Budget, Finance and Economic Development Committee

Summary

Meeting Overview

The Budget, Finance & Economic Development Committee met on January 27, 2015, at 1:00 p.m., with Councilmember Ellinger presiding. Committee members in attendance included Bledsoe, Brown, Farmer, Ford, Kay, Lane, and Moloney. The committee addressed four agenda items during the meeting, which included the election of a committee chair, appointment of a vice chair, a presentation on monthly financials, and a review of committee referrals. The meeting included seven motions and votes, one presentation, and six public comments from members of the public.

Attendance

The following individuals were present at the meeting on January 27, 2015:

• Bledsoe
• Brown
• Farmer
• Ford
• Kay
• Lane
• Moloney
• Mossotti
• Scutchfield
• Stinnett

No absences or late arrivals were recorded.

Votes and Decisions

The meeting included seven votes, all of which passed.

Approval of November 18 Budget Committee of the Whole Meeting Summary 3:00 A voice vote was called to approve the summary of the November 18 Budget Committee of the Whole meeting. The motion was made by Scutchfield and seconded by Farmer. The motion passed.

Expanded Wellness Center Concept 3:00 A unanimous vote was taken on a motion to direct the Administration to draft and circulate the expanded wellness center concept. The motion was made by Stinnett and seconded by Myers. The motion passed unanimously.

Removal of AOC Reimbursement Policy from Committee Referral List 3:00 A unanimous vote was taken on a motion to remove the "AOC Reimbursement Policy" item from the Committee referral list. The motion was made by Gorton and seconded by Scutchfield. The motion passed unanimously.

Removal of Lyric Financial Audit from Committee Agenda 27:58 A voice vote was called to remove the Lyric Financial Audit from the committee agenda. The motion was made by Vice Mayor Kay. The motion passed.

Removal of Collaboration Strategy Among Economic Development Partner Agencies from Committee Agenda 31:40 A voice vote was called to remove the Collaboration Strategy Among Economic Development Partner Agencies from the committee agenda. The motion was made by Ford and seconded by Scutchfield. The motion passed.

Removal of DDA 10-Year Development Plan from Committee Agenda 33:53 A voice vote was called to remove the DDA 10-year development plan from the committee agenda. The motion was made by Ford and seconded by Brown. The motion passed.

Adjournment 34:50 A voice vote was called to adjourn the meeting. The motion passed.

Budget and Financial Actions

The meeting addressed two financial matters:

Wellness Center Expansion

The board requested information and proposals for an expanded wellness center concept at the current clinic location. This initiative is budgeted at $8,350 per month.

Court Fee Surcharge Amendment

The board considered an amendment to implement a surcharge on court fees. This surcharge would be designated to recover maintenance and capital replacement expenses. No specific dollar amount was identified for this amendment in the meeting materials.

Public Comment

Several council members raised questions and concerns during the meeting regarding employment trends, budget variances, and financial oversight.

Employment and Unemployment Trends

Councilman Massadi inquired about the causes behind the declining unemployment rate 6:47, asking whether the improvement resulted from people re-entering the job market or withdrawing from job searches. He also noted that earnings have remained flat despite the lower unemployment figures.

Councilmember Lane emphasized the importance of tracking employment numbers rather than focusing solely on the unemployment rate 8:51. He highlighted a 4,400 increase in employment in Fayette County between June 2013 and June 2014.

Budget and Financial Concerns

Councilmember Brown requested additional details on a $955,000 variance in other income 16:33, specifically regarding $224,000 in penalties and interest. He asked whether this variance represents a one-time occurrence or an ongoing trend.

Councilmember Maloney expressed concern about the high surplus recorded in the first six months of the budget period 21:32. He questioned whether this surplus would continue into the second half of the year, noting that personnel expenses and weather patterns could impact future projections.

Financial Transparency and Oversight

Councilmember Farmer suggested implementing monthly tracking of the rainy day fund balance and recommended including this information in the financial packet distributed to council members 24:15. This proposal aimed to improve transparency in economic contingency fund management.

Councilmember Brown also raised a question about audit procedures for outside agencies 28:33, specifically asking whether the Lyric Theater audit should be presented to the committee. He noted that other outside agencies are required to submit audits when applying for funding.

Appointments

Stinnett was appointed to the Solid Waste Expenditure body.

Contested Items

Lyric Theater Audit Requirement

Councilmember Brown raised a procedural question regarding the inclusion of a Lyric Theater audit on the committee agenda. Brown questioned the rationale for requiring an audit from the Lyric Theater when other outside agencies are not subject to the same audit requirement. This procedural dispute centered on whether the audit should be considered by the committee at all. The matter was resolved through a vote to remove the item from the agenda.

Economic Contingency Fund Transparency

Councilmember Farmer advocated for increased transparency regarding the economic contingency fund, specifically proposing that the rainy day fund balance be included in monthly reports. While no formal opposition was voiced during the discussion, this item was identified as an area warranting future attention and improvement. The proposal highlighted a potential gap in current reporting practices and was noted for consideration in subsequent meetings.

Election of Committee Chair

Councilmember Ellinger called the meeting to order. No discussion or vote was recorded regarding the election of Committee Chair during this agenda item.

Appointment of Vice Chair

No discussion or vote was recorded on the appointment of Vice Chair during this meeting. The item appeared on the agenda but did not proceed to substantive deliberation or a formal decision.

Presentation: Monthly Financials

Commissioner Bill O'Mara presented the monthly financials for the period, highlighting key performance metrics [0:03:00]. The presentation reported a 3% revenue increase and a 6% favorable expense variance year-to-date.

The discussion that followed focused on several financial trends and concerns:

• Revenue and Expense Performance: The favorable expense variance of 6% year-to-date was noted as a positive indicator of cost management.

• Unemployment Trends: Participants discussed current unemployment trends and their potential impact on the organization's financial outlook.

• Flat Earnings: The discussion addressed concerns about flat earnings, which may constrain future revenue growth.

• Surplus Sustainability: A key topic of debate centered on the sustainability of the current surplus, raising questions about whether the favorable financial position could be maintained going forward.

Key speakers in this discussion included Commissioner Bill O'Mara, who presented the financials, along with Rusty Cook and Melissa Luker, who participated in the subsequent discussion.

The agenda item was classified as informational in nature, with no specific action items or decisions required as an outcome of the presentation.

Committee Referrals

The committee reviewed and voted on several referrals during this portion of the meeting 25:18.

Actions Taken

The committee removed the following items from the agenda: - Lyric Financial Audit - Collaboration Strategy - DDA 10-year plan

The Wellness Center RFP was retained for spring review rather than being removed from consideration.

Key Participants

The discussion involved Vice Mayor Kay, Ford, Scutchfield, Brown, and Maloney.

Outcome

The referrals were handled as an informational matter, with the committee's votes resulting in the removal of three items while preserving the Wellness Center RFP for future spring review.