Budget and Finance and Economic Development Committee on 2024-10-29 1:00 PM

Summary

Meeting Overview

The Lexington-Fayette Urban County Council convened on October 29, 2024, from 10:00 AM to 3:00 PM in the Council Chambers on the 2nd Floor of the Government Center, with James Brown presiding as the meeting officer. The five-hour session focused primarily on financial matters affecting the city, with council members receiving informational presentations on three key fiscal topics. The meeting addressed the FY25 Quarter 1 Financial Update, City Hall Financing Options, and Mayor Fund Balance Proposals, all of which were presented for informational purposes rather than requiring immediate action.

During the course of the meeting, the council conducted six motions and votes on various matters, though the specific outcomes of these votes were not detailed in the available records. No members of the public provided comments during the designated public comment period, indicating either limited public interest in the day's agenda items or possible scheduling conflicts that prevented citizen participation.

The meeting's agenda was structured around three main informational items, suggesting this was primarily a briefing session designed to keep council members informed about the city's financial status and upcoming decisions rather than a decision-making meeting. The extended duration of the meeting, spanning five hours, indicates thorough discussion and analysis of the financial presentations, allowing council members adequate time to ask questions and seek clarification on complex budgetary and financing matters that will likely require future action.

Attendance

The following members were present at the Committee meeting on October 29, 2024:

• James Brown
• Hannah LeGris
• Liz Sheehan
• Whitney Baxter
• Dave Sevigny
• Chuck Ellinger
• Dan Wu
• Jennifer Reynolds
• Tayna Fogle
• Fred Brown
• Shayla Lynch
• Denise Gray
• Dave Worley
• Kathy Plowman
• Monarrez

All committee members were present for the meeting. No members were recorded as absent or arriving late.

Votes and Decisions

The Committee approved six funding motions during the October 29, 2024 meeting, with all motions passing by wide margins 10:00.

Large Capital Construction Fund Allocation James Brown motioned to allocate $8 million to the large capital construction fund, seconded by Kathy Plowman. The motion passed by roll call vote 14-1-0. Voting in favor were James Brown, Hannah LeGris, Liz Sheehan, Whitney Baxter, Chuck Ellinger, Dan Wu, Jennifer Reynolds, Tayna Fogle, Fred Brown, Shayla Lynch, Denise Gray, Dave Worley, Kathy Plowman, and Monarrez. Dave Sevigny cast the sole opposing vote.

Council Capital Project Funds James Brown motioned to allocate $1.5 million to Council Capital Project funds. The motion passed unanimously by voice vote 15-0-0.

Infrastructure Funding Plan James Brown motioned to fund the infrastructure funding plan at $750,000, seconded by Kathy Plowman. The motion passed unanimously by voice vote 15-0-0.

Employee Supplement James Brown motioned for a one-time supplement for full-time non-bargaining employees, seconded by Jennifer Reynolds. The motion passed unanimously by voice vote 15-0-0.

NAMI Building Funding James Brown motioned to fund a building for NAMI on Sparta Court at $141,211, seconded by Tayna Fogle. The motion passed unanimously by voice vote 15-0-0.

Anniversary Concert Funding James Brown motioned to fund the Lexington 250th Anniversary Celebration Concert at $45,000, seconded by Kathy Plowman. The motion passed unanimously by voice vote 15-0-0.

All motions were made by James Brown, with various committee members providing seconds. Only the large capital construction fund allocation required a roll call vote, while the remaining five motions passed by unanimous voice votes.

Budget and Financial Actions

The Committee reviewed several significant financial appropriations totaling over $11.5 million during the October 29, 2024 meeting.

The largest allocation discussed was an $8,000,000 appropriation for a large capital construction fund. Additionally, the Committee considered $1,500,000 in Council Capital Project funds and a $750,000 infrastructure funding plan.

Employee compensation received attention with a $1,110,610 one-time supplement proposed for full-time non-bargaining employees.

Two specific community-focused appropriations were reviewed:

• NAMI Building Project: $141,211 for a building on Sparta Court for NAMI (National Alliance on Mental Illness)

• Lexington 250th Anniversary Concert: $45,000 to the Lexington Philharmonic for the city's 250th Anniversary Celebration Concert

The financial items represent a mix of infrastructure investments, employee benefits, and community programming. The capital construction and infrastructure allocations totaling $10.25 million indicate significant planned improvements to city facilities and systems.

*Note: Specific resolution numbers and transcript timestamps were not available in the provided meeting data.*

Contested Items

The Committee meeting on 2024-10-29 featured one contested item that resulted in a split vote among council members.

Funding for City Hall and Other Projects

Council members were divided on the amount to allocate to the large capital construction fund, which would support City Hall and other major infrastructure projects. The disagreement centered on funding priorities, with different council members advocating for varying allocation amounts.

The discussion resulted in a split vote, indicating that the council was not unanimous in their approach to capital construction funding. The differing positions reflected broader disagreements among members about municipal spending priorities and the appropriate level of investment in major infrastructure projects.

The outcome of this split vote demonstrates the ongoing debate within the council regarding how to balance various municipal funding needs and capital improvement priorities.

*Note: Specific vote counts, individual council member positions, and exact funding amounts were not available in the provided meeting materials.*

FY25 Quarter 1 Financial Update

10:00

Commissioner Hensley, Director Luker, and Director Holbrook presented the first quarter financial update for fiscal year 2025 during the October 29, 2024 committee meeting. The presentation provided an overview of the organization's financial performance and budget adjustments through the first three months of the fiscal year.

The financial update highlighted key budget adjustments that have been implemented since the beginning of FY25. The presentation team reviewed current financial performance metrics and provided analysis of spending patterns and revenue collection during the initial quarter.

Director Luker and Director Holbrook contributed detailed financial data and analysis to support Commissioner Hensley's presentation. The update covered various aspects of the budget, including expenditure tracking and revenue performance compared to projected targets.

This agenda item was informational in nature, with the presentation serving to keep committee members informed about the current financial status of the organization. No formal action was required or taken following the presentation.

The quarterly financial update represents part of the organization's regular financial oversight and transparency practices, providing committee members with timely information about fiscal performance and budget management during the current fiscal year.

City Hall Financing Options

10:00

Director Holbrook presented a comprehensive overview of financing alternatives for the City Hall project during the October 29, 2024 committee meeting. The presentation outlined four primary funding mechanisms available to the city.

The financing options discussed included:

• Cash funding - Using existing city reserves to pay for the project outright
• Municipal bonding - Issuing bonds to finance the construction with repayment over time
• Public-private partnerships - Collaborating with private entities to share costs and responsibilities
• Historic tax credits - Leveraging federal and state tax credit programs if the project involves historic preservation elements

Director Holbrook provided details on each financing approach, explaining the benefits and considerations associated with each option. The presentation was informational in nature, designed to educate committee members on the various paths forward for funding the City Hall project.

No formal action was taken during this agenda item, as the purpose was to present the available financing alternatives for the committee's consideration. The discussion serves as groundwork for future decision-making regarding how the city will proceed with funding the City Hall project.

The presentation allows city officials to evaluate which financing mechanism, or combination of mechanisms, would best serve the city's fiscal interests and project timeline requirements.

Mayor Fund Balance Proposals

10:00

Commissioner Hensley presented the Mayor's fund balance proposals during the committee meeting. The presentation outlined proposed allocations from available fund balances for various municipal projects and initiatives.

The proposals included funding allocations for: • Government center projects • Council capital funds • Additional municipal projects

Commissioner Hensley served as the primary presenter for this agenda item, walking the committee through the Mayor's recommended distribution of fund balance resources. The discussion was informational in nature, providing committee members with details on how the administration proposes to utilize available fund balances.

This agenda item was presented for informational purposes, allowing committee members to review and understand the Mayor's funding priorities and proposed allocations before any formal action would be required.