The latest Ponderings from Paducah is from Finance Director Audra Kyle who explains the six-month process to develop Paducah's budget.
Ponderings from Paducah – City of Paducah Budget Development Process
While many people think of the new year as beginning January 1, the City’s fiscal year starts July 1. January is still an important month, however, because it marks the beginning of the City’s six-month budget development process.
Why does the budget process take so long? The City’s annual budget covers 20 separate funds and more than 1,200 individual accounts. Each supports essential services and must be carefully reviewed to ensure accuracy, transparency, and alignment with community priorities.
The process begins in January with the development of the annual budget calendar, early cost estimates for major expenses such as insurance and fleet purchases, and a review of the City’s position and pay schedule. February is one of the busiest months, as Finance staff prepares revenue forecasts, payroll projections for 345 City positions, and estimates for routine operating costs such as utilities, software, and fuel.
In March, the budget moves to the department level. City departments develop their requested budgets based on service needs for the coming year, including items such as recreational programming, field operation supplies, construction materials, and equipment. April is dedicated to review and discussion. Finance staff meets with each department to confirm accuracy, answer questions, and identify requests that may warrant further discussion with the City Manager, such as major purchases or new initiatives. These discussions also focus on how proposed budgets will be used to deliver services efficiently and effectively.
In May, the budget is refined and finalized. Non-departmental funds, such as the Investment Fund, Insurance Funds, and Trust Funds are completed, and individual meetings are held with members of the City Commission to ensure a clear understanding of the proposed budget. The final budget and first reading of the budget ordinance are presented by the end of May.
The budget is adopted in early June and published for public access, ensuring transparency and accountability as the City prepares for the new fiscal year beginning July 1.
(written by Finance Director Audra Kyle)
