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…