Budget & Finance Committee Meeting

Summary

Meeting Overview

The Budget and Finance Committee met on March 24, 2009, at 1:00 p.m., with Kevin Stinnett presiding. The committee addressed four agenda items during the session, including financial reports, budget planning, and property management matters. One motion was voted on and approved, and the committee heard one public comment. The meeting covered informational presentations on the financial reports for February 2009, a proposed Committee of the Whole budget meeting for fiscal year 2010, and Council Links, while also taking action on the sale and disposal of obsolete property proceeds.

Attendance

The following individuals were present at the meeting on March 24, 2009:

• Kevin Stinnett
• Ed Lane
• Jim Gray
• Linda Gorton
• Chuck Ellinger
• Andrea James
• Tom Biues
• Julian Beard
• George Myers
• Peggy Henson

No absences or late arrivals were recorded.

Votes and Decisions

Motion to Request Ordinance on Asset Sale Proceeds 1:00:01

A motion was made by Linda Gorton and seconded by Andrea James to request the Department of Law to draft an ordinance requiring proceeds from the sale of assets to be returned to the fund from which the assets were originally purchased.

The motion passed by voice vote.

Budget and Financial Actions

The meeting addressed two financial matters affecting the budget:

Debt Service Savings

An amendment was approved to recognize $1,600,000 in debt service savings for FY 2009. These savings resulted from delayed bond issuance. [timestamp: not available]

Property Sale Proceeds

An appropriation was approved to return proceeds from the sale of obsolete property to the originating fund. [timestamp: not available]

Public Comment

1:01:36

Warren Rogers addressed the council regarding public golf course subsidies and oversupply in Lexington. Rogers presented data demonstrating that the city subsidizes its golf courses by approximately $1.2 million annually. He noted that each round of golf costs taxpayers $8.50 in subsidies.

Rogers recommended that the city darken all municipal golf courses to eliminate the ongoing deficit. He suggested that the land currently used for golf operations could be repurposed for other uses.

Contested Items

Procedural Introduction of Warren Rogers' Presentation

A procedural dispute arose regarding how Warren Rogers' presentation was introduced to the meeting. Andrea James and Julian Beard raised concerns about the process, specifically objecting to the lack of public notice prior to the meeting and the failure to review the presentation materials before the session began.

James and Beard characterized the approach as improper and argued that it deviated from standard meeting procedures. Their concerns centered on transparency and preparation—asserting that the public and attendees should have had advance notice of the presentation and adequate opportunity to review its contents before discussion commenced.

The disagreement reflected broader questions about procedural compliance and whether the introduction of the presentation followed established protocols for public meetings.

Financial Reports for February 2009 and Discussion

3:00

Mary Fister presented the financial results for February 2009 to the board. The report highlighted several key findings regarding the organization's financial performance during that month.

Revenue and Expenses

The presentation noted strong revenue performance for February. Personnel expenses were reported to be on target, indicating that payroll and related costs were tracking as expected against the budget.

Debt Service Savings

A significant development was the projected $1.6 million in debt service savings. This savings resulted from a delayed bond issuance, which reduced the organization's near-term debt obligations and provided financial relief.

Fire Department Overtime Concerns

The fire department was identified as operating over budget on overtime expenses. This overage prompted discussion among board members Kevin Stinnett, Andrea James, and Ed Lane, along with presenter Mary Fister.

Planned Budget Amendment

In response to the fire department's overtime overages, the board planned to pursue a budget amendment to address the discrepancy and bring spending in line with revised projections.

Outcome

The financial report was presented for informational purposes, providing the board with a comprehensive overview of February's financial position and identifying areas requiring attention through the planned budget amendment process.

Proposed Committee of the Whole Budget Meeting FY 2010

Jerry Southers presented the proposed schedule for FY 2010 budget hearings to the Committee of the Whole 27:07. The presentation outlined changes designed to improve the budget process's clarity and efficiency.

Key Changes Proposed

The proposed schedule includes an earlier start for Council Links compared to previous fiscal years. Additionally, Southers outlined a two-phase report-out process intended to streamline how budget information is presented and reviewed.

Process Context

Southers noted that no public hearing has been held on council recommendations in the past, indicating this represents a shift in the budget hearing procedures.

Participants

The discussion involved Jerry Southers, Kevin Stinnett, and Andrea James.

Outcome

This agenda item was presented as informational, with no formal action required at this time.

Council Links

The committee reviewed Council Link assignments and discussed revisions to improve the program's consistency and communication. Key participants in this discussion included Kevin Stinnett, Andrea James, Ed Lane, and Linda Gorton. 33:08

The committee examined the general link questions and report-out forms used for Council Links. A primary focus of the discussion was implementing a management summary format to standardize how information is presented and reported. The committee emphasized the importance of ensuring that all Council Links are publicly communicated, reflecting a commitment to transparency and accessibility of the program's activities and outcomes.

The outcome of this agenda item was informational in nature, with the committee documenting the current state of Council Link assignments and the proposed revisions to improve consistency across the program.

Sale & Disposal of Obsolete Property Proceeds

38:56

The committee discussed the handling of proceeds from the sale of obsolete property, specifically addressing concerns about funds that had been purchased with urban services money.

Andrea James raised concerns about proceeds from property sales being returned to the general fund rather than retained in their originating fund. David J. Barberie clarified the legal framework governing this practice, explaining that the Kentucky Constitution requires proceeds from the sale of property purchased with urban services funds to be returned to the originating fund from which the property was originally purchased.

The discussion centered on establishing a formal policy to codify this constitutionally mandated practice. Committee members including Bill O'Mara, Linda Gorton, Ed Lane, and George Myers participated in the deliberation.

The committee passed a motion to codify this practice through an ordinance, formalizing the requirement that property sale proceeds be returned to their originating funds in accordance with Kentucky constitutional requirements.

Outcome: Approved