# Urban County Council - 2nd Reading of the FY23 Budget - June 14, 2022 > Auto-transcribed civic record · June 14, 2022 - **Permalink**: https://meetings.lexingtonky.news/meeting/5591 - **Source video**: https://lfucg.granicus.com/player/clip/5591?view_id=14&redirect=true - **Date**: 2022-06-14 - **Last revised**: June 14, 2022 - **Length**: 3,932 words > ⚠️ **Auto-generated content.** Audio from the official Granicus video was auto-transcribed with OpenAI's open-source Whisper large-v3-turbo model, run locally by The Lexington Times. Structured facts were extracted with GPT-4o; the narrative summary was written by Anthropic Claude. Verbatim wording may contain errors. See [methodology](https://meetings.lexingtonky.news/about/methodology) or [report a correction](mailto:editor@lexingtonky.news). --- ## Meeting Overview The Urban County Council convened on June 14, 2022, at 3:00 PM in the Council Chambers in Lexington, Kentucky, with Vice-Mayor Kay presiding over the session. The meeting focused primarily on budget-related matters for the Lexington-Fayette Urban County Government, with council members considering two ordinances related to municipal finances. The council successfully approved both agenda items, including an ordinance amending the budgets of the Lexington-Fayette Urban County Government and an ordinance appropriating revenues and expenditures for various funds. During the session, the council conducted 2 votes and heard 1 public comment from a community member. ## Attendance The following members were present at the June 14, 2022 meeting: • Vice-Mayor Kay • McCurn • Moloney • Plomin • Reynolds • Worley • Baxter • Bledsoe • F. Brown • J. Brown • Ellinger • Kloiber • Lamb • LeGris **Absent:** • Sheehan **Late Arrival:** • LeGris Note: LeGris is listed as both present and late, indicating they arrived after the meeting began but participated in the proceedings. ## Votes and Decisions The council conducted two roll call votes on budget-related ordinances during the meeting. **Ordinance 0579-22** - An Ordinance amending certain of the Budgets of the Lexington-Fayette Urban County Government to pre-fund various components of the Fiscal Year 2023 Budget was brought forward by Ellinger and seconded by Plomin. The ordinance **passed** with 12 ayes and 2 nays. Council members voting in favor: LeGris, McCurn, Plomin, Reynolds, Worley, Baxter, Bledsoe, F. Brown, J. Brown, Ellinger, Kay, and Lamb. Council members voting against: Moloney and Kloiber. **Ordinance 0595-22** - An Ordinance appropriating the revenues, expenditures/expenses and interfund transfers for various funds for the fiscal year ending June 30, 2023 was also motioned by Ellinger and seconded by Plomin. This ordinance **passed** with an identical vote count of 12 ayes and 2 nays. The voting pattern remained the same, with LeGris, McCurn, Plomin, Reynolds, Worley, Baxter, Bledsoe, F. Brown, J. Brown, Ellinger, Kay, and Lamb voting in favor, while Moloney and Kloiber voted against the measure. Both ordinances related to the Fiscal Year 2023 budget passed with strong majority support from the council, with only two members consistently opposing both measures. ## Public Comment During the public comment period, one community member addressed the meeting to share concerns about the municipal budget. Jack Kennedy Hodgkin spoke regarding budget concerns, specifically focusing on police funding issues. Hodgkin referenced a statement made by Tom Dupuis characterizing the current budget situation as "the worst in 40 years." His comments highlighted community concerns about the adequacy of funding for law enforcement services within the broader context of municipal fiscal challenges. *Note: Specific transcript timestamps were not available for this public comment period.* ## Contested Items The primary contested item during the June 14, 2022 meeting was the FY23 Budget Approval, which generated significant debate among council members before ultimately passing with a split vote. **FY23 Budget Approval** The proposed fiscal year 2023 budget faced opposition from some council members who raised concerns about both the overall size of the budget and its potential economic impacts on the community. The debate centered on whether the proposed spending levels were appropriate given current economic conditions and taxpayer burden considerations. Despite the concerns raised during discussion, the budget approval motion ultimately passed with a vote of 12 ayes and 2 nays, indicating that while there was some opposition, a strong majority of the council supported moving forward with the proposed budget as presented. The split vote reflects the challenging balance local governments face when setting budgets - weighing community needs and service levels against fiscal responsibility and economic impact on residents and businesses. The two dissenting votes suggest that some council members felt the budget either exceeded appropriate spending levels or could create undue economic strain. ## Ordinance amending the budgets of the Lexington-Fayette Urban County Government The council considered an ordinance to amend certain budgets to pre-fund components of the Fiscal Year 2023 Budget as outlined in the Mayor's Proposed Budget document. Key speakers during the discussion included Ellinger and Plomin, who addressed various aspects of the budget amendments. The ordinance was designed to allow for advance funding of specific budget components before the full FY 2023 budget implementation. The measure was approved by the council, enabling the pre-funding of designated budget items as proposed by the Mayor's office. This procedural step allows the Lexington-Fayette Urban County Government to begin implementing certain budgetary provisions ahead of the full fiscal year budget adoption. *Note: Specific transcript timestamps are not available for this agenda item.* ## Ordinance appropriating revenues and expenditures for various funds The council considered an ordinance appropriating revenues, expenditures, and interfund transfers for various funds for the fiscal year ending June 30, 2023. Key speakers during the discussion included Ellinger and Plomin, who presented details about the budget appropriations and addressed questions from council members. The ordinance was approved by the council. *Note: Specific transcript timestamps are not available for this agenda item, limiting the detail of discussion points and debate that may have occurred during consideration of this budget ordinance.* --- ## Decisions - **0579-22** — passed (12-2): An Ordinance amending certain of the Budgets of the Lexington-Fayette Urban County Government to pre-fund various components of the Fiscal Year 2023 Budget. - **0595-22** — passed (12-2): An Ordinance appropriating the revenues, expenditures/expenses and interfund transfers for various funds for the fiscal year ending June 30, 2023. --- ## Full transcript Music Thank you. Meeting of the Urban County Council Tuesday, June 14th, 2022. With one item on the agenda, which is the second reading of the fiscal year 23 budget. And we'll start by asking the clerk please call the roll. Ms. LeGree? Mr. McCurn? Yes, ma'am. Mr. Maloney? Yes, ma'am. Ms. Plowman? Here. Ms. Reynolds? Here. Ms. Sheehan? Mr. Worley? Yes, ma'am. Ms. Baxter? Yes. Ms. Bledsoe? Yes, ma'am. Mr. Fred Brown? Here. Mr. James Brown? Here. Mr. Ellinger? Yes, ma'am. Vice Mayor Kay? Here. Mr. Kloiber? Yes, ma'am. And Ms. Lamb? Here. Thank you. And then the first order of business is the second reading of ordinances. Madam Clerk, when you're ready, please. Number one, an ordinance amending certain of the budgets of the Lexington Fair Urban County Government to pre-fund various components of the fiscal year 2023 budget as outlined in the fiscal year 2023 mayor's proposed budget document and approved at work session May 31st, 2022, and appropriating and reappropriating funds, Schedule number 39. And number two, an ordinance amending appropriating revenues, expenditures, expenses, and interfund transfers for the general service district fund, the tenant relocation fund, the full urban service district fund, the police confiscated federal fund, the police confiscated state fund, the public safety fund, the industrial revenue bond fund, the municipal aid program fund, the county road aid program fund, the mineral severance fund, the coal severance fund, the miscellaneous special revenue fund, the police confiscated treasury fund, the affordable housing and homelessness fund, the infrastructure investment fund, the Lexington neighborhood investment fund, The Fiscal Year 2023 Bond Projects Fund. The United States Department of Treasury Fund, American Rescue Plan Act. The Sanitary Sewer Revenue and Operating Fund. The Sanitary Sewer Construction Fund. The Lexington Fair Urban County Government Public Facilities Corporation General Fund. Lexington Fair Urban County Government Public Facilities Corporation Parks Project Fund. The Water Quality Management Fund. The Water Quality Management Construction Fund. The Landfill Fund. The Right of Way Program Fund. The Extended School Fund. The Enhanced 911 Fund. The Central Kentucky 911 Fund. the Lexington Fair Urban County Government Public Library Corporation Fund, the State Employees Pension Fund, the Police and Fire Retirement Fund of the Lexington Fair Urban County Government, the Medical Insurance Fund, the Property and Casualty Claims Fund, and any other fund as provided in Exhibit A on a divisional level by four control levels for the fiscal year ending June 30th, 2023 for the Lexington Fair Urban County Government and its agencies and instrumentalities. Approving and adopting the Capital Improvement Program for fiscal years 2023 through fiscal year 2028 as a portion of the fiscal year 2023 annual capital Approvements Budget approving the funding for the Lexington Fay Urban County Government Tours and Convention Commission from the transient room tax. Said funding to equal 99.5% of the revenue from the tax and suspending in full or in part the application and operation of certain ordinances related to the funding for fiscal year 2023. Thank you. Second. I have a motion by Council Member Ellinger, a second by Council Member Plowman. Is there a discussion on the motion? Council Member Fred Brown. Thank you Vice Mayor. My comments are addressed to the general fund only, all the other funds. I really have no question or any comments on, and I support those in the budget. I'm not excited about this budget because 460 million plus is the largest ever, and it contains bonding debt of 42 million plus, which will affect future budgets, becomes a recurring expenditure. I attempted to reduce the bonding amount, but was unsuccessful in our committee meetings. However, I will vote for passage of the general fund and the other funds because it has many worthwhile projects and provides more money for public safety and our employees. Also, capital projects have been held up for two years or more, and the projects are a one-time funding, which are not reoccurring expenses that will affect future year budgets. Thank you. Thank you. Council Member Bledsoe. Thank you, Vice Mayor. As Chair of the Budget Committee, I just want to take a few minutes and comment and give my gratitude to some of the staff who've worked really hard on this year's budget. The administration's team, including CEO Sally Hamilton, Jen Warnemuth, Glenn Brown, Hillary Angelucci, not to mention Commissioner Hensley, Melissa Luker, Elizabeth McGee-Lewis, Lindsay Curd, Mitchell Jones, Rachel Berry, Ashley Simpson, Wesley Holbrook were exceptionally helpful and I think really strategic in being sharing information very well with our own team, which allowed Stacey Maynard and Sean Denning to do their job, which is to provide to council really good information, accurate information, so that we can then deliberate and move forward with the budget, which we're discussing and voting on today. speaking of such you know we have two constitutional or mandates as council members one is to pass policy and the second is to pass a budget we often take votes at different times in that process be the links process be it in this meeting be it in previous meetings side conversations are actually at the horseshoe and there's things that I wish were more in this budget there are things that I wish were less but at the end of the day enough people more than eight supported all the line items in this budget. I view the budget as a roadmap, meaning we have different ways of getting there but it's a roadmap to how with the city invest our resources to invest in our community. As such sometimes there are bumps along the way. I use Waze and Google Maps and sometimes on my path accidents happen, pandemics happen, things outside of our control happen and we have to pivot. If anything the last two years has shown us that that's something we have to do on a regular basis. When we passed the budget several years ago we didn't envision twenty twenty and what that might be in for employees are for our city budget i say that to say that's why we have a budget committee that reviews on a monthly bates basis where revenue is where expenses are how we're doing are we meeting the goals objectives of our road plan or do we have to pivot moreover every quarter we sit in this room and do a deeper dive and make sure that the quarterly marker we are meeting our road plan done it before we've frozen positions we've pulled back expenses we've reallocated resources because there's things in our community that matter more at the time or have more urgent needs and that's the purpose of reviewing the budget on a quarterly basis so i look at this road map as a plan a plan that we supported but something that we may at any time between now and every meeting revisit to make sure that we're meeting the needs of our community as we should just a few things on that motion we've also invested quite a bit of resources there's no time for this have you noticed you got the timer on my little talk here which I've noticed so I'm just gonna keep going but you may want to just keep that in mind someone waves the flag speaking of personnel we've invested quite a bit in personnel and I know it doesn't feel that way when CPI is 8.6 and gas is twice as much of the pump and groceries cost more but we have tried to invest in our in our community and into the people that work and serve our community so if you're a city personnel please know that we appreciate you and your service to our community value it moreover we've done quite a bit of work towards public safety and I've had some questions in the last couple of days wondering if we've done an adequate job so I just want to share a few things about this budget in particular last year we spent 9.7 million on public safety capital this year we're investing 23.5 million this year we're also seeing a corrections increase of about six million dollars for for personnel two for operating we've also spent quite a bit of money on rethinking how we appropriate funds for instance this year we funded out of our arpa resources quite a bit of our fleet so that number line to line looks a little different from last year's budget moreover we've moved some of our fuel and maintenance out of one item and into fuel and maintenance items where it probably belongs but line on line it looks like we've reduced some of our public safety money by that three million dollars we've simply reallocated it to where it most appropriately lands which is in fuel and maintenance some of those things are rather complicated in this year's budget simply because we've had a rather complicated budget we've never had this money one-time dollars invested into our system this many different pockets of resources and we fought really hard to ensure we keep our double-a rating all of which has caused us to really think differently about it and work really hard to put it together in a puzzle that I've often described the city budget as being really more challenging than it ever has been and I really applaud all of us not to mention our employees who have tried to do a really good job putting the puzzle back together and really making sure we meet the needs of our community and I think this budget does that that being said this budget is based on revenue numbers that were given to us and worked with that are real they're accurate and dr. Clark has done a pretty good job with us trying to make sure that we're being mindful of the city's budget but I think we'll also continue to look at it and make sure that we're being mindful of that that That being said, I will support the budget and if you have questions or concerns about specific line items of mine, I think the budget office would be happy to meet with you about those if you do. Thank you. Thank you. Councilmember Maloney. Thank you Vice Mayor. I'm going to kind of not repeat what I've repeated Thursday, but I learned a lot over the weekend. And I ran some numbers and I'll thank some of my folks that helped me with this. The budget we put together was that we have a million dollars going into next year into the budget so we can have some money to help it through next year. The problem was we left out the fuel costs. We raised it, but we didn't raise it what it is now, and I think the numbers are going to be higher. And by calculating those numbers that we did, we found out we're going to be two million dollars over budget on our fuel costs. And that's going to be the beginning of a lot of things. So that million dollars that we set aside is going to be a million dollars in a hole in the largest budget we've ever pushed for. The other thing that over the weekend I learned from economists and all that in other cities, that the interest rate is going to go up Thursday. And what they're basically saying is a lot of cash hanging around because people are really scared about the storm that everybody predicted. The storm is here, guys. It may be here for a long time. We are getting hit by this storm, as you can see from the inflation and also the gas fuel. The problem is the cash. And a lot of these cities that I brought up the other day are taking that cash money, the one-time money, and trying to survive the next two to three years. And they all put money to use some of these tools, which I'm fine with. But when you have that budget stabilization, you don't have to have a time to spend that money. And to me, they're all great projects, folks. But my number one fear is public safety. And as I go through this city, crime is the biggest conversation that we have. And without this money, the budget stabilization, or any money to, well, we don't have the money to pay our fuel. And the one thing I do, being a former CAO and being in budget all my life, we can always move money around. When you move money around, there's a reason why this building's in bad shape. It's because we had to pay debt off and we had to pay employees and we would shortfall. That's the reason why these buildings are in bad shape and we're going to have a lot of problems with this budget in the next two years. And they're going to say, well, we'll move money around. Well, I'm worried about abstaining these buildings here. But I don't like fuzzy math and I'm being realistic. I'm looking at what other cities are doing, what the economists are saying. And it really terrifies me that we left out the cost of our fuel costs. And if we're sending that example, what else is going to come? Because everything else is going to go way up. Because anything that fuel has to bring into this building or the citizens of Fayette County, their costs are going to double. Food is going to double. Everything is going to double in the next few years. And we are in this storm, but we have yet to see the eye of this storm. And when this eye hits, those cities like Louisville and places that set their money aside are going to survive. We're on a track that we're going to have to raise taxes. And one thing that I want to say, if you raise these taxes, which we will, do not blame the police department for raising this tax. Because that's what's going to be the excuse that we've used before that our public safety is the bulk of the budget. Right now, we have money to survive for the next three years and get the economy back on track. But if I hear one of us or anybody, or I may not be here, say the reason we're raising taxes is because of the payroll, because of public safety. That's the biggest mistake that we're going to be making. The reason we're raising taxes is because we voted for this budget. And I'm telling you, and I've been, you all may say I'm going to get a little frustrated, but this is passion of mine. I had to lay people off when I worked here at CAO. Now, if we don't fix this problem, we're going to have to lay off a lot of employees. And it's going to be a lot more than what we laid off because this economy is the worst I have ever seen in a storm coming and we have yet to see the eye. So I ask my colleagues to think about that we're already a million dollars in the hole. As of today, after you vote on this budget, because we left out the fuel cost. And this fuel's not going to go down. I don't care, it's going higher and higher and higher. So I can't support the budget and I appreciate y'all let me have to say what I have to say. Thank you. Thank you, Council Member Kloiber. Thank you, Vice Mayor. First, I just want to start by thanking all of the council and all of the staff who worked really hard to try and make this budget what it is. It's been a long and grueling process and sometimes it seems like we've been in budget season for the last year or so continuously so thank everybody for that hard work as councilmember Bledsoe said the budget is a roadmap and this particular roadmap doesn't appear to have a very clear path to the future I'm heartened by the idea that we will continue to adjust and continue to see where it's at every quarter I know that's that's part of it that's what we're doing here that's what we are called to do and it's going to be very very important in this budget we're spending every available dollar that we have from multiple one-time sources for projects and personnel that will require ongoing expenses that's just a fact we've we've increased these expenses going forward and revenue may be up this year but we can't expect to have the same kind of historic revenues every single year going forward it just will not be that optimistic once we set a budget that's the threshold that's where where our expenses are going to go to and we have to be mindful of that moving forward this is the largest budget we've ever had I am very concerned that we are setting a precedent we will not be able to live up to as councilmember Maloney said I believe that this will lead to inevitable furloughs layoffs and possible tax increases today I will be voting against the budget but I wanted to acknowledge and let everybody understand the process we've gone through to get here is we've made it as as good as we can in the time that we've had I feel the framework we were given to begin with was not optimal in planning for the future thank you thank you does anybody else wish to speak to the motion if not Councilman Maloney would you mind taking the chair I'd like to comment Go ahead, Vice Mayor. Thank you. So I think every, excuse me sir, excuse me sir, it's not appropriate. Vice Mayor speaking. Vice Mayor speaking. Well, I'm asking when I can speak. That's why I'm asking. I don't know what you're talking about. You will be able to speak probably after we do our council report to sign up. Yeah, right now, I'm sorry, I'm recognized. We'll answer your question. Right now, I've been recognized to speak on the motion that's on the floor, and I'd like to do that. And then I'll take the chair back and address your question. So putting together a budget as Councilmember Bledsoe has said, is one of the two basically constitutional requirements for this body. We're required to deliberate about the budget in all of its aspects. We're required to deliberate about all aspects of this budget. We try to do it in a way that represents the full interest of the community. In the entire process, although some people believe that the budget is excessive in one point or another, with minor exception, council members have not offered cuts to the mayor's budget. We have the opportunity, again, as Council Member Bledsoe said, as we go forward to modify this budget as needed. But part of what it does, because we had one time money, and We were advised by our financial officers that keeping a fund balance at this point was not acceptable practice. We've used that one time money to do a lot of catch up. Repairs and maintenance on this and other buildings, catching up on the requirement that we have to maintain our fleet, both in public safety and otherwise. And on balance, it represents the views of this body. I will vote in favor of the budget, not because I believe that every single piece of it is exactly what I would like it to be, and not because I don't think we have problems facing us economically, but because I believe that this body has done its best to serve this community in fashioning this budget. It's done it with a good will. It's done it in good faith. It has listened to the community. It reflects what this community wants in terms of the kind of community we live in. And I hope that people understand that there are always compromises and trade-offs and that the future is a little bit uncertain, but it's not as disastrous as some people would have us believe. So thank you. Thank you. I'll take the chair back now. Okay. Is there anybody else who wishes to speak to the budget? If not, unless there's objection, there's been a request for public comment, and I would. Motion on the floor. That's correct. We'll have to dispose of that motion before we entertain any motions about public comment. Seeing no further request for comments from the council, I would ask the council clerk to please call the roll. Council member Legree? Yes. Mr. McCurran? Yes, ma'am. Mr. Maloney? No. Ms. Plumman? Yes. Mr. Worley? Yes, ma'am. Ms. Baxter? Yes, ma'am. Ms. Bledsoe? Yes, ma'am. Mr. Fred Brown? Yes. Mr. James Brown? Yes. Mr. Ellinger? Yes, ma'am. Vice Mayor Kay? Yes. Mr. Kloiber? No, ma'am. Ms. Lamb? Yes, ma'am. And Ms. Reynolds? Yes. Thank you. That vote reflects passage of the motion. And now, unless there's objection on behalf of council, I would entertain public comment. Is there anybody in the audience who wishes to make public comment at this time? Sir, please come to the podium. You'll have three minutes. If you would please give us your name and your council district, and you'll have three minutes. Okay, my name is Jack Kennedy Hodgkin, and I'm a resident, native of Winchester, Kentucky. We've been on councils and everything. 86 years old, I'm very experienced. I want to get your reaction. I'm not familiar with your general fund that you're voting on. I want to know more about it. But what concerns me is the police. A friend of mine, Tom Dupree, who I've known for years, and I respect him for having some common sense and financial sense, he's made a statement on the radio this weekend and made a number of them that for 40 years that he's been familiar with this general fund and votes and everything, the way this city of Lexington, Fayette, has been run. He said this is the worst that he's seen in 40 years, and he's more concerned with the police, and that's, of course, what concerned me. I thank a lot of this police department, and I see just so many things that displease me about the way things are being run and letting vagrants out on the street and cushing and trying to get money off older people like me. Just a lot of things that I didn't grow up with. I've known this town since I was a child, brought over here on the George Washington train with my grandmother. So what is your comment on how bad this is? They said it's just 40% of what the police say they need. That troubles me. What comments do you all have? Tell me. Sir, this is a time for you to speak and not for council to respond. Okay. I've said all I need to. Thank you. Is there anybody else who wishes to make public comment at this point? Seeing none, I'll entertain a motion to adjourn. So moved. Second. I have motion and a second. Without objection, we stand adjourned and we'll reconvene as soon as the clerk is ready for work session. Thank you all. Thank you for coming.