Budget COW- Links Report Out and Discussion

Summary

Meeting Overview

The Committee of the Whole for Budget met on May 26, 2011, at 3:00 p.m. at Fifth Floor, City Hall, with the Vice Mayor presiding. The committee considered 21 agenda items focused on departmental and organizational budgets. One motion was voted on during the meeting, and eight members of the public provided comments. Of the 21 items on the agenda, 20 were approved, including budgets for the Chief Administrative Officer, Community Development, Human Resources, Planning, Risk Management, Enterprise Solutions, Computer Services, Government Communications, Commerce Lexington, Downtown Lexington Corporation, Downtown Development Authority, the Lyric Theater, the Office of Internal Audit, the Department of Law, the Property Evaluation Administrator, the Commonwealth's Attorney, the Chief Information Officer, the Council Office, and the Citizen's Advocate. Additionally, the committee approved the Purchase of Development Rights. One item—Downtown Arts Center Management—was deferred.

Attendance

The following individuals were present at the meeting on May 26, 2011:

Council Members: - Council Member Lane - Council Member Stinnett - Council Member Martin - Council Member Kay - Council Member Farmer - Council Member Hanson - Council Member Lawless - Council Member McCord - Council Member Ford - Council Member Myers - Council Member Henson - Council Member Sullivan

Staff and Other Attendees: - CAO Maloney - David O'Neill - Sheila Hupp - Jeanette Williams - Johnny Martinez

No council members or attendees were recorded as absent or late.

Votes and Decisions

Motion to Adjourn

A motion to adjourn the meeting was made by a Council Member. The motion passed by voice vote at 1:26:21.

All twelve council members voted in favor of adjournment: - Council Member Lane - Council Member Stinnett - Council Member Martin - Council Member Kay - Council Member Farmer - Council Member Hanson - Council Member Lawless - Council Member McCord - Council Member Ford - Council Member Myers - Council Member Henson - Council Member Sullivan

No council members voted against the motion, and there were no abstentions.

Budget and Financial Actions

The meeting addressed multiple budget amendments and appropriations across several departments:

Appropriations

• $35,000 for additional expenditure for professional services in the Division of Enterprise Solutions through an outside services provider
• $40,000 added to a professional service account for outside services provided by various consultants

Amendments to Existing Budgets

• $182,547 for reinstatement of positions in Government Communications, including a producer, audiovisual specialist, and graphic designer
• $4,700 additional funding for LexiCol overtime for emergency situations
• $3,600 annually requested for an employee hotline in Internal Audit
• $150,000 requested for an IT audit to be conducted by an external CPA firm
• $26,000 added to civil service salaries line item for a part-time Citizen's Advocate position

Budget Reductions

• $442,424 elimination of unallocated funds from the Chief Information Officer budget
• $76,042 savings from elimination of the budget analyst position in the Council Office
• $5,000 savings from elimination of the caucus room copier in the Council Office
• $20,000 reduction in community development grant match funding from the Community Development department

The financial actions reflected a mix of service enhancements, staffing adjustments, and cost-saving measures across multiple divisions and departments.

Public Comment

Several council members and city employees provided testimony regarding proposed budget cuts and staffing decisions.

Council Member Henson 10:51 questioned the status of the vacant graphic designer position and stressed the importance of having official documentation before making public statements about employee departures.

Council Member Stinnett 19:32 emphasized that the supplemental pay issue should remain open for discussion and reiterated support for reinstating the strategic planner position, suggesting it be elevated to a commissioner level to better align with long-term planning goals.

Council Member Martin 25:31 expressed concern about cutting supplemental pay for computer services, warning that losing institutional knowledge could lead to higher long-term costs, and supported the strategic planner role as vital for visionary urban development.

Council Member Farmer 30:00 agreed that the supplemental pay issue requires further discussion, noting that losing technical expertise could cost more than the savings, and emphasized the need to preserve institutional knowledge.

Johnny Martinez, a Government Communications employee 1:02:17, testified that the remaining staff cannot sustain the current workload alone and warned that cutting the graphic designer position would degrade the city's public image and increase outsourcing costs.

David O'Neill, Property Valuation Administrator 1:15:09, argued that a 10% cut to the PVA budget would force layoffs despite most funds being fixed costs, and emphasized the office's role in increasing city revenue without raising tax rates.

Council Member McCord 1:18:25 expressed concern that the committee was not receiving accurate or complete information, particularly regarding staffing and programming comparisons with Louisville, and warned that misinformation undermines the council's budgetary responsibility.

Council Member Sullivan 1:24:00 presented data showing that Lexington produces significantly more programming than Louisville, including live coverage of city meetings, and argued that the city's higher staffing levels are justified by the breadth and depth of services provided.

Contested Items

The May 26, 2011 meeting featured three significant areas of disagreement among council members, employees, and administration.

Graphic Designer Position and Staffing Cuts

A heated discussion centered on the proposed elimination of the graphic designer position. Employees and council members argued against the cut, contending that remaining staff could not sustain the workload if the position was removed. They expressed concern that eliminating this role would degrade the organization's public image and increase outsourcing costs, offsetting any budget savings from the elimination.

PVA Budget Reduction

A procedural dispute arose over a proposed 10% cut to the PVA budget. The PVA director raised significant concerns about the impact on operations, arguing that the majority of the office's funds were fixed costs. The director contended that the 10% reduction would force layoffs despite the office's demonstrated track record of generating revenue, questioning the logic of cutting a productive department.

Comparison with Louisville

Council members were divided on whether Lexington's government communications output was comparable to Louisville's. The disagreement involved conflicting data regarding programming hours, staffing levels, and service scope. This comparison became contentious because council members expressed skepticism about the accuracy of administrative claims being used to justify the proposed cuts, with the conflicting information preventing consensus on whether Lexington's operations were truly comparable to or different from Louisville's.

Chief Administrative Officer Budget Recommendation

The committee reviewed and accepted the mayor's proposed budget for the Chief Administrative Officer 8:03. Council Member Lane participated in the discussion of this agenda item.

The committee approved the Chief Administrative Officer budget recommendation without requesting any modifications to the proposal. The budget was acknowledged as being aligned with the overall fiscal strategy, indicating that the committee found the proposed allocation appropriate and consistent with broader budgetary priorities.

The outcome of this agenda item was approval.

Division of Community Development Budget

The committee considered the mayor's proposed budget for the Division of Community Development 8:03. Council Member Lane participated in the discussion of this agenda item.

The committee accepted the proposed budget without amendments. This approval affirmed the department's funding priorities for the fiscal year, indicating that the committee found the budget allocation appropriate and aligned with community development goals.

The budget was approved as presented.

Division of Human Resources Budget

The committee reviewed the Division of Human Resources Budget as presented by the mayor 9:42. Council Member Lane participated in the discussion of this agenda item.

The committee accepted the mayor's proposed budget with one amendment. The modification eliminated the senior manager for total compensation position, as this role was determined to be no longer required.

The budget was approved with this amendment in place.

Division of Planning Budget

The committee reviewed the Division of Planning budget as part of the mayor's proposed budget allocation. 10:17

Council Member Lane participated in the discussion of this agenda item.

Budget Action

The committee accepted the mayor's proposed budget for the Division of Planning. However, the committee eliminated a $105,284 line item designated for a planning manager position focused on strategic planning.

Rationale for Elimination

The decision to remove this funding was based on two primary concerns:

• Lack of a clear operational plan for the position
• The position had remained unfilled for several years

Outcome

The Division of Planning budget was approved with the $105,284 line item removed.

Purchase of Development Rights

The committee addressed the mayor's proposed budget for the purchase of development rights during this agenda item 10:53.

Outcome

The committee approved the proposed budget for the purchase of development rights program.

Key Points

Council Member Lane participated in the discussion of this agenda item. The committee recognized the program's important role in preserving open space and supporting the municipality's long-term land use goals.

Division of Risk Management

10:53

The committee reviewed the mayor's proposed budget for the Division of Risk Management. Council Member Lane participated in the discussion of this agenda item.

The committee accepted the proposed budget without requesting any changes. This approval affirmed the Division of Risk Management's role in managing city-wide risk exposure.

Outcome: The budget for the Division of Risk Management was approved as proposed.

Division of Enterprise Solutions

11:26

Council Member Lane presented this agenda item regarding the Division of Enterprise Solutions. The committee recommended an additional $35,000 in funding for professional services. The rationale provided was the need for ongoing external support to maintain system integrity and service delivery.

The recommendation was approved.

Computer Services

The committee reviewed the Computer Services budget item during this portion of the meeting 11:57.

Outcome

The committee accepted the mayor's proposed budget for Computer Services and approved a recommendation that the Human Resources Department conduct a study on IT employee compensation to ensure competitiveness.

Key Participant

Council Member Lane was the key speaker on this agenda item.

Division of Government Communications

11:57

The committee presented a recommendation to reinstate three positions within the Division of Government Communications: a producer, an audiovisual specialist, and a graphic designer. Additionally, the committee recommended allocating $4,700 for LexiCol overtime expenses.

Council Member Lane participated in the discussion of this agenda item. The committee emphasized that these positions and the overtime funding were necessary to maintain essential public communication services.

The recommendation was approved.

Commerce Lexington

The committee presented a proposal to reallocate $457,210 from the general economic development fund to Commerce Lexington. Council Member Lane participated in the discussion of this agenda item. 13:29

The funding reallocation was recommended to align resources with Commerce Lexington's strategic role in economic development. The committee approved the proposal.

Downtown Lexington Corporation

The committee considered a funding allocation for the Downtown Lexington Corporation during this agenda item 13:29.

Funding Recommendation

The committee recommended allocating $42,710 from the economic development fund to the Downtown Lexington Corporation. This allocation reflects the organization's role in downtown revitalization efforts and business support activities.

Key Speaker

Council Member Lane participated in the discussion of this agenda item.

Outcome

The allocation was approved.

Downtown Development Authority

The committee considered a proposal to allocate $211,230 from the economic development fund to the Downtown Development Authority. Council Member Lane presented this agenda item.

The allocation was intended to support the Downtown Development Authority's core mission of downtown development and redevelopment. The committee recommended approval of the funding.

The proposal was approved. 13:29

Downtown Arts Center Management

The committee addressed funding for Downtown Arts Center management during this agenda item. Council Member Lane participated in the discussion regarding the $91,310 needed to manage the facility.

The committee noted that this funding amount was not included in the current proposal being considered. Rather than resolving the matter during the regular agenda, the committee determined that the Downtown Arts Center management funding would be handled as a late item to be addressed separately.

The outcome of this discussion was that the matter was deferred, meaning it was postponed for consideration at a later time rather than decided upon during this meeting.

Lyric Theater

The committee considered the mayor's proposed budget for the Lyric Theater during this agenda item 16:15. Council Member Lane participated in the discussion.

The committee voted to accept the mayor's proposed budget for the Lyric Theater without any modifications. This approval affirmed the theater's continued role in cultural programming and community engagement.

The budget was approved as presented.

Office of Internal Audit

The committee presented recommendations for the Office of Internal Audit, with Council Member Lane serving as a key speaker on this agenda item 16:46.

The presentation focused on two primary funding requests:

• Employee Hotline: $3,600 for an employee hotline
• External IT Audit: $150,000 for an external IT audit of the PeopleSoft system

The rationale for these expenditures centered on addressing fraud risk and ensuring system integrity within the organization's information technology infrastructure.

The committee's recommendations were approved.

Department of Law

The committee reviewed the mayor's proposed budget for the Department of Law. 17:52

Budget Proposal

The proposal included a $35,000 increase for legal staff reorganization. This increase was designated as a one-time cost to support structural improvements within the department.

Outcome

The committee approved the proposed budget.

Key Participant

Council Member Lane was the key speaker on this agenda item.

Property Evaluation Administrator

The committee considered the mayor's proposed budget for the Property Evaluation Administrator position during this agenda item 18:27.

Council Member Lane participated in the discussion of this budget proposal. The committee recognized the critical role that the Property Evaluation Administrator office plays in property valuation and maintaining the stability of the tax base.

The proposed budget was approved by the committee.

Commonwealth's Attorney

The committee reviewed the mayor's proposed budget for the Commonwealth's Attorney office. 18:27

Council Member Lane presented the budget proposal to the committee. The discussion focused on fiscal management and budget efficiency within the office.

A key highlight of the budget review was an $11,250 rebate resulting from overbudgeting in the previous fiscal period. The committee expressed appreciation for this rebate, which demonstrated improved fiscal efficiency and more accurate budget forecasting by the office.

The committee voted to accept the mayor's proposed budget for the Commonwealth's Attorney. The outcome was approved.

Chief Information Officer

The committee discussed the Chief Information Officer budget during this agenda item. 18:27

Council Member Lane presented a recommendation to eliminate $442,424 in unallocated funds from the CIO budget. The rationale cited for this reduction centered on the need for fiscal discipline and better accountability in budget management.

The committee approved this recommendation.

Council Office

The committee discussed budget adjustments for Council Office operations. 14:38

Council Member Lane presented recommendations that included three key changes:

• Eliminating the caucus room copier
• Removing the budget analyst position
• Adding $40,000 to a professional services account to support external consulting

The item was approved by the committee.

Citizen's Advocate

The committee discussed the establishment of a Citizen's Advocate position during this agenda item 15:44.

Recommendation

The committee recommended creating a part-time position for a Citizen's Advocate. To support this new role, $26,000 was allocated to fund a civil service employee until a permanent appointee is named.

Key Speaker

Council Member Lane participated in the discussion of this agenda item.

Outcome

The proposal was approved.