Budget Committee of the Whole (COW)

Summary

Meeting Overview

The Lexington-Fayette Urban County Council met on May 28, 2013, at 1:00 p.m. in the Council Chambers, with the Vice Mayor presiding. The council addressed three agenda items during the session, including an informational discussion of Budget Link Reports, consideration of a Finance and Social Services recommendation regarding Explorium Loan Forgiveness, and review of a Code for America Funding Recommendation. One motion was voted on during the meeting, which resulted in approval of the Explorium Loan Forgiveness item. The Code for America Funding Recommendation was deferred for further consideration at a later date. The council also heard four public comments from members of the community during the session.

Attendance

The following individuals were present at the meeting on May 28, 2013:

• Connie
• Council Member Ellinger
• Council Member Henson
• Council Member Lawless
• Council Member Farmer
• Council Member Akers
• Council Member Clark
• Council Member Massadi
• Council Member Myers
• Council Member Beard
• Council Member Kay

No members were recorded as absent or late.

Votes and Decisions

The Council approved a finance and social services recommendation regarding Explorium loan forgiveness and service agreement 39:04. Council Member Beard moved for approval. The motion passed by voice vote.

Condition: The written agreement must be signed by the Explorium board by June 11th for implementation.

Budget and Financial Actions

The meeting included five financial actions affecting various city funds and departments:

Loan Forgiveness The council approved forgiveness of a $91,812 loan to Explorium of Lexington over three years. This action includes an annual expense of $38,850 to support 24 events per year.

General Fund Appropriations Two appropriations were added to the general fund: - $75,000 for streets and roads painting and striping supplies - $20,000 transfer from the 2013 bond fund to the Coroner's Office for vehicle replacement

Bond Fund Increases The council approved two bond fund increases: - $1,000,000 increase to the PDR bond fund for land purchases through the General Services District - $100,000 increase to the golf cart bond fund for Piccadome and Tates Creek cart replacements through the General Services District

These actions totaled approximately $1,287,812 in financial commitments and adjustments across multiple city funds and departments.

Public Comment

Council members raised several questions regarding the proposed budget and capital projects during the meeting.

Code for America Funding

Council Member Clark sought clarification on why Code for America was not recommended for funding 17:49. Clark requested a presentation to better understand the project and its bondability.

Capital Fund Bond Requirements

Council Member Lawless asked for clarification on capital project funding thresholds 12:16. Specifically, Lawless inquired whether capital projects in the $25,000 council member fund must each individually total $25,000, or if the combined total of multiple projects could equal that amount.

General Services Funding

Council Member Akers raised a question about budget responsibility 25:20. Akers asked who is responsible for identifying $200,000 in general services funding, noting the significant increase in that fund.

Explorium Agreement

Council Member Kay requested additional details regarding the Explorium agreement 35:51. Kay asked for clarification on how the $91,812 loan forgiveness works, including specifics about the annual expense and the value of services involved.

Contested Items

Explorium Loan Forgiveness Agreement

The council approved a recommendation regarding an Explorium loan forgiveness agreement, though the vote was split. The primary concern centered on whether the Explorium board would accept the written agreement terms. Council members required confirmation of the board's acceptance by June 11th to proceed; without this confirmation, the approval would be reversed. This conditional approval reflected uncertainty about the agreement's viability pending external acceptance.

Code for America Funding

Council members engaged in a heated discussion about Code for America funding. The discussion revealed confusion among council members regarding the project's purpose and its bondability—whether the project could be financed through bonds. Due to the lack of clarity, the council decided to request a formal presentation on the Code for America project. This presentation was intended to provide clarification on the project's objectives and financial structure before proceeding further.

Discussion of Budget Link Reports

The Budget Committee of the Whole reviewed recommendations from various budget links during this discussion 0:00.

Budget Areas Reviewed

The committee examined recommendations from the following budget links:

• General Government
• Environmental Quality and Public Works
• General Services and Planning
• Finance and Social Services

Key Financial Recommendations

The following financial adjustments were recommended:

• Transfer of $20,000 from the 2013 bond fund to the general fund for a coroner vehicle replacement
• Addition of $75,000 to the general fund for street painting and striping
• Increase of $1 million to the PDR (Purchase of Development Rights) bond fund
• Increase of $100,000 to the golf cart bond fund

Participants

The discussion involved Connie and Council Members Ellinger, Henson, Lawless, and Akers.

Outcome

This agenda item was informational in nature, with the committee reviewing and discussing the budget link recommendations presented.

Finance and Social Services Recommendation: Explorium Loan Forgiveness

27:25

Council Member Beard presented a proposal to forgive $91,812 of a loan owed to LFUCG by the Explorium over a three-year period. The forgiveness would be contingent upon the Explorium providing 24 events per year for five years.

The proposal aimed to formalize an existing arrangement that had previously been made verbally. Under the new terms, the Explorium would be required to sign a written contract documenting the agreement and its conditions.

Bill O'Meara participated in the discussion of this agenda item alongside Council Member Beard.

The council approved the proposal with one condition: the Explorium must sign the agreement by June 11th. This deadline was established to ensure timely execution of the formal contract and to solidify the terms of the loan forgiveness arrangement.

Code for America Funding Recommendation

17:49

The council discussed a $180,000 Code for America funding recommendation that had been rejected. Council Member Clark questioned the basis for the rejection, noting concerns about lack of clarity regarding project scope and bondability.

The council determined that additional information was needed to properly evaluate the proposal. Rather than making a final decision at this meeting, the committee agreed to request a presentation from the administration to clarify the proposal details.

The presentation was scheduled for June 4th, allowing staff time to prepare a more comprehensive explanation of the Code for America funding initiative, including specifics on project scope and how the funding would be structured from a bonding perspective.

The matter was deferred pending this additional presentation and clarification.