Jeffersontown leaders present balanced $35.25 million budget and read tax-rate ordinances for fiscal 2025–26

Mayor opened the council meeting by presenting a proposed, balanced operating and capital budget of $35,249,136 for fiscal year July 1, 2025, through June 30, 2026, and the council read budget and tax-rate ordinances by title, scheduling final action at the next meeting.

The budget presentation laid out the citys major revenue sources and the factors that shaped the estimates. "We have a total of $35,249,136," Mayor said. The mayor and staff told council members the largest revenue items are occupational taxes (budgeted at $17,500,000), property taxes (budgeted at $5,500,000) and insurance-premium taxes; the city set a property tax rate of 10.82 cents per $100 of assessed value in the ordinance read by council members.

The nut graf: the administration said the budget is balanced but subject to several risks and one-time adjustments. Officials attributed changes in revenue and expense estimates to three major events this year: a tornado in April that damaged property in Bluegrass Commerce Park, renegotiated terms in the FOP contract, and changes to insurance-premium assumptions.

Most important budget details and risks

- Revenue and rate setting: Council read an ordinance setting the tax rate at 10.82 cents per $100 of assessed value and an ordinance adopting the Jefferson County assessment rolls; both ordinances were read by title and deferred to the next meeting for final action.

- Occupational tax: The administration described the occupational tax as the citys largest single revenue source and said the 2025-26 occupational-tax estimate is about $17.5 million, roughly $600,000 above last years budget.

- Property valuation and tornado effects: Officials said PVA reassessments and tornado-related damage reduced some assessed values; the property-tax estimate was described as "flat," with actual 2024-25 receipts higher than estimates but partially offset by PVA reductions for damaged properties.

- Bluegrass Commerce Trail phase 2: The budget includes federal grant revenue estimated at $2,400,000 and estimated expenses of $2,900,000 for Bluegrass Commerce Trail phase 2, leaving a $500,000 gap the city plans to cover from the general fund.

- Insurance and benefits: Council and staff increased the insurance-premium tax assumptions (from 5% to 7% for certain lines and an added 5% for health insurance premiums) and reflected a council-approved increase to premiums tied to the FOP contract. The presentation noted a projected 22% increase in health-insurance costs and added a 5% assumed increase in insurance premium tax revenue to help build severance and rainy-day funds.

- Personnel and operating costs: The budget includes an 8% salary increase across employees for 2025-26, a reduction in pension retirement costs (about 5% for nonhazard employees and 6% for hazardous police officers), higher utilities and telephone costs (the city moved to a cloud-based phone system), and one-time implementation costs for new accounting and budgeting software.

- Road fund and state gas-tax change: During discussion a council member asked whether a reported state reduction in gas taxes would affect the citys road fund. Staff replied that the effect is not yet known but said the road fund can only spend what it receives; officials said a reduction would reduce available road-fund spending (salt, paving, sidewalk repairs) if it occurs.

Amphitheater and capital projects

Council members and staff discussed carryover capital and improvement projects. The budget lists about $800,000 for improvement projects (presented in the meeting as "0.8 million") and specific items including Christmas lights, HVAC replacement, roof repairs, water-leak repairs, playground equipment for Skyview Park, fencing for the amphitheater and other miscellaneous projects. Officials said amphitheater-related grants and capital costs are carried into the 2025-26 budget, but revenue projections for the facility are conservative: staff budgeted $50,000 in potential revenue while acknowledging actual rental and event income is uncertain.

On the amphitheater schedule and site readiness, staff said the building portion is expected to be complete on schedule but that exterior site work and grounds require additional work. "The building itself will be done. Its the exterior that were talking about," a city staff member said, and Public Works staff and council members raised concerns about muddy grounds and whether events could be staged before site hardscaping is completed. Public Works staff warned that staging events on unpaved grounds could create safety and accessibility problems and that additional concrete or seating may be needed before regular outdoor events are held.

Process and next steps

Council members read Ordinance No. 14,71 (tax-rate ordinance) and Ordinance No. 14,72 (budget and appropriation ordinance) by title; the councils procedure in the meeting was to read the ordinances and consider final passage at the next meeting. The administration reminded council the budget must be adopted by July 1, 2025. Council also approved routine warrants by voice vote (General Fund Warrant No. 1630 and Road Fund Warrant No. 1016) during the meeting.

Speakers (from transcript)

Mayor — Mayor (government) Holly — Staff member (government) Fred — Staff member (government) Ahmed — Staff member (government) Brian — Staff member (government) Debbie — Staff member (government) Jimmy — Public works staff member (government) Mark — City council member (government) Scott — Staff member (government) Lindsay — Staff member (government)

Authorities referenced

[{"type":"ordinance","name":"Ordinance No. 14,71 (tax-rate ordinance)","referenced_by":["jeffersontown-budget-taxrate-2025"]},{"type":"ordinance","name":"Ordinance No. 14,72 (budget and appropriation ordinance)","referenced_by":["jeffersontown-budget-taxrate-2025"]},{"type":"contract","name":"FOP contract","referenced_by":["jeffersontown-budget-taxrate-2025"]},{"type":"other","name":"PVA assessments (Jefferson County assessment roll)","referenced_by":["jeffersontown-budget-taxrate-2025"]}]

Actions

[{"kind":"other","identifiers":{},"motion":"Reading of Ordinance No. 14,71 (tax rate) by title only","mover":"not specified","second":"not specified","vote_record":[],"tally":{},"legal_threshold":{},"outcome":"no_action","notes":"Ordinance read by title; final passage scheduled for next meeting"},{"kind":"other","identifiers":{},"motion":"Reading of Ordinance No. 14,72 (budget and appropriation) by title only","mover":"not specified","second":"not specified","vote_record":[],"tally":{},"legal_threshold":{},"outcome":"no_action","notes":"Budget ordinance read by title; final passage scheduled for next meeting"},{"kind":"other","identifiers":{},"motion":"Approval of General Fund Warrant No. 1630 as distributed","mover":"not specified","second":"not specified","vote_record":[],"tally":{},"legal_threshold":{},"outcome":"approved","notes":"Voice vote recorded as 'Aye; motion carried'"},{"kind":"other","identifiers":{},"motion":"Approval of Road Fund Warrant No. 1016 as distributed","mover":"not specified","second":"not specified","vote_record":[],"tally":{},"legal_threshold":{},"outcome":"approved","notes":"Voice vote recorded as 'Aye; motion carried'"}]

Discussion vs. decision

Discussion: Budget revenue/expense assumptions, amphitheater readiness and site conditions, Bluegrass Commerce Trail gap, potential effect of state gas-tax changes on the road fund, department reorganizations and job-classification updates. Direction/assignment: Staff to continue budget work and present ordinance for final action at next meeting; staff working on classification and compensation ordinance updates. Formal action: Reading of ordinances by title and approval of warrants by voice vote.

Proper names

[{"name":"Jeffersontown","type":"location"},{"name":"Bluegrass Commerce Park","type":"location"},{"name":"Bluegrass Commerce Trail","type":"program"},{"name":"Jeffersontown Police Department","type":"agency"},{"name":"Plainview pool","type":"facility"},{"name":"Skyview Park","type":"location"},{"name":"Veterans Park","type":"location"},{"name":"Courier Journal","type":"media"}]

Clarifying details

[{"category":"total_budget","detail":"Total proposed budget for fiscal 2025-26","value":"35249136","units":"USD","approximate":false,"source_speaker":"Mayor"},{"category":"property_tax_rate","detail":"Property tax rate set in ordinance reading","value":"10.82","units":"cents per $100 assessed value","approximate":false,"source_speaker":"Mayor"},{"category":"property_tax_budget","detail":"Property tax revenue estimate","value":"5500000","units":"USD","approximate":false,"source_speaker":"Mayor"},{"category":"occupational_tax_budget","detail":"Occupational tax revenue estimate","value":"17500000","units":"USD","approximate":false,"source_speaker":"Mayor"},{"category":"bluegrass_trail","detail":"Bluegrass Commerce Trail phase 2 estimated revenue and expenses","value":"revenue:2400000; expenses:2900000; gap:500000","units":"USD","approximate":false,"source_speaker":"Mayor"},{"category":"salary_increase","detail":"Across-the-board employee salary increase for 2025-26","value":"8","units":"percent","approximate":false,"source_speaker":"Mayor"},{"category":"health_insurance_increase","detail":"Estimated increase in health insurance costs","value":"22","units":"percent","approximate":false,"source_speaker":"Mayor"},{"category":"insurance_premium_tax_change","detail":"Insurance premium tax rate increased from 5% to 7% and added 5% for health insurance","detail":"See budget presentation","source_speaker":"Mayor"},{"category":"road_fund_estimate","detail":"Road fund revenue estimate for 2025-26","value":"800000","units":"USD","approximate":false,"source_speaker":"Mayor"}]

community_relevance:{"geographies":["Jeffersontown","Bluegrass Commerce Park"],"funding_sources":["federal grants","insurance premium tax","occupational tax","property tax"],"impact_groups":["residents","businesses in Bluegrass Commerce Park","amphitheater event attendees"]}

meeting_context:{"engagement_level":{"speakers_count":15,"duration_minutes":180,"items_count":20},"implementation_risk":"medium","history":[{"date":"2025-04","note":"Tornado damage to Bluegrass Commerce Park referenced as affecting assessments"}]}