Budget Committee

601 W. Jefferson Street Louisville Metro Government Louisville, KY 40202 Action Summary - Final Budget Committee Chair 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, September 24, 2020 4:30 PM Council Chambers Call to Order Chair Hollander called this meeting to order at 4:32 p.m. Roll Call Chair Hollander introduced the committee members and non-committee members present. A quorum was established. *NOTE: All committee members and non-committee members present attended virtually. Present: 11 - Chair 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), and Committee Member Brent Ackerson (D-26) Non-Committee Member(s) Council Member Nicole George (D-21) Support Staff Hollie Hopkins, Jefferson County Attorney's Office Clerk(s) Cheryl Woods, Assistant Clerk Sonya Harward, Clerk Louisville Metro Government Page 1 Budget Committee Action Summary - Final September 24, 2020 Special Discussion 1. ID 20-1244 Update on General Fund Revenue Estimates for Fiscal Year 2021 - Daniel Frockt, Aaron Jackson, Office of Management and Budget Attachments: 20-09 FY20 and FY21 General Fund Revenue Estimate.pdf Daniel Frockt, Office of Management and Budget, gave a presentation. The following spoke to this item: - Chair Hollander - Daniel Frockt - Committee Member Piagentini - Committee Member Ackerson - Monica Harmon, Office of Management and Budget The following was discussed: - Question how much will be used out of the fund balance from FY20 rainy day fund - Combined Fy20 and Fy21 total of $135 million with sufficient reduction - Authorization has been given to have $45 million Bond sell in October - Questioned if the biggest impact will be from net profit - Property tax is 25% of revenue - Employee withholding trends with economy - Net profits are more than half of revenue - Insurance premiums are collected quarterly - Questioned whether the budget included the Breonna Taylor Settlement - Long and slow return of collections because of COVID 19 shut down - Inspection Permits and License penalties is lower than what was budgeted - Property inspections decreased - Breakdown of $12 million - Metro has a Risk Management Fund which withholds the first $500,000 - Louisville Area Governmental Trust Fund - 4 Groups contribute to this fund which carries $2 million coverage: (Transit Authority, Housing Authority, Metropolitan Sewer District and Metro) - Metro pays more to the Louisville Area Governmental Trust Fund pool due to more claims - Access Insurance carrier is Safety National which carries $5 million - Remaining $4.5 million moves back from the Risk Management Fund - Risk Management Fund has estimate of $26 million yearly - Question about when Metro will feel the impact on future claims that have not been settled - Question about the insurance premiums increase - Question about property tax increase due to claims Louisville Metro Government Page 2 Budget Committee Action Summary - Final September 24, 2020 2. ID 20-1245 Update on Coronavirus Aid, Relief, and Economic Security (CARES) Act expenditures and budget per Ordinance No. 73, Series 2020, Part II, Section B.1 - Daniel Frockt, Monica Harmon, Office of Management and Budget Attachments: 2020-09 Monthly CARES Report to Budget Committee.pdf Daniel Frockt, Office of Management and Budget, gave a presentation. The following spoke to this item: - Chair Hollander - Daniel Frockt - Committee MemberWinkler - Vice Chair Kramer - Monica Harmon, Office of Management and Budget The following was discussed: - $6.4 million not used from FY20 to transfer to FY21 for small business funding - Depending on health expenditures to see where the funds will be shifted to - $2.7 million CARES reimbursement - Currently pulling records that Metro requested under the agreement to valuate them to make sure they meet the needs of the treasury to get further funding Pending Legislation 3. O-438-20 AN ORDINANCE AMENDING ORDINANCE NO. 072, SERIES 2020, RELATING TO THE FISCAL YEAR 2020-2021 CAPITAL BUDGET FOR LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT, BY TRANSFERRING $20,500 BETWEEN DISTRICT 26 CAPITAL INFRASTRUCTURE FUND PROJECTS. Sponsors:Primary Brent Ackerson (D-26) Attachments: O-438-20 V.1 091720 District 26 Capital Budget.pdf A motion was made by Vice Chair Kramer, seconded by Committee Member Piagentini, that this Ordinance be recommended for approval. Committee Member Ackerson spoke stating that the $20,500 was initially put in the wrong account, the Furman and Kirby Lane structure account, and was switched over to the proper structure account for Breckenridge Lane. The motion carried by the following vote and the Ordinance was sent to the Consent Calendar: Adjournment Without objection, Chair Hollander adjourned the meeting at 5:26 p.m. Louisville Metro Government Page 3 Budget Committee Action Summary - Final September 24, 2020 Note: Items sent to the Consent Calendar or Old Business will be heard before the full Council at the Metro Council meeting on October 8, 2020. Louisville Metro Government Page 4