Despite recent economic hardships, the Owensboro City Commission’s proposed 2020-21 budget is balanced and includes no tax rate increase.
During a special called meeting Wednesday, department heads each presented their own budget proposals for the upcoming fiscal year.
Though it’s less than last year, City officials said they still expect a surplus of more than $28,000 from the 2020-21 fiscal year budget and the general fund is balanced.
“This budget does look different than it would have two months ago, if we’d had the information at that time,” Pagan said. “Because of COVID, we do have reduced general fund revenue to the tune of $1.5 million.”
According to City Manager Nate Pagan and Mayor Tom Watson, Owensboro is currently in better shape than almost every other city in the state.
“A significant number of cities are having problems,” Pagan said. “We’re better off than almost all of our peers. We’re in a fortunate position.”
Budget proposals by department are as follows:
General Fund — Nate Pagan, City Manager
COVID-19 Implications: Reduced Revenue ($1,506,384); Higher Subsidies ($321,167); COVID-19 Contingency ($200,000) — Total ($2,027,551)
Transit Grant (General Fund Savings) $994,256
Pension Costs: 2020-21 ($236,804); 2021-22 ($985,745); 2022-23 ($1,139,915); 2023-24 ($1,318,198) — Total ($3,680,662)
$757,899 to Pension Reserve Fund
Shared Budget Factors: Health Insurance ($772,250); STEP for Employees ($178,561); Cost of Living Adjustment ($461,782); Pension ($236,804); Total ($1,649,397)
Top Five Revenue Sources — Angela Hamric, city finance director
The City’s general fund holds 120 individual revenue accounts, Hamric said, and is budgeted to be funded by the following revenue sources:
- Occupational Licenses — $18,364,560 (31.1%); down 3.3% from last fiscal year.
- Property Taxes — $12,051,531 (20.4%); up 5.4% from last fiscal year.
- OMU Cash Dividend — $7,508,300 (12.77%); up 2.5% from last year.
- Insurance Premium License Fees — $6,615,500 (11.2%); up 1% from last year.
- Net Profit Licenses — $3,644,000 (6.2%); down 9.85% from last year.
Hamric said the net profit licenses reduction operated like a local income tax for businesses. Because the tax filing deadline was pushed back to July 15, it will affect the City’s cash flow.
Public Events — Tim Ross, director of public events
The Public Events budget came in at $2,000 more than last year. With a total proposed budget of $689,628, the Public Events department will see a 12% increase in personnel, but Ross said the Hydrofair is expected to be cheaper than the annual Air Show.
The Owensboro Convention Center — Laura Alexander, general manager
With gross sales expected to total $2,711,234 — which is $418,000 more than last year — Alexander said the Convention Center should come out strong, despite having to postpone or cancel several of its events.
“May, July and August are our slowest months out of the year,” she said. “As far as timing, it worked out pretty well. If it had been later on, it would have had a bigger impact.”
Community Development — Abby Shelton, director
The 2020-21 community development budget totals $271,390 — a 17% increase from last year. A $49,785 personnel budget increase will fund an additional staff member who’s expected to be hired about halfway through the budget season.
The department recently received an additional $294,000 in Community Development Block Grant (CDBG) federal funds through the CARES Act, Shelton said.
Fire Department — Chief James Howard
Howard presented a $12,170,725 budget — a 5% increase from the previous fiscal year.
Capital costs were increased by 21% so that OFD can purchase new equipment, including two cardiac monitors needed to offer advanced life support during rescue calls. An additional $30,000 will go toward safety costs and training so that OFD can provide the City of Owensboro with collapsed and water rescue training teams.
Howard said OFD will soon be updating the regional training center, while a new notification system at Fire Station #1 and upgraded extrication tools will also provide the department with up-to-date equipment.
Police Department — Chief Art Ealum
OPD’s $14,705,533 proposed budget will see a 4% increase. Personnel costs increased by 4% ($524,139), making up the bulk of the increased budget. A 43% utility increase will help pay for new routers in police cruisers, allowing officers to stay connected to the internet to file reports wherever they go.
Ealum said OPD will also purchase 12 new custom signal cameras that will replace outdated ones used by the Evidence Collection Unit.
Central Dispatch — Paul Nave
The proposed budget totaled $2,979,865 — a decrease by 21% ($1,222,010) that is specifically related to the dispatch center’s CAD system, which was taken out of this year’s budget after being paid off last year.
Personnel costs will increase by 12% and maintenance by 14% due to the current CAD system being used.
The City of Owensboro will pay a smaller portion toward central dispatch this year as fewer calls were made within City limits over the last three years.
Parks & Recreation — Amanda Rogers
Parks & Recreation will operate on a $3,854,007 budget, up 5%. Personnel costs increased by 5%, while maintenance costs increased by 9%.
The recreation budget totals $3,048,066 budget — down 7% — and is funded separately. It pays for the Edge Ice Center, both City pools, the Jack C. Fisher Park complex, both City golf courses and the Centre Court tennis facility.
Finance — Dane’ Galloway
The proposed budget of $1,793,964 shows a 5% increase mostly made up of a Cost of Living Adjustment (COLA) for the staff.
Information Technology — Angela Bruner
At $2,454,000, 26% budget increase comes primarily from relocating radio communications from the police department to the City. Personnel costs will increase by 16% as the City hires two additional radio technicians at a cost of $209,275.
Maintenance will also increase by 87% at $179,159, while capital costs will decrease by 88%.
GIS (Geographical Information System) — Will Carpenter, GIS manager
The $491,232 is an increase of 5%. Personnel costs will increase by $20,928.
Human Resources — Josh Bachmeier
The $850,587 budget is a 4% increase. Personnel costs are proposed to increase by 5%.
Bachmeier said one of the biggest changes the HR department will see is swapping six part-time bus driver positions for one full-time position.
Your Community Vision Fund — Lelan Hancock
The City’s YCV Fund will allocate $6,212,635 to infrastructure projects for the upcoming fiscal year.
Stormwater should receive $3,448,924 in funding, while parks are allocated $1,463,711. Public safety is being allocated $1,000,000, and Public Works should see $300,000.
Hancock said City infrastructure needed some effort, and that sidewalk repairs should total $300,000 while culverts would receive $1,400,000.
A total of $796,500 will be allocated toward Jack C. Fisher Park improvements, a project which Hancock said was coming along “very well.”
Owensboro Fire Department’s Station #2 will receive $500,000 to go toward an expansion project, and another $200,000 from last fiscal year will carry over toward the project, totaling $700,000.
Agencies — Nate Pagan
A 2% increase each will go toward art agencies and Social Service programs.
The Owensboro-Daviess County Regional Airport will receive $45,937 in financial support from the City this year. An additional $25,000 will be allocated to the airport for the flight training program held by Cape Air using money from economic development funds.
TIF (Tax Increment Financing) Funds — Nate Pagan
Gateway Commons TIF
Revenue: $837,400
Local: $193,400
State: $644,000
Downtown Riverfront TIF
Revenue: $1,055,000
Local: $15,000
State: $40,000
