Budget Committee

601 W. Jefferson Street Louisville Metro Government Louisville, KY 40202 Action Summary - Final Budget Committee Chair Person Bill Hollander (D-9) Vice Chair Kevin Kramer (R-11) Committee Member Keisha Dorsey (D-3) Committee Member Barbara Sexton Smith (D-4) Committee Member Paula McCraney (D-7) Committee Member Pat Mulvihill (D-10) Committee Member Cindi Fowler (D-14) Committee Member Scott Reed (R-16) Committee Member Markus Winkler (D-17) Committee Member Anthony Piagentini (R-19) Committee Member Brent Ackerson (D-26) Thursday, February 13, 2020 4:30 PM Council Chambers Call to Order Chair Person Hollander called the meeting to order at 4:34 p.m. Roll Call Chair Person Hollander introduced the committee members and non-committee members present. A quorum was established. Committee Member Winkler arrived at 4:36 p.m. Committee Member Mulvihill arrived at 4:42 p.m. Committee Member Fowler left at 5:26 p.m. Present: 10 - Chair Person Bill Hollander (D-9), Committee Member Keisha Dorsey (D-3), Committee Member Barbara Sexton Smith (D-4), Committee Member Paula McCraney (D-7), Committee Member Pat Mulvihill (D-10), Committee Member Cindi Fowler (D-14), Committee Member Scott Reed (R-16), Committee Member Markus Winkler (D-17), Committee Member Anthony Piagentini (R-19), and Committee Member Brent Ackerson (D-26) Excused: 1- Vice Chair Kevin Kramer (R-11) Non-Committee Member(s) Council President David James (D-6), Council Member Brandon Coan (D-8), Council Member Mark H. Fox (D-13), and Council Member Kevin Triplett (D-15) Support Staff Hollie Hopkins, Jefferson County Attorney's Office Natalie Johnson, Jefferson County Attorney's Office LaTonya Bell, Metro Council Finance Clerk(s) David B. Wagner, Assistant Clerk Louisville Metro Government Page 1 Budget Committee Action Summary - Final February 13, 2020 Special Discussion 1. ID 20-0224 First Half Revenue and Expenses for Fiscal Year 2020 - Daniel Frockt, Office of Management and Budget Attachments: FY20 Q2 Budget Presentation by OMB (2-13-20).pdf 021320 Capital Status Report FY20 Q2 as of DEC-20.pdf 021320 FY20 Q2 Revenue.pdf 021320 Q2 FY20 Expenditures.pdf 021320 Q2 FY20 PSC Report.pdf 021320 Report - Settled Litigation Over $50000 2nd Quarter FY20.pdf Daniel Frockt, Office of Management and Budget, gave a presentation and discussed first half revenue and expenses for Fiscal Year 2020. Chair Person Hollander made general comments about the presentation and the state's financial forecast. Committee Member Winkler and Daniel Frockt discussed the additional revenue, budget cuts made for this fiscal year, trends for expenses, and the expected timeframe for when pension costs will overtake revenue growth. Chair Person Hollander recognized Revenue Commission staff for their role in capturing monies owed to Louisville Metro. Committee Member Piagentini expressed appreciation for the Revenue Commission staff and thoughts about how the budget and pension obligation discussions have proceeded. Committee Member Ackerson conferred with Daniel Frockt about how forecasts were projected and then expressed thoughts about how the budget and pension obligation discussions have proceeded. Committee Member Reed, Daniel Frockt, Chair Person Hollander, Committee Member Piagentini, Committee Member Winkler, Council President James, and Committee Member Ackerson discussed healthcare costs as part of the budget, deferred maintenance for facilities, pay-go capital, police department salaries and benefits, retainment and recruitment of employees, overtime costs for Corrections officers, and the use of additional revenue for pension obligations. Daniel Frockt discussed the Expense Reports distributed to Metro Council (see attached). Council President James and Daniel Frockt discussed a workers compensation claim in the Claims and Litigation Report (see attached). Louisville Metro Government Page 2 Budget Committee Action Summary - Final February 13, 2020 Pending Legislation 2. O-035-20 AN ORDINANCE REPEALING AND REPLACING ORDINANCE NUMBER 169, SERIES 2019 PASSED ON NOVEMBER 7, 2019 AND APPROVING A FORGIVABLE LOAN PURSUANT TO LOUISVILLE METRO CODE OF ORDINANCES § 39.131, TO REBOUND, INC. ON BEHALF OF [THE COMMUNITY FOUNDATION OF LOUISVILLE, INC. AND REBOUND, INC.] RUSSELL: A PLACE OF PROMISE, A FISCALLY-SPONSORED PROJECT OF THE COMMUNITY FOUNDATION OF LOUISVILLE, A 501(C)(3) PUBLIC CHARITY (“RPOP”) FOR THE DEVELOPMENT OF FOURTEEN UNITS OF MARKET RATE HOUSING IN THE RUSSELL NEIGHBORHOOD (AS AMENDED). Sponsors:Primary Barbara Sexton Smith (D-4) and Primary Bill Hollander (D-9) Attachments: O-035-20 V.2 CAM 021320 Replacing Ord 169, 2019 for Forgivable Loan to Rebound, Inc for 14 Units of Housing in Russell Neighborhood.pdf O-035-20 V.1 020620 Replacing Ord 169, 2019 for Forgivable Loan to Rebound, Inc for 14 Units of Housing in Russell Neighborhood.pdf A motion was made by Committee Member McCraney, seconded by Committee Member Reed, that this Ordinance be recommended for approval. Marilyn Harris, Office of Housing, gave background information on the item. Marilyn Harris, Chair Person Hollander, and Committee Member Sexton Smith discussed amendments that were necessary before they agreed to table the item until the proper language could be determined. A motion was made by Committee Member Winkler, seconded by Committee Member Fowler, that this Ordinance be tabled. The motion to table carried by a voice vote. A motion was made by Committee Member Winkler, seconded by Committee Member Sexton Smith, that this Ordinance be untabled. The motion to untable carried by a voice vote. Marilyn Harris read the proposed amendments into the record. A motion was made by Committee Member Winkler, seconded by Committee Member Sexton Smith, that this Ordinance be amended as follows: - In the title, strike 'THE COMMUNITY FOUNDATION OF LOUISVILLE, INC. AND REBOUND, INC.' and insert 'RUSSELL: A PLACE OF PROMISE, A FISCALLY-SPONSORED PROJECT OF THE COMMUNITY FOUNDATION OF LOUISVILLE, A 501(C)(3) PUBLIC CHARITY (“RPOP”)' - In the fourth WHEREAS statement, strike 'the Community Foundation of Louisville, Inc. and Rebound, Inc.' and insert 'RPOP' - In Section II, strike 'the Community Foundation of Louisville, Inc. and Rebound, Inc.' and insert 'RPOP' The motion to amend carried by a voice vote. Louisville Metro Government Page 3 Budget Committee Action Summary - Final February 13, 2020 The motion to recommend for approval carried by the following vote and the amended Ordinance was sent to Old Business: Yes: 9- Hollander, Dorsey, Sexton Smith, McCraney, Mulvihill, Reed, Winkler, Piagentini, and Ackerson Excused: 1- Kramer Absent: 1- Fowler 3. O-036-20 AN ORDINANCE AMENDING CHAPTER XX OF THE LOUISVILLE METRO CODE OF ORDINANCES BY CREATING A NEW SECTION REGARDING A SURCHARGE ON TICKETS AND A TAX ON RESTAURANT GROSS RECEIPTS. Sponsors:Primary Brent Ackerson (D-26) Attachments: O-036-20 V.1 020620 New LMCO Section for Surcharge on Tickets & Tax on Restaurant Gross Receipts.pdf A motion was made by Committee Member Winkler, seconded by Committee Member Ackerson, that this Ordinance be recommended for approval. Committee Member Ackerson gave background information on the item and discussed the need for additional revenue sources. Committee Member Piagentini, Committee Member Reed, Committee Member Mulvihill, and Chair Person Hollander discussed the merits of the proposal, the Commonwealth's role in securing additional revenues, and petitioning state representatives for additional sources of revenue. A motion was made by Committee Member Winkler, seconded by Committee Member Sexton Smith, that this Ordinance be tabled. The motion to table carried by a voice vote. 4. O-339-19 AN ORDINANCE AMENDING CHAPTER XX OF THE LOUISVILLE METRO CODE OF ORDINANCES BY CREATING A NEW SECTION REGARDING THE MOTOR VEHICLE RENTAL LICENSE FEE. Sponsors:Primary Bill Hollander (D-9), Primary Brent Ackerson (D-26), Primary Markus Winkler (D-17) and Primary David James (D-6) Attachments: O-339-19 V.1 101019 Creating LMCO Section for Motor Vehicle Rental License Fee.pdf O-106-19 V.2 082919 Amending LMCO XX for New Section for Motor Vehicle Rental License Fee.pdf Committee Member Ackerson gave background information on the item and discussed the need for additional revenue sources. This item was held in committee. Louisville Metro Government Page 4 Budget Committee Action Summary - Final February 13, 2020 Adjournment Without objection, Chair Person Hollander adjourned the meeting at 6:07 p.m. *NOTE: Items sent to the Consent Calendar or Old Business will be heard before the full Council at the Metro Council Meeting on February 20, 2020. Louisville Metro Government Page 5