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Home My WebLink About2026-06-8879 (FY27 Budget)ORDINANCE NO. 2026-06-8879 AN ORDINANCE ADOPTING THE CITY OF PADUCAH, KENTUCKY, ANNUAL OPERATING BUDGET FOR THE FISCAL YEAR JULY 1, 2026, THROUGH JUNE 30, 2027, BY ESTIMATING REVENUES AND RESOURCES AND APPROPRIATING FUNDS FOR THE OPERATION OF CITY GOVERNMENT WHEREAS, an Annual Operating Budget proposal has been prepared and delivered to the Board of Commissioners of the City of Paducah, KY; and, WHEREAS, the Board of Commissioners has reviewed and discussed the proposed Annual Operating Budget and desires to adopt it for Fiscal Year 2027. NOW, THEREFORE, BE IT ORDAINED by the City of Paducah, Kentucky as follows: Section 1. The Annual Operating Budget for the Fiscal Year beginning July 1, 2026 and ending June 30, 2027, including all sources of estimated revenues and appropriations for all City funds as set forth in Exhibit 1 attached hereto is hereby adopted. Section 2. The balance of all capital construction, renovation, improvement projects, and grants currently approved and/or nearing completion are hereby approved for re -appropriation and carryover for the Fiscal Year beginning July 1, 2026 and ending June 30, 2027. Section 3. The City does hereby adopt the following financial management policies: A. The General Fund's minimum undesignated cash balance shall be 25% of the General Fund's budgeted appropriations. The Investment Fund's minimum undesignated cash balance shall be the higher of 10% of the Investment Fund's budgeted appropriations or 50% of the debt service appropriations within the fund. The Solid Waste Fund's minimum unreserved cash balance shall be 25% of the Solid Waste's budgeted operating expenses. B. The City Manager or designee is authorized to transfer appropriated amounts within funds. C. Funds appropriated as Administrative contingency shall be obligated at the discretion of the City Manager, however, the Board of Commissioners shall be notified five calendar days prior to obligation of the proposed expenditure. If any individual member of the Board of Commissioners requests Commission review of a proposed expenditure, the City Manager shall bring expenditure before the Commission for approval by municipal order, or not proceed. D. The City Manager has the authority to enact a budget allocation program or to transfer funds to or from any departmental line item appropriation. Department Directors shall be responsible for keeping all appropriated accounts within their respective department positive. E. As vehicles are acquired, the City will fully fund the Fleet Lease Trust Fund in order to replace rolling stock owned by the Fleet Lease Trust Fund as it achieves obsolescence. The Fleet Lease Trust Fund shall be funded with monthly lease charges assigned to rolling stock as determined by the Finance Director or his/her designee. All non -enterprise funded rolling stock is owned by the City's Fleet Lease Trust Fund, and leased to respective departments for use. F. The City will maintain a self-insurance fund called Health Insurance Trust Fund through the use of user fees as set by administrative policy. G. Funding is included within the General Fund to address the PFPF unfunded liability. H. The City will provide to all eligible employees up to a $872.50 per month credit (for the months of July - December 2026) to be applied to the Comprehensive Health Insurance Benefit Plan (Cafeteria Plan) as directed by the employee. In January 2027, this monthly credit may be adjusted by the Board of Commissioners as recommended by the City Manager or his designee. 1(:\City Clerk\CITY CLERK\ORD\FINANCE\Budget FY2027 Ordinance.Docx I. The City will maintain a special fund called Investment Fund, and is considered an extension of the General Fund. The Investment Fund is funded with a 1/2 cent portion of the City's occupational license fee (employee payroll withholding tax). This fund is dedicated to the following expenditures: economic development, neighborhood re -development, infrastructure capital investment, and property tax relief. J. The Oak Grove Cemetery (PF0048) project will be funded in the following manner: 30% of all cemetery lot sales, and 30% of all cemetery crypt sales will be credited to the project. Proceeds are to be used solely for the general care, maintenance, and embellishments of the cemetery. Section 4. The provisions of this Ordinance are hereby declared to be severable, and if any section, phrase or provision shall for any reason be declared invalid, such declaration of invalidity shall not affect the validity of the remainder of this Ordinance. Section 5. All prior Municipal Orders or Ordinances or parts of any Municipal Order or Ordinance in conflict herewith are hereby repealed. Section 6. This ordinance shall be read on two separate days and will become effective upon publication in full pursuant to KRS Chapter 424. 4 PAI� George Bray, Mayor ATTEST: 6�indAsay arish, C 'lerk Introduced by the Board of Commissioners, May 26, 2026 Adopted by the Board of Commissioners, June 9, 2026 Recorded by Lindsay Parish, City Clerk, June 9, 2026 Published by The Paducah Sun, June 12, 2026 ORD\FINANCE\Budget FY2027 K:\City Clerk\CITY CLERK\ORD\FINANCE\Budget FY2027 Ordinance.Docx City of Paducah, Kentucky Annual Operating Budget by Fund Estimated Appropriations & Expenditures Fiscal Year 2027 (July 1, 2026 to June 30, 2027) Exhibit 1 Total 95,622,341 116,428,475 21,078,342 Reserves Revenues Appropriations Utilized/Beg Cash General Fund 49,713,352 51,882,954 2,169,602 Rental Fund 142,513 142,513 - 911 Fund 3,491,103 3,491,103 - CDBG Fund 574,275 574,275 - Opioid Settlement Fund 277,957 113,397 - Municipal Aid Program Fund 2,540,300 2,800,300 260,000 Investment Fund 8,025,000 7,917,352 - Tax Increment Financing Fund 123,000 123,000 Grant Fund - - - Court Awards Fund 50,000 141,490 91,490 Room Tax Fund 1,855,000 1,855,000 - Debt Service Fund 5,539,717 5,539,717 Capital Projects Fund 1,365,000 1,365,000 - Bond Fund 5,435,000 21,012,654 15,577,654 Solid Waste Fund 7,243,500 8,543,207 1,299,707 Transient Boat Dock Fund 148,822 326,822 178,000 Fleet Maintenance Fund 1,004,000 1,033,022 29,022 Fleet Lease Trust Fund 1,664,311 2,492,345 828,034 General Insurance Fund 1,594,006 1,594,006 - Health Insurance Fund 4,098,200 4,743,033 644,833 PFPF Pension Fund 651,850 651,850 - Other Trust Funds 85,435 85,435 Total 95,622,341 116,428,475 21,078,342