City officials say Owensboro has experienced significant wage growth over the last four years, with an annual average wage growth of 3% between fiscal years 2016-17 and 2019-20. That brings the City’s total occupational payroll withholdings for the most recent year to over $1.3 billion.
Director of Finance and Support Services Angela Hamric Waninger said the growth in wages was a reflection of Owensboro’s healthy economy.
“Wages are one of the best indicators of an economy,” she said. “Owensboro is doing well.”
In fiscal year 2016-17, occupational payroll withholdings reflected a wage base of $1,217,493,000. Mayor Tom Watson called that amount “very impressive.”
“It gets better,” Waninger told Commissioners. “That wage growth grows to the fiscal year 2019-20 to $1,341,729,000. This represents an annual average growth of 3 percent.”
The total occupational withholdings represent activity in the City’s general fund, Your Community Vision fund, and the economic development fund.
Of the 1.78% collected on wages, Waninger said 1.45% will go to the general fund. Another .33% will go to the Your Community Vision Fund, while a portion of that money will go to the economic development fund “from Airpark businesses and for incentives,” she said.
The financial report reflected an audit to year-end activity, including City revenues and expenditure totals for the fiscal year beginning on June 30, 2019, and ending on July 1, 2020.
Actual revenues for the 2019-20 fiscal year totaled $60,081,197 — which exceeded budgeted revenues of $57,682,778 for a positive variance of $2,398,420.
Year-end expenditures totaled $58,149,579 in 2019-20 — which was more than $3 million less than the budgeted expenditures, Waninger said.
“This variance is primarily due to savings in personnel services, savings in debt service due to refinancing, and savings in various other areas due to efficiencies we have recognized here at the City,” she added.
Commissioner Jeff Sanford called the numbers “outstanding” and commended past and present commissioners for their efforts in getting the City’s financial standing to a good place.
“We’re in a great position and I think we’re very lucky to be where we’re at in this City. We don’t need to take it for granted,” he said.
Commissioner Larry Conder said the growth in wages signified a major payoff for the hard work City Commissioners had put in over the last several years.
“It should make us all proud of how good these numbers truly are — growing a tax base amount without increasing tax rates,” he said.
