Hold your hand, oh please say to me, let me be your man, and please say to me, you let me hold your hand, let me hold your hand, I wanna hold your hand. And when I touch you, I feel happy inside It's such a feeling that my love I can hide, I can hide, I can hide Yeah, you've got that something I think you'll understand When I say that something's I wanna hold your hand I wanna hold your hand I wanna hold your hand And when I touch you I feel happy inside It's such a feeling that my love I can't hide I can't hide, I can't hide Yeah, you've got that something I think you'll understand When I feel that something I wanna hold your hand I wanna hold your hand I wanna hold your hand I want to hold your hand. So as soon as we have our quorum, we'll go ahead and start the meeting. ¶¶ We have a quorum now for our Budget and Finance Committee of the Whole meeting, and today is October 21, 2014. Welcome, everyone. And we'll go ahead first and attend to the September 23 committee summary on pages 1 and 2. Do I hear a motion to approve? Motion. Second. Have a motion and a second to approve the summary. Are there any questions? Council Member Clark? Yes, Vice Mayor. On point number four, that's a Lyric Theater audit, when I read this, I thought the Bruce Salley comment was not quite accurate. and so I made a call or an email to him to ask if that was correct and he agreed with me that it was not what he had said. So I have a correction to that and I'll be happy to read it or just hand it to the clerk. Do you want to go ahead and read it so we can have it in the minutes? Sure. This is what he actually said and he actually wrote most of this. Bruce Ellis stated that the Internal Audit Board has authorized an internal audit of the Lyric and that this topic could be revisited with the Internal Audit Board after the public accountants have done their work. He further stated that the board could then decide if they still want an internal audit of Lyric at some future point or if they want to drop the Lyric audit from the internal audit plan. Is that your motion for correction? That's my motion for correction. Okay. And I have a second from Councilman Browlinger. Are there questions about that? All right. All those in favor of the corrections say aye. Anyone opposed? All right. And are there other corrections or additions? I see none. So all those in favor of approving the corrected minutes, please say aye. Anyone opposed? All right. That motion passes. Next on our agenda is the monthly financial report, pages 3 through 15. And who's up to bat? Commissioner O'Mara. Thank you, Vice Mayor. This is one we will share, and I'll start off with our standard format for the monthly update. We start with unemployment rates, and as you can see, that they're going up and down, up and down, but right now they're going down, which is what we hope to trend forward. The three-month averages, Kentucky in August is sitting at 7.1%, and that compares to 7.4 in June and 7.4 in July. The U.S. is sitting at 6.1 in August, and that compares to 6.2 in July and 6.1 in June. And the Lexington MSA in August was 5.4, and that compared to 6.5 in July and 6.4 in June. And the city of Lexington for August is 5.3 compared to July of 6.4 and June of 6.3. So we're back to being the lowest of the four comparisons. We spiked up there for a couple of months, but we're back down. And although the slope of the line is very steep going downward, I don't know that we can maintain that, but we hope to have month-to-month improvements. The next one is three-month rolling average, which just kind of smooths those month-to-month spikes. And then we go to selected economic indicators. We just said that unemployment was going down, which is a positive sign for us. And employment, we should get numbers for the end of June, the end of next month. So hopefully we'll have that number to report to you then. And Fayette County permits, month over month, it's $1,399 this September compared to $1,201 the same time last year. And new business license, we had $219 in September, and that compares to $183 same time last year. The home sales, the most recent we have is August. It was $1,021 compared to $1,009 a year before. And then foreclosures, unfortunately, we had 46 foreclosures in the month of September compared to 41 last year. Now that compares to only 25 and 35 the two months before. So do we have any questions on just the general economic indicators? We're all crossing our fingers, hoping that month to month we're improving. Any questions, council members? There don't seem to be any. All right. I invite the director of revenue then to talk about the top four revenue streams. Good afternoon, everyone. First slide is just a comparison for the month of September to the month of September budget. For the month, we were at $300,000 below the budget. And as you remember, last month we were significantly up over budget. So let's look at the quarterly view of that. Through the first three months of our fiscal year, we're $1.4 million ahead of our budget. Three of the four categories are over budget. Employee withholding is $370,000 below budget, while net profits come in at $363,000 above. Insurance is up some at $228,000, and franchise fees is $1.2 million ahead of budget. And on franchise fees, that's not a timing difference, as I mentioned before. The historical numbers we've used on the budget is lower than what's actually coming in now. So that's an improvement. Comparing the quarterly for this year to the same period last year, we're $3.5 million ahead of this time last year. The good thing is all four categories are up. Three of the four are $1 million plus up. Withholding is the highest at $1.3 million up. Net profit is $1 million above last year. insurance is $170,000 above last year and then franchise fees is $1 million ahead of last year. The good thing is we're seeing the year over year growth, but it is early in the year. Last slide for your information purposes is the nuisance abatement link collection through September. Is there any questions on the top four? Questions, Council Members? I don't see any. Thank you. Thank you. All right, I'm going to pick up where Rusty left off. Picking up with the other revenue sources after franchise fees, starting with other licenses and permits and looking down, these revenues are trending close to budget. We have a few exceptions, and those are primarily based on timing differences between our monthly budget projection and the rate at which the collections are actually coming in. Services category, the variance is mainly due in excess fee and collections. These are revenues that are tied to the sheriff and the county clerk, and they will primarily be generated in the last quarter of the fiscal year. So we're going to be adjusting the monthly budget for that category to account for that timing issue. Intergovernmentals is not as clear cut of a timing issue, but it is timing related. And other income is trending ahead. This is a less predictable revenue source. These are typically one-time or non-recurring revenues. So the historical basis of our monthly budget isn't as meaningful. So moving. Before you go on, can you give us some examples of other income? One-time revenue sources, copies, open records requests, payments, anything from that small to just a one-time miscellaneous revenues contribution. for specific purposes. They really sort of run the gamut. They don't really fall into any other specific category, so it's harder to tie them to past data. Other than open records requests, do you think of anything else? There's some examples. Really, they're contributions. They're just truly miscellaneous in nature. What unusual, we're getting a check, or we got a check from FEMA from an ice storm almost a decade ago. The 2009 or the 3? Yeah. 2003. So that would be an example of a one-time unanticipated other income. We have those type of things pop up, but they're very hard to predict. Okay. Can you let us know how much that is when it comes? I will. Thank you. Okay. Moving forward. So based on this, we're about a little over $500,000 ahead based on our budget. Looking at the expense side, we're trending ahead of budget here as well. The primary two categories that you see there that are trending ahead are personnel and operating. We aren't spending in those two categories as our monthly budget would have estimated we would. The personnel budget, we're still refining that based on the vacant positions that we had included, the new vacant positions that we had included in this year. So we're still refining that to adjust them to be only in the months for which they were budgeted. The operating expenses that have not yet been experienced, I had mentioned last month we have professional services related to our IT projects in the CIO's office. and repairs and maintenance budget in facilities and fleet. These funds are starting to be spent, but we're still refining the monthly budget for those. So those are the explanation for the two large variances you see there. When we take in all of those and our revenue into account, our change in net position is $5 million. But when we look at the next slide and we start looking at calendar year comparisons, the current year versus the prior year, excuse me, these numbers are trending much closer to our experience in prior years. Some of those variances are diminished. On the revenue side, we're ahead $2.5 million, which speaks to what Rusty has been telling us, some of the true revenue growth we're seeing in franchise fees. When we look at the expense side, we're truing up much closer. We're at an $89,000 variance compared to previous years. So we are spending at the rate we historically had. Our monthly budget just seems to need some fine-tuning. When we take all of that into consideration, comparison to the prior year, our change in net position is $2.4 million. We have a question. Council Member Henson. Thank you, Vice Mayor. I was curious, back on page 12 of our packet, the personnel costs are showing. Okay. The expenses are under budget? Yes. Okay. Yes. When I looked at that, I looked at it wrong. I'm sorry. I thought they were $2 million over, and I was just going to ask if that would be a trend. And this is where we probably proposed hiring folks that didn't come on board. We have not yet brought on the majority of our newly created positions for FY15. The monthly budget had assumed that they had spread those costs over 12 months, and we've refined that a bit. But I think we need to take another look at how our monthly budget is set up. I think our FY15 budget is in good shape. It's our monthly budget, which is just a layer on top of that, that we need a little more fine-tuning. And with the operating, too? Yes, yes. Those are primarily professional services related to IT projects and the repairs and maintenance and facilities and fleet. Okay. Thank you. Thank you, Vice Mayor. You're welcome. Any other questions? No? All right. Thanks, Elizabeth. Another team member to the podium. Now, Vice Mayor, I thought you all might be interested in talking about preliminary fund balance discussion. I've tried to follow the format that we followed last year. and so I brought back a few of the same slides from last year to help us along and that is what are we trying to do today. So the first step is a reporting step and so I'm presenting to you all recommendations for fund balance categories so that we can either concur or amend those categories so that we would have the information necessary for us to finalize and complete the printing of the annual financial report. Second step, which is not required today, is to decide how to spend any fund balance. So my focus is on step one, so that we can get categories compiled and agreed upon so that we can report out our CAFR. And then based on those decisions, then you would have dollars that the council could use their discretion as to when and how they would want to spend those dollars. So preliminary shows that our fund balance grew by $9.3 million year over year. It was not one thing. It was a multiple. we were within a .2 tenths of percent of budgeted revenue. We had 700,000 revenue in excess of budget. The personnel budget was over actual by 2.5. There was a favorable variance in operating of $4 million. Debt service was less than budget by half a million. Transfers were under 1.4 and another was .2. that comes to our total change in fund balance of approximately $9.3 million. So then we start discussing how would we report that change. So I've taken a very busy page and just tried to put different categories up at a time to help us walk through that. I apologize for being an accountant with a spreadsheet, but this is the best way I know to present it to you. As you can see, total fund balance, we're looking at $63.7 million, and that compares to $54.4 last year. That's the change of $9.3 million year over year. The first thing we need to do is take out those dollars that are not related to the 1101 fund, the general fund itself. In the CAFR, we combine about six funds together and report totals. So of that $63.7 million, $4.869 has to do with other funds, such as the Family Care Center, the Donation Fund, the Tenant Relocation Fund, the Miscellaneous Special Revenue Fund. But this year, it also includes a new fund that was established in the spring, and that's the Affordable Housing and Homeless Intervention Fund. And that was established by allocating $3.5 million. So you see the variance of 3.7, about 3.5 of that is the creation of that new affordable housing and homeless fund. Commissioner, do you want to go ahead? We have a council member who has a question about what you've presented so far. Is that a way to do that? Council Member Stennett. Thank you, Vice Mayor. Commissioner, is that $9.3 million in addition to what we've already allocated back in May of last year in the current year budget? So if we wouldn't have done that, it would have been in addition to the $9.3 million? It would have been larger. Okay. Just want to make sure. Thank you. Yeah, that was the police, the homelessness, the affordable housing. Yes. Thank you. Fire vehicles. Fire. Yes, sir. We remember. Go ahead. I have a list if you need it. The next thing we're supposed to take out is non-spendable. These are inventories or prepaids. This would be the inventory at the pharmacy, the pool, chemicals, that type of thing. It's also prepaids. This is where we have contractual arrangements that cross the fiscal year, and we have obligations to pay those. So you take the 1.6 off. That brings the 63.7 to a $57.2 million fund balance to discuss. We go to the next category, which are ordinance-driven requirements. These are ordinance that Council has passed in the past. And the first one that I want to talk about is the economic contingency. The first thing I would draw your attention to is that our current balance as of June 30 is $24.2 million. You see, we ended last year at 23.3. Now, that 24.2 already reflects the $50,000 a month that we're required to put aside throughout the year, plus interest earnings on the balance. So the economic contingency has already grown $940,000 between last June 30 and this June 30. The second step is to go through the calculation, which I have a slide for later, that shows exactly how that 25% base is calculated and then the additional 25% reserve that is required by council. That would be, if you approve that, an additional $993,000, which would leave the economic contingency balance at 25.2. That's an increase of 1.9 over last June 30. We have a question. I'm thinking maybe we can do page by page. Would that work for you, Mr. Farmer? Sure, yes, ma'am. We'll let him finish this page and then, okay, go ahead. All right. The next category is called 27th payroll. That's an internal calculation. We, every so many years, and it's going to happen again in 2017, we actually pay 27 times instead of 26 times in a year. And this is just an accrual method for us to make sure that we have the cash flow for that year when we pay an extra payroll during a calendar period or a fiscal period. And then finally, it's called energy improvement. This has to do with a federal TARP program that was from 2009. We took a grant from the federal government with the promise to reinvest energy savings that were generated from that. And so we track those. James Bush is the person who manages that. and so we're going to raise that reinvestment to $636,000. That's an increase of $228,000 over the balance of last year. All right. Questions on this page? Council Member Farmer. Well, you changed pages before I got my question in, so you may want to come back to me. Okay. Does anyone else have questions? Because I've got, just as we roll. Did you want to ask a question on the previous information? I did. Okay. No problem. Actually, I want to go back to page 3 or page 18 because. Is that correct? Yes, sir. All right. Our says transfers at 1.2 and yours says 1.4. Yes, sir. That's on my bed. I keyed incorrectly. The correct number is 1.4 as presented to you today. Then the next one is on the page we just gone over. Excuse me, if you'll add that up, it now adds up to 9.3. I was going with that assumption. Okay. Thank you. Then on page 4 or page 19, kind of following up on Council Member Senna's question, so we kind of decided to spend $10 million early, as I recall, and about a third of it was for housing, and about a third of it was for fire, and a third of it was for police. So you're saying that that money has already been accounted for and pulled out, so it's not in this $9 million figure on the top. That's correct. Well, then, the way you got this footnoted for number two there, are these the next year's funds? Or if we took into account police and fire in the top line, how do we need to add this one back in the second line is my question. What is the best way to answer? Simply for me. Okay. Well, you have expenses and revenues. Right. And then you have balance sheet and cash. Okay. We took cash and pre-reserved it to fund this new fund, the homeless and affordable housing. We agree. So your question, I really should have answered it in two parts. The fire and police and that type of thing are reflected in the 9.3 because those were expenses. Capital that were approved. The 3.5 was a commitment of cash and is reflected. We have to reflect that in our reserves at this time. Does that help? That cleared it perfectly for me. Thank you, sir. Thank you, Vice Mayor. You're welcome. Are there other questions right now, Council Members? Okay, I see none. Please go ahead. All right. So after talking about those non-spendable and reserved amounts, We talked about what are ordinance-driven reserves. Then we go to assignments. And so this is the third section, and I have recommendations for council's consideration. The first one is called the litigation reserve. And I would, at this point, remind council that we have to reserve the total amounts each year. It's not iterative. Whatever we want to reserve last year, you come back and we reserve it again this year. So I'm showing the total that is being recommended. Last year, we had a reserve of 5.5 in the litigation reserve. This year, I'm recommending 8.5. It's a $3 million increase. Uh, council may, may know that there's a couple of items, um, that are outside the, um, risk insurance fund that, um, that we are looking at and that are undecided at this time. And so it would be fiscally prudent for us to reserve money. Uh, and then that can always be released if those issues are resolved. but then we do have money set aside in case one or both of them should be judged not in our favor. Excuse me. Yes. And on that, council members, just to remind you, if you need more detail on that, we're prepared to go into a closed session. Right now or lower? Right now, if you have questions that you want answered, because we're going to need to make a decision about this. During this meeting? Mm-hmm. Councilmember Ellinger. With that being said, I have a move that we go into closed session pursuant to KRS 61.8101C for the purpose of discussing potential litigation. Second. Any questions? All those in favor say aye. Aye. Anyone opposed? so if we can have the folks who can help us understand this litigation fund, we'll meet in the back. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. I'm sorry. Thank you. ¶¶ Thank you. Thank you. Thank you. Thank you. Thank you. I make a motion and we come in there. I have a motion in a second to come back into open session. All those in favor say aye. Aye. Anyone opposed? All right. Here we are again. We have, let's see, Council Member Ellinger, did that finish your questions or issues? Council Member Masati, did you have a, you're on for a? Oh, okay. Very good. All right. Go ahead, Commissioner. Commissioner. Thank you, Vice Mayor. The second category in the contingencies, we last year reserved $2.8 million for pension, and we're not recommending a need for that reserve. We feel that the budget that is in 2015 is sufficient. On health insurance, we reserved $2 million last year. We're recommending the same reserve this year, although I'm asking for counsel to recommend one more step to that. BMI, our consultants, say that a $27 million health insurance fund should have its own reserve of about $4 million. And so instead of having it parked in the general fund, I would ask for council to approve this to be actually transferred to the health insurance fund. And then we can monitor whether we have a $4 million reserve and replenish that in future years if needed. So I'm asking for a health insurance reserve the same as last year. Then I'm asking for council to consider actually transferring that money out of the general fund and having it sitting with the health insurance fund where all the claims are paid. And then finally, we have a category which we call prior project assignments. It's sitting at 8.1 million. And that is, if you remember last year, we had an extended conversation about different capital and one-time projects that the council deemed to use fund balance for, and that council also didn't want those dollars to lapse or go away if the projects were not completed by June 30. So we have them sitting in this fund so that they will not lapse. Then in addition, in March, we added to that with some other capital projects that were added. So as of June 30, the balance of unspent dedicated funds for these capital projects at one time is $8.1 million. However, included in your packet is a project-by-project listing, as well as the current balance, which is now at $3.7 million, $3.8 million. So I have to report the balance as of June 30, but I wanted to let you know that that 8.1 is now sitting at 3.8 about the 15th of October. Okay, we have questions. Council Member Farmer. Thank you, ma'am. On the health insurance fund, so you're just proposing to move that current reserve out of our fund balance and into the health insurance fund just via a budget amendment? Would that just be it? Do they have any reserve at all now? to add to this? It varies from month to month depending on the claims. If you think about it, there will be more claims at the second half of the year with the people that have HSAs where they're paying out of pocket the first part and then they make their deductible. The fund actually pays 100% from their point. So the second half of the calendar year has highest claims. The first half has the lowest claims to be paid against the premiums. So there's a cash flow ebb and flow there. We actually had to put in about $900,000 to finance that cash flow during last year. But that has built back up over the summer. So this would cover eventualities like that. That's correct. And so we're recommended to have a $4 million, and I'm trying to get at least two in there for now. And just remind me one more time, who made that recommendation or who applied? Benji Mars from BMI, our consultants that advise us on our health insurance. Thank you, sir. Thank you, Vice Mayor. You're welcome. Are there other questions so far? All right. So then finally, to complete this, the 2014 column, those items that are highlighted in yellow are what we are asking for your guidance on today. And so finally, the last one is assignments for nonrecurring use. And so we're recommending that to be at $2.2 million for council to take under deliberations on how they might feel are the best ways to spend that. And if all of those assignments and fund balance categories are adopted, that would mean an unassigned fund balance would be a little over $4.1 million. For comparison purposes, that compares to last year's 4.3. In 12, it was 3.3. In 11, it was $562,000. And in 10, it was 2.1. And in 09, it was 4.3. Thank you so much. So, council members, I think that, and then your page 23 has all of this. Yes, if you would like for me to go through the actual calculation for the recommended additional economic contingency of 993, it's supported by the next page in the handout. And this is actually going through the ordinance. You start with the changes, change in fund balance of 9.3, changes in non-spendable, non-101 funds, 27th payroll, energy efficiency, subtract budget carry forward and capital reappropriation. So that would give a $3.9 million base that the 25% is applied to, and 25% of that is $993,597. So, Councilmembers, this, I believe, would be the point where we have discussion of what we've heard so far, and we also will need some decisions to be made on these different categories so that, if I understand correctly, these would be the categories that would go into the CAFR. That's correct. And it's pretty important that we finish this work today, I think, so that you can get on with the capper. That would be best. We're trying to meet the October 31st requirement with our auditor. And so we would need this in order for them to review the final report. Yes, thank you. Councilmember Farmer. Vice Mayor, would it be your thought to take these up as a group potentially or individually? I would think we might want to discuss them individually. It's up to the council, really. But if we were going to have legislative thought, would we pull it off of the column on page 6 or our page 21, or would we use the outlined column on page 7, our page 22, the one that's on the display now? 21 or 22. they both include the same they have the same stuff except that 22 includes the recommended non-recurring assignment so that might be the better page 22 I'll just try this for purposes of discussion to approve all of these assumptions based on the outline column that's on the overhead just now to provide the basic steps to get us to a fund balance would that be correct enough that'd be great so moved thank you okay and so the motion is to approve on page 22 the different categories as outlined here and that motion was seconded and is there any discussion this might be easier than you think i'm loving it i see no discussion okay all those in favor of the motion please say aye anyone opposed that motion passes unanimously thank you very much so now we want the caffert yes ma'am i knew you'd ask for that you know how much i love getting that sooner rather than later okay now um i think you're still on i am i'm i'm Next up. You're welcome. The final presentation that we'd like to bring before the committee today is to talk about the 2015 bond projects and how we might go forward due to your all's guidance. The first thing is that already approved by council and incorporated in the 2015 approved budget is a general obligation project bond of $26,188,100. And normally we try to issue that by the end of the calendar year so that all those funds are put in the bank and ready to pay for the approved projects. We already have a spending resolution passed so that we can cash fund these projects until the bond is closed and the money is in our possession. But last week, a new bond issue was mentioned, and I wanted to go over that. And that was mentioned by James Bush in his presentation about capital improvements to do to the detention center. And I would say thanks to former LFUCG employees that are now at the state, we were contacted that a qualified energy conservation bond had been allocated to Lexington and was sitting unused at the state level. So trying to play catch up, we found out that what this was was a federal program to states and large local governments, local governments of 200,000 or more in population, And it can only be used to reduce energy consumption by at least 20%. And if we use these, it's a taxable bond with a rebate of up to 70%. And the state allocation of Lexington is $2.9 million. Then we found out that it actually expires at 12-31-14. So if we want to avail ourselves to use this as a financing vehicle to the proposed capital improvements to the detention center, we would need to sell the bond before the end of the calendar year. So we wanted to bring this to council and ask for their consideration for a second bond issue in 2015. It would be a QECB of 2.9 dedicated to the detention center capital maintenance. There is an energy savings contractor, it's Siemens, who went through the selection process and is guaranteeing savings in excess of 20%. They actually pay us cash if those savings do not materialize. And we could capitalize on a very, very low interest rate. If a taxable bond was sold at 3.5%, then our actual cost would be between 1% and 1.5%. So that's a pretty good interest rate on $2.9 million. And if we go ahead and issue this at the same time that we do the already approved $26.2 million GO bond, then we have more cost savings by issuance costs being done at the same time instead of separately. And then finally, in reviewing this, we actually have a debt service budget savings from a refund that we did that closed in May that can cover the debt service that would be associated with this, so there would not be a budget amendment needed to increase our debt service. We estimate that this would be about a $284,000 annual debt service, and the cost in this year would be about $142,500. And we have a budget in the already approved debt service budget to cover that. So it seemed to be a win-win on all points, but we do not have the authority to do that without council action. So if you wanted to consider this, all you need to do is give me today an indication that you want to go forward. We would then get financial advisor and bond counsel to draft the necessary documents, then bring those ordinance and resolutions to you. And the timeline, we could get first reading on the 13th. We could get second reading on the 20th. We could have the bond sale on the 4th and the closing on the 9th. and that is before the market kind of shuts down over the Christmas holidays. Okay, council members, so we'll have discussion on the bond, and then you'll need some guidance on the QECB. That's correct, QECB. So here we go. Now we have several. Council Member Massadi. Thank you, Vice Mayor. I'm not sure where it's appropriate, but talking about our general obligation bonds, I know when we had the workshop, I guess it was a couple months ago, about the fire stations, and we had two different scenarios, I think, and there was a, correct me if I'm wrong, 2.6 million and then 4. million? Were those the two different scenarios? Or 2.5 million. If we wanted to go ahead and go forward with a motion today to go forward with a $4. million scenario, would this be the opportunity, correct time right now, to do so? It would, because it would allow us then to know the total of the GO bond and still meet the projected timeline in order to close by the end of the year. Then, Vice Mayor, I would move that we would go forward with pursuing the $4 million bond for the new proposed fire station. Okay, so if I recall, there's already $2.5 million in the bond. Yes, attached was the listing. Wow, I just... So your motion is to add $1.5 million to the bond to make it four points. To get the $4 million for the fire station. Yes, ma'am. And we had a second to that. So let's have some discussion on the motion. Are those of you who are signed up to speak wanting to speak to the motion? No, ma'am. Pardon me? No. Would anyone like to speak to the motion? We'll start down here and just work our way around if you let me know. Maybe I do have a question. Council Member Lane. Yeah, this is understanding the $2.9 million is for energy efficiency purposes. Is that correct? That's correct. All right. So if you allocate it somewhere, you've got to save 20% or improve the efficiency by 20%? That has to be the outcome of the dollars invested. Okay, so if you transfer that money over to the fire station, will that qualify for that purpose? No. No. Okay. Okay. Councilmember Stenner. Thank you, Vice Mayor, and thank you, Councilmember Sadi, for going ahead and making the motion. I just want to be clear on why we're doing this. We're not trying to add another project to our bond list. This project was already approved by the council when we passed the budget. We're just adjusting the number, and the reason why we're adjusting this are several factors, I know Chief and his staff spoke very eloquently at the meeting and the workshop about why we need to do this. But just keep in mind, a new high school is going within a half mile of here. 6,000 new residential homes is going within a half mile from here. Instead of building the minimum what we can build in this community, we're actually planning for the future for one of the first times in recent memory that we're able to do and plan ahead. So this is why that's important. is to make sure we have adequate staffing needs going forward versus playing catch-up from what we haven't had the last 10 years. So we bought this land in 2008, and it was a good purchase at that time in terms of cost and savings. But this was a valuable project, not just for this piece of part of Lexington, but for everyone, because there will be other opportunities in the future to expand our services. So thank you all for bringing this to us. Chief, I see you back there. And I appreciate it, and I hope everyone supports it. Thank you, Vice Mayor. You're welcome. Council Member Farmer. So we were talking about the qualified energy conservation bond for 2.9. Well, the motion on the floor is to add $1.5 million to the bond package to finish the $4 million fire station. That's the only motion on the floor. That's my confusion. Thank you. I'm sorry. Yes, I'm sorry. So if you're looking at the list on page 38 of our packet that says relocation station number two at $2.5 million, the purpose of the motion on the floor right now is to change that $2.5 to $4. Yes. I understand. And I appreciate the motion. Thank you. Okay, very good. To the motion, we've got Council Member Henson. Thank you, Vice Mayor. I'm not... I've got one. I had a conversation with fire. It's been several weeks ago. But all of their stations, I know that we need the new ones, particularly in the areas that are mentioned. But there are a lot of needs as far as maintenance costs at our other stations, and that's been in committee. so like can we up the amount even more and Sally was in on that meeting and she talked about pardon well Council Member Henson if your request is can we add more to the bond package that is but it's council's domain. But since I'm standing here, can I take an opportunity just to give another outlook toward that? Okay. We do have capital improvement dollars, and we have fund balance that you will have continued conversations about. and we were trying to make the total bond issue within a confined amount as much as possible. This 2.9 I consider is separate because it's such a separate deal with a very low interest rate. But we're trying to keep that government obligation bond within a reasonable limit. And if we talk about different projects that are very worthy, there's lots of them. And so I would just like for you to consider. I'll take another road with that. But I think, you know, if you're talking about building something new, we also need to take care of the old stuff we have. But thank you. Thank you, Vice Mayor. You're welcome. Council Member Clark has had his hand up for the motion discussion. If you don't mind, we'll take you next. Thank you, Vice Mayor. I have spent some time looking at the proposals for the fire station, and both the 2.5 amount and the 4. point. And the more I look at it, the more I think we would be very, it would be a mistake to build this station at 2.5. I think that four point, we get so much more for our money. And so I'm glad this came up because I think this is a really, this is a good opportunity to do this, and I think we ought to do this, and I thank you, Council Member Mazzotti, for bringing this up. I think this is the perfect time to do it, and I'm totally in support of this. Thank you. You're welcome. Council Member Akers to the motion. Okay, thank you, Vice Mayor. We still got a motion. So I'm trying to understand as well. So the 2.9 is going to be used for energy efficiency, improvements? Capital improvements? The design and the program that's been proposed for the detention center, which has a guaranteed energy savings of excess of 20%, which is the test that we're using these dollars appropriately. And will that then pay for some of the items on their list that we approved last year that have not yet been spent? I think they've taken all of that into consideration, but I would defer to James Bush to discuss about the individual items. He is not here today, but we can get back to you with that. Okay, and so then... Did you have a question about the motion on the floor? Yes, that's what I'm... Okay. So then the $2.5 million that Councilman Massadi is proposing to add to... $1.5. $1.5. Okay. Okay. There's 2.5 million currently in the bond. Okay. You add a million and a half and that equals the four. Okay. Okay. Thanks. Council Member Farmer. Thank you. So the list, which now is 26,108,100, would become 27,680,100. That's correct. That's my understanding. Well, that's key. So does that still fall into the realm and range that we wish to be at as a municipality for the amount of bonding we have? I'd prefer 25, but I would love for it to be under 30. And am I right that we kind of nudged you on this number a little bit last year, too, didn't we? Yes. So we've done it before. Okay. Deja vu. Thank you, Vice Mayor. Thank you, sir. You're welcome. Councilmember Beard, did you have a question about the fire station money? Yes, I did. As I remember, or maybe as I don't remember, the $2.5 million was really where we settled, I think. But there was part within the presentation of Chief Jackson, the opportunity to take it to $4 million. what about the equipment is there a second buggy involved is there another pump what about that piece of it and has that been worked into the no this is just a transition from the current station to so we're taking everybody that's at the current station two and moving them to the so there's no additional cost we gave you another million and a half dollars aren't we going to have another some more trucks or buggies or whatever no sir this is like i said this is just the moving of one station uh station two that's currently on new circle road and taking that all the personnel all the equipment and moving it to the new station Okay. That's it. No personnel costs. Nothing else additional because of taking it up to $4 million? No, sir. At least initially. At some point, is there not more room, though? There's more room for us to some of the stuff that we have stored on 3rd Street that's outside. We're going to move up to the station on Eastland. Okay. I just wanted to get that square in my mind. Thank you. Thank you, sir. I don't see anyone else with a question about the motion. So the motion on the floor is to add $1.5 million to the general obligation project bond to complete the $4 million fire station. So all those in favor, please say aye. Aye. Anyone opposed? That motion passes unanimously. All right. All right. Now, we still need to deal with the energy conservation bond. That's correct. And that's a separate issue, correct? It is. Separate bond. And you told us you have found the, you've got proceeds from other bonds that could pay the debt service for this. Did I understand that correctly? That's correct. Okay. So, Council Member Farmer. Thank you, Vice Mayor. So I'd like to propose the issuance of the qualified energy conservation bond as outlined on page 33 for $2.9 million as demonstrated on that page. So move. Okay. We have a motion by Councilmember Farmer, second by Councilmember Beard and others. Is there discussion of the motion? I see none. All right. All those in favor of the motion to approve this second bond issue for the $2.9 million for the energy savings, please say aye. Aye. Anyone opposed? That motion passes unanimously. All right. Are you happy? I'm ecstatic. We are too. We are too. Now, next steps. You've already gone through the bond schedule. Council Member Ellinger. Thank you, Vice Mayor. When we put in the schedule, that 2.2, is that kind of the money that we have as a surplus that we can discuss now? Or we'll discuss at some point? To council's discretion as to how they want to authorize the use of that money. Yes. We would encourage you to think about the overriding. Is it one-time or capital expenses, not for ongoing expenses like additional personnel or things that are ongoing? I know we talked about it in the spring on some items that did make the last surplus. Do we have that list that we said that we would revisit? Stacy is putting together the list of, we have first the items that we approved in concept. Next, we have items that the links recommended. We have individual items. And then from planning committee or environmental quality, excuse me, we added some issues related to the landscaping maintenance. We put them at the bottom just because we already had other things. So Stacy's working on that list to get it to all of us, and then we'll need to have a meeting to vet through that. Vice Mayor, when would that meeting be necessary? Can you remind me of the possibility? The list is ready. I was just waiting for your approval to send it out, but we looked at scheduling a special budget cow on November 13th. prior to the quarterly cow. We talked about scheduling a special budget cow on November 13th at 3 o'clock prior to the quarterly cow. Is that a Thursday? Yes. That's a Thursday. I suspect it won't need to be more than a couple hours if that, since there's $2.2 million. two hours he's talking about more money it's a little ambiguous what is the bottom line the last number that that we actually would have to allocate at this point 2.2 million 4.2. What's the 4.2? That's all that's left. So on page 22, slide 7, page 7, it's got assessments, assignments, non-recurring uses recommended, then it's got unassigned fund balance of 4.1. What I would encourage the council to consider... Page 22 at the bottom. Is the 2.2 is what would be assigned to non-recurring projects. Same process as you went through last year. The unassigned fund balance is for unknown things that are going to happen throughout the year. So I would encourage you not to dedicate any projects to come out of those dollars. And last year, how did we handle that? Well, you dedicated, you left the 4.3. Do you see the number right to the side of that? That was 4.3. That was unassigned. And you did not allocate or direct us to spend that on any given thing. it would have covered fund balance requests that come through in budget amendments throughout the year or emergencies that might occur. And so as a result, that 4.3 is rolled into the present fund balance. That's part of that 63.7 that we started with at the very top of the page. Got it. Thank you. That helps me. Thank you. Okay. Council Member Massadi. Bill, one more time for my thought process here. So we had 4.3. You're saying to keep a cushion of about 2.1 after the 2.2. So I have about a $2.1 million cushion you're saying to keep? No, ma'am. I'm saying there's 2.2 to dedicate toward projects. Correct. Which leaves 4.176646 as unassigned. Okay. And I would encourage you not to assign or to dedicate uses of that. What's our typical balance that we use? Well, last year it was 4.3. The year before that, it was 3.3. The year before that, it was 500,000. It was 2.1 in 10 and 4.4 in 9. So we can go from a half a million to 4.3, if so desired, but not upon your recommendation. Well, good sound financial approach is that unassigned has to cover the PO roles, which you've already approved, as well as the roles of grants out of last year that you've already approved, plus the budgeted fund balance. And those together are a little over $3.1 million. Okay. Very good. So that leaves you a million for unanticipated things. Right. All right. Thank you. Appreciate it. Council Member Stenet, you have the floor. Well, he finished up on what I was going to ask about. There are things out there that we haven't put on this chart, but really it's 6.3. I know you want to say it's 2.2. We don't have to allocate 2.2. We can put it all to fund balance. We don't have to go spend it. That's exactly right. So I want to make sure we all understand what we're dealing with. Right. You don't have to go out and spend $2.2 tomorrow. So you really have $6.3. If we want to save it all, we can save it all for whatever rainy day may come. But our motion already, we already did approve putting $2.2 million in non-recurring assignments. But it still doesn't mean you have to spend it. Right. I understand. Yeah. Did you understand, David? Sorry. Welcome. Okay. Okay, Councilmember Ellinger. That's kind of a segue where I was going. I know we don't have spending. We can put it all in there, but I think we had some commitments if we had some surpluses. I think the why was one of them that we had talked about, that I think this would be something that we would look at using that money towards. So I think we have the 6.4, but I think that 2.2, we do have some commitments in there that we have said that if we had that money, we would try to reach that obligation. So I want to keep that in mind. Thanks, Vice Mayor. You're welcome. Let me ask the Council, does the 13th of November at 3 p.m. work pretty much for you before the quarterly committee of the whole? And we can finish this. I think that would be lovely. Yes. Council Member Farmer? Vice Mayor, I would propose adding a special budget committee to the whole meeting for November 18th to discuss fund balance allocation. 13th, I'm sorry. I'm sorry, pardon me. At 3 p.m., to start at 3 p.m. Second. Okay, any discussion? 3 p.m. November 13th. 3 p.m. November 13th. Is there a discussion of the motion? All right. All those in favor, please say aye. Aye. Anyone opposed? All right. So, Stacey, if you will put out the list, and council members, it will be the list that we'll consider on November 13th. And now, Mr. O'Mara. Yes, ma'am. Do you have everything you need for the CAFR? Yes, ma'am. Okay, very good. then I would like to thank you so much I think this went very nicely I would like to ask Council Member Ellinger if he would go ahead and attend to item number five on the agenda which is thank you vice mayor we are running out for the the year and I before December 31st I want to see if there's any items that we can take off that can be removed so we can make sure we can get through everything before january 1st here and paul if you would go through each item in committee and see where we stand and there's anything that we can remove or by all means committee meeting by all means the first item is a solid waste cost i'm going to defer to a council member stennett who chairs this waste management task force about that issue the second issue is the activity-based costing, economic efficiency. Let's go ahead and go to the first council member's Senate. November, can we address it then, do you think? In the waste management task force in November. Okay. The second item is the activity-based costing from Council Member Lane and I'm going to defer to Council Member Lane on this issue as well. Council Member Lane? Yeah, I talked with Sally Hamilton, and she is in favor of carrying this forward because they're playing some changes in the accounting system. So she's out of the country at this time, but she wants to speak to the issue when it's convenient. Thank you. And hopefully we can maybe put that on the next. We have two committee meetings left in November and December. the next item is the uh wellness center and lease and i believe actually it's the economic development partner agency i'm sorry the economic development partner agency you the committee talked about this in september and october uh you saw the the new uh quarterly reporting system that mr atkins is using i think you've seen the first quarterly reports i believe right i think this one can be removed. Do I have a motion? Move to remove it. We have a motion and a second. Any discussion? All those in favor say aye. Aye. All those opposed, we'll remove that one. The Wellness Center in Leeson, I believe the committee expects this back in November, I think. And I think the administration's ready to present in November. All right, we'll put that in the November meeting. The AOC and reimbursement policy, you folks talked about this several months ago. I believe it was going to come back after the administration has had conversations with the state over their reimbursement policy. I don't know that that will be before December. I don't think they are here. I don't know that they'll be ready for November or December. Will November or December we be able to bring something to us? Thank you. The next two items are also for the commissioner as well. Facilities and fleet professional services increase and the Lyric and Charles Young maintenance budgets, and I believe the administration is going to be ready to talk about those as early as November if you like. Thank you. That's all, Vice Mayor. Thank you very much. Are there any other issues? If not, do I hear a motion to adjourn? Second. All those in favor say aye. Aye. Anybody opposed? Thank you for your work. We are adjourned. We'll be right back. I don't want no damage How am I gonna manage you? You want a percentage And I'm a fool Paying the dues I'm just around the corner If you've got a minute to spare I'll be waiting for you If you ever wanna be there Hold me Hold me Hold me All of me guitar solo me oh Thank you. Look around you Look up here Take time to make time Make time to be there Look around Be a part Feel for the winter But don't have a cold heart And I love you best You're not like the rest You're there when I need you You're there when I need I'm gonna need you A long time ago I had a lady to love She made me think of things I never thought of Now she's gone and I'm on my own A love song has come into my mind A love song that was there all the time So lady, let me take a look at you now You're there on the dance floor Making me want you somehow Oh, lady, I think it's only fair I should say to you Don't be thinking that I don't want you, cause maybe I do guitar solo Come to me I have no answers But know where I want to be I look around Lay apart I was born in the winter Cold by a warm heart And I love you best You're not like the rest You're there when I need you You're there when I need I'm gonna need you So lady Let me take a look at you now You're there on the dance floor Making me want you somehow Oh, lady, I think it's only fair I should say to you Don't be thinking that I don't want you, cause maybe I do Don't be thinking that I don't want you, lady, I do guitar solo Hey, pretty baby, are you headed for me? Yeah, it's good rockin' daddy down from Tennessee I'm just out off from Bavisantone With a radio blastin' in the bird dog on When selecting a financial institution to serve you, bigger is not always better. Metro Employees Credit Union is owned by our members. Your interest or our interest. We've served Lexington Fayette Urban County Government employees, partner agencies, and their families since 1940. MECU offers a full variety of products and services, including first and second mortgages, car loans, as well as other free or low-cost benefits. Discover the MECU difference. Visit us online at MetroEmployeeCU.org to see if you are eligible to join our growing family. Hey, pretty baby, don't you know it ain't my fault? Love to hear the steel bells humming on the asphalt. Wake up in the middle of the night in a truck style, stumble in a restaurant, wonder why I don't stop. Well, I gotta keep rocking while I still can. Got a two-pack heaven and a motel tan. When my boots hit the boards, I'm a brand new man. With my back to the rise And make my stand Hey, pretty baby, won't you hold me tight I'm loading up and rolling out of here tonight One of these days I'm gonna settle down And take you back with me to the guitar band I'm sorry. Fly me to the moon Let me play up there with those stars Let me see what spring is like On Jupiter and Mars In other words Hold my hand In other words Baby kiss me Fill my heart with song And let me sing forevermore You are all I long for All I worship and adore In other words In other words Please be true In other words I'm in love with you In other words, hold my hand In other words, baby kiss me Fill my heart with song Let me sing forevermore You are all I long for All I worship and adore In other words Please be true In other words In other words In other words In other words I I I love I love I love you We're back up in the country Back in the hills Down in the hollers Where the folks are real Living with the crazies And the old wildcats Sawed off shotguns groomskin calves that's where i'm from and i'm proud to say i'm from the country and i like it that way everybody knows everybody everybody calls you free you don't need an invitation kick off your shoes come on in yeah we know how to work and we know how to play We're from the country and we like it that way. All day long we work in the future. Bring it on home to a home-to-beam. We love you like Sunday, treat you like Saturday night. And when the beds get full, we can sleep in the hay. Hey, we're from the country and we like it that way. Everybody knows everybody. Everybody calls you three. You don't need an invitation. Get your own issues, come on in Yeah, we know how to work and we know how to play We're from the country and we like it that way Everybody knows everybody Everybody calls you free You don't need an invitation Kick off your shoes, come on in Yeah, we know how to work and we know how to play We're from the country We're from the country We're from the country And we like it that way I'm sorry. You can be here by 4.30, cause I've made your reservation. Don't be slow. Oh, no, no, no. Oh, no, no, no. Cause I'm leaving in the morning, and I must see you again. We'll have one more night together, till the morning rings my train and I must go. Oh, no, no, no. Oh, no, no, no. Oh, no, no. And I don't know if I'm ever coming home Take the last train of Fox, girl I'll be waiting at the station We'll outtrip the coffee, flated kisses And a bit of conversation Oh, no, no, no Oh, no, no, no Take the last train to Corksville Now I must hang up the phone I can't hear you in this noisy railroad station All along I feel alone Oh no no no Oh no no no And I don't know if I'm ever coming home Oh Oh Take the last train to Clarksville And I'll meet you at the station You can be here by 4.30 Cause I've made your reservations only slow Oh, no, no, no Oh, no, no, no And I don't know if I'm ever coming home Take the last 10 o'clock, Phil Take the last 10 o'clock, Phil Take the last 20 o'clock now Take the last 20 o'clock now Take the last 20 o'clock now Okay, Tokyo Australia Germany Africa Calling out around the world Are you ready for a brand new beat? The sun is here and the time is right We're dancing in the street, dancing in Chicago. Down in New Orleans, in New York City. All we need is music, sweet music. There's music everywhere. There's a swing and swing and the boys play and dancing in the street. It doesn't matter what you wear Just as long as you are there So come on, every guy Grab a girl Everywhere around the world Now we're dancing Dancing in the street Dancing in the street It's an invitation Across the nation A chance for folks to meet We'll be right back. We'll be right back. We'll be right back. Dancing in the cinema stream I just died in your arms tonight Must have been something you said I just died in your arms tonight I can't look at something I can't get Open hearts lie all around me And I don't see an easy way to get out of this Cause Dari sits by the bedside table The curtains are closed, the cats in a cradle Who would have thought that a boy like me can't do this? Oh, I'm just dying of your arms tonight Must have felt something you said I'm just dying of your arms tonight Oh, I'm just dying of your arms tonight Must have felt some kind of kiss I should have walked away I should have walked away Is there any just cause of a feeling like this On the surface I'm an evil list I try to be the same The day flowed again I've lost and found It's my final mistake She's loved by proxy No give and all take Cause I've been thrilled to fantasy One too many times Oh, what? Why? I'm dying in your arms tonight It must have been something to say I just died in your arms tonight I just died in your arms tonight You must have been so kind of cute I should have walked away I should have walked away It was a long, hot night She made me feel right But now it's over, the moment's gone I follow my hands, kiss my head I know I'm wrong Oh, I just died in your arms tonight It must have been something you said I just died in your arms tonight I had to die on your arms tonight I must have put some kind of kiss I should have walked away I should have walked away I'm out. Well, it was nearly a summer We sat on your roof Yeah, we smoked cigarettes And we stared at the moon And I showed you stars You never could see Baby, it couldn't be that easy So forgive me Thank you. Get lucky sometimes Even the losers Keep them in the place They get lucky sometimes I'm out. Maybe even the losers Get lucky sometimes Even the losers Keep a little bit of fun They get lucky sometimes Maybe even the losers Get lucky sometimes Even the losers Keep them a little bit apart Yeah, they get lucky sometimes Baby, even the losers Get lucky sometimes Even the losers Get lucky sometimes I'm out. All the leaves are brown And the sky is gray I've been for a while On a winter's day I'd be safe and poor If I was in L.A. California dreaming On such a winter's day Stuck into a church I passed a long way Well, I got down on my knees I pretend to pray Creature like the cold He knows I'm gonna stay The California dream And I'm such a winter's day All the leaves are brown And the sky is gray I've been for a while On a winter's day If I didn't tell her, I could leave today. California dreaming on such a winter's day. Whether I'm right or whether I'm wrong Whether I find a place in this world or never belong I gotta be me, I gotta be me What else can I be but what I am I want to live, not merely survive And I won't give up this dream of life that keeps me alive I gotta be me, I gotta be me The dream that I see makes me one I am that far away prize A world of success is waiting for me if I need the call. Thank you. Thank you. ¶¶ ¶¶ Thank you. Thank you. Thank you.