HomeMy WebLinkAboutFY2010 Annual Budget Letter Appendices
MANAGER’S BUDGET LETTER
May 19, 2009
1 EXECUTIVE SUMMARY
Mayor & Commissioners:
Finance Director Jonathan Perkins, Budget and HR Administrator Adrianne Gleeson, and I are
pleased to present the City Manager’s recommended budget and financial plan for the City of
Paducah for fiscal year 2010.
This year we are experiencing a worldwide recession more serious than any economic crisis
since the Great Depression. The City’s FY2010 Budget is built on the assumption that things
will get worse before they get better - that the full impact of the recession has not yet hit Paducah
and that it will endure past the end of FY2010.
I hope that these assumptions prove to be overly pessimistic. However, if they prove to be
accurate, the recommended budget will allow Paducah to operate within its decreased resources
with no significant reduction in services to the citizens we serve.
The recommended budget continues to support the goals and action agenda established by the
Commission in the City’s Strategic Plan.
A. Editorial Comments about City Budgets
Your City budget performs several important functions:
The budget is a legal document through which the Commission carries out its legislative
responsibility to control the City’s finances.
The Budget is a public education document designed to help Paducah’s taxpayers
understand the finances of their local government.
The Budget is a management tool that each City Department uses to plan, administer, and
improve its operations and customer services.
The Budget is an instrument for implementing the goals that the Commission sets for the
City.
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The Budget is a decision making aid designed to help the Commission make difficult
public policy choices.
B. Response to the FY2009 Recession: Paducah’s
Operational Efficiency Plan
Paducah started its efforts to reduce operating costs almost a decade ago focusing on our least
efficient: service, fire suppression. The January 2000 Report, Paducah Fire Service Station
Siting and Manning Report, led the City Commission to reduce our Fire Department manning by
9 positions. The 2006 Fire Task Force Report led the City Commission to reduce Fire
Department manning by an additional 7 positions. Without these changes, today’s Fire
Department budget would be at least $1 million per year larger than it currently is.1
As the national economy deteriorated, in November 2008 the City Manager presented a report
and list of recommended actions to the City Commission, which included delay of some
budgeted projects and concentration on energy efficiency.
In December 2008 our Finance Staff held brainstorming sessions with small groups of
employees from each Department to come up with cost saving ideas. These brainstorming
sessions generated a list of cost reduction proposals that Department Directors used to slow their
expenditure rates.
To further help the Department Directors, the Finance Staff devised a simple budgetary
allocation report. The report displays on a weekly basis the percent of year-to-date budget each
Department has spent. The report further encouraged Directors to slow their spending rate and
set up a budgetary allocation system that we could quickly impose if it became necessary.2
In January 2009 ICMA and the Alliance for Innovation published their white paper: Navigating
the Fiscal Crisis: Tested Strategies for Local Leaders. We distributed copies of the paper to the
Commission and Department Directors and used it as a guide in planning Paducah’s subsequent
response to the recession.
We classified City activities and services to identify discretionary services that we could cut
back or stop providing. We used the “Service Business Hierarchy” model provided to us Lyle
Sumek.3 First the Department Directors classified their services and we reviewed each other’s
categorizations at a staff meeting. Then we presented the classifications at a Commission
Workshop and discussed them with the City Commission.
1 $63,992/Firefighter x 16 Positions = $1,023,920
2 See Appendix 7
3 See Appendix 8
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None of these exercises produced dramatic savings, but they all helped the City’s staff and
elected officials realize that the only option for significant cost reductions was to reduce our
number of employees.
In March the Mayor and City Manager held meetings with all staff members to present the
Mayor’s State of the City speech and to brief employees on the coming fiscal crisis. The
Manager made a similar presentation on the fiscal crisis to the City Commission.
After completing all the above steps, the Manager prepared an “Operational Efficiency Plan” and
reviewed it with the City Commission in two executive sessions before presenting it publicly.
On April 14, the City Commission adopted Paducah’s Operational Efficiency Plan.
The plan follows the strategic management approach recommended in ICMA and the Alliance
for Innovation’s white paper: Navigating the Fiscal Crisis: Tested Strategies for Local Leaders.
The white paper recommends the following steps for local governments facing a fiscal crisis:
A. Adopt Assumptions
B. Agree On Service Hierarchy
C. Contribute to Recovery
D. Seize Opportunities Crisis Makes Possible
E. Cut Once and Quickly
F. Communicate continuously with all Stakeholders
The Paducah Operational Efficiency Plan combined four departments into two, reduced City
employment 32 positions including laying off 12 employees, and will reduce City operating cost
$2 million/year. The City provided 3 months of severance and paid health insurance coverage to
each employee who lost his or her job.
After implementing the Operational Efficiency Plan staff concentrated on cutting costs further as
we prepared the FY2010 city budget.
C. FY2009 Budget Overview
1. General Fund
a General Fund Revenue
The General Fund budget is the City’s traditional operating budget. The $28.6 million budget is
funded by taxes and fees and pays for the daily services the City provides its Citizens. The
General Fund Budget is balanced to revenue and includes a $300,000 Commission contingency.
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Payroll Tax: Our most important revenue source is the payroll tax, which generates 43% of our
General Fund revenue. For FY2009, we budgeted $12.9 million in revenue from the payroll tax.
We do not know how accurate our estimate will turn out to be. Although projected revenue for
the first nine months of the year was 2.7% above the same time period last year, we will not have
all revenue numbers for the third quarter until after the budget is presented to the Commission
and we will not have revenue numbers for the fourth quarter until August, 2009. There is a delay
of up to four months between the time an employer starts withholding City tax from an
employee’s paycheck at the beginning of a quarter and the time that we have received and posted
that revenue to City accounts.
For FY2010 we estimate that payroll tax revenue will be $12.2 million, a reduction 5% below
our FY2009 estimate.
Insurance Premium Tax: The erratic flow of insurance premium tax revenue has always been
a problem for Kentucky cities. In the spring of 2008, the Legislature passed a new law
championed by Kentucky’s city managers and administrators, which should have made the flow
of insurance premium tax dollars more predictable and should have made the allocation of those
dollars more accurate. So far the results of the new legislation have been disappointing. Our
insurance premium tax revenues to date are $830,000 below our projections. For FY2010, we
have reduced our estimated revenue from the 2009 projection of $5 million to $4.1 million.
Business License Tax: The business license tax is always the hardest of our significant revenue
sources to estimate because over half our total revenue for the year is received in the month of
April and all of the receipts do not get booked before we have to present the budget with our
revenue estimate to the Commission. Based on the history of this revenue source, (it has
increased every year for the last decade excepting only the year when our tax amnesty program
caused an aberration) we are projecting that FY2010 revenues will be $4 million, an amount
equal to our FY2009 estimate of $4 million in business license revenue.
Property Tax: Property tax revenues are slow to respond to changing economic conditions and
therefore it is our most stable large revenue source. Therefore for FY2010 we estimate property
tax revenues will be $3.5 million, the same amount we estimated for FY2009.
Bottom Line:
Total Estimated Revenue, All Sources, FY2009 Budget $30.6 million
Total Estimated Revenue, All Sources, FY2010 Budget $28.6 million
Decrease from FY2009 to FY2010 $2.0 million
Percent Decrease 6.5%
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b General Fund Operating Budget Expenditures
Total expenditures in the recommended FY2010 operating budget are $28.6 million. The
General Fund expenditure budget is balanced with estimated revenue and includes a $300,000
Commission contingency. It is $2.0 million or 6.5% less than the original FY2009 budget.
Although we have reduced the FY2010 operating budget significantly, it contains several
mandatory cost increases.
3% raise promised IAFF and FOP employees in collective bargaining contracts
(Includes benefits)
$175,000
State Retirement System Increase (Hazardous duty employees) $370,000
State Retirement System Increase (Non-Hazardous employees) $10,000
Old Police and Fire Pension Unfunded Liability (Payment established by
Actuary to begin replacing funds lost by Fund in market crash)
$560,000
City’s share of health insurance costs. (Actual increase will depend on the
change in the October 2009 Consumer Price Index)
$300,000
Total Mandatory Increases $1,415,000
c Summary Comparison FY2009 to FY2010
FY2009 Total Revenue $30,587,200
Decrease ($1,979,750)
FY2010 Total Revenue $28,607,450
FY2009 Total Expenditure Budget $30,587,200
Total Mandatory Increases $1,415,000
Operational Efficiency Plan Reductions in Personnel
Costs
($2,005,000)
Reductions in Department Operating Line Items ($1,389,750)
FY2010 Total Expenditure Budget $28,607,450
d Expendable Fund Balance and General Fund Decision Packages
The City Commission has adopted a policy of maintaining an operating reserve equal to 8% of
the operating budget. For FY2010, this reserve will be $2.3million. Any funds in the General
Fund unencumbered fund balance above this amount is available to be spent in the coming year’s
budget.
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In past years, we have tried to estimate what the General Fund fund balance will be when we
close the books. Our estimates have not been very accurate. In addition to the problems
discussed above about the lag time before we have accurate revenue numbers, we also have to
make an estimate of how much of each line item will be spent between the day of the estimate
and June 30th when the books are closed. Although our ability to estimate this number has not
been very good, the actual amount of expendable reserves after the books are closed has been a
healthy total of over $1 million each year. Unless we suffer a significant change in local
economic conditions in the next 45 days, I anticipate that we’ll have a similar amount of at least
a half million in expendable fund balance available in FY2010.
The administrative budget anticipates that the City will fund two major items from FY2009
expendable fund balance:
Reserve for IAFF’s Incentive Pay Overtime Law Suit $50,000
Old Police-Fire Pension Contribution to Restore Funds Lost in Market
Crash
$560,000
In addition, we have a list of 34 General Fund decision items totaling $877,220.4 I recommend
that the Commission spend time during your budget advance to put these items in a priority
order. In September, when we close the books and learn what expendable fund balance we have
available we will authorize these expenditures starting with the one the Commission gives
highest priority and going down the list until all of the expendable fund balance monies are
allocated.
2. Investment Fund
The Investment Fund Budget is funded by a ½% levy that is part of the City’s Occupational
Wage Tax. The levy was adopted in 2005 when we changed the levy from 1 ½% to 2%.
Investment Fund expenditures are restricted to four purposes:
o Property Tax Relief
o Economic Development
o Neighborhood Re-Development
o Capital and Infrastructure Investment
Examples of things that the Investment Fund revenue has made it possible for the City to do
include:
Reduce the City property tax levy from 30 cents/$100 to 25 cents/$100.
4 See Budget Letter page __ and Appendices 3 & 4.
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Get Corporate Offices for Ingram, Crounse, and Marquette barge lines constructed in
Paducah.
Recruit Western Rivers barge company to Paducah.
Create Riverport West and compete for the billion-dollar coal to liquid plant to be
constructed there.
Join with McCracken County to support James Marines new towboat construction
business.
Support the creation of Entré Paducah.
Provide incentives for WKCTC to establish the Paducah Art School
Undertake the Fountain Avenue Neighborhood Redevelopment Project.
Construct the local portion of Pecan Buckner Drive.
Open the Skate Park and Disc Golf Course.
Add safety surfaces to City Playgrounds.
Renovate the Julian Carroll Convention Center and retain the Quilt Show.
Slip-line the pipes under the floodwall.
Expand neighborhood sidewalk construction.
a Investment Fund Revenue
A detailed report of the use of Investment Fund revenues since the inception of the program can
be found under the heading “Investment Fund Scorecard” in the Finance Department section of
the City of Paducah webpage http://paducahky.gov. Investment Fund Revenue
For FY2009, we have projected investment fund revenue of $4 million. The same factors
discussed above that cause uncertainty in our estimate of wage tax revenue in the General Fund
also impact this estimate.
b Investment Fund Decision Items
The Investment Fund decision items are listed in Appendices 1 and 2 of this letter. The list
includes 51 decision packages proposed for the Investment Fund budget with a total cost of
$19.8 million.
I have listed 8 of these decision packages totaling $1.6 million as “committed expenditures”.
This list includes both payments we are under a contractual obligation to make such as the
payment of principal and interest on capital bonds and payments that we do not have any legal
obligation to make but which the Commission has strongly indicated that they intend to support
like the continued $300,000 a year support for GPEDC.
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2 PADUCAH’S STRATEGIC PLAN
Each year the Commission spends two days together in a Planning Advance to update our Goals
for Paducah and to set an Action Agenda for the coming year. Our Advance this spring was
delayed because our facilitator, Lyle Sumek, became ill. It has been rescheduled for June. My
budget recommendations reflect the priorities in the Commission’s Strategic Plan.
Paducah’s Strategic Plan is built on two foundations: A Statement Of Core Beliefs, which
summarizes our Values, and a Mission Statement:
City of Paducah Core Beliefs
We
S erve Others
P roduce Results
Act with I ntegrity
Accept R esponsibility
Look for I nnovations
Practice T eamwork
City of Paducah Mission Statement
The Strategic Plan uses three time frames:
The City of Paducah
is FINANCIALLY SUSTAINABLE,
provides 1st CLASS SERVICES
delivered in a COST EFFECTIVE MANNER
and has QUALITY INFRASTRUCTURE and FACILITIES
The City
ENGAGES CITIZENS,
EXERCISES COMMUNITY LEADERSHIP
On Local Public Service Issues, and
Is recognized as a REGIONAL LEADER.
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A long-range view for the year 2022.
A mid-term Plan expressed as 5-year Goals
And an Action Agenda for the Coming Year
The long-range view is expressed in the City’s Vision Statement and the mid-term view is
expressed in the City’s goals for the year 2013:
2022 Vision Statement
Paducah is a
Vibrant and Beautiful River City
Which is the Heart of the Four Rivers Region.
Our region has a Strong Economy.
Our City has a National Reputation for the Arts
and Tourism.
We are a Hometown for Families
and an Inclusive Community
Our residents enjoy a Quality Community and
Fun Things to Do.
PADUCAH – A GREAT PLACE TO CALL
HOME.
2013 Goals
Strong Local Economy - Regional Center for Four States
Efficient City Government – Quality Services for Citizens
Vital Neighborhoods – Place for People and Businesses
Great Place to Live – A Fun City to Enjoy
Restored Historic Downtown, Lowertown, Riverfront –
A Community Focal Point
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For 2009 the Commission Adopted an Action Plan with 7 Top Priority Action Agenda Items and
6 High Priority Items. Our goal setting Advance for 2010 when we intended to update the
Action Agenda was rescheduled from March to June when our facilitator got sick. Appendix 6
provides a status report on our 2009 Action Agenda.
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3 OVERVIEW OF PADUCAH’S
FINANCES
A. Funds
In compliance with professional accounting standards, the City of Paducah operates its finances
through 25 different funds. Revenues and expenditures are budgeted in each of these funds.
The Flow of Funds Chart on the page after this section shows the City’s funds and diagrams
their interrelations. Finances for most of Paducah’s service delivery activities are managed
through just a few of the funds in this confusing array:
General Fund:
All City Departments that do not operate with an earmarked source of revenue are
budgeted in the General Fund. For example Police, Fire, and Engineering/Public Works
Departments are operated through the General Fund among others.
Investment Fund:
Provides separate accountability for economic development, community re-development,
and capital and infrastructure investment activities funded with ½% from the City
occupational wage tax.
Municipal Aid Program (MAP):
State law requires us to account for state shared gas tax money in a separate fund. We
traditionally add a transfer from the General Fund to the MAP fund and account for the
City’s annual paving program through it.
Grant Funds:
Special Revenue Funds are used to account for grants awarded to the City from agencies
of the Federal Government and the Commonwealth of Kentucky. We have several
individual funds for large grants and a small grant fund to serve as a “catch-all” for all
other grants.
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Solid Waste Fund:
The City operates its garbage collection service as a business and accounts for its
operations using accounting rules, which are modeled on business accounting instead of
governmental fund accounting. The Solid Waste Fund receives the revenue from the
garbage service fees. The fund contains the budgets for our residential and commercial
collection services and our compost operation.
Internal Service Funds:
Internal Service Funds also follow business accounting rules. The budget includes the
Fleet Maintenance, Fleet Lease Trust, Rental Properties, Radio Depreciation, Health
Insurance, and General Insurance internal service funds.
Bond Funds:
Over the years the City has sold several bond issues. We maintain separate funds to
account for bond proceeds and for annual principal and interest payments. Money for
some of our issues including 2005 bonds to cover the unfunded liability in the Police and
Fire Pension Fund flows to the Bond Fund from the General Fund. Money for bond
payments on projects directly related to economic development, like the $5 million
borrowed in 2004 for the Infiniti Media project, flows through the Investment Fund.
GeneralFundCivicCenterCIPSolidWasteDowntownCIPUserfeesO & MCapProjectsGrantsUserfeesO & MCap.Exp.BondsProjectsFleetMaint.Self-InsuranceTrust FundTelecomRadio Depr& OperCap. Exp.O & MO & MUserFeesPremiumFrom EmpCountySubsidyUserFeesCafeteriaPlanIT & PhoneServiceInsuranceFundFleet VehicleTrust FundRentalFundP R AO & MLeaseFeesRentUserFeesInsuranceExp.RollingStockProjectsH O M ESmall GrantFundDebtServiceInvestmentFundEDProjectsPayrollTaxInterestIncomeGrantsGrantsProjectsProjectsBond P & IMAPC D B GE 911CommerceCenterO & MO & MProjectsStreetImprovGas TaxGrantsE 911 FeeRentCounty SubAEPFPFPFHUDRevolvingCourtAwardsInterestIncomeGrantsEvidenceLoanPymtsEmp contiCap ApprecIntrst DivIncPoliceEquip &ExpendRefundEvidencePensionsPensionsProjectsProperty TaxOtherBus License FeeInsurance Prem TaxPayroll TaxCapitalExpendituresDepartmentOperationsPaducah Flow of Funds
B. How Big Is The Budget
The multitude of funds makes it hard to answer the simple question: “How big is the City
Budget?” Just adding the budgets of all the funds together does not answer the question
accurately because transfers of monies between funds cause the same dollar to be counted two or
more times. The following table adds the budgets of all our funds and then makes adjustments
for the transfers to subtract out the double counts. The FY2010 “All Funds” Budget excluding
double-counts totals $38.4 million.
COMBINED BUDGETS - ALL FUNDS
Total Expenditures
& Fund Transfers
Inter Fund Transfers Budget
General Fund or
Operating Budget
$28,607,450 $1,271,825 $27,335,625
Investment Budget $1,616,755 $573,425 $1,043,330
MAP $453,000 $453,000
CDBG $-0-$-0-
HOME $-0-$-0-
HUD Revolving $1,000 $1,000
Court Awards $36,400 $36,400
Debt Service $2,122,975 $2,122,975
General CIP $-0-$-0-
Solid Waste $4,116,020 $4,116,020
Civic Center $80,320 $80,320
Rental Property $134,735 $134,735
Radio Depr. & Opr. $57,680 $57,680
Fleet Maintenance $611,005 $460,000 $151,005
Fleet Trust $738,900 $738,900
Insurance $1,004,300 $1,004,300 $-0-
Health Ins. Trust $3,450,000 $3,450,000 $-0-
Maintenance Trust $7,335 $7,335
AEPF $53,255 $53,255
PFPF $1,811,605 $1,811,605
Renaissance $250,820 $250,820
Totals $45,153,555 $6,759,550 $38,394,005
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C. Explanation of Fund Balances
The multitude of funds can make it difficult to understand what financial resources the City has
and what flexibility we have in using those resources. Although any balance remaining in some
funds at the end of the fiscal year is closed out (transferred) to the General Fund, other funds
maintain a fund balance. Enterprise funds, like our Solid Waste Fund, do not have a fund
balance because of their business-style accounting rules. They do have unencumbered liquid
assets, which are an equivalent of a governmental accounting fund’s fund balance.
Until the fiscal year is over and the City’s books are closed, it is very difficult to make an
accurate estimate of Fund Balance in the General Fund and in some of the other large funds. The
following table shows the fund balance (or equivalent) that we expect to have June 30, 2009 in
the funds that we can estimate accurately. We will fill in the empty cells in the table after our
books are closed and we have good numbers.
ESTIMATED FUND BALANCE
Estimated Fund
Balance
Notes
General -?-8% Operating Reserve = $2,288,000
Investment Fund $500,000
Small Grants -0-
MAP $100,000 Appropriated for Projects
CDBG -0-
HOME -0-
HUD Revolving $150,000 Appropriated for projects
Court Awards $50,000 Restricted to Police Drug Activities
Debt Service -0-
General CIP $1,500,000 Appropriated for Projects
Solid Waste $1,500,000 Undesignated cash = Fund Balance Equivalent
Accumulated to delay future garbage rate
increases.
8% Operating Reserve: $329,000
Civic Center -0-Undesignated cash = Fund Balance Equivalent
Earmarked for operating shortfall
Rental Property -0-
Radio Depr & Opr $600,000 Reserved for Radio Projects
Fleet Maintenance $50,000 Undesignated cash = Fund Balance Equivalent
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Estimated Fund
Balance
Notes
Fleet Trust $3,300,000 Future purchase of replacement vehicles,
including fire trucks
Insurance $0 Reserved for Insurance Deductible Payments
Health Insur Trust ($150,000)Reserved for Health Insurance Claims
Maintenance Trust $4,000 Reserved for Commerce Center Maintenance
Appointive Employees
Pension Fund
$220,000 Reserved to pay pensions
Police & Fire Pension $60,000 Reserved to pay police and fire pensions
TOTAL $7,884,000
D. General Fund
1. Revenue
As explained in the “Budget Overview” section of this letter, we are less sure of our FY2009
estimates than we normally are when we prepare the budget and as a result we have been
conservative in projecting revenues for FY2010. For FY2010 we are estimating 6.5% less
revenue than we budgeted a year ago for FY2009.
GENERAL FUND REVENUE
Actual
FY2007
Actual
FY2008
Estimated
FY2009
Budget
FY2010
$29,571,548 $30,426,801 $30,605,200 $28,607,450
Historically, the City has enjoyed a healthy revenue growth from year to go, although since 2006
our most important income stream, our Payroll Tax has slowed from an average growth of 5% a
year to an average of 1.4%. City staff tries to be conservative with our revenue estimates; so
actual revenues are generally larger than budgeted. For example:
In FY2007 we budgeted $28,341,990 and actually received $29,571,548
In FY2008 we budgeted $29,615,465 and actually received $30,426,801
The four most important sources of General Fund revenue are:
o Payroll tax, which in FY2009 will generate over $12.8 million in revenue.
o Insurance premium tax, which in FY2009 is projected to generate nearly $4.0 million
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o Business license, which in FY2009 is projected to produce just under $4 million.
o Property tax, which in FY2009 is projected to produce about $3.5 million.
Payroll Tax: The payroll tax, which generates 43% of our General Fund revenue. For FY2009,
we budgeted $12.9 million in revenue from the payroll tax. We do not know how accurate our
estimate will turn out to be. Although projected revenue for the first nine months of the year was
2.7% above the same time period last year, we will not have all revenue numbers for the third
quarter until after the budget is presented to the Commission and we will not have revenue
numbers for the fourth quarter until August, 2009.
Payroll tax is very sensitive to changes in employment; therefore employment data can be an
indicator of what will happen to our payroll tax revenue. The latest McCracken County
unemployment rate is the preliminary March 2009 report of 8.1%. We are anxiously waiting to
have final revenue totals for January-March, the third quarter of FY2009. Meanwhile, the tax
revenue we have available which shows us 2.7% above the same period last year comes largely
from on October-December 2008. During that time the McCracken County unemployment rate
ranged from 5.7% in October to 6.4% in December.
For FY2010, we estimate that payroll tax revenue will be $12.2 million, a reduction 5.4 % below
our FY2009 revenue budget of $12.9 million.
Insurance Premium Tax: Our insurance premium tax revenues to date are $830,000 below our
projections. For FY2010, we have reduced our estimated revenue from the 2009 projection of $5
million to $4.1 million and used the same figure for FY2010. Our estimate assumes that our
revenues for the fourth quarter will be at least equal to the best of the first three quarters of this
fiscal year.
Business License Tax: The business license tax is always the hardest of our significant revenue
sources to estimate because over half our total revenue is received in the spring; so we do not
have a basis for projecting the current year’s revenue when we present the budget with an
estimate of the new year’s revenue to the Commission. Based on the history, we project that
FY2010 revenues will be $4 million, an amount equal to our FY2009 estimate of $4 million.
Property Tax: Property tax revenues are slow to respond to changing economic conditions and
therefore it is our most stable large revenue source. For FY2010, we estimate property tax
revenues will be $3.5 million, the same amount we estimated for FY2009.
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The table below shows the main sources of anticipated revenue in the General Fund for
FY2010.
Payroll Tax $12,230,000 42.8%
Payroll Tax Rebates: County& Lynx ($245,700)(.9%)
Property Tax 5,451,000 19.1%
Insurance Premium Tax 4,100,000 14.3%
Business Licenses 4,020,000 14.0%
Other License & Charge For Services 1,517,400 5.3%
Grants 833,750 2.9%
Rent, Fines and Interest 701,000 2.5%
Fund Transfers -0--%
Total Revenue Sources $28,607,450 100%
2. Expenditures
As a result of the Operational Efficiency Plan changes and additional expenditure reductions by
Department Directors, the FY2010 budget is nearly $2.0 million less than the FY2009 original
budget.
Over the last few years, an increasing proportion of the General Fund budget has been required
for day-to-day operating costs leaving a declining amount for economic development, capital,
and other purposes. The following table illustrates this trend. Our economic development,
capital, and neighborhood development costs have been born by the Investment Fund.
GENERAL FUND OPERATING EXPENDITURES
Actual
FY2007
Actual
FY2008
Estimated
FY2009
Budget
FY2010
Operating $26,551,116 28,804,416 $30,238,860 $27,517,935
Contingency $300,000
Transfers for Debt, Pension &
Other $1,031,028 820,647 $784,440 $726,255
Transfers for Capital $1,218,670 $1,597,652 $641,270 $63,260
TOTAL $28,800,814 $31,222,715 $31,664,570 $28,607,450
The following two tables show next year’s General Fund budget broken out by Department and
by Category of Expenditure as compared to last year’s amounts. The largest category of
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expenditure on the second table is employee salaries and benefits, which consumes 71.2% of the
FY2010 General Fund Budget.
Expenditures by Department
FY2008
%
FY2009
%
FY20010
%
Police 25.3%27.7% 29.3%
Public Works & Engineering 21.6%23.1% 21.4%
Fire 20.3%20.5% 21.5%
Administration, Finance,
Human Resources, Risk Management 9.5%
10.0%
9.9%
Planning, Inspections, Information Tech 6.7%7.3% 7.5%
Interfund Transfers 10.7%5.9% 4.4%
Recreation 4.2%4.9% 4.7%
Other 1.7%.6% 1.3%
Expenditures by Category
FY2008 FY2009 FY2010
Personal Service 67.0%68.2% 71.2%
Contractual 5.8%7.7% 7.7%
Commodities 14.2%15.6% 15.1%
Capital 1.1%1.3% 0.5%
City Grants 2.0%1.3% 1.1%
Interfund Transfers 9.9%5.9% 4.4%
3. Expenditure By Department
a General Government
The General Government category includes the Mayor & Commission, City Manager, City
Clerk, and Legal budget divisions.
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$965,110 $890,435 ($74,675) (7.7%) ($33,439) ($41,236)
The Operational Efficiency Plan deleted the paid Intern in the City Manager’s Office and a part
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time Clerk working on document imaging in the Clerk’s office.
Other budget changes include training, travel, PIO marketing, and legal services.
b Non Departmental, Contingency, Memberships & Civic Beautification
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$646,260 $670,135 $23,875 3.7% $0.00 $23,875
Non-Departmental includes agencies receiving General fund subsidies.
Contingency & Memberships includes the $300,000 Commission Contingency account.
Civic Beautification provides a small amount to help fund services provided by the Board.
The Operational Efficiency Plan did not impact any of these budget divisions.
Major changes include a $50,000 decrease in the recommended operating subsidy for PATS and
prepayment of a portion of the City’s support for Paxton Golf Course.
c Finance (and former Human Resources)
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$1,383,560 $1,162,950 ($220,610)(15.95%)($183,983) ($36,627)
The Operational Efficiency Plan combined the Human Resources Department into the Finance
Department and deleted four positions:
Human Resources Director
Human Resources Intern
Accounts Payable Accounts Clerk
Revenue Clerk (replaced by a part-time temporary employee)
Adrianne Gleeson has taken on the combined responsibilities of Budget Officer and Human
Resources Administrator.
Other budget changes made by the Finance (and former Human Resources) include:
Reduced travel and training,
Delay ‘Best Places to Work’ survey until next year
Reduce recruitment and labor negotiations costs
Budget Letter
21
d Redevelopment Agency & Paducah Renaissance Alliance
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$314,750 $262,475 ($52,275) (16.61%)($35,000) ($17,275)
The above chart is somewhat misleading because it does not show the full cost of
Redevelopment and Renaissance operations. Last year all City funding for all Renaissance
program costs were in the Investment Fund. This year, Renaissance staff is budgeted in the
General Fund and requests for Renaissance program funding appear as Investment Fund
Decision Items.
The $314,750 figure in the Budget FY2009 box above includes only last year’s personnel costs.
The Operational Efficiency Plan did not directly change the Renaissance Alliance staffing, but it
reduced City funding by $35,000, which led to laying-off two staff members.
The only non-personnel item in the recommended General Fund appropriation for Renaissance is
an addition of $25,000 for Floodwall Mural maintenance.
e Information Technology
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$532,260 $522,355 ($9,905)(1.86%)($13,484) $3,579
The Operational Efficiency Plan moved the GIS Division from the City Engineer’s Office and
made it part of the Information Technology Department. The Plan deleted the GIS Coordinator
position and an Intern position in Information Technology.
Although our GIS system is a significant resource, it is far from reaching its potential. For
example, the City still utilizes paper plat books and keys in information into a computer database
related to the old plat books. Once we get a unified, accurate, and automated system of parcel
and land management records in place, we will have new opportunities for efficiency
improvements in many departments that work with maps and land records. These improvements
will benefit both the city and its sister agencies which are part of the MAP~GIS Consortium.
As part of the Operational Efficiency Plan we transferred Planner Ben Petersen from Planning to
Information Technology on a temporary assignment to accomplish the Land Record Database
Project
In addition to managing his Department budget, Information Technology Director Greg Mueller
Budget Letter
22
also manages the TISA (Telecommunications and Information Services Agency) budget. TISA
is the City/County agency that owns and operates all of our shared computer and phone
equipment. Next year TISA will be replacing the AS400, the City & County’s central computer
and purchasing some VOIP equipment to prepare us for transfer to Internet based phones in a
few years.
The operating part of the Information Technology budget increased slightly because we
transferred some expenditures that were being 100% paid by the City from the TISA budget to
the Department budget. There is an offsetting decrease in our transfer to the TISA budget, which
is located in the interfund transfer budget section.
f Inspections
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$1,121,510 $873,860 ($247,650)(22.08%)($195,395) ($52,255)
The Operational Efficiency Plan deleted two Building Inspector positions and laid off the Code
Enforcement Officer who focused on the Fountain Avenue Neighborhood Project. The Code
Enforcement Officer was working halftime, but was filling a fulltime position.
Other changes in the Inspection Department budget include reducing the demolition budget from
$130,000 to $100,000 and reducing the Department’s fleet of vehicles.
g Planning
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$851,150 $735,190 ($115,960)(13.62%)($96,822) ($19,138)
The Operational Efficiency Plan deleted a Planning Intern position and transferred the
Department’s Senior Planner to the Information Technology Department on a project assignment
to head the Land Records Database Project.
Other changes in the Planning Department budget benefits from turnover that reduced salary
costs and last year’s purchase of a more efficient copier. Training and travel was reduced
significantly. The $244,750 Section 8 budget, which is part of the Planning Department budget,
is paid 100% by federal funds.
h Police
Budget Budget Increase % Increase Efficiency Other Cuts
Budget Letter
23
FY2009 FY2010 (Decrease) (% Decrease)Plan Portion Portion
$8,657,620 $8,377,450 ($280,170)(3.24%)($341,172) $61,002
The Operational Efficiency Plan deleted three vacant Police Officer positions and anticipated a
fourth Police Officer retirement. In addition it deleted an Investigative Aid and a Clerk position.
Salaries and benefits for the 6 positions totaled over $341,000. The City will apply for a Federal
Stimulus Grant to pay the cost of filling the vacant Police Officer positions for the next few
years.
Other changes in the Police Department budget include:
Increased cost for the 3% raise guaranteed in the FOP contract to union members
Increased cost from changing the State retirement contribution for Police and Fire from
29.5% to 32.97%.
The Department’s work with Risk Manager Cindy Medford has reduced Police insurance
costs by over $29,000.
We estimated a lower cost for fuel that reduced the budgets of all departments,
particularly departments like Police that use a large amount of fuel. Last year we
budgeted gasoline at $3.75 /gallon. This year we are estimating $2.50 /gallon.
Deletion of specialized training, a new police dog, motorcycle gear, and other equipment
requests most of which are included in your list of General Fund decision items.
The Department plans to reduce last year’s $468,000 overtime budget by $13,000.
i Fire
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$6,351,075 $6,146,720 ($204,355)(3.22%)($301,509) $97,154
The Operational Efficiency Plan deleted three vacant positions, Deputy Fire Marshall and two
Firefighters, and anticipated leaving a third Firefighter position unfilled when vacated by
attrition. In conjunction with the reduction in force, the Operational Efficiency Plan reduced the
Fire Department minimum manning standard from 17 Firefighters on duty at all times to 16. A
Fire Department Clerical Assistant was transferred to Public Works. As is the case with the
Police Department, the City will apply for a Federal Stimulus Grant to pay the cost of filling the
vacant Firefighter positions for the next few years.
Other changes in the Fire Department budget include:
The Fire Department budget is 86% personnel costs; therefore any significant change in the
budget requires a change in the number and cost of personnel. Cost increases in the budget
offset part of the savings generated by the Operational Efficiency Plan. Other changes in the
Budget Letter
24
Fire Department budget included:
Increased cost for the 3% raise guaranteed in the IAFF contract to union members
Increased cost from changing the State retirement contribution for Police and Fire.
The Department anticipates several retirements next year. Therefore the personnel line
item includes $68,000 for retiree payouts.
Fleet lease to fund the future payment of new Fire Trucks increased $20,000.
Training and Travel was reduced significantly.
Chief Kyle’s initiative to do laundry in house reduced costs $11,000.
j Engineering & Public Works (E-Pub)
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$6,980,110 $6,116,385 ($863,725)(12.37%)($778,821) ($84,904)
The Operational Efficiency Plan merged Public Works and Engineering into a single Department
under City Engineer Rick Murphy. It also transferred the GIS Division from Engineering to
Information Technology.
The Operational Efficiency Plan deleted 11 positions in the Public Works and Engineering
Departments:
Public Works Director
Public Works Department Secretary
Engineering Department Secretary
Landscape Superintendent
3 Craftsmen: Carpenter, Plumber, & HVAC
3 Public Works Workers (Two currently vacant and one to be deleted by attrition)
GIS Coordinator
Summer Youth Program
In addition to the personnel deletions the plan transferred a clerical worker from the Fire
Department to Public Works and reassigned the Secretary providing half time assistance to the
Risk Manager to full time Public Works.
City Engineer and Public Works Director Rick Murphy has done an exceptional job of
identifying cost reduction opportunities in his combined department. Budget changes include:
Reduce temporary employees: $48,000
Reduce weed, debris, & landfill costs: $30,000
Reduce supply costs for streets, maintenance, parks, and custodial: $70,000
Budget Letter
25
Reduce travel and training: $17,000
In addition to these reductions the budget includes an anticipated $62,000 increase in the
anticipated cost of electricity for City buildings and streetlights and a $10,000 appropriation to
start complying with the federal mandate to increase the size of our street name signs.
k Parks Services
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$1,529,955 $1,333,535 ($196,420)(12.84%)($60,000) ($136,420)
The Operational Efficiency Plan called for a deletion of $60,000 in Parks Services recreation
programming and part time staff. Mark Thompson and his staff exceeded that goal reducing
their recreation programs line item by almost $112,000.
Other changes in the Parks Services Budget include:
Reducing Pool operating costs by reducing hours: $8,000
With the end of the current OVC tournament contract, reducing our annual payment to
Brooks Stadium for the tournament by $20,000.
Using on-line distribution to reduce the cost of the Department’s program brochure by
almost $15,000.
Reducing travel and training by $21,000.
Increase the Summer Youth Food program by $28,000. Cost is reimbursed by Federal
funds.
Increase electric and building maintenance costs by $12,000 to secure the Armory when
it is transferred to the City.
l Cable Authority
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$95,710 $85,665 ($10,045)(10.49%)$0 ($10,040)
Almost all of the funds in the Cable Authority budget go to support public television
programming services provided by WKCTC. Since the new camera equipment in the
Commission chambers reduces the number of staff required to televise a meeting there, the
recommended budget reduces payment to the College by $10,000.
m Human Rights
Budget Letter
26
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$105,000 $50,000 ($55,000)(52.38%)$0 ($55,000)
The Operational Efficiency Plan reduced City payment to the Human Rights Commission for
their counseling service and annual talent show from $105,000 to $50,000. Since the reported
frequency of counseling session remains at less than one every day and a half, the City Manager
continues to recommend further reduction in the budget for Human Rights Commission staff.
The Human Rights Commission has written the City Commission requesting a $95,000
appropriation.
n Risk Management
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$138,350 $108,470 ($29,880)(21.60%)$0 ($29,880)
Risk Manager Cindy Medford’s office has moved from Public Works to City Hall where, in
addition to her normal duties, she will help with Human Resources services and take on extra
projects for the City Manager. With the office move the half time clerical support she received
from Public Works has been removed from the Risk Management budget. Finance and
Mayor/Manager’s staff will provide support to the Risk Manager.
o Interfund Transfers
Budget
FY2009
Budget
FY2010
Increase
(Decrease)
% Increase
(% Decrease)
Efficiency
Plan Portion
Other Cuts
Portion
$1,324,530 $1,271,825 ($52,705)(3.98%)$0 ($52,705)
The Interfund Transfer division of the budget covers the transfer of monies between funds as
shown by lateral arrows in the flow of funds chart on page 13.
Transfers include:
Transfers out to fund the City’s cost for semi-independent agencies like 911 and the
TISA board.
Transfers to cover any shortfalls in other funds such as our Civic Center, Fleet, and
Health Insurance Funds.
Transfers to the Bond Fund for principal and interest payments on debt being amortized
by the General Fund.
Transfers to the City-managed retirement systems.
Budget Letter
27
Major Changes in Interfund Transfers:
TISA: Transfers to TISA are reduced because we moved $31,000 in expenditures that
are paid 100% by the City from TISA to the Information Technology budget.
911: Although the transfer to 911 is $23,000 larger than last year, it is $50,000 less than
the request from the 911 Board. Our 911 service continues to suffer a loss of self-
generated revenue as cell phones replace landlines. The City and County make up the
shortfall by increasing their subsidies of the service.
If McCracken County reduces their contribution by a comparable $50,000, then 911 will
have to either reduce manning and cut their $1.5 million budget by 7% or draw down
their operating reserves. Director Jamey Spears has prepared a letter describing the
impact of a one, two, or three person reduction on 911 operations.
Your General Fund decision package will include an item to restore the $50,000 for 911.
Police and Fire Pension Fund: The City sold bonds to fully cover the unfunded
liability in the old Police and Fire Pension Fund. Unfortunately the stock market crash
caused the fund to lose a large part of its value. The City has a duty to cover the
shortfall. In early fall the pension fund actuaries will tell us what amount they
recommend we pay into the fund to start the make-up process. We estimate that the
actuary’s recommended cost will be around $560,000.
The budget does not carry the $560,000 as a current line item, but recommends that we
give that expenditure first claim on FY2009 expendable fund balance monies.
4. Fund Balance
As discussed earlier in this letter, we will present FY2009 fund balance numbers in September
after the FY2009 books are closed.
The Commission has adopted a financial policy to maintain a minimum undesignated cash
balance in the General Fund equal to 8% of that fund’s budgeted expenditures. In previous years
the policy called for 12.5%. It would be easier to please the financial analysts at Moody’s when
they are rating City Bonds if we returned to the higher reserve policy.
The following table shows our projection for the current fiscal year:
FUND BALANCE IN GENERAL FUND
Actual Actual Actual Actual
Budget Letter
28
FY2006 FY2007 FY2008 FY2009
CASH Undesignated $4,401,832 $5,250,037 $4,150,826 -?-
AUDIT Undesignated $9,157,310 $9,976,079 $9,416,427 -?-
Although we do not have an estimate of expendable fund balance at this time, our historic
experience has been that the amount of expendable reserves after the books are closed has been a
healthy total of over $1 million each year. Unless we suffer a significant change in local
economic conditions in the next 45 days, I anticipate that we’ll have a comparably large amount
of at least $500,000 in expendable fund balance available in FY2009.
The administrative budget anticipates that the City will fund two major items from FY2009
expendable fund balance:
Reserve for IAFF’s Incentive Pay Overtime Law Suit $50,000
Old Police-Fire Pension Contribution to Restore Funds Lost in Market
Crash
$560,000
In addition, we have a list of General Fund decision items for the Commission to prioritize
during your Budget Advance. In September, when we close the books and learn what
expendable fund balance we have available we will authorize these expenditures starting with
the one the Commission gives highest priority and going down the list until all of the expendable
fund balance monies are allocated.
5. Multi Year Projection
The spreadsheet on the following page summarizes the operation of the General Fund for the last
5 years and projects revenue and expenditures in the General Fund until the year 2014. The
primary driver of the revenue growth shown on the spreadsheet is based on the assumption that
our ‘Major License’ revenue (mostly payroll tax and business license tax receipts) will not grow
in FY2010.
Budget Letter
29
Historical and Projected Revenues and Expenditures chart to be inserted at a later date.
Budget Letter
30
E. Investment Fund
1. Background
When the City Commission created the Investment Fund in the FY2006 Budget Ordinance you
included the following financial management policy:
“The City will maintain a special fund called the Investment Fund. The Investment Fund
will be funded with a ½ cent increase in the City’s occupational license fee (employee
payroll withholding tax). This fund is dedicated to the following expenditures: economic
development, neighborhood redevelopment, infrastructure capital investment, and property
tax relief.”
The ordinance levying the tax increase included a sunset clause, which would have reverted the
tax from 2% of payroll to 1.5% on October 1, 2008. In September of 2007 the Commission
adopted an ordinance to delete the sunset clause.
SUMMARY OF REVENUE SINCE INCEPTION
Transfer From General Fund monies available as a result of
changing the fund balance reserve policy from 12½% to
8%
$1,302,230
Appropriations from General Fund (Primarily proceeds
from delinquent tax amnesty program)
$330,000
First ½ year’s proceeds from ½% Increase in Occupational
License Fee
$1,885,559
Total FY2006 $3,517,789
FY2007 Proceeds from ½% Occupational License Fee $3,946,685
FY2008 Proceeds from ½% Occupational License Fee $4,088,521
FY2009 Proceeds from ½% Occupational License Fee
(Projected)
$4,292,000
GRAND TOTAL $15,844,995
A detailed report of the use of investment fund revenues since the inception of the program can
be found under the heading “Investment Fund Scorecard” in the Finance Department section of
the City of Paducah webpage http://paducahky.gov.
Budget Letter
31
2. FY2010 Investment Fund Decision Items
o Appendix 1 includes a list of 51 Investment Fund decision items. We have placed these
decision items into three groups: Economic Development, Neighborhood
Redevelopment, and Capital/Infrastructure. We’ve marked items with continuing
economic commitments as “committed expense.” Additionally, several items presented
as decision packages will not be ready for implementation in FY2010, and were
identified as “future year” expenses.
F. The Rest of the City Budget (The Other Funds)
1. MUNICIPAL AID PROGRAM (MAP) FUND
a Map Fund Revenue
Paducah’s allocation of State gas tax funds has historically averaged around $400,000 a year.
We anticipate $450,000 in FY 2010.
As shown on the table below, for the last few years we have received additional “one-time”
receipts from State of Kentucky’s Road Bond issues. No similar bond fund revenue from the
state is anticipated for FY2010.
Actual
FY2007
Actual
FY2008
Estimated
FY2009
Budget
FY2010
Gas Tax $434,211 $470,612 $410,000 $450,000
State Bond Funds 149,282 450,000
General Fund Transfer 9,055 34,000
Investment Fund
Transfer
500,000 850,000
TOTAL $583,493 $1,429,667 $1,294,000 $450,000
b Expenditures
The City maintains 223 miles of streets. Depending on traffic use patterns, an asphalt street will
last 10 to 12 years between resurfacings. In the CIP, we set a goal of spending $1 million a year
for street resurfacing which will allow us to repair or resurface a street as it becomes necessary
to do so. The increased cost of petroleum products means that a dollar buys much less paving
than it did a few years ago. The City needs to increase its $1 million/year target. The
Engineering/Public Works Department starts looking seriously at resurfacing streets when they
Budget Letter
32
rank 5 or lower on a street evaluation scale of 1 to 10. Currently an estimated $9 million would
be required to repair at today’s construction costs all of the City streets ranking 5 and below.
2. GRANT FUNDS –
Most of the City’s grant funds are budgeted as the grants are received. We anticipate receiving
the following grants during the coming year:
Grant Use of Funds Amount
CDBG-Alpha LMI business development programs $100,000
KY Housing Corp Fountain Avenue Redevelopment* 375,000
Transportation Enhancement Greenway Trails 500,000
JAG 2009 Police Equipment 149,550
Port Security Video Security for Riverfront 24,435
LSF Police Enforcement 8,880
Homeland Security ’08 – Police Bomb squad equipment 273,000
BVP Vests for Police 1,610
LEPP Vests for Police 6,050
Total $1,438,525
*Assistance for LMI Homeowners
In addition we have applied for or intend to apply for and may receive the following grants:
Grant Use of Funds Amount
KY Land & Water Blackburn Park upgrades $75,000
Litter Abatement Litter abatement 70,000
Recreation Trails Grant Greenway Trails 50,000
Highway Safety Grant Enforcement / equipment 40,000
KY Recycling Grant Equipment / operational funds 151,200
Preserve America Downtown / Renaissance Planning 250,000
Homeland Security ’09 – Police Bomb squad equipment 443,820
Homeland Security ’09 – Police Mobile Data Computers 99,870
Homeland Security ’09 – Fire Mobile Data Computers 27,000
Homeland Security ’09 – Police Mobile Radios 29,000
LSF Police Enforcement 12,000
Port Security Video Security for Riverfront 24,900
BVP Vests for Police 3,000
LEPP Vests for Police 10,000
Transportation Enhancement Greenway Trails 500,000
Budget Letter
33
Total $1785,790
3. SOLID WASTE FUND
We operate our Solid Waste Division as a business enterprise. The cost of the service is paid for
with the fees we collect. For the past several years the Public Works staff has worked to make
the service more efficient. They have implemented a number of changes to increase revenue and
to hold down costs.
a History Of Changes
In FY2007 we:
o Purchased our first sidearm loading truck to allow operation of one-man routes
o With the use of this truck, reduced collection staff manpower by two positions
o Increased fees for wood chips and compost from the City Compost Yard.
o Increased JSA’s contribution to the operation of the compost yard
o Increased construction dumpster collection fees
o Brought Enterprise Zone customers to full rates when the State sunset our Enterprise
Zone
In FY2008 we:
o Increased City collection rates 7.2%
o Changed to a four-day residential collection schedule and a one-day (Monday) brush pick
up schedule, which resulted in better customer service and reduced overtime
o Applied new AFSCME contract provisions, which reduced overtime expenses
o Audited customers receiving “handicapped” backdoor service and reduced the number
receiving the expensive service
o Changed approximately 200 customers from alley to curbside collection to allow
collection with the sidearm loader
In FY2010 we:
Increased City collection rates 7.5%
Increase in tipping fees for out-of-town customers at the compost yard
Successfully overhauled the Scarab that windrows material at the compost yard instead of
replacing it.
Budget Letter
34
b Revenue
For every ton of residential waste the City picks up we pick up approximately three tons of
commercial waste. Our commercial customers also provide the largest portion of the revenue for
operating the City’s Solid Waste Department:
Commercial customers 48.6% of revenue
Residential customers 43.9% of revenue
Other income 7.5% of revenue
Total 100.0%
SOLID WASTE FUND REVENUE
Actual
FY2007
Actual
FY2008
Estimated
FY2009
Budget
FY2010
$3,965,648
$4,410,985
$4,195,500
$4,344,000
c Expenditures
The operating cost of the Solid Waste Department includes administration, residential collection,
commercial dumpster collection, brush and leaf collection, and operation of our compost facility.
Disposal costs are paid to CWI, which operates the transfer station on Burnett Street and hauls
our waste to a landfill in Tennessee. In FY2005, we renewed our CWI contract for 5 years with
the option of an extension of another 5 years. Under the contract they can increase their charges
to the City each year an amount equal to the Consumer Price Index up to a maximum of 3.0%.
SOLID WASTE FUND EXPENDITURES
Actual
FY2007
Actual
FY2008
Estimated
FY2009
Budget
FY2010
Operating Cost $2,093,220 $2,193,561 $2,684,870 $2,443,520
Disposal Cost $1,148,818 $1,163,517 $1,206,000 $1,110,000
Capital 549,180 $734,514 $223,000 $202,500
Depreciation $288,458 $306,557 $409,055 $360,000
TOTAL $4,079,676 $4,398,149 $4,522,925 $4,116,020
The total in the Solid Waste Fund Expenditures table “double counts” by including both
Budget Letter
35
depreciation and capital expenditures for new trucks and other equipment. We use the money
we put aside in retained earnings from depreciation to pay for new trucks as we replace our old
packers. To compare revenues to expenditures, the capital expenditures of $202,500 in the
FY2010 table above should be subtracted from total expenditures.
At June 2010 our retained earnings in the Solid Waste Fund will be approximately $1.5 million.
d Plan For FY2010
To continue to provide solid waste services after the 2009 ice storm we moved all residential
collection out of the City’s alleys to curbside. We will return to providing service in most, but
not all alleys.
We will recommend the City stop its historic practice of providing free leaf bags to all
homeowners. Homeowners will still be asked to bag their leaves and those who do will get first
priority on pick-up service.
Supervision of the brush division has been moved from Streets back to Solid Waste.
Public Works staff in conjunction with the Joint Sewer Agency will review our compost yard
operation and will evaluate expanding the composting pad and changing from contract grinding
service to purchasing a grinder.
Paducah’s solid waste service continues to be a great bargain for our customers. City residents
are charged $16.50/month for a service that includes disposal of brush, leaves, and limited
amounts of furniture and debris at no extra charge. At last comparison residents living outside
the City limits who rely on the County’s private contractor are charged $20/month and do not
receive brush or leaves disposal service.
4. FLEET FUNDS
The City uses it Fleet Funds to charge itself for services it provides to its own departments. The
Fleet Maintenance division provides services to the General Fund and Solid Waste Fleet Fund.
Until FY1999, the Fleet Fund operated as a single fund, but beginning with the FY2000 budget,
it was separated into two funds.
The Fleet Maintenance Fund tracks the operation of our maintenance garage. Each department
has funds budgeted for the repair and maintenance of equipment and vehicles, as well as fuel.
Budget Letter
36
When a tire is changed on a police car, a charge is paid from the Police Department to the Fleet
Fund. Total expenditures in the Fleet Maintenance Fund next year are expected to be $611,005.
The second fund is our Fleet Lease Trust Fund. We use this fund to build up monies to replace
trucks and cars owned by the General Fund. When a new vehicle is purchased, a lease amount is
calculated by dividing the cost of the vehicle by its expected life. Each year the Department
using the vehicle pays the lease amount into the Fleet Lease Trust Fund. When the vehicle is
ready to be auctioned, the funds accumulated from the lease payments and the interest they earn
provide the money to buy a replacement vehicle. We started putting money into this vehicle
replacement system in FY1999. At July 2009, we will have a balance of approximately $3.3
million in the fund.
We made our first expenditures from the fund in FY2005. Now most all of our purchases of
replacement vehicles are paid for with Fleet Trust Fund monies. The only City vehicles that are
not fully amortized in the Fleet Trust Fund are garbage trucks, which are depreciated by business
accounting rules in the Solid Waste Fund, a few old items of heavy construction equipment in
Public Works that were purchased before we started the Fleet Trust Fund.
In FY2005, we started making lease payments into the fund for the replacement of our fleet of
fire trucks. If we continue to follow the plan shown on the following table we will be able to
replace all 7 of our fire trucks by 2017. In FY2009 we bought our first pumper truck under the
replacement plan. In FY2010 we plan to replace a ladder truck.
.
Budget Letter 37 PriorReplaceYears201020112012201320142015-17TotalYearPumpers: 350,000 350,000 2009 276,665 73,335 350,000 2011 198,500 50,500 50,500 50,500 350,000 2013 155,715 38,857 38,857 38,857 38,857 38,857 350,000 2015 128,332 31,667 31,667 31,667 31,667 31,667 63,333 350,000 2016 Ladders: 444,444 113,889 113,889 113,889 113,889 900,000 2014 300,000 75,000 75,000 75,000 75,000 75,000 225,000 900,000 2017 $ 1,853,656 $ 383,248 $ 309,913 $ 309,913 $ 259,413 $ 145,524 $ 288,333 $ 3,550,000 Annual Funding 955,000 235,000 260,000 290,000 325,000 365,000 1,385,000 2345-7 Annual Purchases $ 297,907 $ 350,000 $ 350,000 $ 900,000 $ 1,600,000 Funds Balance @ FYE $ 657,093 $ 892,093 $ 802,093 $ 1,092,093 $ 1,067,093 $ 532,093 $ 317,093 UnitType Cost Acquired in 1 Pumper $ 297,907 2009 2 Pumper $ 350,000 1993 3 Pumper $ 350,000 1994 4 Ladder $ 900,000 1993 5 Pumper $ 350,000 1994 6 Pumper $ 350,000 1995 7 Ladder $ 900,000 1994
The following tables display the historic evolution and projected change in our
Fleet Trust Fund.
Paducah's
Fleet Trust Fund
Cash/Investment and Vehicle/Equipment Book Values
$0.0
$2.0
$4.0
$6.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010MillionsVehicle/Hvy Equipment
Cash/Investments
Paducah's
Fleet LeaseTrust Fund
Total Asset Value vs. Goal
$0.0
$2.0
$4.0
$6.0
$8.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010MillionsAssets
Goal
Budget Letter
39
5.DEBT SERVICE FUND
a Convention Center/Four Rivers Center Bonds – Bond Series 2001
In June of 2001, the City issued approximately $9.29 million in 25-year general obligation bonds
to provide $6 million for construction of the 50,000 square foot additions to the Convention
Center and $3 million for construction of the Four Rivers Performing Arts Center. Total
principal and interest payment for FY2010 will be approximately $642,100.
While the City issued these bonds, 50 percent of the principal amount of the bonds was issued on
behalf of McCracken County. In accordance with an interlocal cooperative agreement between
the City, County and the Convention Visitors Bureau, principal and interest payments on the
bond are being made from an additional 2% transient room tax collected by the County.
Principal & Interest Payment: +/- $642,100
Revenue from 2% of Hotel/Motel Bed Tax +/- $580,000
City Contribution +/- $20,700
County Contribution +/- $20,700
Visitor’s Bureau Contribution +/- $20,700
TOTAL +/- $642,100
The City General Fund includes a $20,700 transfer out to the Debt Service Fund. The Debt
Service Fund anticipates the revenue from the Bed Tax, County and Visitor’s Bureau.
b 2003 Capital Project Bond
In May 2003, the City Commission approved a 20-year bond issue for $3.5 million through the
Kentucky League of Cities bond pool to finance the following capital projects:
Four Rivers Center for Performing Arts utility relocation, streetscape
improvements and parking lot construction
$1,500,000
Park Improvements: Blackburn, Kolb, Noble Parks and Perkins Creek
Nature Preserve
$1,000,000
Police building HVAC & related construction $650,000
City Hall HVAC, control system, ductwork and structural improvements $350,000
TOTAL $3,500,000
Principal and interest payment next year will be $208,580 from the General Fund.
Budget Letter
40
c 2004 Infiniti Media Bonds
In the spring of 2004, the Commission approved an economic development incentive to bring the
Infiniti Media manufacturing plant to Paducah. The City and County built a 100,000 square foot
manufacturing building in Industrial Park West to Infiniti Media’s specifications. The City sold
$5 million in 25-year taxable general obligation bonds to pay for the project. We lease the
building to the Industrial Development Authority and the Authority leases the building to Infiniti
Media. For the first three years, the City and County split paying the lease on the building.
September 1, 2007 the company started paying the lease on the building. The lease payments
will fund all but 2.031% of the principal and interest payments on the bonds. The City’s portion
of the principal and interest payment for FY2010 will be $420,505 from the Investment Fund.
d 2004 IDA Speculative Building
In the spring of 2004 The Paducah-McCracken County Industrial Development Board borrowed
funds to finance the 60,000 square foot speculative building in the Industrial Park West.
Paducah and McCracken County serve as the guarantors for the loan and are responsible for the
carrying costs. The City’s portion of the carrying costs for the Industrial Park Spec Building in
FY2010 will be $9,000 from the Investment Fund.
e 2005 Police and Fire Pension Bond
In November 2005, the City issued $6.1 million in 20-year general obligation bonds to fund the
Police and Firefighters Pension Fund (PFPF) unfunded pension liability. With the unfunded
liability fully paid, the City’s financial responsibility to the fund is fulfilled and the PFPF Board
is now responsible for determining each year whether the fund has enough resources to afford
pension payment increases for their retirees. Total principal and interest payment for FY2010
will be $496,175 from the General Fund.
f City’s Share of $5.0 Million KACo Loan for Julian Carroll Convention Center
Renovation
In April 2009, the County borrowed $5.0 million from the KACO. The City and County agreed
to split the obligation equally (50:50). Debt service will be fully funded by the Investment Fund.
The County acts as banker. Proceeds were used for renovation/rehabilitation of the Julian
Carroll Convention Center.
g KLC Flood Protection System Loan
In March 2009, the City issued a bond issue through KLC in the amount of $2.8 million at a
variable rate of interest. Debt service to be fully funded by the Investment Fund for the
following projects:
Budget Letter
41
Floodwall rehabilitation $1,765,000
Floodwall feasibility study & levee certification $400,000
River bank stabilization project (shared w/Riverport) $50,000
Jail land acquisition for McCracken County $100,000
Engineering/Design for Floodwall Projects $160,000
Other/Contingency Projects
$325,000
Total $2,800,000
A. Materials for CITY COMMISSION
REVIEW of FY2010 BUDGET
The City Commission is scheduled to spend Thursday, June 2, 2009 in a Budget Workshop
reviewing and making decisions about the FY2010 Budget.
I recommend the Commission use the following agenda for your Budget Advance:
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42
AGENDA
City Commission Budget Advance
June 2, 2009
1) Welcome – Mayor Paxton
2) Review of Day’s Agenda – Zumwalt
3) Investment Fund
a) Overview - Zumwalt
i) Funded Projects Still Open
ii) Anticipated Revenue
iii) “Promised” Expenditures
iv) Amount available for Allocation
b) Questions to Directors about Investment Fund Decision Items - Commission
c) Discuss and Agree on Investment Fund Budget – Commission
4) General Fund Budget Policy Decisions
a) Overview – Zumwalt
b) Discussion of Budget Related Policy Issues - Commission
i) General Fund: No Raises Except for Collective Bargaining Police and Fire
Pension Funding from Fund Balance
ii) Police Fleet Policies
iii) City Leased Buildings
5) General Fund
a) Overview – Zumwalt
b) Questions about Recommended General Fund Budget – Commission
c) Discuss and Agree on General Fund Budget – Commission
d) Questions to Directors about General Fund Decision Items – Commission
e) Index Cards to Prioritize General Fund Decision Items - Commission
i) Distribute deck of cards to each Commissioner with one General Fund decision
item on each card.
ii) Commissioners Stack Cards in their individual priority order
iii) Staff compile spreadsheet showing combined priorities from individual
Commissioner Decisions
6) Other Fund Budget Policy Decisions (To be held while staff compiles spread sheet)
i) Leaf Bags – Solid Waste Fund - Murphy
ii) Purchase of Tub Grinder – Solid Waste Fund - Murphy
iii) Purchase of Fire Ladder Truck – Fleet Fund - Kyle
iv) Earmarked Revenue for Cultural Activities – Zumwalt
7) Review General Fund Decision Item Priorities as Listed on Spreadsheet – Commission
a) Discussion and Changes – Commission
b) Approve General Fund Decision Item Priorities
Budget Letter
43
1) Investment Fund
We project that the Investment Fund ½ cent wage tax will generate a little over $4 million next
year. In addition, we will have available $500,000 from projects that were budgeted last year
and either did not occur or did not require all of the budgeted funds.
We have prepared two tools to help the Commission agree on the Investment Fund Budget:
Appendix 1: “Investment Fund Decision Items Worksheet” lists the title of each Decision Item
and provides a column recording decisions. Appendix 1 serves as an index for Appendix 2.
Appendix 2: “Investment Fund Decision Items Description Table” lists the same decision
items in the same order and provides a summary description of each item.
1) Classification of Expenditures
The decision of which items to place in the General Fund and which to place in the Investment
Fund is a judgment call. We use the following guidelines in making the classifications:
Investment Fund items must be for Economic Development, Neighborhood
Redevelopment or Capital Infrastructure
Continuing expenditures for personnel or operating expenses should normally be in the
General Fund
Expenditures explicitly for Economic Development or Neighborhood Redevelopment
should normally be in the Investment Fund.
Repair of Capital Infrastructure should normally be in the General Fund
New Capital Infrastructure should normally be in the Investment Fund
The Commission should review staff’s classification decisions and make any changes you feel
appropriate.
2) Overview
Appendix 1 and 2 list 51 Investment Fund Decision items totaling $19.8 million. The Decision
Items are organized in three categories:
Economic Development
Neighborhood Redevelopment
Capital Investment/Infrastructure
The narrative in the Appendices identify as Committed Expenses both items we have a legal
Budget Letter
44
commitment to honor like bond payments and items the Commission has indicated it intends to
support, like the funding for GPEDC.
A few of the decision items are not likely to have funds spent on them during the next 12
months. These long-range projects are identified as expenses incurred in Future Years.
2) Policy Decisions
The Commission should discuss the following policy decisions during the Budget Advance and
give instruction to staff:
1) No Raises Outside of Contract
Due to the Recession, the recommended budget provides no raises for independent employees or
for AFSCME employees. The only employees receiving pay increases are members of the
Police and Fire bargaining units who are guaranteed 3% raises in their labor contracts.
At the bargaining table this winter the City’s bargaining team offered the AFSCME negotiators a
raise in FY2009 and FY2010 that was tied to the consumer price index. City negotiator Bill
O’Brien advised the Union representatives that this offer would be withdrawn when negotiations
went into recess and was not likely to be re-offered if economic conditions did not change
dramatically.
Unless the Commission instructs otherwise, we will proceed with our plan of providing no raises
other than those provided by contract in the FY2010 budget.
2) Police and Fire Pension Funding
In November 2005, the City issued $6.1 million in 20-year general obligation bonds to fund the
Police and Firefighters Pension Fund (PFPF) unfunded pension liability. With the unfunded
liability fully paid, the City’s financial responsibility to the fund was fulfilled and the PFPF
Board was responsible for determining each year whether the fund has enough resources to
afford pension payment increases for their retirees.
Unfortunately, the stock market crash took away a large portion of the Pension Fund’s value and
caused it to have an unfunded liability again. We will get a report from the fund’s actuary this
fall setting up a program of annual contributions that will wipe out the unfunded liability. Our
guess is that the actuary will recommend a payment of around $560,000.
I recommend the following actions:
Budget Letter
45
Anticipate appropriating $560,000 for the Police and Fire Pension Fund until we get a
different number from the actuary.
Commit to earmark the first $560,000 in FY2009 fund balance above the 8% reserve to
fund the $560,000.
Commit to earmark the next $50,000 to cover legal expenses for the IAFF incentive pay
litigation.
Use all remaining expendable fund balance for General Fund decision packages.
3) Police Fleet
Commissioners have had several brief discussions about the City’s police fleet policies. The
discussions centered on two separate but related issues.
Should we continue our current policy of assigning a car to each officer or should we go
back to the older policy of having two or more officers use the same care on different
shifts?
Should we continue the current take home car policy, which allows officers who live in
McCracken County to drive their City car home after work.
The budget I have presented assumes we will continue our current policies.
I recommend we delay addressing these two issues until after Chief Berry assumes command and
has had time to review the Department’s vehicle policies.
4) City Owned Buildings
The City owns part or all of the following buildings, which do not house City employees:
Commerce Center
Health Department Building
W. C. Young Community Center
Paducah Day Care Building
Market House which houses Market House Theatre, Clark Museum, & Yeiser
Columbia Theatre
Four Rivers Center
Petter Complex including Seamen’s Church, Gault Law Firm, River Discovery Center,
and Maiden Ally Theatre
Martha’s Vineyard Building
Rail Road Museum Building
Probation & Parole Building
Budget Letter
46
Brooks Stadium
Robert Cherry Civic Center
During the budget review the Commission normally discusses whether you want to change the
status of any of these buildings.
5) Earmarked Revenue for Cultural Activities
Your Investment Fund decision items will include proposals for operating appropriations for the
City’s arts and culture organizations including the Symphony, Carson Center, and Market House
Theatre. Some of our competing Cities, particularly Owensboro contribute significant funds
annually to the operations of their cultural facilities. Paducah has not done so, although from
year to year we sometimes make an appropriation to some of the agencies.
If Paducah is going to continue to market our image as an arts and culture center, then we need
to find a way to provide continuing, reliable financial support to the operation of our arts
organizations.
I think that the only way to accomplish this goal on a long-term basis is to earmark a specific,
growing revenue source for support of the arts.
6) Solid Waste Leaf Bags
Last year the City budgeted $100,000 in the Solid Waste Fund to purchase leaf bags. Several
Commissioners have suggested that now is an opportune time to change the City’s leaf bag
policy. Everyone is aware of the fiscal constraints facing the City and the trees damaged by the
ice storm should produce fewer leaves than normal this fall.
Staff will recommend that the City no longer distribute free leaf bags to every home. We have a
large supply of bags in stock, which we can sell at or below cost to homeowners.
We should continue to encourage citizens to bag their leaves by giving first priority to picking up
bagged leaves before returning with leaf vacuums to pick up windrowed piles of leaves.
7) Tub Grinder
Rick Murphy and the solid waste staff will be preparing an analysis to determine whether it
would be cost effective for the City to purchase a tub grinder for the compost yard. Since
funding will come out of the enterprise fund, this decision does not have to be made in
conjunction with the budget, but Rick will brief you on the status of his analysis at the Budget
Advance.
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8) Ladder Truck Purchase
We have accumulated funds in our Fleet Trust Fund for the purchase of our next Fire Truck.
Based on our truck maintenance history Chief Kyle recommends our next purchase be a ladder
truck. To minimize cost and to get quick delivery he recommends we accept prices on a
demonstrator truck. He and Maintenance Superintendent Randy Crouch have been researching
the issue and will report the status of their recommendations at the Budget Advance.
3) General Fund
We have prepared two tools to help the Commission agree on the Investment Fund Budget:
Appendix 3: “General Fund Decision Items Worksheet” lists the title of each Decision Item
and provides a column recording decisions. Appendix 3 serves as an index for Appendix 4.
Appendix 4: “General Fund Decision Items Description Table” lists the same decision items in
the same order and provides a summary description of each item.
1) Overview
The following table summarizes the City Manager’s recommended General Fund Budget:
Revenue $28,607,450
Operating Budget $28,307,450
Commission Contingency $300,000
Total Expenditures $28,607,450
The recommended budget incorporates the decisions the Commission made in the
Operational Efficiency Plan and assumes that income will be 7% less than we estimated
for the FY2009 budget.
Budget Letter
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2) General Fund Decision Items
Appendices 3 & 4 list 34 General Fund decision items costing a total of $877,200. The list
includes the Departmental requests that are not included in the recommended operating budget.
The City will have funds to pay for a significant number of these items. City Departments will
not spend all the money appropriated in their FY2009 budgets and our actual FY2009 revenues
may survive the recession and be larger than we have projected. Around September when we
close the FY2009 books we will know how much expendable fund balance we have above the
8% operating reserve. Although we do not know what the amount will be, in past years it has
been $1 to $2 million and I expect it to exceed a half million dollars this year.
We have earmarked two items to have first claim on expendable fund balance:
Reserve for IAFF’s Incentive Pay Overtime Law Suit $50,000
Old Police-Fire Pension Contribution to Restore Funds Lost in Market
Crash
$560,000
After these two items are covered, any remaining expendable fund balance may be applied to
General Fund Decision items.
3) Commission Prioritization
I recommend the Commission take the following steps to put the General Fund
Decision Items in your priority order:
Read the summary description of each Decision Item
Ask Department Directors any questions you have about their requests.
Staff will give each Commissioner a deck of cards with each Decision
Item on a card. Organize your deck of cards in your priority order.
In Lyle Sumek style, we will list each Commissioner’s priorities on a
spreadsheet and rank the Decision Items in your collective priority order.
Review and discuss the resulting list and make adjustments or trades
We will make the Commission priority list part of the FY2010 budget and when
we know our expendable fund balance we will start authorizing expenditures from
the top of the list.
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5) ACKNOWLEDGMENTS
All of the City’s Department Heads have cooperated with this year’s budget process and have
supported the preparation of this document. Although I have set the overall structure of the
budget recommendations and participated in the departmental interviews and the final assembly
process, almost all of the planning, decision making and work involved in preparing the FY2010
Budget was done by Finance Director Jonathan Perkins and Budget and HR Administrator
Adrianne Gleeson with the able assistance of Judy Nelson, Audra Herndon, Angela Copeland,
and Cathy Graham. I sincerely appreciate their excellent work and ask you to join me in
commending them.
James W. Zumwalt
City Manager
CITY OF PADUCAH
INVESTMENT FUND DECISION PACKAGE
FY2010
Manager
Recommended
Commission
Decision
REVENUE
1/2 Cent Wage Tax 4,075,000$ 4,075,000$
Investment Fund Carryforward 500,000 500,000
Total Funds Available for Expenditures 4,575,000$ 4,575,000$
ECONOMIC DEVELOPMENT
1 *C* Economic Development Commitments from Prior Years 22,610$ 22,610$ 22,610$
2 *C* Debt Service 345,815 345,815 345,815
3 *C* GPEDC 300,000 270,000 300,000
4 *C* Economic Development Reserve 400,000 300,000 300,000
5 *C* Airport Subsidy 146,430 146,430 146,430
6 *C* Four Rivers Behavioral Health Parking Easement 25,000 25,000 25,000
7 *C* EntrePaducah 100,000 90,000 100,000
8 Murray State Small Business Development Center 20,000 - -
9 AEP-MEMCO subsidy & road 135,000 - -
10 Seasonal Ice Rink 92,000 92,000 92,000
11 American Quilters Society Quilt Show Subsidy 25,000 25,000 25,000
12 Arts Agency Funding 190,000 100,000 120,000
13 Renaisance Marketing/Downtown Redevelopment 205,000 205,000 205,000
14 BBQ Transfer 55,000 - 30,000
15 Downtown Property Acquisition 250,000 - -
SUBTOTAL ECONOMIC DEVELOPMENT 2,311,855$ 1,621,855$ 1,711,855$
COMMUNITY REDEVELOPMENT
16 Midtown Alliance Services 55,000$ 20,000$ 12,500$
17 Scholars House 36,000 36,000 36,000
18 Fountain Avenue Revitalization 385,000 385,000 385,000
19 City-wide Property Purchase & US 60 Linear Park Property 200,000 - 50,000
20 *F* Match for Fountain Avenue Grant 200,000 - -
SUBTOTAL COMMUNITY REDEVELOPMENT 876,000$ 441,000$ 483,500$
CAPITAL / INFRASTRUCTURE
21 *C* Riverfront Boat Launch & Transient Boat Dock Shortfall 274,900$ 274,900$ 274,900$
22 MAP Paving Program 800,000 800,000 702,745
23 Sidewalk Program 250,000 250,000 200,000
24 City-wide Generator Plan 861,500 - 125,000
25 Olivet Church Road Shortfalls 200,000 - -
26 Traffic Signals 250,000 - 250,000
27 Demolition of Derelict Motel 100,000 100,000 100,000
28 City Hall Structural Issues ?? - -
R:\Finance\Budget\Decision Packages or Budget History\Commission Selection IF\approved
CITY OF PADUCAH
INVESTMENT FUND DECISION PACKAGE
FY2010
29 Civic Beautification - Three (3) City Entrance Signs 2,000 2,000 2,000
30 Noble Park Parking Lot 500,000 500,000 500,000
31 Kolb Park Playground Drainage & Resurfacing 120,000 120,000 30,000
32 Stuart Nelson Restrooms 100,000 - -
33 Reforestation/City-wide Landscaping 200,000 150,000 -
34 Upgrades to Armory Building 50,000 50,000 -
35 Lang Park 100,000 - -
36 Brooks Park Softball Field 45,000 45,000 45,000
37 Shepard Field Renovations 50,000 50,000 -
38 KYDOT Greenway Trail Phase II 150,000 150,000 150,000
39 Park System Signage 24,000 24,000 -
40 Dog Park 15,000 - -
41 Police Purchase of Parking Lot 100,000 - -
42 *F* Property Acquisition for Public Works Operations 75,000 - -
43 *F* Downtown Plaza Parking Lot Renovation ?? - -
44 *F* Engineering to 3-Lane Coleman Road 120,000 - -
45 *F* Stuart Nelson Park Road 800,000 - -
46 *F* Soccer Complex and Amenities 1,400,000 - -
47 *F* Perkins Creek Nature Preserve & Education Project 50,000 - -
48 *F* Rebuild Walking Path along Noble Park Lake 225,000 - -
49 *F* Downtown Parking Deck 4,875,000 - -
50 *F* Add Office Space to Police Department/Replace Windows 525,000 - -
51 *F* Design to Replace Headquarters (Fire Station No. 1)4,300,000 - -
SUBTOTAL CAPITAL / INFRASTRUCTURE 16,562,400$ 2,515,900$ 2,379,645$
GRAND TOTAL OF DECISION ITEMS 19,750,255$ 4,578,755$ 4,575,000$
Available for Appropriation - Grand Total of Decision Items (3,755)$ -$
*C* = Committed expenditure
*F* = Expenditure to be considered in an upcoming fiscal year
R:\Finance\Budget\Decision Packages or Budget History\Commission Selection IF\approved