[00:09:01]
[00:10:00]
YEAH.[00:10:18]
PARK. YES, SIR. THANK YOU. THANK YOU JUST SAW IT WAS THE PEN. I DID NOT TELL YOU, BUT I HAVE TO GONNA MOVE 14 YEARS GO TO 14 1ST. SINCE THEY HAVE SOMEBODY FOLKS HERE, UM I GOT YOU. DO YOU MIND IF WE WOULD HEAR NUMBER ONE FIRST SO THAT COUNCILMAN FLOOD CAN LEAVE AND HERS IS BOOK ONE? YES DO THAT. OKAY, SO WE'LL DO ONE AND THEN WE'LL DO 14. VERY GOOD, AND THEY'RE SET UP READY TO GO WITH YOUR PRESENTATION AS WELL. THAT'S AWESOME. THANK YOU. BOTH.OKAY. DO WE HAVE IN THE CHAMBERS ? WE HAVE COUNCILMAN P. ARGENTINA COUNCILMAN OWEN.
COUNCILMAN. HAD SEUIN COUNCILWOMAN PARKER. UM, LATONYA AND BETH ARE HERE AS WELL. IF YOU NEED THEM AND CURRENTLY.
AND YOU DO HAVE A QUORUM WHENEVER YOU'RE READY. OVER AGAIN. BUT THANK YOU FOR COUNTING THAT FOR ME. THAT'S EXACTLY THAT'S EXACTLY WHAT I WAS DOING RIGHT THERE. DON'T WORRY. SO. MITCHELL TV FROM GET STARTED ON, UM ONE MINUTE, PLEASE. THANK YOU. COUNCILMAN ARTHUR HAS ALSO JOINED US.
HMM. READY TO GO OUT OF COURT. YES, I WE ARE THANK YOU LIKE TO CALL THE ORDER, THEN THE BUDGET APPROPRIATIONS COMMITTEE FOR TODAY, AUGUST 17TH. A GREAT 4 32. THE CHAIR OF THE COMMITTEE
[Call to Order]
AND WITH US TODAY ARE IN THE CHAMBERS. YOU HAVE COUNSELOR AND POTIONS. COUNCILMAN COUNCILMAN[Roll Call]
HUDSON COUNCILWOMAN PLUCKER AND COUNSELOR MACARTHUR AND IN COUNSELING. CRAMER, I'M SORRY.ANYONE ELSE I MISSED. THAT WAS IT? SORRY AND THEN WE HAVE, UM VIRTUALLY WE HAVE OR THE. WE HAVE COUNSEL COUNSEL COUNCIL MOVE AROUND. TO TAKE ITEMS. UM AS AN ORDER, IT'S APPROPRIATING
[Pending Legislation]
$7000 FROM DISTRICT 24 NEIGHBORHOOD DEVELOPMENT FUNDS TO THE OFFICE OF MANAGEMENT BUDGET TO JEFFERSON COUNTY PUBLIC EDUCATION FOUNDATION INC FOR PROGRAMMING MATERIALS AND INDIVIDUAL AND GROUP COUNSELING SERVICES TO SOUTHERN HIGH SCHOOL YOUTH SERVICE PROGRAM. SECOND THANK YOU. PROBABLY MORE THAN A SECOND COUNSELOR IN FLOOD. THANK YOU, MR CHAIR. AND AS MANY OF YOU KNOW, THERE HAVE BEEN ON THE COUNCIL FOR A WHILE. THIS IS SOMETHING I GRANT THAT WE HAVE FUNDED EVERY YEAR, AND WHEN WE STARTED OUT, IT WAS JUST FOR ANGER MANAGEMENT, BASICALLY, BUT THE NEED HAS BECOME SO MUCH BIGGER THAN THAT NOW INCORPORATES NOT JUST ANGER MANAGEMENT BUT GRIEF COUNSELING , SELF ESTEEM, COUNSELING, SUBSTANCE ABUSE, BULLYING A MIRAGE OF HEALTH ISSUES AND MAKING POSITIVE CHOICES. THE STUDENTS THEMSELVES CAN REFER THEMSELVES FOR COUNSELING OR THEY CAN GO TO THE STAFF CAN DO THIS OR YOU SERVICE CENTER.INTERVENTIONS CAN DO THIS, AND THE STUDENTS AND PARENTS RECEIVE A PACKET OF INFORMATION AT THE START OF EVERY YEAR, AS WELL AS THROUGH ORIENTATION. THE LETS THEM KNOW ABOUT THE SERVICES. UM AND I WOULD SURE APPRECIATE YOUR SUPPORT ON THIS, BECAUSE, AS I SAID, THE NEED IS HIS EXPANDED AND REALLY GROWN IN THE AREA OF TRYING TO HELP THE STUDENTS. VERY GOOD. TRYING TO. SEEING
[00:15:23]
THOSE SPEAKERS. THIS IS AN ORDINANCE COUNTER ROLL CALL VOTE AND I WAS SAYING BEFORE WE OPEN THE VOTING THAT I'LL BE ABSTAINING. MY SON WORKS FOR SOUTHERN HIGH SCHOOL. UM, DO I NEED TO CALL YOU FOR VOTING? B YES. OR DID YOU ALREADY VOTING IS ALREADY OPEN. IT'S OPEN. IT'S OKAY. DO YOU? UM, I DON'T KNOW IF HE WERE ON THE SYSTEM. UH, I AM ONE SYSTEM, OKAY? THAT'S MY BUSINESS. YES, THAT'S OKAY. UM COUNCIL MEMBER MCRANEY YES, EXTENSION. COUNCIL MEMBER. I'LL SEE MR GREENAWAY HER ONE MOMENT. COUNCIL MEMBER. FOWLER. COMMUNITY, MAN. YES. MR. CHAIR.YOU HAVE SEVEN YEARS VOTE IN ONE ABSTENTIONS. THANK YOU DON'T WORK OUT TO BUSINESS. THANK YOU COLLEAGUES. YOU KNOW, WE'RE GONNA SKIP DOWN TO 14. SO WE'VE GOT THIS, UM ALMOST HAS A LOT OF FOLKS THERE SO ALLOW THEM TO MOVE FORWARD WITHOUT, UM 14, AND IT IS AN ORDINANCE APPROVING THE 33RD SUPPLEMENTALS, WHO ARE AND TRAINING SYSTEM REVENUE BONDS RESOLUTION ADOPTED BY THE BOARD OF GLOBAL JERSEY COUNTY METROPOLITAN DISTRICT AUTHORIZING THE ISSUANCE OF THE DISTRICT AND DRAINAGE SYSTEM COMBINED SERIES 2023 C MOTION SECOND THANK YOU AS BEFORE US, AND I THINK MY UNDERSTANDING IS THAT BREAD GOOD IS GOING TO BE REMAIN PRESENTER TODAY.
INTRODUCE HIMSELF AND WE'LL TURN IT OVER TO YOU OR WHOEVER ELSE YOU HAVE TO SPEAK. I'M NOT LIMITING TO YOU. THANK YOU UNDERSTAND THAT YOU'RE GOING TO START GOOD AFTERNOON CHAIRMAN BLACKWELL, MEMBERS OF THE BUDGET APPROPRIATIONS COMMITTEE. MY NAME IS BRAD. GOOD. I'M THE CHIEF FINANCIAL OFFICER FOR LOUISVILLE, MST. WE ARE HERE TODAY REQUESTING APPROVAL OF AN ORDINANCE AUTHORIZING THE ISSUANCE OF OUR SERIES 2023 C REVENUE BONDS. I ALWAYS LIKE TO REMIND YOU KENTUCKY STATUTE REQUIRES THAT THE ISSUANCE OF OUR BONDS HAS TO BE AUTHORIZED BY OUR BOARD AND ALSO BY AN ORDINANCE, UM OF THE LEGISLATIVE BODY OF THE CITY AS WELL AS THE MAYOR. SO THAT IS THE REASON FOR US BEING HERE TODAY. ALSO LIKE TO REMIND YOU THAT THESE BONDS ARE SOLELY OBLIGATIONS OF MSD, AND THEY DO NOT CONSTITUTE ANY OBLIGATION OR INDEBTEDNESS OF LOUISVILLE METRO. UM ARE 2023 SERIES REVENUE BONDS ANTICIPATED TO BE ISSUED IN A MAXIMUM AMOUNT UP TO $275 MILLION? THAT MANY IS GOING TO BE USED TO REFUND CURRENTLY OUTSTANDING COMMERCIAL PAPER. AS WELL AS TO CREATE A PROJECT FUND TO FINANCE OUR FISCAL YEAR 2024 CAPITAL PROGRAM. THESE WILL BE TAX EXEMPT 30 YEAR BONDS. WE ARE ALSO PLANNING TO UM, WE WILL WE HAVE AUTHORIZED IN THE RESOLUTION THE REFUNDING OF OUR 2013 B AND 2020 C BONDS IN CONJUNCTION WITH THIS BOND ISSUE WITH THE INTENT THERE OF TRYING TO CREATE SOME INTEREST SAVINGS ON THOSE OUTSTANDING BONDS, SO THAT IS SOMEWHAT DEPENDENT ON MARKET CONDITIONS AT THE TIME OF THE SALE, BUT THAT IS OUR INTENT THIS TIME. AS WE ALWAYS DO. WE WILL GET RATINGS ON THIS DEBT BY BOTH MOODY'S AND S AND P. WANT TO GIVE YOU A SNAPSHOT OF OUR FISCAL YEAR 2024 CAPITAL PROGRAM , AND EVERY YEAR WE UPDATE OUR FIVE YEAR WINDOW BECAUSE MOST OF OUR CAPITAL PROJECTS ARE MULTI YEAR PROJECTS. SO WE STARTED PROJECT THIS YEAR. WE'VE GOT TO BE ABLE TO FINANCE IT TO THE END, WHICH CAN OFTEN BE TWO OR THREE YEARS BEFORE THE PROJECT IS COMPLETE. UM, ARE CAPITAL PROGRAM THIS YEAR IS $255 MILLION, THE FIVE YEAR UM, CAPITAL PROGRAM IS $1.2 BILLION.
AND THE TABLE AT THE RIGHT SHOWS YOU THE DRIVERS OF THE CAPITAL PROGRAM. AND REGULATORY COMPLIANCE IS THE PRIMARY DRIVER. YOU CAN SEE THAT CONSTITUTE 75% OF THE CURRENT CAPITAL YEAR BUDGET AND 78% OF THE FIVE YEAR. A LOT OF THAT, OF COURSE, IS THE CONSENT DECREE.
[00:20:05]
BUT THE NEXT MAJOR BUCKET THERE IS OTHER STATE AGREED ORDERS THAT WE HAVE TO COMPLY WITH THAT REQUIRE CAPITAL REINVESTMENT. LET'S TALK ABOUT THE TWO BIG PROJECTS. IT'S 1.2 BILLION IN THE FIVE YEAR ALMOST HALF OF THAT IS TIED UP IN TWO PROJECTS. THE FIRST ONE, WHICH IS PATTY'S PERRY'S RUN. PATTY'S ROAD. FLOOD PUMPY UPGRADE. CAN'T GET THAT OUT TODAY. I DON'T KNOW WHY YOU ALL MAY BE SOMEWHAT FAMILIAR WITH THIS PROJECT. WE BROKE GROUND ON IT ON TUESDAY AND THERE WAS SOME PRESENCE FROM SOME OF YOUR COLLEAGUES AS WELL AS OTHERS. UM AND ACROSS THE STATE, SO IT'S A VERY, VERY IMPORTANT PROJECT FOR US TO REPLACEMENT OF THE PLATYPUS RUN FLOOD PUMP STATION, WHICH PROTECTS 63,000 RESIDENTS IN WEST LOUISVILLE. THIS FROM FLOOD PUMP STATION IS 70 YEARS OLD WAS CONSTRUCTED IN 1953. SO IT'S UM VERY OLD TECHNOLOGY. IT NEEDS TO BE MODERNIZED. IT'S ALSO UNDERSIZED FOR THE CURRENT LEVEL OF STORMS THAT WE FEEL THE COMMUNITY IS AT RISK FOR, SO WE ARE EXPANDING CAPACITY, BLOOD PUMPING CAPACITY AS WELL. THERE.THIS IS A CONSENT DECREE PROJECT. WILL BE LIKE I SAID, WE BROKE GROUND THIS WEEK HAS TO BE COMPLETED BY DECEMBER. 31ST OF 2026, ACCORDING TO THE CONSENT DECREE. $230 MILLION PROJECT. WE DO HAVE A VARIETY OF FUNDING SOURCES FOR THIS PROJECT. WE'VE WORKED REALLY HARD. TRYING TO GET GRANTS AND LOW INTEREST ROUNDS TO SUPPLEMENT FUNDING HERE. WE RECEIVED $13 MILLION IN GRANTS THROUGH THE KENTUCKY CLEANER WATER PROGRAM. WE'VE ALSO BEEN APPROVED FOR OUR WE'VE BEEN AUTHORIZED FOR A STATE REVOLVING FUND LOAN. UM AS WELL THAT WILL FIND A PORTION OF THIS PROJECT, BUT THE VAST MAJORITY OF IT WILL BE THROUGH, UH, DEBT PROCEEDS THAT ARE PART OF THIS REVENUE BOND ISSUE. THE OTHER BIG PROJECT IN OUR FIVE YEAR IS, UH, THE BIOSOLIDS PROCESSING PROJECT THAT MOST FOREMAN WATER QUALITY TREATMENT CENTER. THIS PROJECT REALLY SETS US UP TO BE ABLE TO DO WITH OUR BIOSOLIDS LOOKING FORWARD INTO THE FUTURE. UM IT'S A, UM. PROJECT THAT WILL ALLOW US TO CREATE CLASS A BIOSOLIDS PROVIDE BENEFICIAL REUSE OF DIGESTER GAS AND ENERGY. AND IT PROVIDES THIS FLEXIBILITY FOR ANTICIPATED FUTURE REGULATIONS WITH RESPECT TO BIOSOLIDS. UM THIS PROJECT WE JUST COMPLETED THE GMP IN IT, AND OUR BOARD APPROVED THE PROJECT TO MOVE FORWARD LAST JULY OR THIS PAST JULY. AND THIS PROJECT WILL BE OPERATIONAL BY 2027. IT'S ALSO A CONSENT DECREE PROJECT. AND THE COST ESTIMATE HERE IS ABOUT $285 MILLION LARGEST FACILITY INVESTMENT TO DATE. THIS PROJECT ALSO HAS A LOW INTEREST LOAN COMPONENT, WHICH WE ARE VERY EXCITED ABOUT. $97 MILLION IS BEING FINANCED THROUGH THE EPA'S WITH THE ALONE PROGRAM, WHICH AGAIN IS ALONE WITH A VERY ATTRACTIVE INTEREST RATE THAT WILL HELP CONTROL INTEREST COSTS FOR THE COMMUNITY. IN TERMS OF PAYING FOR THE FIVE YEAR C I P UM AGAIN, IT'S $1.2 BILLION WE ARE FOUND DOING, UM A PORTION OF THAT WITH CASH, WHICH IS PART OF ONGOING OPERATIONS. WE ALSO HAVE A SIGNIFICANT CONTRIBUTION. MORE THAN WE'VE SEEN IN ANY RECENT YEARS AND $30 MILLION OF GRANTS IN TOTAL THROUGH THE STATE CLEANER WATER GRANT PROGRAM, WHICH WE'RE VERY HAPPY ABOUT. BUT THE REST OF ABOUT $800 MILLION IN DEBT THAT WE WILL ISSUE OVER THE NEXT FOUR YEARS. THIS ISSUANCE IS 275 MILLION OF THAT. THE SCHEDULE FOR THIS FINANCING. WE ARE WRAPPING UP AUTHORIZATIONS THIS MONTH HERE AT METRO COUNCIL. WE HAVE RATING ME. RATING AGENCY MEETING SCHEDULED FOR SEPTEMBER AND ANTICIPATE RATINGS ON THE DEBT BY THE END OF SEPTEMBER. AND THEN WE WILL SELL THE BONDS ON OCTOBER 12TH AND CLOSED AT THE END OF OCTOBER. THE PRESENTATION WE HAVE FROM YOU TODAY, MR CHAIR. WE'RE HAPPY TO ANSWER ANY QUESTIONS. THANK YOU, SIR. WE DID HAVE A FEW CURATION TEAM. THANK YOU, MR CHAIR, FIRST OF ALL OTHERWISE AGREE WITH THE LEGAL SENTIMENT THAT THESE BONDS DON'T. LEGALLY BIND THIS GOVERNMENT DIRECTLY. UH YOU ARE NONETHELESS MONOPOLISTIC UTILITY WITHIN THE CITY AND ANY FISCAL MISMANAGEMENT DOES IMPACT THE CITIZEN RATE, WHETHER WE DO IT THROUGH YOUR BILL OR THROUGH TAXES THROUGH THE CITY, IT DOES IMPACT THEM DIRECTLY. UM SO I JUST WANT TO BE CLEAR WITH, YOU
[00:25:02]
KNOW THE CITIZENRY ON THAT IT DOESN'T. IT'S NOT GOING TO COME THROUGH THE CITY AND AT THE SAME TIME WE WANT TO MAKE SURE IT MAKES SOME SENSE. WHAT IS YOUR CURRENT? AND WHICH I MAYBE YOU COVERED IT AND I MISSED THAT. BUT I WAS LOOKING THROUGH THE SLIDES REAL QUICK. WHAT IS YOUR CURRENT CREDIT RATING FROM FROM ANY OF THE RATING AGENCIES, DOUBLE A DOUBLE A AND WHERE IS THAT? HISTORICALLY WHEN WAS THE LAST TIME YOU HAD A RATING ADJUSTMENT? WHAT WAS THAT ADJUSTMENT? I. I CAN'T ANSWER THAT ARE WRITING HAS BEEN DOUBLE A SINCE I'VE BEEN AT MST, WHICH IS 2016, ALL WRITING HAS BEEN STABLE, SO STABLE. THAT'S GOOD. OKAY AND ANY HAVE ANY OF THE RATING AGENCIES COMMENTED ON YOUR DEBT INCOME RATIOS OR ANY OTHER, UH, THEY EVER CITED IT AS SOMETHING OF NOTE EVEN IN YOUR REPORTS. THE MOST COMMON COMMENT THAT WE GET BOTH FROM MOODY'S AND S AND P. THEY DO NOTE THAT OUR COVERAGE RATIO IS LOWER THAN SOME OF OUR SIMILARLY RELATED SEWER PEERS. BUT THEY ALSO NOTE THAT OUR FINANCIAL STATE ACTUALLY, MANAGEMENT IS ONE OF THE ONE OF THE THINGS THAT THEY CALL OUT AS BEING FISCALLY RESPONSIBLE WITH HOW WE SET OUR BUDGETS AND WE SET OUR BUDGETS AND OUR CAPITAL PLANS WITHIN BOARD AUTHORITY FOR RATE INCREASES, WHICH IS ANOTHER NOTE THAT THEY ARE KNOWN AS A CREDIT POSITIVE. AH RATING UPGRADE POTENTIAL IS SOMEWHAT LIMITED. UM S AND P NOTES THAT IT WOULD TAKE, YOU KNOW, SOMETIMES SOME TYPE OF SHIFT IN COMMUNITY DEMOGRAPHICS THAT WOULD LEAD TO A RATING UPGRADE. MOODY'S NOTES A SIGNIFICANT REDUCTION IN DEBT COULD LEAD TO READING UPGRADE, BUT THAT'S NOT SOMETHING THAT WE ANTICIPATE AS BEING POSSIBLE AS WE'RE CONTINUING GET ISSUED THAT AND SO LET'S TALK ABOUT THAT.WHAT IS WHAT I DON'T SEE. HERE AND AGAIN. MAYBE IT'S BURIED IN THE NUMBERS AND I'M TRYING TO READ THEM TO THE BEST OF MY ABILITY. BUT CAN YOU GIVE US A SENSE OF CURRENT DEBT LOAD? WHAT THIS DOES TO IT? WHAT IS THE NEXT 3 TO 5 YEARS LOOK LIKE OUR SENIOR DEBT SERVICE COVERAGE HAS BEEN IMPROVING STEADILY SINCE I HAVE BEEN AT MSD IN 2016. WE WERE ABOUT A 18. AS OF THIS PLANET OR YEAR THAT JUST ENDED. WE'RE ANTICIPATING ABOUT BEING 2.8 TIMES COVERAGE. SO WE HAVE BEEN VERY, VERY FOCUSED ON IMPROVING DEBT SERVICE COVERAGE IN DEBT TO OPERATING RATIO BECAUSE OF THOSE THOSE ARE THE TWO CRITICAL FACTORS IN OUR RATING REPORT THAT MOODY'S LOOKING FOR, SO THAT'S BEEN A FOCUS OF MANAGEMENT AND HOW THIS ISSUANCE IMPACT. IT WON'T BE.
IT'S NOT GOING TO CREATE A DROP IN COVERAGE. LAST QUESTION YOU MENTIONED SLIDE. SORRY. THIS SCREEN HAS TO REFRESH WHEN I SLIDE YOU FAST. UH CONSENT TO CREATE DEADLINE SUBSTANTIAL COMPLETION IN PARENTHESES ON SLIDE. FOUR UNDER SCHEDULE. SECOND BULLET POINT DECEMBER 31ST 2026 IS THAT THE. IS THAT THE EXPIRATION OF THE CONSENT DECREE? NO WHAT DOES THAT MEAN IN RELATION TO THE CONSENT DECREE? THE CONSENT DECREE EXPIRATION CURRENTLY HAS 2035, BUT THERE ARE A VARIETY OF PROJECTS AND THE CONSENT DECREE AND EACH PROJECT HAS ITS OWN ASSOCIATED DEADLINE. SORRY I KNOW. I THINK I SAID LAST QUESTION. I DON'T WANT TO SAY A LINE BUT MISREPRESENTED. SO THE CONSENT DECREE SURCHARGE THAT WE SEE ON BILLS CURRENTLY THAT WILL CONTINUE UNTIL 20 UNTIL THE CONSENT DECREE IS COMPLETED. IS THAT CORRECT? THE CONSENT DECREE CHARGE WILL EXTEND PAST THE END OF THE CONSENT DECREE BECAUSE IT'S PAYS FOR THE DEBT. THE DEBT THAT WE'RE ISSUING IS 30 YEAR DEBT SO THE DEBT IS NOT GOING TO BE REPAID. THE LAST DEBT THAT WE ISSUE ON THE CONSENT DECREE IS PROBABLY NOT GOING TO BE REPAID UNTIL 2050. AND WHEN DID THE CONSENT DECREE START? THE FIRST THE FIRST PHASE OF, UH, WHETHER IT'S BEEN. THIS IS THE SECOND AMENDMENT OF THE CONSENT DECREE , SO IT ACTUALLY STARTED LIKE IN 2009. UH AND IT WAS IT WAS. IT WAS A FIRST AMENDMENT AND THEN THE SECOND AMENDMENT WAS AMENDED LAST YEAR. AND THE PURPOSE OF THAT SECOND AMENDMENT. WAS BECAUSE WE HAD THE ABILITY UNDER EPA POLICY. TO CREATE DEBT CAPACITY TO BE ABLE TO DO OTHER PRIORITY PROJECTS SUCH AS PATTY'S RUN, SUCH AS MORRIS FOREMAN, SUCH AS SOME OF THE LARGE DIAMETER SEWERS. WE WERE NOT ABLE TO BE ABLE TO DO THOSE PROJECTS IN THE NEAR TERM. SO ONCE WE COMPLETED THE WATERWAY PROTECTION TUNNEL YOU MAY RECALL LAST YEAR WE FINALIZED THAT THAT COMPLETED ALL OF OUR COMBINED SEWER WORK. WE STILL HAD A LIST OF 16 PROJECTS THAT WE HAD TO DO BEFORE 2025. AND SO WE NEGOTIATED WITH THE E P A TO
[00:30:07]
PUSH THOSE TIMELINES BACK. SO WE COULD HAVE THAT CAPACITY IN THE NEAR TERM TO BE ABLE TO DO.PATTY'S RUN MORRIS FOREMAN AND OTHER CRITICAL PROJECTS IN THE COMMUNITY. I UNDERSTAND, BUT SOMEONE. COUNSELOR LET ME MOVE AND I'LL COME BACK TO YOU. SHE HAS NO PROBLEM. THE CORD. THANKS CHAIR, UM AS A FOLLOW UP TO ARGENTINA'S QUESTION THE SERVICE COVERAGE RATIO. WHAT WAS DRIVING THE IMPROVEMENT IN THAT RATIO? IS THAT BEING DRIVEN ON THE INCOME SIDE OR IS THAT BEEN BEING DRIVEN ON THE DEBT SIDE? WHERE IS THAT IMPROVEMENT COMING PRIMARILY GROWTH AND REVENUE AND CONTROLLING THE OPERATION AND MAINTENANCE EXPENSES. THOSE ARE THE TWO THINGS THAT ARE GOING TO IMPROVE COVERAGE THE QUICKEST SINCE WE CAN'T PAY THAT WE DON'T HAVE THE MONEY TO PAY DOWN DEBT, WHICH WOULD BE THE OTHER FACTOR. SO IT'S ON MOSTLY ON THE END. WELL, SO I GUESS JUMBOS CONTROLLING EXPENSES AND THEN CREATING REVENUE. MORE REVENUE. YEAH OKAY. UM AND THEN WHEN I'M LOOKING AT SLIDE THREE AND IT SAYS REGULATORY COMPLIANCE REMAINS THE PRIMARY DRIVER OF CONTINUED DEBT ISSUANCE, AND THAT'S THAT. THAT MAKES SENSE. IS THERE A WAY TO TALK ABOUT THE CONSENT, THE DECREE AND REGULATORY COMPLIANCE. IN TERMS OF HOW FAR ALONG IN THAT PROCESS , ARE WE I MEAN, I UNDERSTAND THAT IT SOUNDED LIKE I THINK HE SAID 2035 YES EXPIRES. BUT BUT WE'VE GOT A CERTAIN NUMBER OF PROJECTS WITHIN THAT TIMELINE. ARE WE 60% THROUGH THOSE PROJECTS, ARE WE IS THERE A WAY TO TALK ABOUT IT THAT WAY? THE AMENDED CONSENT DECREE DOES HAVE A LIST OF PROJECTS. I MENTIONED THAT WE HAVE 16 PROJECTS THAT WERE PUSHED BACK IN TERMS OF FINAL DEADLINES IN 2035. AND THEN WE HAVE THESE TWO MAJOR PROJECTS AND THEN WE HAVE SOME OTHER PROJECTS THAT WE ARE REQUIRED TO DO UNDER A STATE ORDER WITH THE STATE OF KENTUCKY. AH BUT AS FAR AS THE OVERALL CONSENT DECREE, I WOULD SAY THAT WE'RE PROBABLY 70.
COMPLETE OF THE CONSENT DECREE WORK. BUT THE AMERICAN SEND DECREE WAS PURPOSEFULLY DONE TO MAKE SURE THAT WE COULD DO OTHER PRIORITY PROJECTS GOES UP TO THAT POINT. WE WEREN'T GETTING ANY OTHER WORK DONE IN THE SYSTEM, WHICH LED TO A LOT OF LARGE DIAMETER PIPES IN OUR STREETS COLLAPSING IF YOU REMEMBER THE MAIN STREET PROJECT THAT WE HAD A COUPLE OF YEARS AGO. ALL OF THOSE EMERGENCY PROJECTS OR UNBUDGETED, AND SO WE HAVE TO BE ABLE TO DO THOSE PROJECTS JUST FOR THE SAFETY AND VIABILITY OF OUR CITY AND OUR COMMUNITY? THE OTHER IS THE FLOOD PROTECTION SYSTEM. THERE WAS NO CONSIDERATION IN THE ORIGINAL CONSENT DECREE ON HOW WE WERE GOING TO, UH, MAINTAIN AND REHAB AND REPLACE THE FLOOD PROTECTION SYSTEM THAT PROTECTS LOUISVILLE. WE HAVE 16 FLIP PUMP STATIONS THAT ARE IN OUR OPINION , UH, AT THE STAGE OF IMMINENT FAILURE IN TERMS OF THEIR TECHNOLOGY AND THEIR EQUIPMENT. UH AND SO WE HAVE A CRITICAL REPAIR PLAN THAT IDENTIFIES THE OPPORTUNITY TO REPLACE THOSE. EVENTUALLY, PATTY'S RUN WAS THE NUMBER ONE PRIORITY. BUT WE JUST DIDN'T HAVE THE BONDING CAPACITY IN THE FIVE YEAR WINDOW TO DO PATTY'S RUN, SO THAT'S WHY WE HAD TO GO BY USING OTHER INNOVATIVE APPROACHES LIKE CURB COMMERCIAL PAPER. USING THE AMENDED CONSENT DECREE AND ALSO TAKING ADVANTAGE OF LOW INTEREST LOANS LIKE WITH FIA. WE WERE ABLE TO PUT TOGETHER A FINANCING PACKAGE THAT WOULD ALLOW US TO DO PATTY'S RUN. AND WE HAD A COMPLETE FAILURE OF OUR BIOSOLIDS SYSTEM. AND MORSE FOREMAN, WHICH IMPACTS NOT ONLY OPERATION OF THE PLANT, BUT THE IMPACT OF WATER QUALITY AS WELL.
SO WE HAD A LOT OF CHALLENGES AND A LOT OF THINGS THAT WE HAD TO DO TO BE ABLE TO DO THINGS WITHIN A CERTAIN FINANCIAL PLAN. AND, UH SO WE THINK THAT THE AMERICAN CENTER CREE ALLOWS US TO GET THERE. AND REMIND ME YOU GUYS ARE CAPPED IT 7% RAISING, UH, RATES AT 7% ON AN ANNUAL BASIS IS THAT CORRECT? OUR RATES ARE WHAT WE SAY IT'S CAPPED AT 69 BECAUSE IF WE GO AHEAD SEVEN OR HIGHER, I THINK WE HAVE TO COME TO METRO COUNCIL FOR APPROVAL. SO I MEAN, THAT'S WHERE THE CONTEXT OF ALL THESE QUESTIONS COME FROM, BECAUSE WE ALL GET CALLS FROM OUR CONSTITUENTS SANE, RIGHT? MY BILL IS GOING UP, UP UP UP AND I UNDERSTAND YOU HAVE ALL OF THESE THINGS THAT YOU'RE TRYING TO DO . AND SO YOU'RE HAVING TO CONTINUE TO ISSUE THE DEBT, BUT HAVING AN ANSWER FOR OUR CONSTITUENTS WHEN THEY CALL IS VERY HELPFUL. AND THEN THE LAST THING AND THEN I'LL JUMP BACK IN IF I NEED TO, UM YEAH, WITH WITH WE HAVE A 200 YEAR OLD SEWER
[00:35:04]
SYSTEM. IS THAT WHAT WHAT? WHAT WE HAVE BASICALLY A LOT OF OUR LARGE DIAMETER SEWERS DATE BACK TO THE 18 SIXTIES. SO IS THIS JUST THE KIND OF BUSINESS THAT CAN YOU EVER CATCH UP? I MEAN, EVEN AFTER THE KICK CONSENT, AGREE, YOU KNOW WHERE WE'RE TRYING TO TAKE ALL OUR COMBINED TO OUR OVERFLOWS AND DO AWAY WITH THAT OLD TECHNOLOGY AND ALL OF THOSE THINGS IS THERE EVER A POINT? WITH THIS KIND OF INFRASTRUCTURE BUSINESS WHERE YOU CAN CATCH UP AND MAYBE WE AREN'T RAISING RATES ON MAXIMUM BASIS BASIS EVERY YEAR. WELL, I'LL GIVE YOU A LITTLE BIT OF CONTEXT BEFORE I RESPOND. IN TERMS OF THE AGE OF THE SYSTEM. THERE HAS BEEN MAJOR DISINVESTMENT. IN THIS SYSTEM FOR DECADES. AND SO WE HAVE NOT BEEN AT THE MAXIMUM, OR WE HAVEN'T WENT OVER THE MAXIMUM TO BE ABLE TO CATCH UP. UH SO WE KNOW THAT THERE'S CHALLENGES IN TERMS OF WHAT WE CAN DO. AND THE QUESTION IS, HOW FAST DO WE DO IT? UH UM. THERE IS A POINT I THINK THAT WITH THE CONSENT DECREE, WE START TO MEET REGULATORY REQUIREMENTS THAT ARE EXISTING TODAY. BUT AS YOU ALL KNOW, THERE'S ALWAYS EVER CHANGING REGULATIONS. THERE'S NEW REGULATIONS AND TALKS ABOUT FOREVER CHEMICALS, P FAS. WHENEVER THAT HITS US, THAT'S GOING TO BE ANOTHER MAJOR INVESTMENT. WE HAVE TO MAKE TO COME INTO COMPLIANCE WITH REGULATIONS. BUT THE SYSTEM ITSELF. THE AMERICAN CENTER AGREE ALSO PROVIDES A.APPROPRIATION FOR US TO DO $25 MILLION A YEAR AND WHAT WE CALL ASSET MANAGEMENT OR CAPITAL REHAB PROJECTS, AND WE CAN. QUANTIFY THOSE, AND WE HAVE TO REPORT THAT. SO THAT THE EPA IS THAT TO YOUR POINT WE'RE INVESTING MONEY IN THE EXISTING SYSTEM EVENTUALLY TO ADDRESS ALL THE MAJOR ISSUES THAT MAY BE OUT THERE BEYOND THE REGULATORY ISSUES. SO, UM. UNLESS WE HAVE THE ABILITY TO GET A LOT OF FREE MONEY. THROUGH GRANTS. IT'S GONNA BE A SYSTEMATIC APPROACH ON HOW WE DO OUR CAPITAL PORTFOLIO, AT LEAST THROUGH 2035. THANK YOU APPRECIATE IT.
CHAIR CRAMER. THANK YOU, MR CHAIR, JUST A REAL QUICK. THE 2023 C THAT WE'RE TALKING ABOUT . 275 MILLION, UM HOW MUCH OF THIS IS TO PAY OFF PREVIOUS BONDS AND HOW MUCH OF IT IS FOR NEW CAPITAL PROJECTS. AND I DON'T KNOW IF I WANT EXACT DOLLAR AMOUNTS OR FROM ONE PERCENTAGES. I'M JUST TRYING TO GET A PICTURE OF WHAT ARE WE DOING HERE? THERE'S $175 MILLION OF THIS THAT WE WILL USED TO REPAY OUTSTANDING COMMERCIAL PAPER ISSUED OVER THE LAST YEAR AND A HALF TO FUND THE 23 CAPITAL PROGRAM. SO THAT'S SHORT TERM DEBT THAT WE'RE TAKING OUT WITH LONG TERM DEBT HERE, AND I'M NOT A BANKER, PERHAPS. AND I DON'T PLAY ONE ON TV. UM GENERALLY SPEAKING SHORT TERM DEBT IS MORE EXPENSIVE THAN LONG TERM DEBT. IS IT SAFE AT THAT? WE'RE TAKING THESE BONDS AND PAYING OFF THE SHORT TERM DEBT. WITH THESE, IT'S MAKING OUR LONG TERM INTEREST LESS. WELL WE HAVE SEEN A BIT OF AN INVERTED YIELD CURVE THIS YEAR TO YOUR POINT WHERE SHORT TERM RATES ARE HIGHER THAN LONG TERM RATES. UM I DON'T KNOW FOR SURE WHAT WHAT THE RATE WILL BE IN OCTOBER WHEN WE ISSUE THIS DEBT. BUT THE IDEA IS YES. THAT WERE WE'RE GETTING THE SHORT TERM DEBT THAT WE'RE PAYING A RELATIVELY HIGH INTEREST RATE ON, HOPEFULLY REFINANCE THAT SOMETHING SLIGHTLY LOWER, BUT THAT'S ONLY AS ONLY AS A LOT BUT 175 OF THE 275 100 MILLION OF THE 275 IS NEW MONEY THAT WILL BE USING TO FUND THIS YEAR'S CAPITAL PROGRAM. THE WORK OF PATTIES AND MORE SWARMING AS WELL AS THE OTHER CAPITAL WORK THAT WE'RE DOING YOU THROUGHOUT $25 MILLION AS A AND ASSET MANAGEMENT, UH, UNDER THE AMENDED CONSENT DECREE . WHAT WHAT THE WHAT WE NEGOTIATED WITH THE REGULARS BECAUSE, TOO. I THINK COUNCIL MEMBERS ON CONCERN THAT WE WERE MAXIMIZING OUR CAPITAL PORTFOLIO WITH REGULATORY PROJECTS. AND SO WE ACTUALLY LOBBIED. FOR PEOPLE TO ALLOW US TO DO SOME WORK. FOR THE EXISTING SYSTEM AND TO BE ABLE TO GET CREDIT FORWARD UNDER THE CONSENT DECREE, SO IT DOESN'T HAVE TO BE EXACTLY 25 MILLION A YEAR. BUT OVER FIVE YEAR PERIOD SOME OF EM WAS THAT 525 MILLION. WE HAVE TO REPORT AND THEN EXPLAIN WHY WE DIDN'T DO THAT. DIDN'T MEET THAT THAT THRESHOLD, SO YOU'RE ONLY BORROWING 100,000. SO IT'S 100 MILLION. SO THAT'S GOING TO GET YOU FOUR YEARS, NOT FIVE. UNLESS THE 100 MILLION IS NOT I'M TRYING TO GET MY HEAD AROUND THIS. OKAY? SO IF 25 MILLION IS
[00:40:03]
FOR ASSET MANAGEMENT, I GET WHAT THAT IS AND WHAT THAT MEANS AND WHAT YOU'RE DOING. THAT LEAVES 75 MILLION, BUT I'M HEARING YOU SAY THAT THAT ASSET MANAGEMENT PIECE IS AN ONGOING HOW ARE WE GOING TO DO THAT ASSET MANAGEMENT NEXT YEAR? WELL COMING BACK NEXT YEAR WITH ANOTHER $25 MILLION ASK, WELL, THE 2024 CAPITAL BUDGET IS 255 MILLION. THE $25 MILLION ASSET MANAGEMENT IS IN THAT 2 55. WERE FUNDING THE 2 55 WITH A VARIETY OF SOURCES. THERE'S CASH. THAT'S FUNDING THAT. THERE IS GRANTS THAT'S FUNDING THAT, SO THAT'S NOT THIS 100 MILLION. THAT'S LEFT YOUR 35 MILLION. 100 MILLION IS FUNDING A PORTION OF THE 2 55 PORTION OF THE 2 FT.FIVE OKAY, SO YEAH, WE WILL BE. WE WILL BE BACK, PROBABLY SOMETIME IN FISCAL 25 ISSUING ANOTHER BOND. BECAUSE AS I SAID , YOU KNOW, WE'VE WE'VE GOT $800 MILLION IN DEBT THAT WE'RE ISSUING IN THE NEXT FIVE YEARS SO THAT YOU'LL COME BACK WHEN YOU CAN AFFORD TO BORROW IT AGAIN WHEN IT WON'T AFFECT OUR CREDIT RATING. GREAT, THANKS. THANK YOU, MR COUNCIL AND AUTHOR. THANK YOU, CHAIRMAN. HOW MUCH THAT DID YOU END FISCAL YEAR, 23 WITH UH, TOTAL DEBT IS ABOUT 2.3 BILLION. I KNOW IT'S HARD TO COMPARE, BUT WHEN WE LOOK AT 67% OF OUR FUNDING SOURCE BEING DEAD. HOW DOES THAT COMPARE WITH PEER CITIES WILL CONSENT DECREES. I HAVE, UH, WE, UH I KNOW THAT AT LEAST THE MAJOR FIVE CITIES THAT ARE IN OUR REGION. EVERYONE IS DEAD LADEN BECAUSE OF THESE LARGE REGULATORY PROGRAMS OF, FOR EXAMPLE, I CAME FROM CINCINNATI AND I KNOW THAT WE HAD APPROXIMATELY $1.5 BILLION IN OUTSTANDING DEBT, AND I'M OBVIOUSLY UH, THAT HAS RISEN SINCE I LEFT. I KNOW THAT ST LOUIS, FOR EXAMPLE, THEIR CAPITAL PROGRAM THEY HAVE ABOUT $4 BILLION IN DEBT. AH AH! AH AND I DO KNOW THAT THE CITY OF INDIANAPOLIS HAS APPROXIMATELY $2 BILLION IN DEBT IN THEIR PROGRAMS, SO IT'S VERY COMMON IN THIS REGION IS VERY COMMON IN THE MIDWEST, PARTICULARLY CITIES THAT HAVE COMBINED SEWERS THAT HAVE BEEN UNDER THIS MANDATE TO REDUCE COMBINES, WHO ARE OVERFLOWS? DO YOU HAVE AN ESTIMATE FOR HOW MUCH THAT YOU'LL BE IN BY THE END OF THIS FISCAL YEAR? BY THE END OF FISCAL YEAR. 24 YES. AH WELL, WE'RE ISSUING TO 75. WE WILL PAY OFF ROUGHLY 60 MILLION IN PRINCIPLE, SO WE'LL ADD ANOTHER 205 TO THE 2.3 BILLION THAT I GAVE YOU EARLIER. AND DO YOU THINK YOU NEED NEW GRANTS? WILL BECOME AVAILABLE. MAYBE THE BIPARTISAN INFRASTRUCTURE ALARMS THAT OVER WELL, WE FORTUNATELY WERE ABLE TO TAP APPROXIMATELY 13.5 MILLION UNDER THE AARP A FOR PATTY'S RUN. WITH AN ADDITIONAL MONEY THROUGH STATE ABOUT $1.6 MILLION FORGIVABLE LOAN. UH WE ARE BEING TOLD THAT THERE MAY BE UP TO ANYWHERE BETWEEN EIGHT AND 13 MILLION ADDITIONAL GRANT MONIES THAT WE ARE CURRENTLY WORKING WITH OUR CONGRESSIONAL FOLKS RIGHT NOW.
UM WE ARE STILL LOBBYING WITH THE ARMY CORPS OF ENGINEER AND THE WATER RESOURCE DEVELOPMENT ACT AND UNDER THE INFRASTRUCTURE BILL, AS YOU MENTIONED, UH, LOOKING AT EVERY AVENUE TO TAP ANY TYPE OF GRANT MONEY OR ANY TYPE OF FORGIVABLE LOANS THAT CAN BE A PART OF OUR FINANCIAL PORTFOLIO. HOPEFULLY, I SPEAK FOR EVERYONE WHEN I SAY AS THOSE BECOME AVAILABLE, HOWEVER, WE CAN SUPPORT INSECURE THOSE DOLLARS. PLEASE LET US KNOW. YES, SIR. THANK YOU. THANK YOU.
ERIK KRAMER. THANK YOU AGAIN, MR . UM JUST TRYING TO GET MY HEAD AROUND IT, BUT I THINK I HEARD, UM SO RIGHT NOW. WHEN YOU LOOK AT HOW MUCH IT'S COSTING US TO RUN MSD IN A YEAR AND HOW MUCH WE'RE GENERATING AND RATES FOR A YEAR. WE'RE NOT GENERATING ENOUGH IN RATES TO RUN MST IS THAT ACCURATE? NO AND WE FULLY FUND ALL OF OUR OPERATIONS OUT OF OUR RATES AND WE FUND A PORTION OF OUR CAPITAL PROGRAM. THE 55 MILLION IN CASH HERE IS COMING FROM RATES THAT WE COLLECT THIS YEAR. THAT'S ENCOURAGING. THE SECOND THING I WANTED TO CLARIFY SO EVERY YEAR WE'RE INCREASING THE AMOUNT OF DEBT WE HAVE. CURRENTLY YES. WE'VE BEEN INCREASING THE AMOUNT OF DEBT OUTSTANDING EVERY YEAR BECAUSE WE'RE ISSUING DEBT FASTER THAN WE'RE PAYING IT DOWN. AND DO YOU SEE A TIME WHEN THAT WILL STOP? WELL AS WE SAID EARLIER. UM IT'S GOING TO CONTINUE AT LEAST THROUGH 2035 THROUGH THE END OF THE CONSENT DECREE. I MEAN, YOU UNDERSTAND AS A HOUSEHOLD THAT WOULD BE DISASTROUS. I DO? UM BUT WE AGAIN THAT'S PART OF THE REASON
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THAT WE'VE TALKED ABOUT EARLIER THAT THE RATES ARE CONTINUING TO INCREASE BECAUSE AS YOUR DAD AND YOU KNOW, IF YOU THINK ABOUT YOUR HOUSEHOLD IF YOU WANT A BIGGER HOUSE, YOU NEED MORE INCOME, SO IT'S KIND OF THE SAME CONCEPT THAT WE HAVE TO HAVE THE RATES TO SUPPORT THE DEBT THAT WE'RE ISSUING, WHICH IS WHY WE HAVE BEEN DOING THE RATE INCREASES WITHIN BOARD AUTHORITY. AND MR KRAMER IF I COULD ALSO ADD THE HISTORY ON IT WHEN YOU WHEN WE TALK ABOUT THE REGULATORY ASPECT OF THIS TO CONSENT DECREES. YOU KNOW WHEN THE 1972 CLEAN WATER EGG WENT INTO PLACE. A LOT OF CITIES WERE PUT. WE'RE ALREADY IN A DEEP HOLE, AND THEY WERE PUT IN A DEEPER HOLE. AND AS THE REGULATIONS UNDER FP A CONTINUE TO EVOLVE AND CHANGE. THERE'S THIS. IT'S VERY HARD TO GET OUT OF THAT REGULATORY MODE. 80% OR SO OF THE OF THE CAPITAL PLAN OVER THE NEXT FIVE YEARS IS REGULATORY DRIVEN. UH AND I THINK AFTER 2035 TO YOUR QUESTION WE WOULD SEE LESS NEED TO HAVE DEBT FOR REGULATORY PROJECTS. AH BUT WE STILL MAY NEED AGING INFRASTRUCTURE THAT NEEDS TO BE REPLACED AND UPGRADED. I WORRY AS MUCH ABOUT THE INFRASTRUCTURE IS NOT THAT I CAN'T WORRY ABOUT THE REGULAR BECAUSE WE HAVE A CHOICE, BUT OUR AS MUCH ABOUT THE INFRASTRUCTURE AND IT'S JUST IT'S A BIT CONCERNING THAT. NOT ONLY DO WE NOT SEE A TIME WHEN THAT IT WILL. LEVEL OFF. I MEAN, ALWAYS SEE IS WE'RE GOING TO CONTINUE TO BORROW MORE MONEY. THEN WE'RE PAYING OFF, AND I DON'T KNOW WHERE THAT I JUST DON'T KNOW WHAT THE LOGICAL END OF THAT IS JUST DOESN'T SEEM TO BE LIKE THAT'S POSSIBLE. WELL, WE'LL SHARE ONE ENCOURAGING FACT WITH YOU. WHEN I FIRST GOT HERE WHEN WE TALK ABOUT PAYING MORE AS YOU GO, RATHER THAN ISSUING THAT. BUT WE WERE ONLY CASH PAYING 5% OF OUR CAPITAL. WITH REVENUE. ON HAND. NOW WE'RE AT 30. SO OUR WHOLE FINANCIAL PLAN IS TO BE ABLE TO MAXIMIZE LOW INTEREST LOANS. MAXIMIZE GRANTS , PAY MORE CASH SO THAT WE ARE ISSUING LESS DEBT. IF WE WERE STILL AT THE 5% LEVEL TO WHERE WE WERE, UH IN 2016, WE WOULD REALLY BE IN TROUBLE AND WE PROBABLY WOULD HAVE BEEN DOWNGRADED BY NOW. AS FAR AS ALREADY OKAY. AND I THINK YOU ANSWERED THE I GUESS THE QUESTION IN THERE IS AT SOME POINT. WHAT HAPPENS IS WE START TO SEE OUR CREDIT RATING. GO DOWN. YES, SIR. THANK YOU. NO ONE JUST HAVE ONE. QUICK. FOLLOW UP. WE TALKED A LITTLE BIT ABOUT OUR PEER CITIES ON AND HOW THAT RELATES ON THE DEBT SIDE.EVERYBODY ELSE MIGHT KNOW THIS, BUT CAN YOU TELL ME A LITTLE BIT ABOUT HOW ARE PURE CITIES HAVE DEALT WITH IT ON THE RIGHT SIDE ON THE CUSTOMER SIDE AND WHETHER THEY JUST PULL OFF THE BAND AID ALL AT ONCE AND SAID, YOU KNOW, LET'S DO IT ALL AT ONCE AND HAVE JUST THE PAIN ONE TIME OR HAVE THEY DONE SOMETHING SIMILAR TO WHAT WE'VE DONE. CAN YOU TALK ABOUT THAT A LITTLE BIT WELL, I CAN TELL YOU THAT IT'S BEEN DONE A LOT OF DIFFERENT WAYS. AND I CAN SPEAK FROM EXPERIENCE AND CINCINNATI THE WAY WE DID IT. WAS WE INCLUDED. IN THE BEGINNING THE ASSET MANAGEMENT ALLOWANCE THAT I MENTIONED BEFORE INTO THE CONSENT DECREE. SO AS YOU WERE INCREASING RATES , REGULATORY LEE YOU ALSO HAD ENOUGH REVENUE TO DEAL WITH THE ASSET MANAGEMENT PIECE. IN SAINT LOUIS. THEIR REVENUE INCREASE IS ACTUALLY SOMETHING THAT IS ESTABLISHED UNDER THE STATE. AND THEY HAVE TO GO OUT FOR A MEASURE TO FUND THAT CAPITAL IN ST LOUIS, SO IT'S KIND OF RIPPING OFF THE BAND AID AND PROVIDING THE MONEY. UH I THINK HERE IN LOUISVILLE WE HAVE TAKEN A MORE MEASURED APPROACH, PRIMARILY BECAUSE OF THE EXISTING DEBT LOAD AND TO MAKE SURE THAT WE DO NOTHING TO GET A DOWNGRADE. BECAUSE THAT'S GOING TO BE PROBABLY THE MOST DAMAGING THING WE CAN DO IN TERMS OF DEBT GOING FORWARD AND COST TO THE PUBLIC. THE MOST INNOVATIVE THING THAT WE DID FIVE YEARS AGO WAS TO START THE COMMERCIAL PAPER PROGRAM BECAUSE THAT GAVE US FLEXIBILITY TO DECIDE WHEN WE WANT TO GO TO THE BOND MARKET AND MAKING SURE THAT WHEN WE STEP OUT THERE THAT WE'VE GOT THAT GOOD COVERAGE, WE'VE GOT THAT GOOD DATA OPERATING RATIO AND WE MAINTAIN OUR BOND RATING. AH THE ONE THING THAT I WILL SAY IS WE'VE GOTTEN MORE GRANTS IN THE LAST FIVE YEAR WINDOW THAN WE HAD PREVIOUS DECADES. AH AND SO IF I'M NOT MISTAKEN, I FORGET WHAT THE NUMBER IS. BUT I THINK WE HAVE GOTTEN OVER $30 MILLION IN GRANTS IN THE LAST TWO YEARS . AND PROBABLY SINCE 2016. WE'VE GOTTEN ALMOST $80 MILLION IN GRANTS EITHER AWARDED OR MIDDLE EAST WAITING TO BE AWARDED TO US, SO WE JUST HAVE TO HIT HIT IT FROM EVERY ANGLE. WE JUST
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CAN'T SAY WE'RE JUST GOING TO RAISE RATES AND DO WE GOT TO BE VERY INNOVATIVE AND VERY PROACTIVE AND HOW WE'RE BRINGING FORTH OR FINANCING PORTFOLIO. THANK YOU. I HOPE THAT WASN'T REDUNDANT FOR EVERYBODY ELSE. BUT THAT WAS HELPFUL FOR ME. SO THANK YOU VERY MUCH. NO ONE ELSE IS IN THE CUBES. ORDINANCE COMFORTABLE, COUPLE. PLEASE OPEN THE VOTING. COUNCIL MEMBER MCRANEY YES. COUNCIL MEMBER MULVIHILL. OH, SORRY, SIR. I SEE YOU. COUNCIL MEMBER, FOWLER.YES. MR. CHAIR. YOU HAVE 10 YEARS' VOTES. THANK YOU DON'T PASS. THIS WILL GO TO CONSENT.
IN OUR WORLD. RECOGNIZING COUNCILMAN GIL HAS JOINED US AND APOLOGIZE FOR NOT SAYING THAT EARLIER. WE WENT BACK UP TO THEN PICKED UP. THANK YOU. THANK YOU. THANK YOU GUYS. NUMBER TWO IS APPROPRIATING $5000 FROM DISTRICT THREE DEVELOPMENT FUNDS. THE OFFICE OF MANAGEMENT BUDGET, TOO WILLING, WILL ANY OF THE ENTERPRISE FOUNDATION INFLOW ROLE ANY AMUSING IMPACT PROGRAM MOTION? SECOND. THANK YOU MUST BEFORE US. I THINK MR BASS IS GOING TO SPEAK TO THIS ONE. HOW EVERYBODY DOING? UH IT WAS A SUCCESSFUL EVENT. MR WILL ACTUALLY HAS TWO THINGS THAT HE DOESN'T GET IT BACK TO SCHOOL AFTER EVENT AND THEN HE GETS A SHOOT BALLS LIKE THAT. BUT IT WASN'T SUCCESSFUL. THAT IT I THINK HE IS DEAD. ENJOY GETTING A BACKPACKS AND SCHOOL SUPPLIES AS WELL. VERY GOOD. SAYING NO ONE IS A CUBE. THIS IS. SEE, I. I PROPOSED SEVEN PASSES. I WAS SORRY. THERE'S AN ORDINANCE APPROPRIATING COUNTDOWNS AND OCEAN NEIGHBORHOOD BUILDING FRIENDS, AND I'M SORRY, SIR. WE'RE HOLDING THAT IN 30, RIGHT? WE ARE HOLDING THIS ONE. WE ARE? YES. THANK YOU. NO WORRIES. ITEM FOUR. SHOULD REALLY PROBABLY LOOK AT MY NOTES BEFORE I CALL HIM UP HERE. DON'T WORRY, PROBABLY IN $2000 FROM DISTRICT FAMILY DEVELOPMENT FUNDS TO THE OFFICE OF MANAGEMENT BUDGET TO SACRED EARTH COMMUNITY GARDENS LLC FOR REPORTABLE PARTY AND WATER FOR THE PLANTS MOTION. SECOND OF COURSE. SPEAKER REQUIREMENT OF UPSETTING WARNINGS TO SPEAK TODAY. THANK YOU. I'M HERE. OKAY, GREAT. HMM I OKAY. SO THIS IS A PROJECT THAT, UM I'M ASKING YOU ALL TO APPROVE. AH, THE NDS. FOR THIS, UM, COMMUNITY, UM, SACRED. YOU KNOW WHAT I'M SAYING? AH THEY HAVE CHILDREN, NEIGHBORHOOD CHILDREN INVOLVED IN GARDENING.
UH THEY WILL BE GIVEN FOOD BACK TO THE COMMUNITY. UH IT'S REALLY A GREAT PROJECT. AND IF YOU DON'T EVER GET AN OPPORTUNITY TO GO DOWN, THERE IS REALLY A BEAUTIFUL AREA THE WAY THAT HAS BEEN LAID OUT, AND SO I'M JT ASNG FOR MY COLLEAGUES. TO SUPPORT THIS ONE. THANK YOU. AND IT ISN'T 41ST AND TATE. BUT IT'S A IT'S A BETIFUL LTLE AA TH I WESD CAUSHAOU I'MORRYMR AIR. THIS IS SONIA THE CLERK, COUNCILWOMAN PURVIS. WE NEED TO AMEND THIS AMOUNT FROM $3749 THINK YES, MA'AM. I LIKE TO PUT THAT IN THE MOTION, PLEASE. YOU CANNOT MAKE A MOTION, BUT OKAY, OKAY. THE CHAIR WILL HANDLE IT. I'M SURE. OKAY, DO SOMETHING.
THANK YOU, MA'AM. THANK YOU. CAN I HAVE THAT FORM OF EMOTION FROM A COMMITTEE MEMBER, PLEASE, MR CHAIR. I'D LIKE TO MAKE THAT IN THE FORM OF EMOTION, COUNSELING GRAVER. THANK YOU, 2ND 2ND. OKAY WE HAVE MOTION AND A SECOND FOR THE AMENDMENT. ALL THOSE IN FAVOR OF AMENDMENTS I BUY IN YOUR POST. YES HAVE IT MENDED INDY F BEFORE US QUESTIONS OR CONCERNS SIGNALING IN A CUBE.
ALL THOSE IN FAVOR SAY AYE OPPOSED. WHEN I WAS 700 PASSES ITEM FILE, THERE'S APPROPRIATING $3000. FROM DISTRICT FIVE DEVELOPMENT FUNDS, THE OFFICE OF MANAGEMENT AND BUDGET TO PORTLAND'S FESTIVAL INC FOR THE 2023 POINT ROOM FESTIVAL. MOTION. SECOND. EVOLUTION OF SECOND BEFORE US COUNSELOR ON PURPOSE. YOU'RE UP. YES SIR. THANK YOU, MR CHAIR AGAIN. THIS IS A GREAT COMMUNITY EVENT, AND UNFORTUNATELY, IT ALMOST DIDN'T HAPPEN. AND SO, UM, MY NDF IS
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MAKING IT POSSIBLE, UH, FOR THIS EVENT TO CARRY ON WHICH WILL BE HELD IN THE FALL, SO I'M ASKING MY COLLEAGUES TO SUPPORT THIS BY APPROVING THIS IN D F. THANK YOU. QUESTIONS OR CONCERNS.SAYING THAT ALL THOSE IN FAVOR SAY AYE. AH, I OPPOSED. I DON'T PASSES. ITEM SIX IS A PERFECT THANK YOU, MADAM SEX APPROPRIATE $1000 FROM DISTRICT SIX NEIGHBORHOOD AT ALL FUNDS TO GLOBAL METRO POLICE DEPARTMENT IN SECOND DIVISION FOR THEIR 2023 NATIONAL NIGHT OUT. SECOND . SOME PROMOTIONS BEFORE US. AH, IT DOESN'T REQUIRE SPEAKER. HAVE FUN. UM AND PHARISEE. I AND I SUPPOSE. SEVEN FINAL ITEM SEVEN. IT'S APPROPRIATING $188 FROM DISTRICT SIX KEPT ON THIS STRUCTURE FUNDS TO PUBLIC WORKS TO FABRICATE AND INSTALL A REPLACEMENT, HONORARY STREET SELLING EAST KENTUCKY STREET AND SOUTH HANCOCK STREET AND RECOGNITION OF OVER DR GUARD CREATED MOTION. SECOND. PROBABLY WORSE THAN SECOND SELF EXPLANATORY QUESTIONS ARE CONCERNED SEEING THAT ALMOST UNFAIR, CI ALRIGHT. YOU OPPOSE. RIGHT AND PASSES. I DON'T EIGHT APPROPRIATING $3800 FROM DISTRICT 25 CAPITAL INFRASTRUCTURE FUNDS TO PUBLIC WORKS FOR SIDEWALK REPAIR IT 9 21 WEST AVENUE. MOTION SECOND SOMETHING GOES TO THE SECOND IS BEFORE US. THE SPEAKER OF THE. SEE NONE. ALL THOSE IN FAVOR SAY AYE, HMM. AND YOU POSED PASSES.
ITEM NINE IS APPROPRIATING $5892 INFRASTRUCTURE FUNDS TO PUBLIC WORKS FOR SIDEWALK REPAIR. 5 96 SUNSET, BOTH MOTIONS. MOST OF THE SECOND. AS COUNCILOR OWEN SO SIDEWALKS REPAIR PROJECT AND THE CHEROKEE GARDENS NEIGHBORHOOD PRETTY STRAIGHTFORWARD. INDEED QUESTIONS OR CONCERNS SINGLE DAY I. OPPOSED TO PASSES ITEM. 10 IS APPROPRIATING $600 FROM NEIGHBORHOOD DEVELOPMENT FUNDS IN THE FOLLOWING MANNER. $300 EACH FROM DISTRICT EIGHT AND NINE. THE RURAL METRO POLICE DEPARTMENTS FIFTH DIVISION FOR THEIR 2023 NATIONAL NIGHT OUT EVENT. MOTION. THE SECOND QUESTIONS CONCERNS SEEN IN ALL THOSE VERY SAD I SUPPOSE I DON'T PASS 11 IS AN ORDINANCE APPROPRIATING $4000, AND THEY WOULD FUNDS IN THE FOLLOWING MANNER $3000 FROM DISTRICT 14 AND $1000 IN DISTRICT, 15 TO THE OFFICE OF MANAGEMENT AND BUDGET TO UNIVERSITY OF GLOBAL HEALTH.
PRESENTING SPONSORSHIP FOR THE MAIN ELIZABETH HOSPITAL GOLF CLASSIC EVENT, WITH PROCEEDS BENEFITING WOMEN SERVICES IN THE NEWS BURNING CENTER OF GREEN ELIZABETH HOSPITAL SECOND CLOSE TO THE SECOND COUNSELOR, VALERIE THANK YOU, MR CHAIR. UM I'M WALKING IN THE BACK DOOR. UM, SO THIS IS SORRY. THIS IS, UM AS I WANT TO KILL THAT. OKAY SORRY. SO THIS IS, UM GOLF SCRAMBLE THAT MARY ELIZABETH IS DOING TO SUPPORT WOMEN'S SERVICES. AND UM , THE BARKING CENTER, WHICH EVERYONE KNOWS. I'M A VERY BIG FAN OF SO I'M HOPING THAT WE CAN GET UP TO THE $10,000 LEVEL. UM, BUT ADDING ON UM, I APPRECIATE YOUR SUPPORT. I WILL START IN A MINUTE. HERE. I'M GOING TO ADD $3000 FROM DISTRICT 12. ANYONE ELSE THEY CAN SAME NERVES. NUMBER TWO. I THINK KATHRYN MULVEY WAS TRYING TO GET IN. COUNSELOR LOGAN. I'M SORRY. YEAH DISTRICT, MENTAL CONTRIBUTE $500. HMM. MR CHAIR. DISTRICT 19 WILL CONTRIBUTE $500. THANK YOU. I'M SORRY. I MUST HAVE FORGOT MY SPEAKERS. NOW WE'VE GOT IT. OKAY, COUNSELOR, ALWAYS. DISTRICT NINE WILL CONTRIBUTE 500 AS WELL. HUDSON. DISTRICT 23 $500. ELSEWHERE, ARTHUR DISTRICT FOUR OR 500 0. KIRK DO YOU KNOW WHERE WE ARE WITH? SURPRISINGLY I DO. WE'RE AT $9500. AWESOME. VERY GOOD. SO WHEN I MOVED THE
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AMENDMENT TO BEGIN WITH THAT DON'T NEED A SECOND. YES, THANK YOU. AMENDMENT BEFORE US REAL QUICK IS THE BEST 10,000 TOTAL. YES. ALSO COOK. IT WILL ALSO GO TO THE METRO COUNCIL MEETING.WELL, THAT'S OKAY. JUST THAT WAY . WE CAN JUST HAVE IT AT 10. I'LL PUT ANOTHER $500. OKAY THANK YOU. THANK YOU. WE HAVE THE COMMITMENT BEFORE US. ALSO FAVORITE AMENDMENT SAY AYE, AYE.
I OPPOSED. THEN IT PASSES WE HAVE NOW THE AMENDED ORDINANCE BEFORE SUCH COMES FOR LOCAL VOTE VOTING. COUNCIL MEMBER MCRANEY YES. COUNCIL MEMBER FOWLER. YES. MR. CHAIR. YOU HAVE 10 YEARS' VOTES. THANK YOU. I WILL PASSES WILL GO TO HOLD BUSINESS BECAUSE IT WOULDN'T HAVE BEEN. I DON'T SWELL AS AN ORDINANCE AMENDING IMPORTANT IT'S NUMBER 79 SERIES 2023 AND ORDINANCE NUMBER 80 SERIES 2023 RELATING TO FISCAL YEAR 23 24 OPERATING IN GENERAL BUDGETS RESPECTIVELY BY TRANSFERRING $75,000 FROM DISTRICT 18 OVER DEVELOPMENT FUNDS TO DISTRICT 18 KEPT INFRASTRUCTURE FUND MOTION SECOND BEFORE THE SECOND COUNSELOR PODCAST. YES THANK YOU. UM A NDF WAS ALMOST DEPLETED DOING, UH, DUE TO, UM, SPEED HUMPS AND ROAD STRIPING, AND SO I NEED SOME MORE DOLLARS TO DO MORE SPEED HUMPS AND SIDEWALK REPAIRS. THANK YOU.
QUESTIONS CONCERNS ME NOW THIS IS AN ORDINANCE COMFORTABLE, COUPLE. PLEASE OPEN THE VOTING.
COUNCIL MEMBER MCRANEY. YES, COUNCIL MEMBER OF FOWLER. YES. MR. CHAIR. YOU HAVE NINE YES VOTES. DIDN'T I DON'T MESS. THIS WILL GO TO CONSENT CHILDREN, BUT IT WAS 13 IS AN ORDINANCE AMENDING ORDINANCE NUMBER 1 12. SERIOUS IT'S 3022 RELATING TO THE SECOND ROUND OF AMERICAN RESCUE PLAN LOCAL FISCAL RECOVERY TO REALLOCATE FUNDING FOR PERMANENT SUPPORTIVE HOUSING. MOTION SECOND IN THE SECOND. UM SO I THINK IF I SHARED CRAMER MINISTER SPEAKING TO THIS, YES. UM JUST BRIEFLY. AND THEN WITH YOUR INDULGENCE, I'LL TURN IT OVER TO THE OH, AND BE SO, UM, BASICALLY WHAT THIS IS CORRECTING, UM, KIND OF AIR IS THE RIGHT WORD, BUT, UM, WHEN WE PASSED AN ORDINANCE BEFORE WE SEND MONEY TO A DEPARTMENT THAT IT NEEDED TO BE IN A DIFFERENT DEPARTMENT AND WE PUT MONEY INTO ONE PROJECT THAT SHOULD HAVE BEEN IN A DIFFERENT PROJECT AND IT'S NOT LIKE THEY'RE COMING BACK AND ASKING US TO CHANGE OUR MINDS. IT'S REALLY THAT WHEN WE DID IT ORIGINALLY WE PUT IT IN THE WRONG PLACE. SO THAT'S THE SIMPLE EXPLANATION, AND NOW I'LL TURN IT OVER TO FOLKS WHO CAN DO A MUCH BETTER JOB OF EXPLAINING WHERE WE'RE ACTUALLY MOVING MONEY FROM INTO HMM. JUST COUNSELING ARTHUR. DO YOU WANT TO SPEAK BEFORE THEM OR YOU OR YOU HAVE QUESTIONS FOR ME? I CAN SAY SOMETHING REAL QUICK BEFORE . I JUST WANTED TO LET FOLKS KNOW I ONLY CO SPONSOR BECAUSE WE WORKED ON THIS AND I WANTED TO FOLLOW ALONG, BUT ALSO JUST LET MY COLLEAGUES KNOW WE WON'T REALLY SEE THE IMPACTS. ALL OF THAT MONEY WE APPROVED. PROBABLY A COUPLE MORE YEARS, BUT WE SHOULD REALLY BE PROUD OF THAT INVESTMENT. MOST CITIES ON AVERAGE INVESTED ABOUT 10.5% INTO HOUSING AND HOMELESSNESS. AND WE DID WAY MORE THAN THAT, SO I JUST WANTED TO SHOUT OUT OUR COLLABORATION ON THIS WORK, THAT'S ALL. VERY GOOD. NOW. VICE CHAIR OF TURNING OVER TO SORRY, KEN. THANK YOU, MR CHAIRMAN. THIS IS KEN HILDEBRAND, DIRECTOR OF THE LOCAL ACCELERATOR TEAM AND WITH ME ALSO HAVE MARILYN HARRIS, THE DIRECTOR OF OFFICE OF KEEPING HOUSING AND COMMUNITY DEVELOPMENT. SO AS VICE CHAIR, CRAMER INDICATED THE FIRST ITEM THAT WE'RE LOOKING AT IS MOVING $800,000 FROM SHELTER RENOVATIONS BACK TO PERMANENT SUPPORTIVE HOUSING. IT'S AN ACCOUNTING. ACTION THAT WE NEED TO TAKE OUT DON'T IT COULD HAVE BEEN A MISTAKE OR AN ERROR, BUT WE'RE JUST KIND OF PUTTING IT BACK. WHERE WHERE IT NEEDS TO BE. THE SECOND ITEM IS THIS IS AN ITEM THAT COUNCIL PASSED EARLIER THIS YEAR OR WE CHANGE THE COMMUNITY CARE CAMPUS AND CHANCELLORY. WE PURCHASED THE PROPERTY USING THE MONEY. THAT WAS A LOT OF FOR THIS. BUT WE ALSO NEED TO MAINTAIN AND SECURE THE PROPERTY UNTIL WE TURN IT OVER FOR OTHER OPERATIONS, OR ANOTHER DECISION IS MADE WERE INCURRING ABOUT A LITTLE OVER $10,000 A MONTH FOR FIRE ALARM, BURGLAR ALARM UTILITIES CAMERAS . WE RE KEYED EVERYTHING WHEN, WHEN METRO GOVERNMENT TOOK OVER THE PROPERTY AND PUT A FENCING, YOU KNOW. AFFORDABLE FENCING AROUND IT, SO WE WANT TO COVER THOSE COSTS USING THESE ART DOLLARS UNTIL AN OPERATOR IS
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ASSIGNED. ANOTHER DECISIONS ARE MADE ON THAT PROPERTY. SO THAT'S HOW WE WANT TO USE. THAT'S KIND OF WHERE WE WOULD LIKE TO ADD THE LANGUAGE, MAINTAIN AND SECURE. TO THAT LANGUAGE AND SCHEDULE A VERY GOOD. MR ALONG. I DON'T SEE ANYONE IN THE QUEUE . MR. CHAIR MR. CHAIR BY MAKE SURE THIS WAS BEFORE US. I WANT TO SAY A MEETING AND GO OR TWO MEETINGS AGO. UM AND WE HAVE BEEN HOLDING IT AND THE REASON WE WERE HOLDING IT IS THERE THERE NEEDS TO BE AN AMENDMENT TO FIX SOME OF THE LANGUAGE AGAIN. IT'S JUST THIS IS WE'RE NOT RADICALLY CHANGING ANYTHING.WE'RE JUST FIXING SOME LANGUAGE . UM I SPOKE WITH COUTURE AMARO YESTERDAY FROM THE MAYOR'S OFFICE, AND THEY ARE VERY COMFORTABLE WITH THE LANGUAGE THAT HAS BEEN WORKED OUT WITH THE COUNTY ATTORNEY'S OFFICE. I NOTE THAT HOLLY HOPKINS HAS MOVED TO THE TABLE. SO IF YOU WOULD INDULGE MISS HOPKINS FOR A MOMENT, YES, I HAD TO GET THE MIC GOING HERE. HOLLY HOPKINS WITH THE JEFFERSON COUNTY ATTORNEY'S OFFICE. UM AS KEN SAID, UH, THE AMENDMENT, WHICH IS THE AMENDMENT IN THE SYSTEM, OKAY, UH, THE AMENDMENT JUST MAKES THAT SMALL CHANGE TO THE PREVIOUS ORDINANCE. UH, TO ALLOW FOR THE USE OF PREVIOUSLY APPROPRIATED FUNDS TO ALSO BE USED FOR THESE ONGOING MAINTENANCE AND SECURITY ISSUES UNTIL AN OPERATOR'S FOUND AND THAT IS REFLECTED IN THE AMENDED SCHEDULE A AND ALSO REFLECTED IN THE LANGUAGE OF THE ORDINANCE ITSELF REFLECTS THAT THIS AMENDMENT IS ALSO BEING MADE. SO I'D LIKE TO, UM OFFER THAT IN THE FORM OF A MOTION SECOND. DISCUSSION ON THE AMENDMENT. SEE ANYONE. ALTHOUGH SOME FURTHER AMENDMENTS SAY I OPPOSED LET'S HAVE IT. WE HAVE THE AMENDED ORDINANCE BEFORE US. I STILL DON'T SEE ANYONE IN THE QUEUE. UM COUNTRIES OPEN THE VOLUME. I'M SORRY TO JUMP THE GUN COUNCIL MEMBER MCRANEY. YES. COUNCIL MEMBER BALOR. SORRY, MA'AM. YOU'RE THERE. SORRY. MR CHAIR. YOU HAVE IT. EIGHT. YES. OH I'M SORRY. I'M SO SORRY. COUNCILMAN MULVIHILL? YES. YOU HAVE NINE? YES VOTES, SIR. I DON'T. THIS IS ALL BUSINESS BECAUSE OF THE AMENDMENT. I THINK THAT'S THE LAST THING TO COME BEFORE US. SORRY. YES, SIR . FOR ENTERTAINMENT MOTION TO ADJOURN. MOTION TO ADJOURN. VERY GOOD. THANK YOU. OBJECTION. WE'RE ADJOURNED NEXT TIME.
* This transcript was compiled from uncorrected Closed Captioning.