net position - beginning 1,169,238
Net position - ending 1,224,452$
See auditors report on pages 11-13.
STATEMENT OF CHANGES IN NET POSITION
CITY OF PADUCAH, KENTUCKY
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FOR THE YEAR ENDED JUNE 30, 2025
FIDUCIARY FUNDS - PRIVATE-PURPOSE TRUST FUNDS
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PADUCAH, KENTUCKY
STATISTICAL SECTION
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
STATISTICAL SECTION
Contents Page
Financial Trends 130-134
Revenue Capacity 135-140
Debt Capacity 141-144
Economic and Demographic Information 145-146
Operating Information 147-149
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 annual
comprehensive financial reports for the relevant year.
This part of the City of Paducah's annual comprehensive 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.
2025 2024 2023 (2)2022 (2)2021 2020 2019 2018 (1)2017 2016
Governmental activities:
Net Invested in Capital Assets 96,401,070$ 70,081,507$ 64,717,247$ 58,980,030$ 57,608,864$ 57,368,777$ 55,243,449$ 55,031,812$ 52,898,618$ 46,389,685$
Restricted for:
Program purposes 4,937,879 4,580,706 2,705,217 793,091 196,957 208,525 213,379 128,699 131,055 147,218
Capital projects 1,134,317 1,147,177 1,056,931 203,051 563,002 732,616 964,320 1,959,953 2,137,650 1,148,789
OPEB 493,397 - - - - - - - - -
Unrestricted (27,756,425) (30,553,656) (36,500,476) (41,037,127) (45,053,843) (42,955,542) (37,543,113) (34,235,978) (17,834,152) (23,323,077)
Total governmental activities net position 75,210,238$ 45,255,734$ 31,978,919$ 18,939,045$ 13,314,980$ 15,354,376$ 18,878,035$ 22,884,486$ 37,333,171$ 24,362,615$
Business-type activities:
Net Invested in Capital Assets 3,086,729 2,481,099 2,432,284 2,148,059 2,094,123 2,465,553 2,494,761 2,876,483 2,152,827 1,678,728
Restricted for:
Program purposes 27,734 49,510 7,527 199,794 105,322 - - - - 38,247
OPEB 63,356 - - - - - - - - -
Unrestricted (404,498) (1,405,473) (1,501,335) (477,882) (465,011) (393,937) 256,715 159,847 1,513,281 3,194,228
Total business-type activities net postion 2,773,321$ 1,125,136$ 938,476$ 1,869,971$ 1,734,434$ 2,071,616$ 2,751,476$ 3,036,330$ 3,666,108$ 4,911,203$
Primary government:
Net Invested in Capital Assets 99,487,799 72,562,606 67,149,531 61,128,089 59,702,987 59,834,330 57,738,210 57,908,295 55,051,445 48,068,413
Restricted for:
Program purposes 4,965,613 4,630,216 2,712,744 992,885 302,279 208,525 213,379 128,699 131,055 185,465
Capital projects 1,134,317 1,147,177 1,056,931 203,051 563,002 732,616 964,320 1,959,953 2,137,650 1,148,789
OPEB 556,753 - - - - - - - - -
Unrestricted (28,160,923) (31,959,129) (38,001,811) (41,515,009) (45,518,854) (43,349,479) (37,286,398) (34,076,131) (16,320,871) (20,128,849)
Total primary government net position 77,983,559$ 46,380,870$ 32,917,395$ 20,809,016$ 15,049,414$ 17,425,992$ 21,629,511$ 25,920,816$ 40,999,279$ 29,273,818$
(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) Fiscal years 2023 and 2022 have been restated for a correction of an error. Unassigned net position was overstated $141,113.
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TABLE 1
CITY OF PADUCAH, KENTUCKY
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2025 2024 2023 2022 (2)2021 2020 2019 2018 (1)2017 2016
Expenses
Governmental activities:
General government 13,787,393$ 11,710,196$ 11,972,825$ 11,686,115$ 12,846,090$ 10,574,490$ 8,891,713$ 9,590,575$ 8,652,987$ 9,777,876$
Public safety 21,323,779 24,262,599 26,348,079 25,631,674 28,084,323 27,623,826 27,002,119 25,602,852 20,176,070 20,503,784
Public service 9,065,508 6,965,473 7,431,587 7,057,855 6,761,258 7,491,652 7,681,383 7,511,063 7,771,335 10,266,856
Parks and recreation 4,239,585 4,295,705 3,503,495 3,423,465 3,477,584 3,597,301 3,544,515 3,397,087 3,059,447 3,052,360
Planning and development 11,088,437 4,559,675 5,845,326 2,348,101 2,284,229 2,049,447 3,511,710 1,455,677 1,077,265 911,830
Interest on long-term debt 790,372 434,403 483,950 513,885 694,776 1,026,449 800,175 861,589 885,380 900,593
Total governmental activities expenses 60,295,074 52,228,051 55,585,262 50,661,095 54,148,260 52,363,165 51,431,615 48,418,843 41,622,484 45,413,299
Business-type activities:
Solid Waste 5,127,128 4,705,558 5,482,827 4,558,219 4,849,815 5,302,783 4,512,447 4,096,022 3,902,907 3,815,476
Section Eight Housing 2,602,010 2,487,323 2,250,727 2,052,670 1,913,079 1,620,623 2,046,520 2,064,408 1,952,441 1,874,074
Civic Center - - - 35,544 30,004 57,990 70,956 76,639 92,471 74,457
Transient Boat Dock 126,052 101,929 122,652 120,100 108,371 83,834 93,047 50,535 1,031 -
Total business-type activities expenses 7,855,190 7,294,810 7,856,206 6,766,533 6,901,269 7,065,230 6,722,970 6,287,604 5,948,850 5,764,007
Total primary government expenses 68,150,264$ 59,522,861$ 63,441,468$ 57,427,628$ 61,049,529$ 59,428,395$ 58,154,585$ 54,706,447$ 47,571,334$ 51,177,306$
Program Revenues
Governmental activities:
Charges for services:
General government 1,385,771$ 1,872,740$ 3,387,707$ 1,912,220$ 1,268,310$ 1,946,225$ 1,347,624$ 1,276,959$ 1,650,034$ 1,128,785$
Public safety 504,958 484,612 433,823 409,311 363,503 348,524 523,209 571,427 340,705 237,641
Public service 1,145,205 1,076,634 988,555 941,589 985,735 981,243 994,610 962,822 967,518 1,065,010
Parks and recreation 180,670 158,120 151,604 103,842 35,371 50,677 126,473 125,996 121,929 132,909
Operating grants and contributions 3,328,848 7,594,357 9,181,984 4,333,082 5,036,389 3,000,719 2,513,938 2,441,864 7,509,005 6,179,709
Capital grants and contributions 29,472,188 2,777,103 2,619,851 2,222,360 1,662,014 2,192,974 1,685,423 542,980 3,702,428 4,139,036
Total governmental activities program revenues 36,017,640 13,963,566 16,763,524 9,922,404 9,351,322 8,520,362 7,191,277 5,922,048 14,291,619 12,883,090
Business-type activities:
Solid Waste 5,886,446$ 4,935,112$ 4,822,064$ 4,802,844$ 4,561,051$ 4,738,408$ 4,597,398$ 4,555,488$ 4,567,392$ 4,520,084$
Section Eight Housing 1,317 186 100 2,056 466 299 1,504 - - -
Civic Center - - - - (2,750) 15,423 29,784 35,670 36,725 40,148
Transient Boat Dock 120,401 81,711 133,436 120,819 41,068 72,788 79,362 43,534 - -
Operating grants and contributions 2,648,900 2,557,918 2,160,230 2,204,532 2,118,215 1,903,339 2,057,051 1,965,868 1,962,125 1,845,549
Capital grants and contributions 598,756 - - - - - - - - -
Total business-type activities program revenues 9,255,820 7,574,927 7,115,830 7,130,251 6,718,050 6,730,257 6,765,099 6,600,560 6,566,242 6,405,781
Total primary government program revenues 45,273,460$ 21,538,493$ 23,879,354$ 17,052,655$ 16,069,372$ 15,250,619$ 13,956,376$ 12,522,608$ 20,857,861$ 19,288,871$
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TABLE 2
CITY OF PADUCAH, KENTUCKY
CHANGES IN NET POSITION
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2025 2024 2023 2022 (2)2021 2020 2019 2018 (1)2017 2016
Net (Expense)/Revenue
Governmental activities (24,277,434)$ (38,264,485)$ (38,821,738)$ (40,738,691)$ (44,796,938)$ (43,842,803)$ (44,240,338)$ (42,496,795)$ (27,330,865)$ (32,530,209)$
Business-type activities 1,400,630 280,117 (740,376) 363,718 (183,219) (334,973) 42,129 312,956 617,392 641,774
Total primary government net (expense) (22,876,804)$ (37,984,368)$ (39,562,114)$ (40,374,973)$ (44,980,157)$ (44,177,776)$ (44,198,209)$ (42,183,839)$ (26,713,473)$ (31,888,435)$
General Revenues and Other Changes
in Net Position
Governmental activities:
Taxes and licenses:
Property taxes, levied for general purposes 7,181,645 6,778,826 6,575,885 6,128,302 5,915,288 5,670,956 5,449,122 5,248,369 4,996,242 4,943,962
Insurance premium tax 7,102,699 7,424,599 6,331,216 5,834,013 5,819,896 4,712,859 4,486,038 4,592,834 4,331,956 4,170,381
Gross receipts license tax 4,779,042 5,137,856 5,375,589 5,297,560 4,530,125 4,307,270 4,367,410 4,631,352 4,721,657 4,711,708
Employee license tax 27,213,450 24,835,738 25,904,591 23,845,186 22,064,353 21,490,918 21,648,742 21,054,644 20,803,763 20,130,249
Other taxes 4,477,205 4,449,033 4,547,198 4,433,257 3,818,918 3,060,362 2,941,096 3,044,203 2,933,407 2,759,902
Unrestricted investment earnings 3,459,440 2,866,207 2,667,976 551,355 368,425 610,727 728,227 428,721 188,097 137,224
Miscellaneous 2,557 (270,959) 70,118 14,710 - - 99,208 14,190 51,922 189,489
Transfers in/out 15,900 320,000 389,039 258,374 240,537 466,050 514,046 390,048 2,274,377 137,582
Total governmental activities 54,231,938 51,541,300 51,861,612 46,362,757 42,757,542 40,319,142 40,233,889 39,404,361 40,301,421 37,180,497
Business-type activities:
Unrestricted investment earnings 157,971 169,462 136,363 28,613 27,226 68,177 91,140 54,139 37,644 30,302
Miscellaneous 105,484 57,081 61,557 1,580 59,348 72,986 75,923 (13,063) 374,244 85,649
Transfers (15,900) (320,000) (389,039) (258,374) (240,527) (466,050) (514,046) (390,048) (2,274,377) (137,582)
Total business-type activities 247,555 (93,457) (191,119) (228,181) (153,953) (324,887) (346,983) (348,972) (1,862,489) (21,631)
Change in Net Position
Governmental activities:29,954,504 13,276,815 13,039,874 5,624,066 (2,039,396) (3,523,661) (4,006,449) (3,092,434) 12,970,556 4,650,288
Business-type activities:1,648,185 186,660 (931,495) 135,537 (337,172) (659,860) (304,854) (36,016) (1,245,097) 620,143
Total primary government 31,602,689$ 13,463,475$ 12,108,379$ 5,759,603$ (2,376,568)$ (4,183,521)$ (4,311,303)$ (3,128,450)$ 11,725,459$ 5,270,431$
(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)Fiscal year 2022 has been restated for a correction of an error. Grant revenues were overstated $141,113.
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CITY OF PADUCAH, KENTUCKY
Last Ten Fiscal Years
TABLE 2
(accrual basis of accounting)
CHANGES IN NET POSITION
Fiscal Year
2025 2024 2023 (1)2022 (1)2021 2020 2019 2018 2017 2016
General Fund
Committed for:
Pension reserve -$ -$ 670,365$ 670,365$ 670,365$ 670,365$ -$ -$ -$ -$
Unassigned 25,716,551 31,537,207 28,723,579 24,267,113 21,538,628 18,974,268 19,184,079 17,697,273 15,330,645 13,198,126
Total general fund 25,716,551$ 31,537,207$ 29,393,944$ 24,937,478$ 22,208,993$ 19,644,633$ 19,184,079$ 17,697,273$ 15,330,645$ 13,198,126$
All Other Governmental Funds
Nonspendable:
Inventory 550,165$ 317,758$ 295,989$ 341,539$ 376,339$ 453,398$ 474,816$ 471,135$ 525,732$ 623,735$
Restricted for:
Program purposes 3,328,093 2,682,064 1,833,884 996,142 759,959 941,141 996,071 758,139 736,461 1,296,007
Capital improvements 35,050,856 15,357,729 18,061,121 19,887,997 19,779,154 19,977,142 181,628 1,330,513 1,532,244 -
Committed for:
Capital improvements 2,147,778 4,383,754 3,977,570 4,130,122 3,655,121 2,934,287 2,352,368 2,310,621 2,387,922 2,018,581
Assigned for:
Program purposes 2,995,377 2,057,275 2,129,517 1,953,881 1,835,723 1,599,371 1,491,921 1,323,941 1,325,941 1,049,802
Capital improvements 18,682,634 5,659,695 7,724,128 7,397,442 6,370,850 4,184,306 3,987,920 5,851,629 7,429,412 5,179,330
Total all other governmental funds 62,754,903$ 30,458,275$ 34,022,209$ 34,707,123$ 32,777,146$ 30,089,645$ 9,484,724$ 12,045,978$ 13,937,712$ 10,167,455$
(1) Fiscal years 2023 and 2022 have been restated for a correction of an error. Assigned capital improvement fund balance was overstated $141,113.
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TABLE 3
CITY OF PADUCAH, KENTUCKY
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2025 2024 2023 2022 (2)2021 2020 2019 2018 2017 2016
Revenues:
Taxes 11,728,565$ 11,327,318$ 11,058,652$ 10,565,908$ 9,774,901$ 8,652,093$ 7,803,520$ 7,741,994$ 7,310,257$ 6,976,933$
Licenses 40,146,656 38,407,710 38,749,289 35,949,346 32,871,864 30,962,169 30,987,476 30,817,507 30,360,825 29,606,552
Charges for services 1,319,375 1,252,253 1,183,490 1,077,278 922,955 918,894 980,827 1,037,668 964,766 884,259
Intergovernmental 1,919,736 1,443,677 1,230,753 1,165,253 1,806,439 1,305,247 1,246,666 1,243,856 1,140,622 1,132,852
Grants 7,682,217 5,614,178 7,321,192 3,759,769 4,565,348 2,832,657 2,580,700 1,056,687 6,476,765 8,892,529
Interest 3,138,780 2,490,232 2,383,331 501,653 312,932 495,449 594,569 364,975 144,079 115,922
Property upkeep, rentals, sales and other fees 27,541,573 4,637,478 4,295,256 2,931,011 4,150,383 2,605,489 2,292,786 2,746,311 2,389,230 2,085,412
Total revenues 93,476,902 65,172,846 66,221,963 55,950,218 54,404,822 47,771,998 46,486,544 45,008,998 48,786,544 49,694,459
Expenditures:
General government 7,077,101 7,107,555 8,800,786 5,970,330 5,448,505 5,083,231 4,776,778 5,282,385 4,881,298 4,526,828
Public safety 28,505,685 26,310,934 25,225,283 23,386,768 21,741,834 20,699,568 20,216,219 19,755,167 18,923,070 18,435,365
Public service 32,225,122 8,149,434 7,320,232 6,739,731 6,006,971 6,638,775 7,135,831 6,856,203 6,515,997 6,106,773
Parks and recreation 3,655,972 3,436,053 3,316,436 3,123,799 2,945,053 3,240,206 3,255,263 3,129,032 3,012,236 2,929,404
Planning and development 12,277,328 4,027,125 5,607,080 3,171,421 2,482,941 1,976,496 1,290,569 1,071,878 936,855 910,379
Other 457,523 457,221 454,096 493,736 1,393,692 431,505 430,441 441,674 393,812 441,742
Capital outlay 6,508,627 12,546,751 12,302,819 7,639,458 4,499,609 6,386,992 10,433,993 5,077,017 10,287,203 13,305,919
Debt service:
Principal requirement 3,871,202 4,316,277 2,832,606 3,309,044 3,575,792 2,763,738 2,443,416 2,357,542 2,244,361 2,137,759
Debt issuance costs 247,444 - - 17,486 49,076 182,105 86,283 - - -
Interest and fiscal requirement 1,359,740 1,070,459 1,112,096 1,134,620 1,184,922 812,040 787,368 804,620 810,917 845,609
Total expenditures 96,185,744 67,421,809 66,971,434 54,986,393 49,328,395 48,214,656 50,856,161 44,775,518 48,005,749 49,639,778
Other Financing Sources (Uses):
Issuance of long term debt 25,815,000 - - 1,330,614 3,020,000 20,520,000 5,370,000 - - -
Payment to bond escrow agent - - - (1,507,646) (3,187,734) - (2,815,573) - - -
Premium on debt issued 1,532,035 - - 204,531 232,710 - 332,097 - - -
Discount on debt issued (96,517) - - (10,013) (11,955) (64,666) - - - -
Long-term debt draws/issued - - 1,213,469 3,460,662 48,236 463,262 133,749 - 3,000,000 -
Leases & subscription-based
information technology
arrangements 1,938,600 617,169 2,921,340 - - - - - - -
Transfers in 21,123,710 15,065,811 13,076,213 8,485,383 10,982,495 9,681,148 10,644,129 6,330,766 10,377,609 10,034,851
Transfers out (21,128,014) (14,854,688) (12,690,002) (8,268,894) (10,908,318) (9,091,611) (10,369,233) (6,089,352) (8,255,627) (10,105,282)
Total other financing sources (uses)29,184,814 828,292 4,521,020 3,694,637 175,434 21,508,133 3,295,169 241,414 5,121,982 (70,431)
Net change in fund balances 26,475,972$ (1,420,671)$ 3,771,549$ 4,658,462$ 5,251,861$ 21,065,475$ (1,074,448)$ 474,894$ 5,902,777$ (15,750)$
Capital outlay (1)32,478,263$ 11,520,913$ 12,790,865$ 6,960,055$ 4,056,766$ 5,253,907$ 7,057,338$ 4,871,811$ 8,180,134$ 9,718,561$
Debt service as a percentage
of noncapital expenditures 8.21%9.64%7.28%9.25%10.52%8.32%7.38%7.92%7.67%7.47%
(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.
(2) Fiscal year 2022 has been restated for a correction of an error. Grant revenues were overstated $141,113.
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(modified accrual basis of accounting)
TABLE 4
CITY OF PADUCAH, KENTUCKY
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
Fiscal Year
Total
Estimated Direct
Fiscal Personal Actual Tax
Year Commercial Residential Property Franchise Total Value Rate Exemptions
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
2022 1,089,161,125 951,835,958 554,605,247 106,115,378 2,701,717,708 2,792,306,325 0.296 96.8% 90,588,617
2023 1,169,528,609 1,044,566,181 577,849,087 91,913,018 2,883,856,895 2,979,916,410 0.291 96.8% 96,059,515
2024 1,236,115,573 1,187,796,499 679,269,847 111,217,773 3,214,399,692 3,326,691,653 0.282 96.6% 112,291,961
2025 1,268,625,093 1,210,868,200 703,954,064 87,676,511 3,271,123,868 3,383,035,529 0.284 96.7% 111,911,661
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
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
2022 0.271 0.390 0.296 0.538 0.538 0.864 0.864 0.016 0.016 0.107 0.161
2023 0.265 0.390 0.291 0.538 0.538 0.846 0.864 0.015 0.015 0.108 0.164
2024 0.256 0.373 0.282 0.530 0.530 0.846 0.864 0.014 0.014 0.105 0.158
2025 0.264 0.356 0.284 0.525 0.528 0.874 0.874 0.014 0.013 0.106 0.157
Source: McCracken County Property Valuation Administrator and City Tax Levy Ordinance.
TABLE 6
CITY OF PADUCAH, KENTUCKY
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(PER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
General Fund
City Direct Rates
McCracken Co.City of Paducah
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McCracken Paducah
School Districts School Districts Junior College County
(1)(2)
(1)(2)
Assessed Assessed
Taxpayer Valuation Valuation
Kentucky Oaks Mall 45,928,400$ 1.40%50,900,262$ 2.20%
Boyd Co FKA Whayne Supply Co 28,724,892 0.88%
Prosper Paducah LLC 25,680,000 0.79%
Hudson Technologies Co 19,593,553 0.60%
LCP Paducah II LLC 15,674,484 0.48%
Computer Services Inc 15,521,291 0.47%9,083,185 0.39%
Menard LLC 14,950,001 0.46%
UACJ Automotive Whitehall Ind.14,366,734 0.44%
Paducah Medical Investors 14,112,094 0.43%13,440,090 0.58%
Ducmall LLC 13,300,852 0.41%13,119,800 0.57%
Superior Care Homes Properties 14,791,539 0.64%
Woodstone Enterprises LP 12,429,000 0.54%
Wal Mart Real Estate Business 10,646,400 0.46%
Paducah Hospitality Partners 9,600,000 0.41%
Sams Real Estate Business Trust 9,222,955 0.40%
Wal-Mart Store 9,000,000 0.39%
TOTALS 207,852,301$ 6.36%152,233,231$ 6.58%
(1) Source - Property Valuation Administration; Assessed value as of January 1, 2024.
(2) Source - Property Valuation Administration; Assessed value as of January 1, 2015.
TABLE 7
CITY OF PADUCAH, KENTUCKY
PRINCIPAL TAXPAYERS - PROPERTY TAX
CURRENT YEAR AND NINE YEARS PRIOR
2025 2016
-137-
Percentage of Percentage of
Total Assessed Total Assessed
Valuation Valuation
Total Collections to Date
(1)
(1)Percent of Percent of
Amount of Levy Total Levy
Collections Collected Collections Collected
4,878,798 4,802,067 98.4%76,731 4,878,798 100.0%
4,988,156 4,888,303 98.0%99,853 4,988,156 100.0%
5,210,184 5,120,761 98.3%85,108 5,205,869 99.9%
5,452,760 5,323,669 97.6%122,045 5,445,714 99.9%
5,646,948 5,506,011 97.5%133,679 5,639,690 99.9%
5,669,596 5,563,728 98.1%97,212 5,660,940 99.8%
6,107,476 5,970,732 97.8%125,034 6,095,766 99.8%
6,441,575 6,315,307 98.0%107,595 6,422,902 99.7%
6,775,370 6,687,893 98.7%55,815 6,743,708 99.5%
7,187,909 7,062,810 98.3%- 7,062,810 98.3%
(1) Includes current year real and personal property tax.
* Source - City of Paducah Finance Department.
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2018
2020
2021
2022
2023
2024
2025
2017
2016
Fiscal
2019
June 30,
Ended
Year
Fiscal Year
Collections
in Subsequent
Years
Taxes Levied
for the
TABLE 8
CITY OF PADUCAH, KENTUCKY
SECURED TAX LEVIES AND COLLECTIONS*
LAST TEN FISCAL YEARS
Collected within the
Fiscal Year of the Levy
(1)Direct
Fiscal Taxes Tax
Year Collected Rate
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%
2022 23,845,186 2.00%
2023 25,904,591 2.00%
2024 26,131,614 2.00%
2025 27,213,450 2.00%
230,287,418
(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 2,768 97.34%11,486,041 42.21%
$50,001 - $100,000 43 1.51%3,056,670 11.23%
$100,001 - $500,000 28 0.98%5,541,949 20.36%
Greater than $500,000 5 0.17%7,128,790 26.20%
TOTALS 2,844 100.00%27,213,450$ 100.00%
(1)Percentage of
Number of Percentage Taxes Total Employee
Filers of Total Collected License Tax
$0 - $50,000 2,444 97.81%9,458,851 46.99%
$50,001 - $100,000 28 1.12%2,061,308 10.24%
$100,001 - $500,000 25 1.00%5,304,313 26.35%
Greater than $500,000 2 0.07%3,305,686 16.42%
TOTALS 2,499 100.00%20,130,158$ 100.00%
(1) Source - City of Paducah Finance Department - Actual collections during the fiscal year.
2025
2016
TABLE 10
CITY OF PADUCAH, KENTUCKY
PRINCIPAL EMPLOYEE LICENSE TAXPAYERS
CURRENT YEAR AND NINE YEARS PRIOR
-140-
Taxpayers
By Range
Taxpayers
By Range
(1)
Ratio of (3)
Reported Net Net Debt as (2)
General Total Debt to Percentage Net
Fiscal Obligation Governmental Business-Type Primary Actual of Personal Debt Per
Year Bonds Activities Activities Government Value Income Capita
2016 21,595,096 5,686,435 - - 27,281,531 1.14 5.34%1,090
2017 19,815,809 8,218,304 - - 28,034,113 1.15 5.48%1,120
2018 17,992,494 7,806,701 - - 25,799,195 0.96 5.05%1,031
2019 19,863,092 6,451,453 - - 26,314,545 1.04 5.15%1,052
2020 38,041,738 6,365,985 - - 44,407,723 1.75 8.69%1,775
2021 34,831,438 6,063,429 - - 40,894,867 1.48 4.92%1,507
2022 32,916,439 8,043,925 - - 40,960,364 1.47 4.93%1,509
2023 30,741,136 8,933,416 - - 39,674,552 1.33 4.77%1,462
2024 27,495,890 8,408,577 2,448,434 125,001 38,477,902 1.16 4.63%1,418
2025 52,445,596 7,873,073 3,241,336 76,248 63,636,253 1.88 7.66%2,345
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
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Improvement
Debt
TABLE 11
CITY OF PADUCAH, KENTUCKY
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Public
Subscription-based Information
Technology Arrangements
(1)
Ratio of
Police and Public Net (2)
Convention &Fire Pension Rental Floodwall Improvement Public Pool Economic Riverfront Recreation Sports Amortization Bonds to Net
Fiscal Art Center Fund Building Rehabilitation Project Renovation Development and E911 Facility Facility of Discounts Actual Bonds Per
Year Bonds Bonds Bonds Bonds Bonds Bonds Bonds Equipment Bonds Bonds and Premiums Total Value Capita
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
2022 2,050,000 1,540,000 - 1,365,000 2,910,000 575,000 1,290,000 2,235,000 20,520,000 - 431,439 32,916,439 1.18 1,213
2023 1,560,000 1,080,000 - 1,000,000 2,570,000 500,000 1,125,000 2,070,000 20,520,000 - 316,136 30,741,136 1.03 1,133
2024 1,055,000 610,000 - 810,000 2,220,000 425,000 - 1,895,000 20,260,000 - 220,890 27,495,890 0.83 1,013
2025 535,000 180,000 - 655,000 1,875,000 345,000 - 1,710,000 19,785,000 25,815,000 1,545,596 52,445,596 1.55 1,933
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
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Estimated
(1)Share of
Reported Percentage Direct and
Debt Applicable Overlapping
Outstanding to the City Debt
City of Paducah 63,636,253$ 100.00%63,636,253$
Paducah Independent School District 73,352,000 *100.00%73,352,000
McCracken County 36,154,224 *44.20%15,980,167
McCracken County Board of Education 86,840,000 *30.00%26,052,000
Overlapping debt 196,346,224 115,384,167
TOTAL DIRECT AND OVERLAPPING DEBT 259,982,477$ 179,020,420$
(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, 2025
Net assessed value 3,271,123,868$
Add exemption 111,911,661
Total assessed value 3,383,035,529$
Debt limit - 10% of total assessed (1)338,303,553$
Debt outstanding:
General obligation bonds outstanding 52,445,596$
Note payable 7,873,073
Less debt not subject to limit -
Gross bonded debt 60,318,669
Less amount available in debt service
funds 2,224,625
Net bonded indebtedness subject to
limit 58,094,044
LEGAL DEBT MARGIN 280,209,509$
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Debt limit 338,303,553$ 332,669,165$ 297,991,641$ 279,230,633$ 275,884,749$ 253,986,094$ 254,113,025$ 244,995,800$ 244,792,901$ 239,483,487$
Total net debt
applicable to limit 58,094,044 34,174,309 37,876,511 39,337,478 39,389,418 43,136,434 25,136,858 24,778,288 27,011,206 26,489,770
LEGAL DEBT
MARGIN 280,209,509$ 298,494,856$ 260,115,130$ 239,893,155$ 236,495,331$ 210,849,660$ 228,976,167$ 220,217,512$ 217,781,695$ 212,993,717$
Total net debt
applicable to the
limited as a
percentage of
debt limit 17.17% 10.27% 12.71% 14.09% 14.28% 16.98%9.89% 10.11% 11.03%11.06%
(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)
Personal
Income
25,024 511,240,320 20,430 41.4 3,139 6.2%
25,024 511,240,320 20,430 41.4 3,132 6.8%
25,024 511,240,320 20,430 41.4 2,835 6.4%
25,024 511,240,320 20,430 41.4 2,980 5.5%
25,024 511,240,320 20,430 41.4 3,232 5.4%
27,137 830,934,940 30,620 43.8 2,832 5.9%
27,137 830,934,940 30,620 43.8 2,832 4.6%
27,137 830,934,940 30,620 43.8 2,770 4.3%
27,137 830,934,940 30,620 43.8 2,784 4.9%
27,137 830,934,940 30,620 43.8 2,802 5.1%
Sources:
(1)Latest available Bureau of the Census Count
(2)Board of Education; represents elementary and secondary public schools.
(3)Kentucky Cabinet for Human Resources, Department for Employment Services.
2024-2025
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TABLE 15
CITY OF PADUCAH, KENTUCKY
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(1)(1)(2)(3)
Per Capita Median School Unemployment
2017-2018
2018-2019
Enrollment RateAge
2022-2023
2023-2024
2019-2020
2020-2021
2021-2022
IncomeFiscal Year Population
2015-2016
2016-2017
Percentage of Percentage of
Total Total
Employees (1)Employment (2)Employees (1)Employment (2)
Baptist Healthcare Systems 1,512 5.10%820 3.05%
Bon Secours Mercy Health, Inc 1,408 4.75%1,445 5.38%
Wal-Mart Associates, Inc.1,035 3.49%1,022 3.80%
Paducah Independent School District 589 1.99%774 2.88%
Baptist Health Medical Group 438 1.48%
Kentucky Community & Technical College 384 1.30%451 1.68%
Vi Wintech Window & Door 377 1.27%
City of Paducah 341 1.15%486 1.81%
Lowes of Paducah #465 339 1.14%
Credit Bureau Systems 289 0.98%
Commonwealth of Kentucky 346 1.29%
Parkview Convalescent Center 278 1.03%
Computer Services Inc 270 1.00%
Paxton Media Group 209 0.78%
TOTALS 6,712 22.65%6,101 22.70%
(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
20162025
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Governmental Activities
General government
General administration 10 10 12 12 11 10 12 12 12 11
Finance 12 12 11 11 11 12 11 11 11 11
Information systems 8 8 6 5 4 4 6 5 5 5
Clerk/Customer Experience 4 4 4 5 5 5 0 0 0 0
Risk/Human resources 5 5 4 4 4 3 3 3 4 3
Public safety
Police 90 90 90 90 87 87 87 87 87 87
Fire 75 75 75 75 75 74 76 77 76 76
Public service
Streets 23.00 23.00 23.00 24.75 23.75 21.2 21.2 21.2 21.2 21
Facilities 13.75 13.75 13.75 13.25 14.25 12.8 12.8 12.8 12.8 12.5
Engineering 6.0 6.0 6.0 6.0 6.0 5.2 5.3 5.3 5.8 6.6
E911**23 23 23 23 23 23 22 22 22 0
Other 5 5 5 5 5 5 5 5 5 5
Parks and recreation 25.7 23.7 25.7 25.7 25.7 27.7 27 27 25 25
Planning and development 7 7 7 7 8 8 12 11 11 10
Other
Paducah Riverfront Dev. Authority 0 0 0 0 0 0 0 0 0 1
Boat dock 0.3 0.3 0.3 0.3 0.3 0.3 0 0 0 0
Fleet maintenance 8.3 8.3 8.3 6.5 6.5 6.5 6.5 6.5 6.5 6.5
Business-type Activities
Solid waste 25.0 25.0 25.0 25.5 25.5 25.3 26.2 26.2 25.7 25.4
TOTAL PRIMARY GOVERNMENT 341 339 339 339 335 330 333 332 330 306
* 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
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
General government
Building and electrical
permits issued 820 810 708 927 946 972 1,130 1,179 1,285 1,344
Business licenses issued 3,123 3,098 3,244 2,955 3,263 3,787 3,401 4,240 4,234 3,826
Public safety
Police
Adult arrests 2,194 2,997 3,247 2,468 1,944 1,859 2,371 2,443 2,259 2,174
Murder 2 4 3 5 4 3 - 6 1 2
Rape 24 21 16 30 20 18 18 24 13 11
Robberies 3 10 18 9 13 16 29 17 29 42
Burglary 48 71 74 79 114 105 144 178 130 185
Auto theft 71 79 59 97 97 64 70 101 89 59
Larceny 626 682 744 720 824 833 1,115 1,064 1,027 1,173
Arson 4 7 7 6 8 11 9 10 6 7
Traffic accidents 1,670 1,674 1,770 1,827 1,791 1,706 1,901 1,770 1,826 1,936
Traffic violations 1,822 4,392 2,360 2,248 1,765 2,085 2,168 3,723 4,663 4,231
Fire
Emergency responses 4,344 4,096 5,682 5,808 3,010 3,300 3,235 3,320 3,275 3,201
Fires extinguished 114 127 158 157 178 154 108 118 135 124
Structure fires 36 42 42 57 77 60 35 39 36 42
Incidents with reported
losses 114 81 158 157 178 157 136 119 138 72
Medical/rescue 3,049 3,969 4,498 4,450 2,010 2,113 2,244 2,295 2,308 2,259
Tours/in-services/car
seats 211 170 220 211 142 229 276 229 262 305
Training man hours 13,111 13,901 18,838 14,412 11,651 10,755 9,372 10,755 8,378 10,589
Inspections 2,307 1,300 375 865 91 893 1,060 709 2,126 2,060
Refuse collection
Residential
Refuse collected (tons 43 39 37 41 45 38 37 36 36 41
per day)
Customers served 10,214 10,175 10,250 10,178 10,129 9,734 9,895 9,889 9,806 9,801
Commercial
Refuse collected (tons 66 64 67 67 66 65 69 70 70 61
per day)
Customers served 995 982 960 953 943 943 950 930 858 854
Public service
911 dispatches 101,017 102,250 93,372 85,203 81,504 90,603 90,191 94,187 94,053 85,380
Police 46,274 51,989 49,240 45,759 46,307 53,399 47,719 53,522 53,896 46,660
Fire 4,366 4,128 5,724 5,795 3,298 3,225 3,296 3,351 3,314 3,230
Other 50,377 46,133 38,408 33,649 31,899 33,979 39,176 37,314 36,843 35,490
** Information from city departments.
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TABLE 18
CITY OF PADUCAH, KENTUCKY
OPERATING INDICATORS BY FUNCTION**
Last Ten Fiscal Years
Fiscal Year
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
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 13 12 12 10 10 10 10 10 10 10
Commercial 6 6 5 4 4 4 4 4 4 4
Other public works
Streets (miles paved)221 221 219 218 218 218 218 218 218 218
Sidewalks (miles)51 50 49 47 47 47 47 47 47 47
Traffic signals 8 8 8 10 10 13 13 13 13 13
Parks and recreation
Parks 28 28 27 29 29 29 29 29 29 29
Acreage 1,095 1,095 949 960 960 960 960 960 960 960
Community centers 3 3 3 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 7 7 7 7 6 6 6
Public golf/disk golf courses 2 2 3 4 4 4 4 4 4 4
* Information from city departments.
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TABLE 19
CITY OF PADUCAH, KENTUCKY
CAPITAL ASSET STATISTICS BY FUNCTION*
Last Ten Fiscal Years
Fiscal Year
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF PADUCAH, KENTUCKY
SINGLE AUDIT SECTION
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
Assistance
Listing 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 -$ 2,621,580$
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 2,821,580
Department of the Interior
Passed-through Kentucky Heritage Council:
Historic Preservation Fund Grants-In-Aid 15.904 N/A - 6,888
Total Department of the Interior - 6,888
Department of Justice:
Direct Programs:
Bulletproof Vest Partnership Program 16.607 N/A - 6,479
Total Department of Justice - 6,479
Department of Labor:
Direct Programs:
WIOA Dislocated Worker National
Reserve Demonstration Grants 17.280 N/A - 1,200
Total Department of Labor - 1,200
Department of Transportation:
Direct Programs:
National Infrastructure Investments 20.933 N/A - 2,474,941
Passed-through Kentucky Transportation Cabinet:
Highway Safety Cluster:
State and Community Highway Safety 20.600 PT-24-64 - 5,496
State and Community Highway Safety 20.600 PT-25-67 - 7,887
Total Highway Safety Cluster - 13,383
Total Department of Transportation - 2,488,324
Department of Environmental Protection
Agency:
Direct Programs:
Brownfields Multipurpose, Assessment, Revolving
Loan Fund, and Cleanup Cooperative Agreements 66.818 N/A - 309,224
Total Department of Environmental
Protection Agency - 309,224
Department of Homeland Security:
Passed-through Kentucky Division of
Homeland Security
Staate and Local Cybersecurity Grant Program 97.137 N/A - 49,838
Total Department of Homeland Security - 49,838
TOTAL EXPENDITURES OF FEDERAL AWARDS 197,500$ 5,683,533$
See accompanying notes to schedule of expenditures of federal awards.
-150-
CITY OF PADUCAH, KENTUCKY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2025
Federal Grantor/Pass-Through Grantor/
CITY OF PADUCAH, KENTUCKY
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2025
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:
Assistance
Listing 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 $ 5,683,533
Federal Awards by Fund
General Fund $ 13,383
Capital Improvement Fund 2,847,370
Debt Service Fund -
Special Revenue Fund 201,200
Proprietary Fund 2,621,580
Total Federal Awards $ 5,683,533
-151-
- 152 -
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 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, 2025, 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 19, 2025.
Report on 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. 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 or significant deficiencies may exist that
were not identified.
Report on 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 are 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
- 153 -
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 19, 2025
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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
Opinion on Each Major Federal Program
We have audited the City of Paducah, Kentucky’s compliance with the types of compliance requirements identified as
subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City of
Paducah, Kentucky’s major federal programs for the year ended June 30, 2025. 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.
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, 2025.
Basis for Opinion on Each Major Federal Program
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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s
Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of City of Paducah, Kentucky and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit
does not provide a legal determination of City of Paducah, Kentucky’s compliance with the compliance requirements
referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation,
and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules,
and provisions of contracts or grant agreements applicable to City of Paducah, Kentucky’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on City of Paducah,
Kentucky’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards,
Governmental Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists.
100 South 4th Street ▪ Suite 300 ▪ Paducah, KY 42001
Phone: (270)443-4400 Fax: (270)443-0963 kempercpa.com
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The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material if there is a substantial
likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report
on compliance about City of Paducah, Kentucky’s compliance with the requirements of each major federal program as a
whole.
In performing an audit in accordance with generally accepted auditing standards, Governmental Auditing Standards, and
the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform
audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence
regarding City of Paducah, Kentucky’s compliance with the compliance requirements referred to above and
performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of City of Paducah, Kentucky’s internal control over compliance relevant to the audit
in order to design audit procedures that are appropriate in the circumstances 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 City of Paducah, Kentucky’s internal control over compliance. Accordingly, no
such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that
we identified during the audit.
Report on Internal Control Over Compliance
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 the internal control over compliance was for the limited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance.
Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in
internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
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 Uniform Guidance. Accordingly, this
report is not suitable for any other purpose.
Certified Public Accountants and Consultants
Paducah, Kentucky
December 19, 2025
CITY OF PADUCAH, KENTUCKY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2025
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
Section 8 Housing Choice Vouchers
14.871
Brownfields Multipurpose, Assessment, Revolving
Loan Fund, and Cleanup Cooperative Agreements
66.818
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, 2024
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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