Paducah City Commission Meeting - September 8, 2026
Paducah City Commission Meeting - September 8, 2026
The Paducah Board of Commissioners held a regular meeting on September 8, 2026, with Mayor Bray and all commissioners present. The meeting included public comments, consent agenda approvals, discussion of several municipal orders, and introduction of three ordinances. Key topics included the fire department training facility water main project, the community scholarship program, a lease for Siemens Church Institute, a new solid waste contract, and a development agreement for single-family homes. The meeting concluded with a motion to enter closed session.
Consent Calendar
- The consent agenda included routine approvals: minutes of August 25, 2026, personnel actions, a memorandum of agreement with the Kentucky Division of Emergency Management, an amendment with Tyler Technologies, a $100,000 agreement with the Kentucky Transportation Cabinet for South 21st Street Rehabilitation, a lease with Paducah Film Society for Maiden Alley Cinema, a lease with River Heritage Museum for the River Discovery Center, and an employment agreement for Carroll Galt as Director of Community Development. Items F, H, and K were removed at Commissioner Smith's request for separate discussion. The remaining consent items were approved unanimously.
Public Comments & Testimony
- Marshall Davis (resident of Paducah) spoke against the city's current business license tax structure, which taxes gross receipts rather than net profit. He noted that Paducah is the only major Kentucky city that taxes gross receipts, while others (e.g., Lexington, Louisville, Bowling Green) tax net profit. He argued that the phase-in threshold increase benefits only large businesses, with a business at $20 million in gross receipts paying an effective rate of 0.178% by 2030, compared to 0.3% for a small business at $500,000. He urged the commission to adopt a net profit tax.
Discussion Items
- Fire Department Training Facility Water Main Project (Item F): The city proposed a $280,000 contribution (split with Paducah Water) to replace a 100-year-old, 6-inch water main with an 8-inch main to serve the new training site. Commissioner Smith questioned the lack of a holistic long-term plan and total cost for the training facility. He made a motion to postpone the item until a comprehensive plan was presented, but the motion lacked a second and failed. The original motion to approve the water main project passed 4-1, with Commissioner Smith voting no. City Manager noted that funds from the sale of the existing site would cover the cost.
- Community Scholarship Program (Item H): The commission considered a $100,000 annual contribution to the Paducah Junior College (WKCTC) scholarship program. Commissioner Smith argued the fund is overfunded (approaching $3 million) and proposed not contributing this year, suggesting the money could be used for paving. Other commissioners (Henderson, Thomas, Wilson, and Mayor Bray) supported continuing the program, noting its value for community recruitment and education. The motion to approve the $100,000 allocation passed 4-1, with Commissioner Smith voting no.
- Lease with Siemens Church Institute (Item K): The commission considered renewing the lease for Siemens Church Institute at 129 South Water Street at the current rate. Commissioner Smith moved to postpone for one month to study market rates, noting that the current rate ($3/sq ft) is below market ($12-$19/sq ft). The motion to postpone passed 3-2 (Commissioners Smith, Thomas, and Mayor Bray in favor; Commissioners Henderson and Wilson against). The item will be reconsidered at the October 2, 2026 special meeting.
- Solid Waste Disposal Contract: The city approved a five-year contract (with a five-year extension option) with Republic Services (Northwest Tennessee Disposal Corporation) for transfer, transport, and disposal of municipal solid waste and recyclables. The contract begins September 28, 2026. Changes include a new recycling drop-off location at 829 Burnett Street (Monday-Friday 7 AM-4 PM, Saturday 7 AM-noon), Republic contributing $20,000 annually to spring cleanup, and continued single-stream recycling. Todd Chamberlain of Republic Services presented the company's recycling and polymer center initiatives. The motion passed unanimously.
- Salem Avenue Development: The commission approved a development agreement with Salem Avenue LLC (developer Ed Cooper) to build 15 single-family homes on city-owned parcels. The city will contribute up to $10,000 per home (or 5% of sale price, whichever is less) as reimbursement for public improvements. Homes must sell for $250,000 or less. The project runs through August 1, 2029. The first home sold for $199,000 to first-time buyers. The motion passed unanimously.
- Property Tax Rates for Fiscal Year 2027: Finance Director Audra presented the proposed property tax rates, which are the compensating rate (generating same revenue as prior year). The real estate rate is proposed at $0.253 per $100 (down from $0.271), the lowest since 2013. Personal property rate is $0.34 (down from $0.356). Due to a $206 million increase in assessed value (67% of properties reassessed), approximately 70% of city property owners will see a decrease in their city property tax bill. For a $200,000 home, the city portion drops from $542 to $506. The ordinance was introduced as a first reading.
- Creation of Department of Community Development: An ordinance to amend various city code chapters to create the Department of Community Development, consolidating development-related functions (building, fire prevention, code enforcement, etc.). The planning commission held a public hearing on September 3, 2026, and forwarded a favorable recommendation. The ordinance was introduced as a first reading.
- Melody Lane Development: An ordinance authorizing a memorandum of understanding and residential infill development agreement with Chapman Property Development LLC for 32 apartments (eight buildings, four units each) on Melody Lane. Reimbursement of eligible costs up to the amount of increased property taxes generated over five years. The ordinance was introduced as a first reading.
Key Outcomes
- Consent Agenda (excluding items F, H, K) approved unanimously.
- Fire Training Water Main approved 4-1 (Smith dissenting).
- Community Scholarship approved 4-1 (Smith dissenting).
- Siemens Church Institute Lease postponed to October 2, 2026 special meeting (passed 3-2).
- Solid Waste Contract with Republic Services approved unanimously.
- Salem Avenue Development Agreement approved unanimously.
- Property Tax Ordinance introduced as first reading (will be considered for final adoption at a future meeting).
- Department of Community Development Ordinance introduced as first reading.
- Melody Lane Development Ordinance introduced as first reading.
- Next Meeting: The next regular meeting is rescheduled to a special called meeting on Friday, October 2, 2026, at a time to be determined.
- Closed Session: The board moved to enter closed session under KRS 61.810(1)(g) for discussion of a specific business proposal and KRS 83A.150(4)(d) for a performance review of the city manager. No further details were provided.
Meeting Transcript
Everyone, I'll go ahead and call this meeting to order on September eighth, twenty twenty-six, and ask our city clerk to please call role. Commissioner Henderson. Present. Commissioner Smith? Here. Commissioner Thomas. Present. Commissioner Wilson. Present. Mayor Bray. Here. I would ask uh Commissioner Henderson to do the invocation, and then we'll remain standing for the national anthem. Father and our God, again, we're grateful for the data that you've given us and for the blessings that we right now enjoy. We thank you so much, Father, for the privilege that you've given us to serve this community. Uh, we pray now, God, that as we uh talk and discuss and share, that you'll be in the midst of our uh discussion, uh guiding our ideas, guiding our understanding. Father, we thank you again for this privilege in Jesus' name. We pray, amen. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God, indivisible with liberty and justice for all. And whereas City Government Month calls on city officials to get involved in their local schools in an educating and engaging elementary school students in city government. Now therefore, I George P. Bray, Mayor of the City Paducah, hereby proclaim September 2026, City Government Month. Okay, with that, uh, we have one person that wants to do public comments, Marshall Davis. Come on up. Hopefully, this won't be like a broken record. Maybe I'll have it a little different soon every time, but maybe we maybe together when we get this done. Uh hopefully, I don't I guess we'll see eventually. Thank you. Thank you. I'm Marshall Davis. Uh, live at 7 Westvale, Paducah, Kentucky. I appreciate the opportunity to be here, Mayor, Commissioners, Manager, and Clerk. Paducah's current business license taxes the top line of a business, not the bottom line, but also adds a tax break to the largest entities in Paducah. Every dollar that flows through a Paducah business, whether it ultimately ends in a profit or loss, is subject to the levy. The phase threshold increase is a welcome administrative improvement, but it does nothing to address the fundamental flaw structure. A business that loses money still owes city tax, and small businesses continue to pay a dramatically higher effective rate than those large ones throughout the entire phase in period. Every business with gross receipts at or below the threshold, the vast majority of Paducah small businesses pay the full scheduled E rate of 0.3% in every year of the phase in. The threshold increase delivers zero benefit to them, while the relief flows entirely to businesses large enough to have receipts above the threshold and grows more generous the larger the business. By 2030, a business with 20 million in gross receipts pays an effective rate of 0.7.178% less than 60% of what the small business next door pays on its 500,000 in receipts. The same schedule repeats across every schedule or the same pattern. Under Schedule C, a small restaurant, the neighborhood diner at 400,000 in receipts never benefits from the rising threshold, while the regional chain at 10 million sees meaningful rate relief each year. Kentucky law authorizes cities to impose occupational license taxes on either net profit or gross receipts. But the overwhelming consensus among Kentucky major cities is to tax on net profits, the amount actually earned after legitimate business expenses are deducted. Consider these municipal taxes. Lexington Fayette County net profit, Louisville Metro net profit, Bowling Green Net Profit, Ashland, Henderson, Hopkinsville, Covington, Owensboro, all net profit tax. Paducah's gross receipts from.045% to a half percent. Every major Kentucky City business, every Kentucky City taxes businesses on what they actually earn except Paducah. Paducah stands alone in taxing what merely passes through the business's hands, regardless of whether that business ends the year in profit or loss. Thank you. Thank you. Thank you for being here.
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