Owensboro officials have unveiled a proposed $76.5 million City budget for the 2025-26 fiscal year, emphasizing continued investment in public safety, infrastructure upgrades, and quality-of-life enhancements while holding firm on tax rates.
The proposed General Fund budget totals $76.5 million, down from the amended $82.9 million budget for the current fiscal year, even with salaries and benefits increasing by 5%. City Manager Nate Pagan said the decrease is a timing issue, as many capital projects budgeted this year won’t be completed until after July 1.
“In other words, the budget for next year may end up being $80 million itself,” Pagan said. “We just don’t know how much of those projects will be done and how much of those funds will be expended.”
The largest share of the budget — nearly half — goes to public safety. Police, fire, and dispatch services account for over $37 million, with new investments in advanced equipment, staffing, and emergency medical capabilities.
“Public safety is our No. 1 priority,” Pagan said. “Half of the General Fund essentially goes to police and fire.”
The Owensboro Fire Department plans to expand its advanced life support program, aiming to have paramedics stationed at four of the city’s five firehouses by next year.
“This is a higher level of care,” said Fire Chief James Howard. “We’re training more paramedics and equipping them with the tools they need — cardiac monitors, airway kits, and more.”
Police Chief Art Ealum said his department will add two new patrol officer positions to serve as instructors at the Owensboro Police Academy, reducing the burden on current officers. Capital purchases include a Trimble X9 3D scanner to improve accident reconstruction and crime scene investigations, as well as a Lafayette polygraph system to replace outdated equipment.
The city is also tackling infrastructure with a proposed $3.1 million allocation for street resurfacing and $550,000 for sidewalk repairs — “a record number,” Pagan said.
More than $3.4 million in stormwater improvements are included under the “Your Community Vision” initiative, which is funded by a dedicated occupational tax created in 2002.
“By ordinance, those funds have to be used for stormwater and capital projects,” Pagan said. “They don’t go to salaries or general operations.”
Other key projects include:
- Fire Station 3 construction and a new training tower
- A major playground upgrade at Kendall-Perkins Park
- New pickleball courts at Ben Hawes Park
- Expanded lighting displays for Hometown Christmas
- A new downtown archway sign budgeted at $600,000
Community events continue to receive strong backing. Tim Ross, Director of Public Events, said the city will support over 100 events, including BBQ & Barrels, PorchFest, Trail of Treats, and a new fall event, “Illuminate,” described as “an art and light experience throughout downtown.”
“It’s a whole lot more than just a drone show,” Ross said. “There’ll be art installations, performances, and a bridge walk along the riverfront.”
On the development front, Community Development Director Abby Shelton highlighted the transition from the Riverview neighborhood revitalization area to a new NRSA on the northeast side, with continued investments in affordable housing through partnerships with Habitat for Humanity.
“Our total department request is $350,022, up just 4%,” Shelton said. “We’re also investing in new software to help manage federal grants more efficiently.”
Top General Fund revenue sources remain strong. Occupational license fees are projected at $24.9 million, property taxes at $14.6 million, and OMU’s annual dividend at $8.5 million. Insurance premium license fees now rank as the city’s third-largest revenue stream.
Director of Finance and Support Services Angela Waninger said the city’s fund balance is projected to remain steady at $42.1 million. Pagan credited this to conservative budgeting and a strong local economy.
“Our numbers held up better than expected during COVID,” he said. “We have stable employers who weathered the pandemic well.”
City commissioners did not vote on the budget during the meeting. They will hold a public hearing before voting on the budget later this spring.
