Leaders say revenue growth in Paducah’s budget proves economic progress
PADUCAH, Ky —
In Tuesday’s city of Paducah budget workshop, the city manager announced that the city’s general fund saw the most sizable growth since before the recession.
Revenue growth is important because it gives the city more money to work with to provide services people depend on every day. General fund revenue grew by nearly $800,000. Out of about $33.4 million, that may not seem like a lot, but it shows economic growth.
“Our major revenue components of our general fund are payroll tax, our property tax, our business license fee. There’s increases also in our insurance premium tax, there’s increases in all of those,” Pederson said.
City Manager Jeff Pederson says he’s proud they can use existing revenue growth to cover anticipated annual bond payments for upgrades to the floodwall, which comes out to $250,000.
“So, I think collectively that represents an uptick in the local economy. The way our budget is structured revenue wise we derive revenue from that kind of activity. So, I think all that’s come together to result in, again, a little higher level of growth from this year to next than what we’ve seen in the last number of years,” Pederson said.
Right now costs to provide much-needed repairs to the floodwall are estimated at roughly $4.5 million. The city plans to cover about a million of that with a community block grant and cover the rest through bonds.
The revenue growth in their general fund also allows the city to fund some employee-based pay increases.
The city of Paducah is working with a total of about $78 million in their proposed budget for the next fiscal year. This money stretches across different departments like parks, police, or fire.
The first reading of the budget ordinance is set for June 21, where the budget could still change before a final vote on June 28.