Note: Due to the COVID-19 situation and the need to maintain social distancing, all members of the Paducah Board of Commissioners participated by video and/or audio conferencing. To view the entire meeting, visit https://youtu.be/b_mc3SusQE8
The Paducah Board of Commissioners approved a resolution urging lawmakers to modernize Kentucky's transportation funding to generate necessary revenue especially for road and bridge maintenance and construction projects. Since 2015, due to falling gas prices and reduced fuel tax revenues, state transportation funding has dropped nearly $200 million per year. McCracken County Fiscal Court approved a similar resolution late in 2020.
The City of Paducah has been working to develop a Tax Increment Financing (TIF) District downtown with the goals of revitalizing the downtown area, capturing state dollars and reinvesting local dollars, and helping developers with public infrastructure costs. In August 2019, the City received preliminary approval from the Kentucky Economic Development Finance Authority (KEDFA) to establish the TIF. Since then, a third-party consultant as required by the State has conducted an independent analysis, and now we are anxiously awaiting final approval by KEDFA. The final step by the City was approved at this meeting – the approval of the administrative fee as required by KEDFA. The Board also introduced an ordinance for an agreement with Commonwealth Economics for their continued assistance to Paducah in the creation of the TIF District including the accounts and reports.
Tax increment financing is an economic development tool that permits local governments to capture future increases in property and other taxes generated by new development within a geographic area. It’s not a new tax – it’s reinvestment in the district based on growth. In Kentucky, taxes collected by the State also are eligible to be directed back to the city - a completely new revenue source for the city. For more information, visit http://paducahky.gov/downtown-redevelopment.
City Engineer Rick Murphy along with John Lyons of Strand Associates, Inc. provided an overview of the City’s stormwater permit through the Kentucky Division of Water as required by the federal Clean Water Act. The main goals of this permit are to reduce pollution and protect water quality. Paducah is responsible for regulating its Municipal Separate Storm Sewer System (MS4) which includes the various storm water drainage systems such as streets, catch basins, storm inlets, and other mechanisms. The latest review of Paducah’s MS4 permit by the Kentucky Division of Water notes that the City needs to amend a section of its Code of Ordinances to include a stormwater runoff quality treatment standard.