Fiscal Year 2026-2027 Budget Overview
For the past several City Commission meetings, the Finance Department has presented 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 another update on the budget process. Over the past several weeks, the Finance Team and the City Manager’s Office have met with each member of the Paducah Board of Commissioners to develop the proposed budget that will be introduced at the next Commission meeting, with approval in June.
Kyle provided an overview of the Investment Fund, which is dedicated to economic development, community development, and capital projects. Each year, one-quarter of payroll tax revenue is allocated to this fund. Proposed appropriations for the next fiscal year total $7.9 million, with funding priorities including Southside revitalization and assistance for development related to the Meharry Medical College project. The Investment Fund also includes $2.1 million for the street rehabilitation program as well as funding for the maintenance and improvement of city-owned facilities, including the design of a new Police Department headquarters.
With the City receiving Community Development Block Grant (CDBG) funding, several projects will be completed using those funds. Planned projects include new playground equipment for Kolb Park, design work for a parking lot at the Noble Park pickleball courts, sidewalk improvements, and canopies for the Noble Park tennis courts and swimming pool.
Kyle also noted that General Fund revenue remains stable and continues to show modest growth. However, she explained that annual expenditure growth is continuing to outpace revenue growth, creating an ongoing challenge. Proposed appropriations for the upcoming fiscal year total $51.7 million, which is approximately $500,000 more than the current fiscal year’s budget. To help manage pressure on the General Fund, nine unfilled positions were frozen, resulting in an estimated savings of $800,000.
Additional pressures within the FY2027 budget include inflationary increases in fuel and fuel-related commodities, rising software maintenance costs, and increased demand for legal services. Furthermore, several projects identified in the City’s five-year Capital Improvement Plan currently remain unfunded.
Another topic studied recently is the amount of money the City holds in its reserve fund. Currently, the City sets aside 10 percent of General Fund appropriations, which equals $5.17 million for the current fiscal year. The recommendation is to increase the reserve to 25 percent, equivalent to approximately three months of operating expenses.
Kyle concluded the presentation by stating, “I believe the proposed FY2027 budget reflects a thoughtful and balanced approach to a challenging financial environment. The budget continues to support the Commission’s priorities in the areas of economic development, neighborhood reinvestment, infrastructure, and quality of life, while also recognizing the increasing pressure that rising operational costs are placing on local governments across the country. Despite these pressures, the City remains in a stable financial position. Core revenues continue to show positive growth, debt levels remain manageable, and the proposed increase in reserve levels represents another important step toward strengthening the City’s long-term financial resiliency.”
Authorization to Release Invitation to Bid for FY2026 CDBG Sidewalk Replacement Project
The Paducah Board of Commissioners approved a municipal order authorizing the Engineering Department to issue an invitation to bid for a sidewalk replacement project. The project would complement ongoing Southside revitalization efforts. Funding will come from Community Development Block Grant (CDBG) Entitlement funds provided by the U.S. Department of Housing and Urban Development (HUD). Since the CDBG funds were received during the current fiscal year, the project must be completed by September to comply with funding requirements.
Zoning Text Amendments to Help Restore Neighborhoods
The Paducah Board of Commissioners introduced an ordinance to amend Section 126-104, Medium Density Residential Zone R-3, of the Paducah Code of Ordinances. The Paducah Planning Commission met April 6 and provided a favorable recommendation for the amendments.
The proposed text amendments are intended to expand the principal uses permitted in the R-3 Zone and create a better transition to the R-4 High Density Residential Zone. The amendments would allow smaller lot sizes and narrower lot widths to help restore the development pattern of historic neighborhoods such as the Southside and the Northside Historic District. In addition, the amendments would introduce corner stores as principal permitted uses. Historically, corner stores served as neighborhood hubs in higher-density residential areas.
2026 Dogwood Trail Awards Presentation
Staci Drake who chairs the Paducah Civic Beautification Board’s Dogwood Trail committee, presented awards to the residents who had incredible lighting and landscaping to showcase their dogwoods during the Dogwood Trail event in late March and early April. The award winners are as follows:
ON TRAIL AWARDS
3426 Forest Circle John M. Park and Matthew Turley (Dolly McNutt Award)
2330 Jefferson Street Shannon and Shanna Crockett (Baby Dogwood Award)
1104 Olde Friedman Lane Chris and Ginny Hutson
4160 Rustic Avenue Patrick and Janet Weeks
2856 Broadway Paul and Colleen Stovesand
334 North 8th Street Anita Stamper
141 Valley Drive Ashlea McMillan
4240 Pines Road Austin Martin and Sara Bradley
3822 Londonderry Lane Dr. Brian and Carol Vanderbough
2414 Jefferson Street Doug and Linda Painter
612 Woodland Drive Blake and Robin King
OFF TRAIL AWARDS
4024 Hillcrest Avenue Bill and Connie Byrd
502 North 6th Street Steve Hennings and Nancy Plesha
Additional Meeting Information
- Mayor George Bray presented a proclamation to Public Works Director Chris Yarber and several members of the Public Works Department in attendance declaring May 17 through 23 as National Public Works Week in the City of Paducah. The proclamation calls upon the community to recognize the contributions Public Works employees make to our health, safety, well-being, comfort, and quality of life.
- Mayor George Bray presented a proclamation to Police Chief Brian Laird and several Paducah Police officers in attendance declaring May 10 through 16 as National Police Week and further proclaiming May 15 as Peace Officers Memorial Day. National Police Week is observed annually in the United States to honor the service and sacrifice of law enforcement officers who protect our communities with courage, integrity, and commitment.
- Municipal Order approved for a contract amendment with Tyler Technologies to include the software for building the City’s annual comprehensive financial report.
- Municipal Order approved for a Memorandum of Agreement for property tax and solid waste collection incentives related to the consensual annexation of the property at 224 Berger Road.
- Municipal Order approved for a contract modification with Sprinturf for the Paducah Sports Park project.
- Municipal Order approved authorizing the submission of the Community Development Block Grant Annual Action Plan.
- Municipal Order approved authorizing the purchase of turnout gear for the Paducah Fire Department from Atlantic Emergency Solutions.
- Ordinance introduced to amend the current fiscal year budget to address adjustments identified since the budget’s adoption.
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