Budget Discussion – General Fund Revenue Sources
For the past several City Commission meetings, the Finance Department has been presenting updates on the development of the Fiscal Year 2026–2027 budget, which takes effect July 1, 2026. At this meeting, Finance Director Audra Kyle provided an overview of anticipated General Fund revenues. The General Fund is the City’s primary operating fund. Kyle began by reviewing revenue sources for the current fiscal year. Approximately 82 percent of General Fund revenue for the current fiscal year comes from four primary sources: payroll tax ($20.9 million), insurance premium tax ($7.2 million), property tax ($6.734 million), and business licenses ($5.45 million).
At this point in the fiscal year, property tax revenues are expected to exceed projections, while the other three sources are likely to come close to meeting their estimates. Final figures will not be available until the end of the current quarter.
For the upcoming fiscal year, projected revenues are as follows: property tax is expected to increase to $7.1 million; business license revenue is projected to rise slightly to $5.75 million; insurance premium tax is expected to remain steady at $7.2 million; and payroll tax is projected to grow modestly by 3 percent to approximately $21.6 million.
A chart presented during the meeting showed gradual revenue growth over the past several years. However, the chart also indicated that expenditures have been increasing at a faster rate, placing greater pressure on maintaining a balanced budget.
At this stage of the budget process, the Finance Department has finalized revenue projections and completed budget reviews with individual departments. The Finance Department and the City Manager’s office are now working with the Paducah Board of Commissioners to finalize the budget while maintaining core services and fiscal responsibility. The Fiscal Year 2026–2027 budget is scheduled to be introduced at the May 26 City Commission meeting with adoption in June.
Mental Health Awareness Month
At the beginning of the meeting, Mayor George Bray presented a proclamation declaring May as Mental Health Awareness Month. Ashley Walters, Behavioral Operations Manager with Mercy Health, received the proclamation. Numerous organizations dedicated to promoting mental health and wellness attended the meeting.
Later in the meeting, Communications Manager Pam Spencer and Human Resources Director Stefanie Wilcox highlighted mental health awareness initiatives, a priority of the Paducah Board of Commissioners since 2023. Spencer explained that the City aligns its efforts with Mental Health America (MHA), a leading nonprofit that promotes mental health awareness. MHA launched Mental Health Month in 1949. The 2026 theme, “More Good Days, Together,” emphasizes collective well-being and prevention.
This year also marked Paducah’s first application for MHA’s Bell Seal for Workplace Mental Health, a rigorous evaluation program launched in 2019 that assesses employers across workplace culture, benefits, compliance, and holistic wellness. Paducah earned a Gold Bell Seal designation with an overall score of 89, achieving perfect marks in workplace culture and strong results across other categories. The city plans to review areas for improvement while celebrating the recognition.
Regarding external initiatives, the City will light City Hall green during May and continue to promote mental health awareness through social media campaigns and the promotion of the 988 crisis line. Internally, initiatives include employee engagement through awareness t-shirts, educational seminars including a new supervisor-focused session, and ongoing policy and benefits reviews to ensure continued support for employee mental health.
Agreement with Hamilton Place Properties
The Paducah Board of Commissioners approved an agreement with developer, Hamilton Place Properties, LLC, for the first phase of a project to develop a medical clinic on Paducah’s Southside. The developer owns 1034 Walter Jetton Boulevard, which includes a building built in 1904, and has a lease arrangement with Meharry Medical College for the development of the site. Dr. Eddie Hamilton attended the meeting and introduced members of Meharry Medical College. Once fully developed, the buildings located in the Southside will house offices to provide services related to dental and general healthcare. Meharry Medical College is one of the nation’s oldest historically Black academic health sciences centers.
Boards and Commissions
- Reappointment of Shirley Walker to Forest Hills Village, Inc.
- Reappointment of Edward Box to the Civil Service Commission.
Additional Meeting Information
- Municipal Order approved for the contract with Municipal & Contractors Sealing Products for the Pump Station #5 Pipe Lining Project.
- Municipal Order approved for contract modification #2 with Jim Smith Contracting for the Paducah Infrastructure Improvement Project. This modification adds brackets to the landside railing to the excursion pier.
- Municipal Order approved for a contract with Cherry Bekaert LLP to provide audit services for the current fiscal year.
- Municipal Order approved for contract modification #6 with A&K Construction for the Paducah Sports Park. This modification decreases the project amount due to items removed from the contract and directly purchased by the McCracken County Fiscal Court.
- Municipal Order approved authorizing the City Manager to release a request for bids for the purchase and installation of new playground equipment and safety surfacing at Kolb Park.
- Municipal Order approved authorizing the City Manager to release a request for bids for the purchase and installation of shade canopy structures for the Noble Park Pool and tennis courts.
- Municipal Order approved authorizing the Kentucky Fire Commission Training Facility Grant application requesting $50,000 to be used toward the design and construction of a four-story fire training drill tower for the Paducah Fire Department.
- Municipal Order approved authorizing the purchase and installation of software through Mobile Communications of America. This software will ensure that every 911 console can dispatch for the Paducah Fire Department.
- Municipal Order approved authorizing a contract with Delve Health Consulting for Organizational Health and Culture Management. This is a 12-month professional services program to support the Paducah Fire Department.
- Ordinance approved authorizing the consensual annexation of 224 Berger Road.
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