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Owensboro adopts fiscal 2025-26 budget, approves 3.5% pay increase and year-end amendments
Summary
The Owensboro Board of Commissioners voted unanimously June 3 to adopt the city's fiscal 2025-26 budget, approve a pay ordinance that includes a 3.5% cost-of-living increase, and pass year-end amendments that fund economic incentives and increase the city's contribution to a refrigerated food warehouse to $500,000.
The Owensboro Board of Commissioners voted unanimously June 3 to adopt the city's fiscal year 2025-26 budget, approve a personnel pay ordinance that includes a 3.5% cost-of-living adjustment and pass year-end budget amendments that include a larger contribution to a refrigerated food warehouse project.
The adoption of Ordinance 6-2025, approving the FY 2025-26 budget, came on second reading and was approved by roll call. The city manager told commissioners that the budget contains no changes to city tax rates and that "the general fund, which is our primary operating fund, is balanced." The manager said the budget funds the board's priorities, "including public safety, infrastructure, and economic development."
The commission also approved Ordinance 7-2025, the pay-classification ordinance required by state law, which the city manager said is a companion to the budget and includes a 3.5% cost-of-living adjustment for employees. In presenting the ordinance the manager said, "the only change to the pay charts for the upcoming year is the cost of living adjustment of 3.5% that was included and approved now in the budget." Commissioners voted yes on the pay ordinance by roll call.
On second reading commissioners approved Ordinance 8-2025, a year-end amendment for fiscal 2024-25. The manager said the amendment includes an additional $400,000 appropriation for a refrigerated food warehouse project, bringing the city's total contribution for that project to $500,000. The amendment also recognizes grant revenues and funds previously approved incentives and payments for economic development projects.
Commissioners heard first reading of Ordinance 9-2025, a budget amendment to record receipt of funds from Davis County fiscal court toward construction of a new senior center; that ordinance was introduced and read on first reading only and will return for a subsequent vote.
Separately, the board approved Municipal Order 12-2025, which authorizes the mayor to apply for U.S. Department of Justice COPS hiring program funding of up to $125,000; the manager said the grant would subsidize the cost of an additional officer and requires a 25% local match. "If we do receive the grant, then it would be adding another officer," the manager said, noting the grant would subsidize the cost.
Appointments and personnel actions were approved during the meeting, including reappointments and board appointments such as Megan Woodruff and Catherine Zubrazile and promotional and regular-status appointments for several city employees.
Votes at a glance: Ordinance 6-2025 (Adopt FY 2025-26 budget) — Motion to approve made by Mayor Tom Watson; second not specified. Roll-call vote: Jeff Sanford: Yes; Sharon Nesmith: Yes; Tom Watson (Mayor): Yes; Curtis Maglinger: Yes; Bob Glenn (Mayor Pro Tem): Yes. Outcome: Approved. Ordinance 7-2025 (Adopt pay classification/pay charts; 3.5% COLA) — Motion made by Mayor Tom Watson; second not specified. Roll-call vote: Sanford: Yes; Nesmith: Yes; Watson: Yes; Maglinger: Yes; Glenn: Yes. Outcome: Approved. Ordinance 8-2025 (FY 2024-25 year-end amendment; additional $400,000 for refrigerated food warehouse, total city contribution $500,000) — Motion made by Mayor Tom Watson; second not specified. Roll-call vote: Watson: Yes; Maglinger: Yes; Glenn: Yes; Sanford: Yes; Nesmith: Yes. Outcome: Approved. Ordinance 9-2025 (First reading: accept Davis County contribution to senior center) — Read on first reading; no final vote on adoption at this meeting. Municipal Order 12-2025 (Authorize application for COPS hiring grant up to $125,000 with 25% match) — Motion and second; voice vote: motion carries. Outcome: Approved (application authorized). Board and personnel appointments — Motions, seconds and voice votes recorded; outcome: Approved.
The manager and staff said the budget retains current service levels while directing resources to stated commission priorities. The board did not change tax rates in the adopted budget. The first reading of the county-funded senior center amendment means that additional legislative action will be required to appropriate those funds formally.
Looking ahead, Ordinance 9-2025 will return for further consideration after the first-reading introduction; staff and departments will proceed with implementation steps for items funded in the adopted budget and amendments.
