Owensboro reviews carryover budget amendment; city files 2024-25 fiscal year report for audit

Ordinance 11-2025 — a fiscal carryover amendment to revise beginning fund balances, carryover appropriations and rebudget funds — was read on first reading and discussed by City staff. The measure was presented as procedural: it rebudgets funds for capital projects and purchases that were approved in prior budgets but not completed by June 30.

City Manager described the process: “our new fiscal year began on July 1. And early in every fiscal year, we do what we generally call a carryover budget amendment,” the City Manager said, explaining that multi-year projects such as an indoor sports facility or fire station are budgeted when approved but often span multiple years and thus require carryover adjustments.

Angela Wanning, the city finance presenter, gave the June 30 year-end report for the general fund. She reported total fiscal year revenues of $77,129,364 against budgeted revenues of $74,299,816, a positive variance of $2,829,547, which she attributed primarily to higher net profits and insurance license fees. Wanning also outlined the top six revenue streams that made up roughly $64.8 million — occupational withholding ($24,100,000), property tax ($14,200,000), insurance premium license fees ($8,900,000), net profits ($6,700,000) and interest income ($2,600,000) — and noted several drivers for variances including transfers related to incentives and TIF and timing of capital spending.

Wanning said actual expenditures for the year were $76,704,970 versus a budget of $84,751,217, a variance of $8,046,247, primarily driven by timing, transfers to Owensboro Municipal Utilities (OMU), and savings in personnel services. She described a new year‑end slide breaking expenses down by condensed department groups and noted that nondepartmental variances were largely timing-related, including incentives and CARES/ARPA-funded transit subsidies.

After the presentation, Commissioner Bob Glenn asked whether the insurance premium license fee increase was likely to be permanent; Wanning said the rise was driven by higher premiums paid by individuals and increased replacement costs following disasters, and by inflationary pressure on construction costs. The commission then voted to file the financial report for audit; the motion carried with all present voting in the affirmative. The budget amendment was presented on first reading and no final vote was taken on Ordinance 11-2025 at this meeting.

The commission was not asked to vote on any new net funding for the carryover items; staff said most carryovers reflect previously approved appropriations and one new cybersecurity item was funded from existing dispatch fund balance.