HomeMy WebLinkAbout04/17/12APRIL 17, 2012
At a Regular Meeting of the Board of Commissioners, held on Tuesday, April 17, 2012, at 5:30
p.m., Mayor Paxton presided, and upon call of the roll by the City Clerk, the following answered
to their names: Commissioners Abraham, Gault, Kaler, Watkins and Mayor Paxton were present
(5)•
INVOCATION
Gina Brock, Immanuel Baptist Church Associate Minister, gave the invocation.
PRESENTATION
EVENING OF PERFORMANCE — B. BELT (Prepared by Pam Spencer, Public Information
Officer and reported in the City Commission Highlights)
Dr. Bernice Belt, Interim Chair of the Paducah Human Rights Commission, briefed the Mayor and
Commission on the upcoming 6t' annual Evening of Performance which will be Friday, May 11,
7:00-9:00 p.m., at the Carson Center. The event will feature 15 acts including singers, dancers,
musicians, and poets. The community is invited to this free event.
AWARD OF MERIT
Mayor Paxton presented an "Award of Merit" to Michael Terra for his contributions to the
community.
ORDINANCES — INTRODUCTION
APPROVE PAYMENT FOR PLAINTIFF'S LEGAL FEES FOR PADUCAH
FIREFIGHTERS' LAWSUIT
Commissioner Abraham offered motion, seconded by Commissioner Gault, that the Board of
Commissioners introduce an ordinance entitled, "AN ORDINANCE AUTHORIZING AND
DIRECTING THE CITY OF PADUCAH, KENTUCKY, TO SATISFY AN ORDER OF THE
COURT AWARDING ATTORNEY FEES AND EXPENSES TO COUNSEL FOR PLAINTIFFS
IN BARRY CARTER, ET AL. v. THE CITY OF PADUCAH, KENTUCKY, McCRACKEN
CIRCUIT COURT CIVIL ACTION # 06 -CI -00072 IN THE AGGREGATE SUM OF
$121,854.00". This ordinance is summarized as follows: The City's Finance Director is hereby
authorized and directed to expend funds to satisfy the Order Awarding Attorney Fees in full for
the aggregate amount of $121,854.00. Payment shall be made to the law firm of Woodley &
McGillivary, counsel of record for the plaintiffs in Barry Carter, et al. v. The City of Paducah,
Kentucky, McCracken Circuit Court Civil Action #06 -CI -00072.
AMEND THE GENERAL FUND BUDGET
Commissioner Gault offered motion, seconded by Commissioner Abraham, that the Board of
Commissioners introduce an ordinance entitled, "AN ORDINANCE AMENDING ORDINANCE
NO. 2011-6-7825, ENTITLED, "AN ORDINANCE ADOPTING THE CITY OF PADUCAH,
KENTUCKY, ANNUAL BUDGET FOR THE FISCAL YEAR JULY 1, 2011, THROUGH
JUNE 30, 2012, BY ESTIMATING REVENUES AND RESOURCES AND APPROPRIATING
FUNDS FOR THE OPERATION OF CITY GOVERNMENT"'. This ordinance is summarized
as follows: That the City of Paducah's annual budget for the fiscal year beginning July 1, 2011,
and ending June 30, 2012, be amended by a supplemental appropriation in the amount of
$1,582,680 to Fire Department line item.
CITY MANAGER REPORT
City Manager Jeff Pederson and Finance Director Jonathan Perkins provided an overview of
projected revenue and expenditures for the upcoming fiscal year 2012-2013 City of Paducah
budget. Paducah's fiscal year begins July 1. Pederson says "We are projecting a challenging
budget next fiscal year because we are projecting our revenues to be flat." Paducah currently is
experiencing a slight increase in the payroll tax but gains are offset by the decline in the insurance
premium tax. For the next fiscal year, the City expects general fund revenues to be $30.17 million
which is only a 1 percent increase over the current fiscal year. However, the City has several
increases to its expenditures as compared to the current year including wage increases for
employees, projected fuel costs, legislatively mandated state pension contribution increases, and
an increase in insurance costs. Those items total $662,000. In balancing the budget, tax increases
are not being considered for this year. Pederson says department heads have been instructed to
use the same total budget allocations as the current fiscal year in making their upcoming budgets.
Department heads are conducting a prioritization process and reviewing existing programs and
costs. With the projected expenditure increases, each department is tightening its belt to achieve a
balanced budget.
APRIL 17, 2012
Pederson says the general fund does not include funding for capital maintenance. "There's not a
dollar to put back into our facilities. That's a red flag," says Pederson. Pederson proposes setting
aside funds in the Investment Fund toward facility maintenance including maintenance for
facilities that the City leases to organizations such as Market House and the River Discovery
Center. City Engineer -Public Works Director Rick Murphy says City Hall needs much work to
extend the life of the building.
The Investment Fund is the fund created by the 2005 % cent payroll tax increase. That fund
generates approximately $4.5 million to be used for economic development, neighborhood re-
development, infrastructure capital investments, and property tax relief. Pederson says the
Investment Fund is being stretched to cover debt payments and funding commitments in addition
to items such as support for quasi -public agencies, street resurfacing, and economic development
incentives. Pederson says, "The ability to take on anything new just isn't there unless something
is reduced or eliminated." Over the next few weeks, Pederson will be working to bring a balanced
investment fund budget to the Commission. Current projections show a shortfall of more than
$570,000 for the upcoming fiscal year.
In response to recent questions from the community about the City's amount of debt, the City of
Paducah currently has $31.1 million in outstanding debt with $29.4 projected for the upcoming
fiscal year. The annual debt service payments are 7.29 percent of the total operating
expenditures. The financial rating agency, Moody's, says for cities with a population of less than
50,000, Paducah's debt amount is slightly below average.
Upon motion the meeting adjourned.
ADOPTED: April 24 , 2012
City Clerk
Mayor -