Budget Committee of the Whole (COW)

Summary

Meeting Overview

The Lexington-Fayette Urban County Council met on June 11, 2013, at 9:00 a.m. in the Council Chambers, with the Vice Mayor presiding. The council addressed three agenda items during the session, including a Commissioner O'Mara Report that was approved, along with two informational presentations covering Link Recommendations (items 1-8) and Council Member Recommendations (items 9-11). The body took one motion to a vote during the meeting and heard eight public comments from members of the community.

Attendance

The following individuals were present at the meeting on June 11, 2013:

• Commissioner O'Mara
• Council Member Ellinger
• Council Member Farmer
• Council Member Lane
• Council Member Massadi
• Council Member Kaye
• Council Member Ford
• Council Member Stenet
• Council Member Myers
• Council Member Clark
• Council Member Akers
• Council Member Henson

No members were absent or late.

Votes and Decisions

Revised Revenue Estimate Approval 37:36

Council Member Farmer moved to approve a revised revenue estimate of $297,211,180 based on Commissioner O'Mara's updated assumptions for the Big Four revenue categories. Council Member Lane seconded the motion.

The motion passed by voice vote. Six council members voted in favor: - Council Member Farmer - Council Member Clark - Council Member Akers - Council Member Henson - Council Member Stenet - Council Member Kay

Two council members voted against: - Council Member Ellinger - Council Member Myers

The approved estimate assumes a franchise fee rate increase will occur in the second quarter of FY14, though the vote does not lock in the funding mechanism.

Budget and Financial Actions

The meeting addressed a significant funding gap in the Urban Service Fund through the following action:

Streetlight Program Supplemental Revenue

The body approved supplemental revenue of $2,500,000 for the Streetlight Program to address a shortfall in the Urban Service Fund. This appropriation was necessary to cover the $2.5 million deficit and ensure continued funding for streetlight operations and maintenance.

Public Comment

Council members discussed a motion regarding budget revenue assumptions, with particular focus on a proposed franchise fee increase. 50:03

Council Member Ellinger expressed concern that the motion assumes a franchise fee increase will occur, despite the Council previously tabling this decision and not having approved it. He characterized the assumption as unreliable. 50:03

Council Member Stenet countered that the Council has the authority to act on the franchise fee in August, consistent with its actions in the previous year, and argued the assumption aligns with established budgeting practices. 52:14

Council Member Kay supported the motion as a conservative placeholder, emphasizing that the Council retains flexibility to address any revenue gap through various funding mechanisms. 53:49

Council Member Myers opposed the motion, arguing it precludes other potential revenue solutions such as property tax or fund balance adjustments by locking in the franchise fee assumption. 54:53

Council Member Clark backed the motion, citing confidence in the Council's ability to resolve the funding gap later and noting that it uses a lower, more conservative revenue estimate. 55:25

Council Member Farmer supported the motion as a practical approach to move forward with other budget decisions without becoming delayed by revenue assumption debates. 56:27

Council Member Akers agreed with the motion, noting that the Council is not bound to specific category breakdowns and can adjust allocations later based on actual outcomes. 57:03

Council Member Henson provided clarification, confirming that the motion assumes a franchise fee increase later in the year but does not specify the mechanism, thereby allowing for future decisions on implementation. 59:57

Contested Items

Assumption of Franchise Fee Increase in Budget

A split vote occurred over the motion to approve the revised revenue estimate, with disagreement centered on whether to assume a franchise fee increase in the budget projections.

The contention arose from differing interpretations of the Council's prior actions on this issue. Some members opposed including the franchise fee increase assumption, pointing to the fact that the Council had previously tabled the matter. They argued this prior decision should preclude the assumption from being incorporated into the budget.

Other members supported proceeding with the franchise fee increase assumption, contending it represented a reasonable and prudent approach for budgeting purposes despite the earlier tabling of the issue itself.

The motion to approve the revised revenue estimate ultimately passed despite the divided opinion on this assumption, indicating that the supporters of the franchise fee increase assumption held the majority vote.

Commissioner O'Mara Report

Commissioner O'Mara presented revised revenue assumptions for the FY14 budget during this agenda item. 2:07

Presentation Details

The Commissioner presented adjustments to several revenue categories:

• Employee withholdings
• Net profits
• Insurance
• Franchise fees

Revenue Recommendation

Commissioner O'Mara recommended a total revenue estimate of $297,211,180 for FY14. This recommendation assumed a franchise fee increase would be implemented in the second quarter of FY14.

Outcome

The item was approved.

Link Recommendations (1-8)

This agenda item was not addressed during the meeting. No discussion or action was taken on Link Recommendations (1-8), and the item does not appear in the meeting transcript.

Council Member Recommendations (9-11)

This agenda item was not addressed during the meeting. No discussion or action was taken on Council Member Recommendations (9-11), and the item received no substantive treatment in the meeting transcript.