Budget, Finance & Economic Development (BFED) Committee

Summary

Meeting Overview

The Budget, Finance & Economic Development (BFED) Committee met on January 27, 2026, at 1:00 PM in the Council Chamber of the Lexington-Fayette Urban County Government. The committee worked through four agenda items during the session, three of which were informational in nature and one of which resulted in a formal vote. The informational items included a FY26 Quarter 2 Financial Update, an Annual Comprehensive Financial Review (ACFR), and a presentation on an Infrastructure Funding Plan. The committee also conducted an Annual Review of Committee Referrals, which was approved by vote, representing the sole motion and vote taken during the meeting. No public comments were heard during this session.

Votes and Decisions

The committee took the following action during the January 27, 2026 meeting:

• Motion 0083-26 — Approval of October 21, 2025, Committee Summary 0:03: The committee voted to approve the summary from the October 21, 2025 committee meeting. The motion passed by voice vote. No individual roll call tallies were recorded, and no conditions were attached to the approval.

FY26 Quarter 2 Financial Update

3:31

Agenda Item: 0084-26 Type: Informational Presentation

Commissioner Hensley, Director Holbrook, and Director Lugar jointly presented the FY26 Quarter 2 Financial Update to the Committee. The presentation covered the organization's financial position through the second quarter of fiscal year 2026, with discussion focused on revenues, expenses, and variances from projected figures.

No further detail on specific revenue totals, expense line items, or variance amounts is available from the meeting record. The item was informational in nature, and no vote or formal action was taken as a result of the presentation.

Annual Comprehensive Financial Review (ACFR)

36:01

Agenda Item 0085-26

The Committee received a presentation on the Annual Comprehensive Financial Review (ACFR) covering the results of the FY25 audit. The item was informational in nature, with no vote or formal action required.

The presentation was delivered by John Crossland and Garrett Wooten, who served as the auditors for the review. Key findings from the audit included:

• Unmodified opinion issued on the financial statements, representing the highest level of assurance auditors can provide and indicating that the financial statements are presented fairly and in accordance with applicable standards.
• No significant deficiencies were identified during the audit process, reflecting positively on the organization's internal controls and financial reporting practices.

The unmodified opinion and absence of significant deficiencies indicate a clean audit result for FY25. The item concluded as informational, with no further action taken by the Committee.

Infrastructure Funding Plan

56:05

The Committee received a presentation on agenda item 0086-26, focused on strategies for funding infrastructure in urban growth areas. Consultants Anita Morrison and Abby Ferretti of Partners for Economic Solutions delivered the presentation, which centered on recommendations regarding privilege fees as a mechanism for financing infrastructure needs.

The item was informational in nature, meaning no formal vote or binding decision was taken by the Committee at this meeting. The presentation outlined the consultants' findings and recommendations, with privilege fees identified as a key funding tool for supporting infrastructure development in areas experiencing urban growth.

No additional details on specific fee structures, debate points, or concerns raised during the discussion are available from the provided materials.

Annual Review of Committee Referrals

Agenda Item 0087-26 1:39:15

The committee conducted its annual review of outstanding committee referrals, examining items currently on the referral list to determine which should be retained and which could be removed.

During the review, the committee removed several items from the referral list, including downtown projects and a city hall feasibility study. No key speakers were identified in the record for this item.

The committee approved the updated referral list as part of this annual housekeeping process.