Fiscal Year 2026-2027 Budget Ordinance Introduction
The Paducah Board of Commissioners introduced the Fiscal Year 2026-2027 Budget Ordinance which, once approved, will be effective July 1. The budget ordinance will be presented for adoption at the June 9 Commission Meeting. City Manager Daron Jordan provided an overview of the budget through the presentation of his budget address. The City of Paducah’s proposed Fiscal Year 2026–2027 budget is built around the theme “Strengthening Today, Preparing for Tomorrow,” reflecting a balanced approach to maintaining high-quality city services while planning responsibly for the future.
Jordan said, “The FY 2026–2027 budget recognizes an important financial reality facing local governments nationwide: while revenues remain stable and continue modest growth, operational costs continue to rise at a pace that demands discipline, prioritization, and intentional planning. Rather than simply reacting to these pressures, this budget positions the City to respond proactively by strengthening core operations today while building financial and organizational capacity for tomorrow.”
The proposed General Fund budget totals approximately $51.9 million, with an overall city budget across all funds of $116.4 million supporting municipal operations, infrastructure, public safety, economic development, and quality-of-life initiatives. Jordan said this budget addresses rising operational costs through conservative financial planning, operational efficiencies, and disciplined spending while continuing investments in key priorities such as downtown development, neighborhood revitalization, Southside investment, street improvements, and community growth projects. The City’s Investment Fund is projected at approximately $7.9 million to help advance these strategic initiatives.
Jordan explained that the major cost drivers include personnel, insurance, software and technology systems, fuel, and inflationary operating expenses. In recognition of long-term financial sustainability, nine currently unfilled positions have been frozen, allowing the City to manage cost pressures while protecting essential municipal services and maintaining operational effectiveness.
In addition, the City is recommending an increase in its General Fund reserve from 10 percent to 25 percent to strengthen financial resiliency and better prepare for emergencies, economic uncertainty, and future capital investments. The budget identifies more than $15.5 million in unfunded capital needs including City Hall stabilization, a future police station, and planning for the future replacement of Fire Station #4.
In closing Jordan said, “The FY 2026–2027 Budget represents more than a spending plan—it reflects a strategic commitment to strengthening the services residents rely upon today while preparing our community for tomorrow. It is disciplined, balanced, and intentionally aligned with the priorities of the Commission. Together, we continue building a stronger, more resilient Paducah—honoring our history while confidently preparing for the future.”
Zoning Text Amendments to Help Restore Neighborhoods
The Paducah Board of Commissioners approved an ordinance amending 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 text amendments 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 will 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 introduce corner stores as principal permitted uses. Historically, corner stores served as neighborhood hubs in higher-density residential areas.
Discussion about the use of Artificial Intelligence (AI) in Local Government
Chief Technology Director Eric Stuber provided an overview of the use of artificial intelligence (AI) in local government and recommendations for moving forward with the creation of an internal AI policy. Stuber began with by defining AI as a broad range of technologies that enable computers to perform tasks that typically require human thinking and decision-making.
Rather than being a single technology, AI includes systems such as generative AI, machine learning, computer vision, natural language processing, optical character recognition (OCR), behavioral AI, intelligent automation, and agentic AI. In local government, these tools can support a variety of functions including cybersecurity, financial auditing, law enforcement, urban blight management, resident inquiries, FOIA redaction, plan review and code compliance, call handling, meeting minutes, and compensation studies.
Stuber emphasized that successful AI implementation requires a thoughtful and practical approach. Organizations should start with small, clearly defined use cases, establish governance policies, require human oversight through a “human in the loop” process, and disclose when AI is being used.
The City of Paducah already is applying AI in several areas including OCR of documents, email security, machine learning for endpoint detection and response, generative AI for policy review and meeting notes, and OCR in law enforcement.
Moving forward, the recommended next steps include adopting an AI policy, forming an AI working group, and evaluating additional opportunities where AI can improve efficiency and service delivery.
Additional Meeting Information
- Mayor George Bray presented a proclamation to Paducah Main Street Executive Director Blaine McDonald and Assistant Director Carly Dick proclaiming May as Paducah Main Street Month to celebrate the accomplishments of the organization since transitioning to an independent agency in 2025. The proclamation also proclaims the first Friday in June as Fridays After Five Concert Series Day to kick off the concert series that will be held Friday evenings from June 5 through August 7.
- Appointment of Michael Yungmann to the Paducah Junior College Foundation Board.
- Municipal Order approved authorizing the Mayor to execute a purchase agreement with DWA Recreation for shade canopies in Noble Park. There will be four canopies at the Noble Park Pool and two at the tennis courts.
- Municipal Order approved authorizing the Mayor to execute a purchase agreement with Miracle Playground of KY and TN for playground equipment for Kolb Park.
- Municipal Order approved authorizing a contract renewal with Rightway Janitorial for custodial services for the City’s public restroom facilities.
- Municipal Order approved authorizing the application of a Kentucky Office of the Attorney General Stand by the Badge: Peer Support for Law Enforcement Grant requesting $5000. The funds would be used to implement a peer support team to help promote mental health and wellness.
- Municipal Order approved authorizing a Memorandum of Understanding between the Paducah Police Department and the Paducah Independent School District permitting School Resource Officers to conduct law enforcement activities beyond school property to fulfill duties including home visits, mutual aid responses, and truancy summonses.
- Municipal Order approved for the purchase of light fixtures from Hannan Supply for the Marine Way Improvement Project.
- Municipal Order approved for a contract with World Tower to complete the E911 tower remediation project.
- Municipal Order approved for a contract with Allied Contracting for improvements to the Administrative Department at City Hall.
- Municipal Order approved for a contract with Window Energy for window security film for City Hall.
- Municipal Orders approved for a contract with Ray Black and Son for capital improvements to the Hotel Metropolitan. Funds for this project are through a Mellon Foundation grant received in 2024.
- Ordinance approved amending the current fiscal year budget to address adjustments identified since the budget’s adoption.
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