May 06, 2024 Budget Hearings FY 2024-2025

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METRO TV WILL GET STARTED IN ONE MINUTE, PLEASE.

YEAH, LIKE JUST. CAN YOU GET IT? MY OUR LOCAL DRUG. NOW I SAID IT ON MY DRIVE. UH, NO.

YES.

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I LIKE TO CALL TO ORDER OUR BUDGET HEARING. SO 2024 25 BUDGET. UH, TODAY IS MAY 6TH. IT

[Call to Order]

[Roll Call]

REMINDER THAT IF YOU ARE ONLINE, YOU NEED TO HAVE YOUR UM, VIDEO ON AND ALSO REMINDERS. THIS IS, UH, ONE. I JUST WANNA MAKE SURE THE FOLKS WHEN THEY GET IN THE QUEUE, BECAUSE SOMETIMES WE GET CONFUSED. JUST MAKE SURE THAT YOU'RE ON RIGHT NOW. YOU SHOULD BE UNDER REVENUE EXPENDITURES, CAPITAL AND DEBT. SO IF YOU'RE ON THERE AND THEN YOU CLICK TO SPEAK, YOU WILL BE IN THE SPEAKER QUEUE. IF YOU'RE SOMEWHERE ELSE, YOU'RE GONNA BE CLICKING TO SPEAK TO SOME OF THE ITEM LATER IN THE BUDGET SO WELL , I'LL TRY TO REMIND YOU OF THAT EACH TIME OK, HERE'S WHERE YOU

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[ ID 24-0263     Revenue, Expenditures, Capital, and Debt]

I'M THE CHIEF FINANCIAL OFFICER WITH THE OFFICE OF MANAGEMENT BUDGET. I'M HERE TO PRESENT THE FY 25 METRO BUDGET OVERVIEW FOCUSING ON REVENUES, EXPENDITURES, DEBT AND CAPITAL.

I'D LIKE TO FIRST. JUST TAKE A MOMENT TO, UM, THANK THE LMB. DIRECTORS AARON JACKSON, RICHARD CHAMPION AMANDA BAKER, JOEL NOVELL, CHRISTINA BRITS AND K KEN HILLEBRAND. I'D ALSO LIKE TO THANK MAYOR GREENBERG AND HIS TEAM ALONG WITH THE DEPUTY MAYORS, OUR METRO AGENCY DIRECTORS AND THEIR LEADERSHIP TEAMS AND OWENBY'S BUDGET TEAM, UH, COMPRISED OF LARRY LINEHAN, ELIZABETH DAVIS, EBONY TAYLOR, ROBERT WALKER AND MATTHEW BOWEN AND OUR OMB FISCAL COORDINATORS FOR ALL THE WORK THAT THEY DO, AND CONTRIBUTE TO COMPLETING THIS BUDGET. WE'LL WORK OVER THE NEXT 77 WEEKS TO PROVIDE ACCURATE, TIMELY RESPONSES TO ALL MEMBERS OF THE BUDGET COMMITTEE, AS WE DO EVERY YEAR, IN PARTICULAR, WE'D LIKE TO KNOW THAT THE COUNCIL HAS ALREADY RECEIVED THE FOLLOWING ITEMS PER ITS REQUEST. THE THIRD QUARTER REPORTS, NET INTEREST FEES AND EXPENSES, DETAIL DETAIL OF THE CAPITAL FUND RESTRICTED ACCOUNTS FOR FY 25 ALL FUNDS A METRO WIDE PC R, AN EMPLOYEE TURNOVER REPORT AND METRO CONTRACT LIST. THE FY 25 RECOMMENDED EXECUTIVE BUDGET AND DETAILED BUDGET DOCUMENTS ARE AVAILABLE ONLINE FOR YOUR REFERENCE. WE ARE SCHEDULED TO HAVE THE PRINTED COPIES OF, UH, DELIVERED BY THE MIDDLE OF NEXT WEEK, AT WHICH POINT THEY WILL BE DISTRIBUTED TO THE METRO COUNCIL PRESIDENT'S OFFICE. I WANT TO PROVIDE A FEW NOTES REGARDING THE FY 25 RECOMMENDED BUDGET PRESENTATION. THE RECOMMENDED BUDGET BEFORE YOU DOES NOT INCLUDE GRAIN ACTIVITY WITHIN THE VARIOUS EXPENDITURE CATEGORIES. THOSE GRANTS ARE CURRENTLY BUDGETED IN FY, 25 AND RESTRICTED. WE HAVE PROVIDED METRO COUNCILS FINANCIAL ANALYST WITH A FULL LIST OF EXISTING AND ANTICIPATED GRANTS FOR FY 25 FOR YOUR REFERENCE, WE PLAN TO INCLUDE THE LIST AS AN EXHIBIT TO THE FY 25 OPERATING ORDINANCE. THE REVENUE SPIN CATEGORIES NOT GENERATED THROUGH AGENCY RECEIPTS, ACTIVITIES AND DESIGNATED FOR A SPECIAL PURPOSE WILL BE INCLUDED IN THE STATE GRANTS. SUB. TOTAL EXAMPLES INCLUDE DONATIONS, INSURANCE RECOVERY, OTHER GOVERNMENT AGENCY RECEIPTS, STATE FUNDS, SPONSORSHIPS, ET CETERA. THE FULL LIST UNDER THIS CATEGORY CAN BE FOUND ON PAGE TWO OF THE FY 25 RECOMMENDED DETAILED BUDGET. AS THE MAYOR STATED IN HIS BUDGET ADDRESS. THIS BUDGET FOCUSES ON CONTINUED EFFORTS TO BUILD A SAFER, STRONGER, HEALTHIER CITY PROVIDE BASIC GOVERNMENT SERVICES EXPAND ECONOMIC DEVELOPMENT IN DOWNTOWN REVITALIZATION, INCREASE AFFORDABLE HOUSING AND DECREASE HOMELESSNESS AND STRENGTHEN EDUCATION. WE ACCOMPLISH THESE THINGS THROUGH STRATEGIC INVESTMENTS AND PUBLIC SAFETY PARKS AND LIBRARIES, RE LEVERAGE FEDERAL AND STATE FUNDING OPPORTUNITIES TO SPUR ECONOMIC GROWTH. WE ADDRESS HOMELESSNESS, MEET AFFORDABLE HOUSING NEEDS AND INVEST IN EARLY CHILDHOOD EDUCATION. AND LAST, BUT CERTAINLY NOT LEAST WE RECOGNIZE THE NEED TO ATTRACT AND RETAIN A TALENTED WORKFORCE NECESSARY TO PERFORM THIS IMPORTANT WORK AND SERVE THE CITIZENS OF OUR CITY. THIS IS JUST A VERY, UH, HIGHLY SUMMARIZED SNAPSHOT OF SOME OF OUR LARGE SPECIAL REVENUE FUNDING SOURCES THIS YEAR. UH, 388.3 MILLION OF THE AMERICAN RESCUE PLAN, STATE AND LOCAL RECOVERY FUNDS HAVE BEEN APPROPRIATED AS OF 331. ABOUT 339 MILLION OF THE FUNDS HAVE BEEN EXPENDED OR ENCUMBERED WITH THE REMAINING BALANCE OF ABOUT 48.8 MILLION. ALL FUNDS MUST BE OBLIGATED BY 1031 24.

APPROXIMATELY 52 MILLION IN BIL FEDERAL AWARDS HAVE BEEN SECURED AND APPROPRIATED. USE UTILIZING 11.7 MILLION OF THE PREVIOUSLY APPROPRIATED BIL MATCH. AN ADDITIONAL 38.6 BIL FEDERAL AWARDS HAVE BEEN APPLIED FOR AND ARE AWAITING NOTIFICATION OF A WARD, POTENTIALLY COMMITTING ANOTHER 9.1 MILLION OF BIL MATCH. 100 AND 32 MILLION APPROPRIATED DIRECTLY TO LOUISVILLE METRO FROM THE FY 2526. KENTUCKY STATE BUDGET INCLUDES 100 MILLION FOR DOWNTOWN REVITALIZATION PROJECTS , 7 MILLION FOR THE SHAWNEE OUTDOOR LEARNING CENTER. 2.5 MILLION FOR JEFFERSON MEMORIAL FOREST AND 2 MILLION FOR THE FERN CREEK LIBRARY. IT'S IMPORTANT TO NOTE THAT ANOTHER 71 MILLION WAS APPROPRIATED TO VARIOUS NON METRO GOVERNMENT

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METRO GOVERNMENT MAINTAINS A FINANCIAL STABILIZATION POLICY FOR THE UNRESTRICTED GENERAL FUND BALANCE OR THE RAINY DAY FUND. THE OBJECTIVE OF THE POLICY IS TO BUILD A FINANCIAL RESERVE, WHICH SERVES TO PROVIDE A FIRST DEFENSE AGAINST DEFICIT SPENDING AND HELP MAINTAIN LIQUIDITY WHEN BUDGETED OVERAGES BECOME INEVITABLE. IT'S IS ESSENTIAL THAT METRO MAINTAIN ADEQUATE LEVELS OF FUN BALANCE TO MITIGATE CURRENT AND FUTURE RISK MAINTAINING A FINANCIAL STABILIZATION FUND WITH THE GUIDELINES IN THIS POLICY HELPS METRO TO ANALYZE ITS FINANCIAL STABILITY. ACCUMULATE FINANCIAL RESERVES MAINTAIN A FAVOR, FAVORABLE CREDIT RATING AND STABLE CREDIT OUTLOOK, PROACTIVE STRATEGY AGAINST SERVICE REDUCTIONS OR TAX INCREASES, SAFEGUARDS FUNDS AGAINST TEMPORARY REVENUE SHORTFALLS OR UNFORESEEN EXPENDITURES.

MAINTAINING A FINANCIAL STABILIZATION FUND IS A PRUDENT FISCAL MANAGEMENT TOOL BENEFICIAL FOR SUSTAINING THE EFFICIENT OPERATION OF METRO DESPITE THE UNCERTAINTY OF FUTURE ECONOMIC CLIMATES. AND USING THE FINANCIAL STABILIZATION FUND THAT LOUISVILLE AIMS TO MAINTAIN A FUND BALANCE BETWEEN ONE AND TWO MONTHS. AVERAGE CURRENT YEAR.

GENERAL FUND BUDGETED EXPENDITURES ATTAIN A FUND BALANCE GOAL OF 13% OF GENERAL FUND REVENUES. THE RECOMMENDED BUDGET RECOGNIZES THE IMPORTANCE OF THE RAINY DAY FUND TO ADDRESS EMERGENCY AND UNFORESEEN NEEDS AND SUPPORTS THE STABILIZATION FUND BY ADDING 500,000 TO BRING THE BALANCE OF FUND UP TO 10.4% OF GENERAL FUND REVENUES. THE FY 25 GENERAL FUND. REVENUES ARE PROJECTED TO TOTAL EIGHT 115.3 MILLION OR 0.6% OVER FY 24, HOWEVER, INCLUDED IN THE FY 24 TOTAL OF 810.6 MILLION IS THE ONE TIME END OF TERM SURPLUS PAYMENT FROM THE SHERIFF'S OFFICE THAT WILL NOT BE REPEATED IN FY 25. IN ADDITION IN FR 24, A 53RD FRIDAY IN CORRESPONDING PAY PERIOD, RESULTING IN AN ADDITIONAL 3.5 MILLION IN ESTIMATED EMPLOYEE WITHHOLDINGS TAX REVENUE THAT WILL NOT BE REPEATED IN FY 25. AND IN FY 25, THE NET INTEREST FEES AND EXPENSES ASSOCIATED WITH THE REVENUE COMMISSION'S OPERATING COST AND GENERAL OBLIGATION DEBT SERVICE PAYMENTS IS INCREASING BY 8.4 MILLION. EXCLUDING THESE CHANGES TOTALING 22.2 MILLION, THE FY 25 GENERAL FUND RECEIPTS ARE PROJECTED TO GROW BY 3.4. THE LARGEST COMPONENT EMPLOYED WITHHOLDINGS ON INDIVIDUAL EARNINGS ARE FORECASTED TO GROW BY 3.4. AS THE POST PANDEMIC JOB AND WAY GROWTH CONTINUES, BOTH NATIONALLY AND LOCALLY. THIS IS A BREAKDOWN OF THE VARIOUS SOURCES OF REVENUE TO METRO AS YOU CAN SEE, METRO HAS A HIGH DEPENDENCY ON THE OCCUPATIONAL LICENSE TAX AT 58% OF TOTAL REVENUE. THE SECOND HIGHEST IS THE PROPERTY TAX AT 24. THE REAL AND PERSONAL PROPERTY TAX RATES FOR BOTH METRO COUNTYWIDE AND THE US D, THE URBAN SERVICES DISTRICT ARE BOTH ANTICIPATED TO DECLINE SLIGHTLY BASED UPON THE PRELIMINARY ASSESSMENT, RECAPS RECEIVED FROM THE PROPERTY VALUATION ADMINISTRATOR PRELIMINARY RECAPS SHOW THAT THE TOTAL ASSESSMENT GROWTH IN EXCESS OF 4% IN BOTH THE METRO AREA AND THE US D FROM JANUARY 1ST 2023 AND JANUARY 1ST 2024. AS OF JANUARY 1ST 2024 REAL PROPERTY IN MLS AREAS 23 AND SEVEN. UH, WERE REASSESSED. THE REAL PROPERTY TAX RATES JUST FOR COMPARISON, AND FYO FOUR WAS 37.4 CENTS PER 100 ASSESSED VALUE IN THE US D AND 13.8 CENTS PER 100 ASSESSED VALUE IN THE COUNTY. IN FY 24. IT'S AT 34.4 CENTS PER ASSESSED VALUATION IN THE US D AND 12.4 CENTS PER $100 ASSESSED VALUE IN THE COUNTY. FY 25. UH, SEES A LIKELY REDUCTION IN BOTH. THE FY 25 REAL PROPERTY TAX RATES WILL NOT BE SET UNTIL AFTER THE FINAL ASSESSMENT. RECAPS ARE RECEIVED FROM THE REVENUE CABINET LATER THIS SUMMER. EMPLOY WITHHOLDINGS ARE EXPECTED TO GROW BY 4.4% IN FY 25, EXCLUDING THE 53RD FRIDAY IN FY 24, AS BOTH THE JOB GROWTH AND WAGE INCREASES SLOW SOMEWHAT

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F-22 SAW RECORD COLLECTIONS OF 115 MILLION IN THE NET PROFITS TAX. AIDED BY AN EXTRAORDINARY ONE TIME CAPITAL GAIN PAYMENT OF 14 14.2 MILLION AFTER SLOWING SOMEWHAT IN FY, 23 AND 24 TO 94 MILLION FY 25 SHOULD REBOUND SLIGHTLY TO 96 MILLION. IT SHOULD BE NOTED HOW MUCH HIGHER THE LAST FOUR YEARS. NET PROFITS COLLECTIONS ARE COMPARED TO THE SLOW, STEADY UPWARD TRAJECTORY WITNESSED PRIOR TO THE PANDEMIC. THIS LAB PROVIDES THE MAJOR REVENUE SOURCES FOR FY 25 OVER THE FOUR QUARTERS AND CUMULATIVE QUARTERS AS THE COUNCIL IS AWARE , REAL AND PERSONAL PROPERTY TAXES ARE DUE BY 1231 OF EACH YEAR, LEADING TO LARGE SWINGS IN THE AMOUNT OF REVENUE RECORDED IN EACH QUARTER. BUT OVERALL, APPROXIMATELY 95% OF THIS ITEM LINE ITEM IS RECEIVED DURING QUARTERS TWO AND QUARTERS THREE. THE REMAINING LINE ITEMS ARE NOT FORECASTED ON A QUARTERLY BASIS, BUT HAVE BEEN EVENLY DIVIDED PER THE COUNCIL'S REQUEST. WE MOVE ON TO OUR OPERATING OVERVIEW.

THIS CHART. UH, BREAKS DOWN THE EXPENDITURES BY CATEGORY AS A PERCENTAGE OF TOTAL FUNDS.

PUBLIC SAFETY, WHICH INCLUDES VARIOUS PUBLIC SAFETY DEPARTMENTS, SUCH AS L, MP, D, FIRE, EMS AND METRO SAFE AND CORRECTIONS ACCOUNTS FOR ALMOST HALF OF THE GENERAL FUND AT 50% FOLLOWED BY CENTRAL SERVICES, COMMUNITY BUILDING AND PUBLIC SERVICES. THIS LAB PROVIDES AN OVERVIEW OF METRO PERSONNEL FOR THE LAST FIVE YEARS. A SHARP DECLINE IS NOTICEABLE IN YEARS 2020 TO 2022, WHICH SEEMS TO HAVE AT LEAST SOME RELATIONSHIP TO COVID-19. DURING THIS TIME, THERE WERE ALSO INCREASED RETIREMENTS AND CHANGES IN THE JOB MARKET THAT MADE IT MORE DIFFICULT FOR METRO TO ATTRACT AND RETAIN EMPLOYEES. 2023 IS THE FIRST YEAR IN THE LAST THREE TO SHOW POSITIVE PERSONNEL GROWTH AND IS AN INDICATION THAT METRO MAY BE STARTING TO REBOUND SLIGHTLY. IT IS IMPORTANT TO NOTE THAT THE FY THAT THE 24 PERSON COUNT FOR METRO IS SIMILAR TO THAT OF 2020 AT THE HEIGHT OF THE PANDEMIC. THE TABLE ON THE RIGHT SHOWS THAT WE ARE STILL WELL BELOW PRE PANDEMIC LEVELS. IF YOU WERE TO LOOK AT 17 AND 18 IT'S ALSO IMPORTANT TO NOTE THAT THE PERSONAL COUNT IS ALL FUNDS AND WILL INCLUDE POSITIONS FUNDED BY FEDERAL AND OR STATE FUNDING SOURCES. AS YOU MAY RECALL, THE PENSION CONTRIBUTION RATE REQUIREMENTS WERE TO BE INCREASED TO 12% FOR FIVE YEARS. THIS WAS THEN SUSPENDED IN 21 DUE TO THE PANDEMIC. FY 22 RETURNED 12% FOR BOTH HAZARDOUS AND NON HAZARDOUS F 423 RIGHTS WILL BE SIM. WILL BE SIMILAR INCREASE FOR HAZARDOUS BUT NONHAZARDOUS REMAINED STEADY. F.

I 24 RATES DECREASED AT 11.9% AND 13.4% FOR HAZARDOUS AND NONHAZARDOUS, RESPECTIVELY. FY 25 IS PROJECTED TO SEE A SIMILAR DECREASE. TOTAL OF PENSION CONTRIBUTION. UH, THIS, UH C ER S CONTRIBUTIONS PER FISCAL YEAR. THIS IS THE TOTAL OF PENSION CONTRIBUTIONS FOR ALL FUNDS. OF NOTE THE CONTRIBUTION INCREASE FROM 22 TO 23. IS DUE TO THE MID YEAR WAGE INCREASE IN COST LIVING INCREASE FOR JULY 1ST 2023. THE CONTRIBUTION DECREASED FROM 23 TO 24 IS DUE TO THE PENSION RATE DECREASE AND THE RECOMMENDED INCREASE FROM 24 TO 25 REFLEX ANTICIPATED WAGE INCREASES DUE TO COST OF LIVING AND COLLECTIVE BARGAINING AGREEMENT NEGOTIATIONS. THIS IS THIS IS THE PENSION AS A PERCENTAGE OF GENERAL FUND BY FISCAL YEAR, AND THIS IS JUST ANOTHER VIEW OF THE OF THE COST. HEALTH INSURAN COSTS THE METRO RATES FOR FY 25 REMAINING THE SAME. EMPLOYEES BOTH FR 24 AND 25 ARE DISPLAYED AT BUDGET WITH THE FORECA FORECASTED INCREASE OF 4% FOR FY 26. THE RECOMMENDED BUDGET FOR FY 25 DIRECTS A SPLIT OF MAP FUNDING TOWARDS BOTH

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OK, CAN YOU HEAR ME? OK NOW. OK VERY SORRY ABOUT THA. SO A COUPLE UH, VERY QUICK QUESTIONS JUST TO CLAFY A THEMAYBE ONE OR TWO. LONGER QUESTIONS SO UM FIR OF ALL YOU Y MEIO TAK THE EERCENTAGEF THE RAINYAY FUND, AS OPPOSED TO REVENUE IS GOING DOWN THIS YEAR. $500,000 IS ONE OF THE SMALLEST AMOUNTS WE'VE ALLOCATED TO IN YEARS. WAS THERE A REASON WE WE'RE WE'RE NOT TRYING TO KEEP UP WITH THE PERCENTAGE OF THE RAINY DAY FUND TO GENERAL FUND REVENUE. WELL IT WAS REALLY JUST A MATTER OF RESOURCES THAT WERE AVAILABLE, UM, YOU KNOW, AND THERE AND WE CAN ALWAYS ALSO LOOK AT THE RAINY DAY FUND WHEN WE DO OUR MID ADJUSTMENT. ONCE WE SEE WHERE FR 24 CLOSES OUT, AND IF THERE'S ANY FUNDING AVAILABLE THERE, BUT IN TERMS OF BUDGETING FOR 25 THAT WAS THE AMOUNT THAT WE FELT WOULD STILL KEEP US WITHIN. UH, WHERE WE NEED TO BE. YES, IT IS A SMALLER AMOUNT THAN IT'S BEEN IN THE PAST, BUT IT STILL CONTINUES TO PUSH US FORWARD AND KEEPS US WITHIN THE RANGE THAT WE NEED TO STAY WITHIN. I. I DON'T AGREE, BUT BUT, OK, I UNDERSTAND. UM I IT DOES SEEM LIKE YOU TOOK THE FULL

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THAT DEFINITELY CONTRIBUTES. UM I, UH, WANNA BACK UP REAL QUICK YOU TALKED ABOUT IN THE, UH, EMPLOYEE TREND AND HOW MUCH HOW MANY EMPLOYEES THAT METRO HAS HAD, AND YOU WENT BACK THREE PANDEMIC UP TILL NOW, I CAN TELL YOU THE REASON THERE WAS SUCH A LARGE DECREASE DURING THOSE YEARS HAD EVERYTHING TO DO WITH THE HUGE BUDGET. WELL, NOT HUGE, BUT THE BUDGET CUT THAT WE HAD TO TAKE. UH WHEN, UH, FIRST YEAR THAT I KNOW I WAS ELECTED. THIS WAS SIX YEARS AGO. UH, MAYOR FISHER AT THE TIME. TAX INCREASE METRO COUNCIL VOTED AGAINST THAT , AND THE ONLY WAY TO, UH CONTROL COSTS IN THE CITY AND GET US BACK TO FINANCIAL SUSTAINABILITY WAS TO LOOK AT TOTAL EMPLOYED PERSONS AND MAKE A FAIRLY DRAMATIC CUTS AND THAT'S WHAT YOU'RE SEEING THERE.

AND THE REASON I'M BRINGING THIS UP IS JUST AS A MATTER OF CLARITY. UH, I DO HAVE CONCERNS THAT WE'VE NOW SEEN WE SAW DECREASES THROUGH ABOUT 2021. WE'VE NOW SEEN INCREASES EVERY YEAR FROM FISCAL YEAR 22 THROUGH NOW, FISCAL YEAR 25 AND, UH UH AND I'M JUST BRINGING THIS UP AS IT IT'S NICE TO ADD PEOPLE WHEN TIMES ARE GOOD, AND WE'VE GOT THE REVENUE COMING IN AND WE CAN AFFORD IT. BUT I'M JUST POINTING OUT THAT THIS IS ALSO THE NUMBER THE FIRST ONE OF THE ONLY WAYS THAT WE WERE ABLE TO CONTROL COSTS WHEN TIMES WEREN'T AS GOOD SO, II. I JUST HAVE SOME CONCERN THERE THAT WE CONTINUE TO ADD PEOPLE AND ENSURING THAT WE'RE ONLY ADDING, UH MENSTRUATE WITH THE RATE OF, UH NEW REVENUE AND NOT PUTTING OURSELVES IN UNSUSTAINABLE POSITION MOVING FORWARD. WHICH BRINGS ME TO OVERALL QUESTION. I THINK I ASKED THIS EVERY YEAR. DO YOU SEE ANY SCENARIO, MAYOR POINTED OUT IN HIS BUDGET. THERE'S NO NEW TAXES THIS YEAR. THAT'S GOOD. I APPRECIATE THAT, UH, COMMITMENT. UH, BUT I'M ASKING SORT OF OUT IN HERE AND I KNOW WE DON'T BUDGET FOR OUT YEARS. UH, BUT YOU ALL LOOK AT LONG TERM PROJECTIONS AND LOOK AT SCENARIOS. UH DOES OWEN BE OR THE MAYOR AT THIS POINT, SEE ANY SCENARIO WHERE, UH, WE COULD BE IN A POSITION WHERE HE WOULD BE PROPOSING TO INCREASE TAXES TO COVER FUTURE EXPENDITURES OVER THE NEXT TWO OR THREE FISCAL YEARS. I DON'T I DON'T SEE THAT SCENARIO. I DON'T BELIEVE THAT'S AN INTENTION. YOU KNOW, I. I CAN'T THE NEEDS MAY BRING. YOU KNOW, THAT'S A TOUGH UH, THAT'S A TOUGH TOPIC THAT MAY HAVE TO BE REVIEWED AND AT SOME POINT IN TIME, BUT I, I THINK IN THE IMMEDIATE NEAR FUTURE, NO, I DO NOT SEE THAT AS A SCENARIO.

RIGHT. AND I JUST WANNA MAKE SURE I'M BEING CLEAR ABOUT MY QUESTION. I'M NOT ASKING ABOUT WHAT COULD BE BUT RIGHT NOW. YOU'VE CONTEMPLATED FUTURE SCENARIOS. THE MAYOR IS TALKING ABOUT LONG TERM CAPITAL PLANS. THAT'S GOOD. I LIKE LONG TERM PLANNING, HE HAS SET OUT LONG TERM PLANS RELATED TO HOUSING. HE KNOWS WHAT THEY WERE CONTRACTS ARE COMING. UH SO IMB IS LOOKING PASS THE NEXT 12 MONTHS IN AND LOOKING AT DIFFERENT SCENARIOS. I JUST WANNA CONFIRM THAT RIGHT NOW THERE'S NO SCENARIO WHERE YOU SEE THE NEED TO, UM ARE YOU CONTEMPLATED THE NEED TO RAISE TAXES OR DO REVENUE? UH, IN IN OUT USE IS THAT CORRECT? THAT'S CORRECT. RIGHT NOW INCREASED TAXES HAS NOT BEEN CONTEMPLATED. OK? UM, POINT OUT TO COUNCILOR MOVE ON AND I'LL COME BACK TO YOU. YOU COME BACK IN A QUEUE HERE. YES SO WE HAVE, UH, COUNCILMAN COUNCILWOMAN CHAPEL, AND COUNCILWOMAN FOWLER HAD JOINED US AS WELL. VIRTUALLY COUNCIL PARKER. YES. THANK YOU, UM COUNCIL PI ARGENTINA MENTIONED DOOM POSITION, SO THERE'S 71 NEW POSITIONS SLATED FOR 2025 OR ANY OF THOSE POSITIONS GOING TO BE FUNDED OUT OF NON RECURRING FUNDS. AARON JACKSON WITH OPTIM MANAGEMENT AND BUDGET. I WOULD SAY, UH, WHEN WE DEVELOPED THE BUDGET, WE DIDN'T AND WE IDENTIFIED NON RECURRING SOURCES. WE DIDN'T NECESSARILY TIE THOSE NON RECURRENT SOURCES TO ANY SPECIFIC UH, INITIATIVE OR PROGRAM WITHIN THE BUDGET, SO I CAN'T SPECIFICALLY SAY THAT A NON RECURRING SOURCE IS USED TO ADD TO FUND SOME OF THOSE POSITIONS. THERE MAY BE AND THEN, IN SOME CASES THERE MAY

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WELL YEAH, I WOULD APPRECIATE CAUSE THAT MIGHT WE MIGHT NEED THAT BECAUSE YOU KNOW, THEY'RE ONE OF THE THREE LARGEST EMPLOYERS, I BELIEVE, OR THEY USED TO BE, UH, IN THE CITY. UM, SO I THINK, YEAH, I THINK THAT WOULD BE HELPFUL. APPRECIATE IT. IT PERISH RIGHT? GOOD AFTERNOON.

THANK YOU FOR YOUR PRESENTATION. I'LL TRY TO ASK THE QUESTIONS THAT MY COLLEAGUES DIDN'T MENTION I HAD SOME OTHER ONES THAT WERE RELATED TO THEIR THEIR QUESTIONS, SO THE TIMELINES ON THE PROJECTS IS THERE A WAY TO KNOW THE PRIORITY LIST OF THIS AND IF MANY OF THESE ROLLED OVER FROM THE PREVIOUS ADMINISTRATION, I THINK IT IS GOOD. IT WOULD BE GOOD FOR US TO HAVE A TIMELINE AS DISTRICT THREE DOESN'T ALWAYS GET A LOT OF, UM, CAPITAL INVESTMENTS, AND SO PEOPLE ARE ASKING ME ABOUT THINGS THAT ARE COMING UP. SO UM, MY QUESTION IS THE MOST OF THESE CAPITAL INVESTMENT ON THE CAPITAL INVESTMENT PLAN, ROLL OVER FROM THE PREVIOUS ADMINISTRATION OR OR THESE TOTALLY NEW FOR THIS ADMINISTRATION. ARE ARE YOU SPEAKING ABOUT THE YEAH. THAT LONG LIST YOU HAD ON THE END OF THOSE ARE, UM, BRAND NEW THAT THOSE ARE NOT, UH CAPITAL PROJECTS SO WE STARTED WITH THIS YEAR. SO THOSE ARE PROJECTS THAT WERE REQUESTED, UH, BY THE VARIOUS AGENCIES FOR THIS YEAR THAT WERE NOT RECOMMENDED IN THE BUDGET, SO WE PUT THEM ON A FUTURE YEAR PLAN, SO THAT PARTICULAR LIST IS OUR BRAND NEW PROJECTS. OK THANK YOU. AND THE OTHER QUESTION IF I MAY, MR CHAIR IS, UM YOU TALKED ABOUT THE TOP THREE ON THE CAPITOL OVERVIEW, STATE FORFEITURE AND AUTHORIZED BOND FUNDS. CAN YOU GIVE EXAMPLES AND FORGIVE ME? THIS IS MY FIRST ONE. WELL STATE FUNDS WOULD BE SORT OF WE CARVE OUT FEDERAL GREENS, BUT WE DON'T HAVE A SPECIFIC SO IT'S JUST IT'S JUST LIKE FEDERAL GRANTS.

IT WOULD BE STATE GRANTS THAT CONTRIBUTE TO OUR CAPITAL PROJECTS, FORFEITURE FUNDS.

THAT'S A PROGRAM THAT WE HAVE THROUGH THE STATE, FEDERAL AND STATE. UM AND THOSE FUNDS CAN BE USED FOR VARIOUS THINGS. I'M NOT AN EXPERT ON WITH YOUR FRIENDS, BUT THERE ARE PORTIONS OF THE PORTIONS OF THOSE FUNDS THAT CAN BE USED TOWARDS CAPITAL PROJECTS. THANK YOU. COUNCILOR P ARGENTI. THANK YOU, MR CHAIR. I WANT TO TALK ABOUT THE MAP FUNDING. YOU HAD MENTIONED THAT, UM WE'VE DONE THIS IN THE PAST, ALBEIT IT WAS FOUR YEARS AGO, UH , THAT WERE ALLOCATING HALF OF THE MAP MONEY TO OPERATING COST. I WOULD ARGUE. THERE'S A REASON WE HAVEN'T DONE IT FOR THE PAST THREE YEARS AND THAT WAS LARGELY BECAUSE WE WANTED TO START USING THIS MONEY FOR WHAT IT'S INTENDED FOR, AND WE WANT IT TO SUPERCHARGE, UH, YOU KNOW, SPENDING FOR ROADS AND CAPITAL ET CETERA. WE ALREADY SEE IN THIS PLAN. THE MAYOR IS NOT FULLY FUNDING ROAD PAVING. WE'RE FULLY FUNDED WITH $30 MILLION. HE'S ONLY PUTTING $22 MILLION INTO IT. AND AS PART OF THAT ONLY 50% OF THE MAP FUNDING WHEN I GO AND LOBBY LOBBY ADVOCATE WITH STATE LEGISLATORS THAT THEY SHOULD TAKE THE CAPITAL NEEDS OF OUR CITY MORE SERIOUSLY, UH, INCLUDING WHETHER IT'S MAP FUNDING OR GETTING OTHER CAPITAL ALLOCATIONS. I THINK THEY ASSUME WHEN THEY PASS THESE LAWS FOR US , THEN WE'RE GONNA USE IT IN THE WAY THEY'VE OUTLINED. SO WHY DO WE THINK IT'S OK TO GO BACKWARDS TO THE WAY WE USED TO DO THINGS WHEN WE USED TO RUN DEFICITS AND WE'RE UNDER FUNDING CAPITAL? I DON'T THINK THERE'S THERE. I DON'T BELIEVE THERE'S ANYTHING THAT THERE'S NO RULE THAT SAYS WE CAN'T USE IT FOR OPERATING AS LONG AS IT'S USED FOR, UM, ESSENTIALLY THE WORK THE PUBLIC

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AND HOW THAT WAS, UH MANIFESTED INTO THE PROJECTION. UM WHAT IS THE STATUS OF THOSE? IT SAID THERE WERE 13 CONTRACTS THAT WERE EXPIRING IN SIX HAVE REACHED AGREEMENT, SO HOW IS THAT PROJECTION DONE? AND WHAT IS THE STAND THE STATUS OF THOSE, UH, NEGOTIATIONS. SO AS YOU RECALL, UH, IN THE FY 24 BUDGET, THERE WAS, UH, ROUGHLY $20 MILLION THAT WAS APPROPRIATED TO ADDRESS BOTH THE NONUNION, UH, CONVERSATION STUDY AS WELL AS THE UNION. COLLECTIVE BARGAINING CONTRACTS. YES WE'VE EITHER. UH, WE'VE REACHED AN AGREEMENT WITH WITH THE SIX CONTRA. UH, SIX COLLECTIVE BARGAINING UNITS AND WE'RE STILL , UH, CONTINUING. CONTINUE TO NEGOTIATE WITH THE OTHERS. UH, AS FAR AS THE PROJECTIONS, UH, THE MAYOR'S PRIORITY WAS TO START WITH PUBLIC SAFETY, WHICH IS WHAT WE'VE WHAT WE'VE DONE. WE FACTORED IN, UH, THE IMPACT OF THAT INTO THE FY 2425 BUDGET AND, UH WHAT THE ORDINANCE LANGUAGE ALLOWS IS FOR ANY REMAINING FUNDS THAT IS SPECIFICALLY FOR A COLLECTIVE BARGAINING TO BE CARRIED FORWARD . WE ANTICIPATE THAT WE WILL LIKELY NEED TO UTILIZE THOSE FUNDS TO ADDRESS THE REMAINING SEVEN CONTRACTS THAT EXPIRED AT THE END OF 6 30 23 AS WELL AS, UH, THE, UH, CONTRACTS THAT EXPIRE. UH, 6 30 24, SO IT'LL BE KIND OF AN ONGOING, UH, CONVERSATION WITH THE UNIONS AND WE, UH, WE ANTICIPATE USING THOSE FUNDS TO OFFSET SOME OF THE COSTS FOR THE UPCOMING CONTRACTS. SO THAT IS PART OF THE CONTEXT WITHIN WHICH THE NEGOTIATION OCCURS BECAUSE YOU HAVE SET ASIDE A CERTAIN AMOUNT OF FUNDS TO BASICALLY BE SITTING THERE. TO ACCOUNT FOR THAT.

THAT'S CORRECT. OK, THANK YOU. GOT SOME KRAMER. NO. OK, THANKS. UM HAD A JUST A COUPLE QUICK.

I'M LOOKING AT THE REVENUE PROJECTIONS. AND, UM YOU ANSWERED THE QUESTION ABOUT THE RAINY DAY FUND A MINUTE AGO. UM IT'S 10.4% IF I HEARD YOU CORRECTLY, IT'S 10.4. IS WHAT WILL GO IN IS WHAT WE WILL HAVE AS A BALANCE. THAT WILL BE OUR PERCENTAGE OF RAINY DAY FUND TO REVENUES. OK, WHAT? WHAT HOW DOES THAT COMPARE TO LAST YEAR? WHAT WAS THE PERCENT LAST YEAR? AND I KNOW OBVIOUSLY IT'S DOWN. I THINK IT WAS NINE. I THINK IT WAS ON THIS. IT'S DOWN SLIGHTLY.

[00:45:01]

SO THAT'S CORRECT SO SIMILAR TO THE CONVERSATION WE JUST HAD ABOUT MATT. WE ARE SHIFTING $2 MILLION MORE THAN WE DID IN FY 24 BUDGET, UH, TOWARDS THE OPERATING BUDGET TO ADDRESS. UH, PRIMARILY FOR PERSONNEL AND OTHER NEEDS. AND THAT WILL BE FUNDED THROUGH THE THROUGH CITY, BG AND 7 MILLION FROM MP. THAT'S I MEAN, NO ONE'S CHALLENGING THAT WE CAN DO IT. THAT'S I. I HEARD YOU SAY THAT. YOU KNOW WE'RE DOING NO ONE SAID WE COULDN'T DO IT. UM, BUT A $7 MILLION HIT FROM CAPITAL INTO OPERATING IT'S SIGNIFICANT WHEN YOU START TO MARK ROADS. I THINK THAT'S I'M JUST ECHOING COUNCILMAN THE ARGENTINA AT THAT POINT, UM, COULD YOU SHARE WITH ME A LITTLE BIT ABOUT WHAT HAPPENED IN, UM OUR STATE RECEIPTS IN CAPITAL? WE WERE AT 11 MILLION. THEN WE DROPPED TO 276,000. AND THIS YEAR WE'RE PROJECTED BACK UP TO 6 MILLION.

UM I THAT'S A PRETTY LARGE DROP IN STATE RECEIPTS AND CAPITAL. AND THEN IT'S I DON'T KNOW IF THAT'S OPTIMISTIC THAT WE'RE GOING BACK UP. TO 6 MILLION. UM, I. I WANT TO HELP YOU ON BUDGET PAGE. SO SO THAT'S $6 MILLION IN THE CURRENT YEAR. THAT'S A SPECIFIC TO THE JUDICIAL CENTER.

UH JUDICIAL CENTER, UH, SHELL RESTORATION PROJECT AND, UH, THAT REQUIRES A MATCH. SO WE, UH WE'VE ACCOUNTED FOR THAT MATCH AS A PART OF THE FY 25 BUDGET, AND I'M NOT EXACTLY I'M TRYING TO PULL UP THE STATE FUNDS FROM THE FY 24 BUDGET. TO COMPARE. WE WERE 276,000 THIS YEAR, SO THAT THAT'S WHY IT INCREASED BECAUSE OF THAT ONE LARGE PROJECT, OK, AND THEN THERE'S THE I'M THIS IS MY LAST QUESTION. I'LL GET OUT OF HERE. I'LL GET BACK IN. BUT, UM THERE'S ALSO A PRETTY LARGE FLUCTUATION IN AGENCY RECEIPTS AND FEDERAL RECEIPTS. SO YOU LOOK AT AGENCY RECEIPTS AND DEPARTMENT BUDGETS. UM IN 23, IT WAS 59. IT DROPPED TO 44. NOW WE'RE SAYING BACK UP, WE'RE PROJECTING BACK UP TO 56 AND FEDERAL RECEIPTS AND DEPARTMENT BUDGETS. IT WAS AT 63 MILLION.

IT DROPPED DOWN TO 25 AND YOU'RE PROJECTING IT WILL GO UP TO 73. SO YY YOU'RE PROJECTING AN INCREASE IN FEDERAL, FEDERAL DEPARTMENT AND FEDERAL RECEIPTS AND DEPARTMENT BUDGETS. OF 10 MILLION MORE THAN 23. WHICH IN 24 WAS ACTUALLY DOWN BY WELL OVER HALF. SO WE CAN GET YOU THE DETAILS, BUT I'M UH, JUST GOING BY MEMORY. THE OTHER FEDERAL GRANTS IS THE BULK OF THAT.

THAT'S ROUGHLY 55 MILLION, AND THOSE ARE ON THE LIST OF ANTICIPATED GRANTS FOR FY 25 RELATIVE TO THE CURRENT YEAR. FY 24. OK SO WE HAD A BUMP IN FEDERAL GRANTS IS WHAT YOU'RE TELLING ME THAT COTTON WE WERE SUCCESSFUL GRANTS. OK, THANKS AGAIN. I'LL CLICK BACK IN COUNCILMAN HUDSON. THANK YOU. CHAIR. SO THIS IS PROBABLY, UH QUESTION. THAT'S GOING ALONG THE THEME OF THE QUESTIONS TODAY. UM OF ONE TIME FUNDING. HAD BEEN USED FOR OPERATIONS NOW PUTTING A PRESSURE ON CAPITAL. EXPENDITURES HAS THERE BEEN A DEEP DIVE ACROSS ALL ORGANIZATIONS WITHIN METRO GOVERNMENT TO TRY TO UNCOVER AREAS WHERE ARE OR OTHER ONE TIME FUNDING HAS BEEN USED TO COVER OPERATIONS BECAUSE WE'VE TALKED ABOUT IT TODAY WITH PAVING. WE TALKED ABOUT IT JUST NOW. THE CBD G AND T JUMPED THE LINE AND CAME IN A COUPLE WEEKS AGO. IT'S KIND OF SCARY. ARE THERE. OTHER AREAS. WHERE THIS THIS PRACTICE IS BEING USED AND HAS ANYONE EVEN LOOKED TO SEE IF THOSE ROCKS HAVE BEEN TURNED OVER. WE'RE VERY VERY FAMILIAR WITH WITH HOW ARP HAS BEEN USED. SO METRO UM, I THINK DID A VERY NICE JOB. THIS COUNCIL DID A VERY NICE JOB OF APPROPRIATING MOST OF THE ART DOLLARS TO PROJECT TYPE. WORK. THERE WERE SOME DOLLARS THAT WENT TOWARDS OPERATIONS AND THOSE WERE USED EARLIER, PRIMARILY, UM, WHEN

[00:50:03]

SPECIFIC TO OUR OR OR GENERALLY SPEAKING, NOT SPECIFIC TO ANYONE IN THOSE AREAS. WHERE IT HAS BEEN DISCOVERED THAT ONE TIME FUNDING WAS USED FOR OPERATIONS. IS THERE A PLAN TO GET OPERATIONS PAID FOR EITHER THROUGH BUDGET CUTS, BUT SPENDING CUTS. BECAUSE LIKE TO YOUR POINT, THOSE FUNDS ARE COMING TO AN END. AND RATHER THAN WAIT UNTIL IT'S A CRISIS.

IS THERE A PLAN IN PLACE? TO REPLACE THOSE ONE TIME FUNDING SOURCES WITH ADDITIONAL REVENUE OR SPENDING CUTS, WELL, MOVING TOWARDS A STRUCTURALLY. A STRUCTURAL BUDGET, WHICH IS WHAT YOU'RE SORT OF TALKING ABOUT, YOU KNOW, RECURRING REVENUES THAT COVER RECURRING COSTS AS FAR AS OPPOSED TO NON RECURRING REVENUES COVERING THESE RECURRING COSTS. WE CONTINUE TO MOVE IN THAT DIRECTION. YOU KNOW, YOU SEE THAT OUR NON RECURRING IS GETTING SMALLER.

UM, WE IT IS. YOU DON'T JUST FLIP THE SWITCH AND ALL OF A SUDDEN YOU'RE YOU'RE IN THAT SORT OF STATUS. AND SO IT'S SOMETHING WE HAVE TO CONTINUE TO PUSH FOR WHERE WE'RE LOOKING AT OUR RECURRING EXPENDITURES. AND WHAT ARE OUR RECURRING REVENUES? AT LEAST I BELIEVE WE STARTED THAT PROCESS THIS YEAR WHERE THE MAYOR ASKED THE METRO AGENCIES TO LOOK AT WHAT'S YOUR LEAST NECESSARY SPENDING. THIS IS SORT OF LIKE STEP ONE. WHERE CAN YOU GIVING THAT? UH, FLEXIBILITY TO THE DIRECTORS TO IDENTIFY WHERE THEY CAN ABSORB SOME SAVINGS. UM AND HE HAS SAID PUBLICLY THAT YOU KNOW, THAT IS SOMETHING HE INTENDS TO CONTINUE TO ASK OUR AGENCIES TO DO AS WE MOVE FORWARD IN EACH YEAR, AND SO THAT CERTAINLY ACTIVITIES THAT ARE PLANNED THAT WE'RE GOING TO LOOK AT EACH YEAR WHERE IT'S WHERE'S YOUR LEAST NECESSARY SPENDING. HOW CAN YOU STRUCTURE YOUR OPERATIONS DIFFERENTLY? UM AS WE CONTINUE TO SORT OF PUSH TOWARDS A BALANCED BUDGET, I THINK IT'LL TAKE US A COUPLE OF YEARS TO GET THERE. BUT WE'RE IN. WE'RE MOVING IN THAT DIRECTION. THANK YOU. THANK YOU. A COUPLE OF THINGS JUST TO CLARIFY SO SOME OF THE LANGUAGE THAT WE'RE USING IN A COUPLE OF COUNCIL MEMBERS WHO USED IT WHERE YOU'RE SAY IT'S SPENT FOR THINGS THAT WEREN'T INTENDED. UM SO IN THE ART FUNDS, THE OUR FUNDS WEREN'T RESTRICTED JUST TO CAPITAL PROJECTS THAT MIGHT HAVE BEEN COUNCIL MEMBERS. THAT MIGHT HAVE BEEN THEIR PREFERENCE. BUT SOME THINGS LIKE YOU OBVIOUSLY DID IN THE MIDDLE OF COVID. WE NEEDED MORE HEALTH WORKERS THAN WE EVER NEEDED BEFORE THAT. IS CERTAINLY A LEGITIMATE USE OF I THINK WHAT I HEARD YOU SAY, LIKE, ESPECIALLY LIKE WITH THE BUDGET THE EXAMPLE YOU GAVE OF OMB THAT YOU HAVE FOLKS WHO ARE YOU ARE PAYING NOW, OPERATIONALLY THAT ARE DOING STILL DOING THE MONITORING FOR THOSE ART FUNDS, WHICH ARE CONTINUING TO BE SPENT. WHEN OUR MONEY IS OVER, THOSE JOBS WILL NO LONGER BE NEEDED, AND THOSE PEOPLE WOULD PRESUMABLY EITHER. BE LIKE GO OR OBSERVE. UH BROUGHT IN BECAUSE WE DO LOSE FOLKS IN GOVERNMENT AS WELL. THAT'S CORRECT, BUT YOU ALSO LOOK FOR EXISTING VACANCIES THAT YOU MAY HAVE NOT ADDING POSITIONS. BUT IF YOU HAVE EXISTING VACANCIES, CAN THOSE VACANCIES BE FILLED? THAT SORT OF THING? WHAT? WHEN YOU LOOK, MR WE GENERALLY HAVE A FAIR AMOUNT OF VACANCIES. THAT'S TRUE. UH, COUNCILOR MARINO WEBER. THANKS AGAIN. AND THANKS FOR OBVIOUS SLUMPING PREPARATION HERE. CAN YOU SPEAK A LITTLE BIT OF TO SOME OF WHAT? THE CONVERSATIONS WE'VE BEEN HAVING WITH THE OFFICE OF

[00:55:03]

THERE'S BEEN QUITE A FEW GRANTS THAT THE OFFICES OF SUSTAINABILITY HAS EMBARKED UPON APPLIED FOR THEY'VE BEEN GOING THROUGH THAT PROCESS, AND SO LMB HAS BEEN INVOLVED IN THIS CONVERSATIONS IN TERMS OF WHAT THEY'RE PURSUING, UM AND GRANTS. UH, THOSE GRANTS OBVIOUSLY COVER A WIDE RANGE OF DIFFERENT THINGS THAT THAT YOU COULD DO FROM A SUSTAINABILITY STANDPOINT, I THINK IF YOU'RE MENTIONING, SPECIFICALLY, UM, OUR BONDING AUTHORITY AS IT RELATES TO SUSTAINABLE SUSTAINABILITY INITIATIVES. THERE'S SEVERAL DIFFERENT WAYS IN WHICH THAT BONDING AUTHORITY CAN BE USED, UH, HISTORICALLY, AND TRADITIONALLY, METRO GOVERNMENT USES OUR BONDING AUTHORITY TO, UM PAY FOR OUR OWN CAPITAL PROJECTS. SO YOU WERE TALKING ABOUT SOLAR PANELS, FOR EXAMPLE, ON METRO GOVERNMENT BUILDINGS IF WE DIDN'T RECEIVE A GRANT OR SOME OTHER SOURCE OF FUNDING THAT COULD CERTAINLY BE BONDED AS A CAPITAL PROJECT BUILDING IMPROVEMENT TO AN EXISTING BUILDING AND YOU COULD BOND FOR THOSE, UM, SOLAR PANELS AS AN EXAMPLE, UM, WHEN YOU GET INTO THOUGH, AND I'VE BEEN IN SOME OF THESE CONVERSATIONS, AND IT'S NOT SOMETHING THAT WE'VE, UH, LOOKED INTO IN GREAT DETAIL, BUT IT HAS COME UP IN CONVERSATION.

UH THERE'S I GUESS THERE'S SUCH A THING AS GREEN BONDS AND THINGS OF THAT NATURE THAT ARE OUT THERE THAT, UM IF METRO GOVERNMENT WANTED TO USE ITS BONDING AUTHORITY TO SORT OF VENTURE OUTSIDE OF WHAT WE TYPICALLY USE IT FOR THERE ARE THERE ARE OTHER SORTS OF BONDING INSTRUMENTS OUT THERE. UM BUT THAT'S OBVIOUS. THAT'S A MORE COMPLEX CONVERSATION AS TO WHETHER OR NOT THAT'S SOMETHING WE WOULD WANT TO PURSUE OR NOT, UH, BUT JUST AS A VERY, UH STRAIGHT WERE TO ANSWER TO COULD WE USE OUR BONDING AUTHORITY TO IMPROVE OUR OWN BUILDINGS? SURE WE COULD OR SOME OTHER CAPITAL PROJECT THAT THE COUNCIL APPROVED AND DEEMED WORTHY. THEN YOU COULD CERTAINLY BOND THAT JUST WITH OUR GENERAL USE OF GENERAL OBLIGATION BONDS THAT WE USED TO BOND FOR THAT SORT OF THING. GOT A THUMBS UP. THAT'S GOOD. I FIATI THANK YOU, MR CHAIR. THE QUESTION THAT I GOT CUT OFF ON WAS THE LONG TERM CAPITAL PLAN AND YOU THREW UP A SLIDE EARLIER. WHEN COULD YOU SEND THAT OVER TO US? UM, I'M I'M SURE WE CAN SEND THAT OUT.

UM AFTER THIS MEETING. OK AND THEN THIS. THE $100 MILLION THAT THE STATE IS ALLOCATED TO SEVERAL PROJECTS, UH, RELATED TO LOUISVILLE METRO GOVERNMENT SPECIFICALLY, THAT IS NOT CAPTURED IN THIS BUDGET, CORRECT LIKE THEY'RE NOT REFLECTED ANYWHERE IN THIS DOCUMENT. IS THAT ACCURATE? AND THAT'S CORRECT. YES. OK, GOOD. AND THEN, UM QUICK COMMENT. QUICK QUESTION IS, IS THE I DO SUPPORT ? I WANT TO TELL YOU HOW MUCH I SUPPORT THE MAYOR'S INITIATIVE RELATED TO THIS 1% EXAMINATION. ALL BUDGETS I WOULD VENTURE TO SAY WE PROBABLY HAVE MODERATELY MORE THAN 1% OF INEFFICIENT PROGRAMS THAT HAVE JUST KIND OF HUNG AROUND. UH, BUT IT'S GOOD TO START SOMEPLACE AND I AGREE THAT WE NEED TO DO THAT EVERY YEAR AND THEN MY FINAL QUESTION LAST YEAR I REMEMBER ASKING, AND COUNCILMAN ACKERSON MADE A POINT OF TALKING ABOUT THIS AS WELL. I HAD ASKED FOR SORT OF OUT YEAR PROJECTIONS, AND I REMEMBER THERE BEING DEFICIT PROJECTIONS FOR THE FOR FISCAL YEAR, 25 AND THEN EVEN WORSE, UH, DEFICIT PROJECTION FOR FISCAL YEAR 26.

AND THEY WEREN'T SMALL DOLLAR AMOUNTS. I THINK IT WAS LIKE 25 TO $30 MILLION PROJECTED DEFICIT FOR THIS YEAR. NEXT YEAR. IT WAS LIKE $80 MILLION PROJECTED DEFICIT. WHATEVER HAPPENED TO THAT? I MEAN, HOW HOW ARE WE? DID WE GO FROM SUCH A HUGE PROJECTED DEFICIT TO A SCENARIO WHERE WE HAVE, YOU KNOW TENS OF MILLIONS OF HOLDOVER DOLLARS AND , UM, YOU KNOW, A PRETTY SOLID FISCAL FOOTING FOR THIS YEAR. COUNCILMAN I'LL SPEAK TO THAT. SO UH, WE'VE ALREADY TALKED ABOUT IT A FEW TIMES THE, UH, USAGE OF THE MAP FUNDS SHIFTING THAT TO OPERATING. WE'VE TALKED ABOUT THE C DB G, WHICH IS $2 MILLION, AND THEN OBVIOUSLY WE HAVE SOME NON RECURRENT SOURCES.

BUT WHEN YOU KIND OF FACTOR IF YOU WERE TO TAKE THOSE OUT OF THE EQUATION, THEN YOU KNOW WE WOULD BE IN A DEFICIT POSITION AND AS WELL AS IF WE DIDN'T ASSUME THE 1% FOR THE LEAST NECESSARY SPENDING THAT WOULD ALSO CONTRIBUTE TO THE DEFICIT SITUATION AND OBVIOUSLY WE

[01:00:05]

AND WHY HAS THAT BEEN THE NUMBER? WELL THIS 46. THAT IS JUST THAT IS THE DEBT SERVICE THAT IS PAID DIRECTLY OUT OF O AND B. AND THERE'S THE 2007 A ISSUE WHICH IS ONLY THE, UH 86.

5 AND I FROM MEMORY. UH THERE'S UH, MAY ONLY BE A FEW MORE YEARS LEFT FOR THAT. AND THEN WE HAVE A LINE OF CREDIT FOR 400,000. THAT WE MAY ACCESS THROUGHOUT THE YEAR. WHICH IS WHY WE BUDGETED THAT 400,000. I'M ASSUMING THAT OUR INTEREST RATE ON THAT HAS BEEN INCREASING.

GIVEN THE MARKET WELL, I, UH, WE HAVEN'T UTILIZED IT, UH, IN THE 24 BUDGET, BUT WE HAVEN'T BUDGETED FOR 25 IN THE EVENT. WE NEED TO ACCESS IT. SO AT SOME POINT THAT DEBT WILL BE RETIRED AND WILL FREE UP ADDITIONAL MONEY TO GO INTO THE GENERAL FUND. I WOULD GUESS. YES, THAT'S CORRECT. OK, ALL RIGHT. THANK YOU. COUNCILMAN HAWKINS. THANK YOU, UM JUST HELP ME OUT HERE.

JUST A LITTLE BIT. UM DEFINITELY SUPPORTING THE, UH, MAYOR'S BUDGET. UM AGAIN, I'M STILL NEW.

THIS BUDGET IS NOT AN EASY PROCESS. UM BUT QUITE OFTEN, UM WE ASK SOMETHING OF PEOPLE THAT WE DON'T DO OURSELVES AND IT JUST SEEMED LIKE YOU KNOW, THIS ART MONEY WAS GREAT. UH, AND WE NEEDED IT. UH, BUT IS IT THAT THIS ART MONEY HAS ALSO HANDICAPPED? UH, SOME OF THE DEPARTMENTS. UM, TO WHERE, YOU KNOW WHO'S LOOKING IN A DIFFERENT LENS AT THESE DEPARTMENTS, LIKE OK, UM, WE'RE ABOUT TO RUN OUT OF FUNDING. LET'S START DOING SOMETHING NOW.

YOU KNOW, BEFORE PEOPLE ARE LEFT WITHOUT JOBS, AND YES, I KNOW IT'S LIKE 1700 JOBS, BUT THEY MAY NOT WANT TO GO TO THOSE JOBS. SO, UM AS FAR AS YOU KNOW, I KNOW WHEN NONPROFITS COME IN, AND THEY ASK FOR MONEY, ONE OF THE FIRST THINGS THAT A LOT OF OUR COLLEAGUES ASKED THEM AND THAT IS, ARE THEY SELF SUSTAINABLE? SO MY QUESTION IS, YOU KNOW, IS OUR DEPARTMENTS HEALTHY? ARE THEY GONNA BE SELF SUSTAINABLE? UM, EVEN WHEN THIS ART MONEY IS GONE, AND WHAT ARE WE GONNA DO? AND WHO'S LOOKING AT THAT NOW? SO WE WON'T BE BLINDSIDED. UM, KINDA LIKE WE WERE WITH TAR. SO CAN SOMEBODY JUST TOUCH ON THAT JUST A LITTLE BIT ABOUT WHAT ARE WE LOOKING

[01:05:04]

WE MET TWICE AND DIDN'T MEET ANYMORE, OK, WHEN I STARTED TO ASK QUESTIONS, SO THAT'S WHY I ASKED, DO YOU WORK CLOSELY WITH THEM? THANK YOU. COUNCILOR PER RIGHT. THANK YOU. UM JUST A FEW CLARIFYING QUESTIONS AND PLEASE ANSWER WHAT YOU CAN AND YOU CAN EAT. SHOW ME A RESPONSE. IF YOU DON'T HAVE AN ANSWER, ARE THERE ANY FUNDS EXPECTED TO BE SPENT IN? UM FY 25 NOT CONTAINED IN THE MIRRORS PROPOSED BUDGET. DO YOU KNOW OF ANY FUNDS? NO. OK, UM BROADLY. UM AND THIS IS A QUESTION THAT I GET FROM A LOT OF PEOPLE, NOT UNDERSTANDING WHERE, UM WHAT YOU KNOW, AR AROUND THE PUBLIC SAFETY PORTION OF THIS WHAT PERCENT IS CORRECTIONS? WHAT'S LNPD AND WHAT PERCENTAGE FIRE EMS AND METRO SAFE BECAUSE THEY'RE SEPARATE. SO WE CAN GET YOU THAT DETAIL, BUT IT'S UH OBVIOUSLY, IT'S ROUGHLY 50% PUBLIC SAFETY AS A UNIT LIKE SHE SAID, UH, LNPD CORRECTION INSPIRE EMS. UH, THERE'S ROUGHLY 50% BUT WE CAN GET YOU TO THE PERCENTAGE OF OVERALL BUDGET. OK THANK YOU. AND THEN THE LAST ONE TRYING TO MAKE SURE I DON'T ASK SOMETHING TWICE FOR THE NON RECURRING FUNDING FOR FY 24 REVENUE SURPLUS TAKEN INTO CONSIDERATION WHEN ESTIMATING THE FY 25 REVENUE, OR WILL WE EXPECT TO SEE A LARGE REVENUE SURPLUS AGAIN NEXT YEAR? I THINK YOU KIND OF TOUCHED ON IT. I JUST WANTED TO NEXT YEAR BEING FY.

LIKE THIS TIME NEXT YEAR. YES. WELL, I DON'T CAN'T PROJECT WHAT THE HOW THE ACTUAL RECEIPTS WILL MATERIALIZE. SO I CAN'T REALLY SPEAK TO. THAT WOULD BE A NO. RECURRING UNTIL YOU CLOSE OUT.

[01:10:01]

UM I'M LOOKING AT THE DEBT PAYMENT. THE WAY WE PAY. OUR BONDS IS THROUGH THE REVENUE COMMISSION, SO IT DOESN'T ACTUALLY SHOW UP AS A AS A DEBT PAYMENT, BUT, UM, IN FY 24. IT WAS 57,000,009 96 800. THIS YEAR . IT LOOKS LIKE YOU'RE PROJECTING 62,000,686 SO GIVEN THAT WE'VE MOVED MONEY FROM MA P CAPITAL INTO OPERATING. WE'VE MOVED MONEY FROM C, DB, G CAPITAL AND OPERATING. I'M GUESSING WE'RE NOT DOING THAT BECAUSE WE HAVE LOTS OF EXTRA MONEY THAT WE CAN PAY THINGS OFF. IS IT A SAFE BET, THEN THAT OUR INCREASE IN DEBT IS CORRESPONDING WITH OUR INCREASE IN DEBT SERVICE HERE. MORE SIMPLY. WHY ARE WE GOING UP FROM 57,000,996 TO 62 MILLION 600 THAT'S JUST THE INCREASED DEBT SERVICE FROM THE PROJECTS. UH, THROUGH THE END OF 23 222 MILLION THAT WE JUST ISSUED. WE TOOK ON MORE DEBT THAT'S CORRECT. UM AND THEN, UH, I WANTED TO ASK A QUESTION AND THIS IS MUCH I THINK. SIMPLER UM, HOW LONG WILL THE O OPIOID FUNDS LAST? I BELIEVE THEY'RE SCHEDULED TO COME IN OVER. 15 17 YEARS AND HOW MANY YEARS HAVE THEY BEEN COMING IN ONE YEAR, SO WE'RE LOOKING AT ANOTHER 15 OR 16 YEARS FOR OPIOID? WELL THEY'VE BEEN COMING IN AT A AT A RA A MORE RAPID PACE THAN WHAT THE ORIGINAL SCHEDULE SO I THINK IT IT CAPS OUT AT SOMETHING LIKE $30 MILLION AND WE ALREADY RECEIVED SOMEWHERE LIKE 14 MILLION SO WE COULD RECEIVE IT AT A FASTER PACE. BUT THE ORIGINAL SCHEDULE SHOWED SOME SOMETHING LIKE 17 YEARS, BUT THE AMOUNT IS FIXED. SO THE QUICKER THEY GIVE IT TO US, THE QUICKER WE'LL SPEND IT, BUT ONCE WE HAVE IT, IT'S GONE. OK UM, THANK YOU.

UM, AND THEN I HAD JUST ONE MORE. UM WE'RE LOOKING AT, UM OR I'M LOOKING. I SHOULD SAY, UM AT AT RECOVERING SOME CHARGES AT RECOVERING COSTS BY CHARGING FOR SERVICES THINGS LIKE, UH, EMS AND THINGS LIKE THAT. UH, AND THE MAYOR MENTIONED THIS AGAIN THE OTHER NIGHT AND HIS BUDGET PROJECTION. UM WE HAD ORIGINALLY PROJECTED IN, UH, 21 THAT WE WOULD COLLECT ABOUT 8 MILLION.

WE ACTUALLY COLLECTED 12. WE PROJECTED IN 22 THAT WE CLICKED ABOUT, UH, 15 AND WE ACTUALLY COLLECTED 16.1. BUT WE'RE STILL PROJECTING 15.6 GOING FORWARD. WE COLLECTED MORE THAN THAT ALREADY. AND WE'RE TALKING ABOUT DOING A BETTER JOB OF COLLECTIONS IN THE FUTURE. AND YET WE'RE STILL PROJECTING ONLY 15.6. IS THAT ARE WE JUST BEING CONSERVATIVE TO BE CAREFUL? UM OR IS THERE SOME REASON THAT WE THINK THAT'S AN APPROPRIATE, MORE APPROPRIATE PROJECTION? JUST IT'S JUST A CONSERVATIVE. A CONSERVATIVE ESTIMATE. OK, GOOD. THANK YOU. I'M ALWAYS HAPPY TO HEAR CONSERVATIVE ESTIMATES. SO JUST TO FOLLOW UP TO THE OPIOID QUESTION, AND THEN ALSO THE DUEL QUESTION. IS THAT ALSO COMING IN ALREADY? THE MONEY FROM THE SETTLEMENT IN IN OUR ALL THOSE ALREADY EXPENDED IN THE IN THE CURRENT BUDGET. THE AMOUNT THAT'S COMING IN IS ALREADY EXPENDED HERE, RIGHT? THEY, UM I DON'T KNOW THAT. JAW, MAYBE HAVE I'M NOT SURE IF JOEL'S BEEN BROUGHT BEFORE YOU YET FOR AN APPROPRIATION, BUT OPIOID THERE HAVE BEEN, UH, AN ORDINANCE HAS BEEN BROUGHT IN. I THINK TWO ORDINANCES MAYBE HAS BEEN BROUGHT FORWARD TO APPROPRIATE THAT MONEY BECAUSE ALL OF THOSE ARE SPECIFICALLY TIED TO SPECIFIC ACTIVITY ALLOCATIONS.

IT CAN BE USED FOR OTHER THINGS, OK, VERY GOOD. UH, COUNCILOR HAWKINS. SORRY, UH, COUNCILOR OWEN. TNK YOU CHAIR. UH, I DIDN'T FULLY UNDERSTAND THE ANSWER TO COUNCILMAN KRAMER'S QUESTION. SO, UH, I ASSUME THAT THERE IS THE DIFFERENCE BETWEEN A 57 MILLION AND THE 62 MILLION IN IN PAYMENTS ON BONDS IS BOTH INCREASED DEBT LOAD AND INCREASED. COST OF AVERAGE COST

[01:15:10]

IT'S THE COST OF ISSUING THE DEBT. THAT HAS BECAUSE THE ORIGINAL 57 MILLION TO INCREASE TO 62 IN THE PROPOSED BECAUSE WE'RE FACTORING IN ALL THE DEBT IN THE ENTIRE PORTFOLIO UP THROUGH, UH THROUGH FY 24. PLUS WHAT WE ANTICIPATE, UH, FOR THE ISSUING NFR 25 GOT IT. THANK YOU. ARGENTI. THANK YOU. YEAH I. I WANNA DRIVE HOME. THIS POINT FOR MY COLLEAGUES IN THE PUBLIC.

UH, I DON'T KNOW IF ALL MY COLLEAGUES KNOW THIS PARTICULARLY THOSE THAT THAT, UH I. I KNOW, COUNCILWOMAN, UH, PARISH WRIGHT AND MENTIONED THAT YOU KNOW, THIS IS ONE OF HER FIRST, UH, RODEOS GOING THROUGH THIS BUDGET PROCESS, BUT YOU KNOW, WE PAY THOSE DOLLARS. WE PAY THOSE INTEREST PAYMENTS BEFORE THE REVENUE COMMISSION PAYS THE CITY SO EVERY SINGLE DOLLAR IS A DIRECT HIT TO OUR GENERAL FUND. SO THE TO OUR UH, I. I, UH THE OCCUPATIONAL TAX INCOME THAT WE GET. AND SO WE'RE DOWN $8 MILLION YEAR OVER YEAR DUE TO THAT THOSE INTEREST PAYMENTS DUE DUE TO DEBT SERVICE , SO YOU KNOW, AS WE'RE TALKING ABOUT YOU AGAIN TAKE HALF THE MAP FOR OPERATING AND SPENDING 22 INSTEAD OF 30 MILLION IN ROAD , PAVING THAT DEFICIT RIGHT THERE IS MADE UP BY THE AMOUNT OF ADDITIONAL DEBT SERVICE THAT WE'RE PAYING YEAR OVER YEAR SO IT'S QUITE SUBSTANTIAL. I KNOW THAT IN THE PRESENTATION, IT WAS SAID THAT WELL, YOU KNOW, IN HISTORIC CONTEXT, IT IS A SIMILAR PERCENTAGE OF THE OVERALL BUDGET THAT IT HAS BEEN IN THE PAST AND WE ARE WITH OUR CURRENT STATUTORY DEBT RATIOS. BUT THAT IS IT DOESN'T MEAN THAT IT'S RIGHT AND IT DOESN'T MEAN THAT IT'S FISCALLY SUSTAINABLE. SO AGAIN, II. I THINK IT'S ONE OF THOSE AREAS THAT WE NEED TO TAKE A HARD LOOK AT, UH, DURING THIS BUDGET CYCLE AND SEE HOW WE CAN CONTINUE TO DAMAGE TO THOSE DOLLAR AMOUNTS SO THAT IN THE FUTURE, YOU KNOW, BECAUSE THAT'S IT'S ONE OF THOSE THINGS THAT NO FUTURE BUDGET EVER SEES HAPPEN. IT'S NOT AS THOUGH IN THE FUTURE THEY'RE LIKE, OH, WE'RE IN THIS DEFICIT. WELL WHY IS THAT? WELL IT'S BECAUSE YOU KNOW, WE COULD HAVE PAID OFF MORE DEBT IN THE YOU KNOW THE LAST FIVE YEARS AND NOT BEEN IN THE SITUATION HAD MORE INCOME. IT'S ONE OF THOSE THINGS THAT NOBODY REALLY TALKS ABOUT. SO WE NEED TO BE TALKING ABOUT IT. WE NEED TO BE DOING WHATEVER WE CAN DURING THIS CYCLE TO REDUCE, UH, OUR LIABILITIES THERE BECAUSE IT'S $8 MILLION YEAR OVER YEAR THAT WE JUST LOST. THANK YOU. THE LAST PERSON IN THE QUEUE. SO WE WILL TAKE, UH LET'S SAY, TWO MINUTE BREAK. WE'LL START AGAIN AT 530 THAT WORK RIGHT? TAKE IT RIGHT BACK AND AT 530, OR LET'S SAY 528, SO WE'RE ACTUALLY BACK ABOUT 530.

YEAH. THE OTHER PEOPLE.

[01:23:07]

[01:25:59]

ANGIE AND AARON. SO JUST SO YOU KNOW, ALL YOUR SIDEBAR CONVERSATIONS CAN BE HEARD ONLINE. THEY ARE. YEAH, WE'RE DEFINITELY GOING OVER FACEBOOK, TOO. OK, I'D LIKE TO CALL US BACK TO ORDER. UM, WE WILL BEGIN. BEGIN WITH THE, UH TRYING TO CHANGE MIND HERE. OK? RIGHT? IT IS OK. UM YOU HAVE A QUESTION? COUNCILMAN KRAMER HAS, UH QUICK QUESTION. WELL I DON'T KNOW ABOUT QUICK. SHE HE HAS A QUESTION ABOUT CAPITAL EXPENDITURES IF ANYBODY ELSE HAS ANYTHING ELSE ABOUT THE CAPITAL, UH AND THEN WE'LL MOVE INTO THE OMB PRESENTATION PART THINK WE'RE A BIT AHEAD OF SCHEDULE, WHICH IS GOOD, SO I DON'T WANT TO SLOW US DOWN. UM I I'M A LITTLE BIT CURIOUS ABOUT, UM IN THE PAST, WE HAVE THE CITY HAS BORROWED MONEY, AND THEN WE'VE PROMISED IT TO AGENCIES OUTSIDE THE CITY. AND SO WE BORROWED MONEY TO GIVE IT AWAY. I KNOW

[01:30:01]

WHICH WOULD BE GENERAL ABOUT WHAT TOTAL AMOUNT IS THAT I DON'T HAVE THAT TOTAL IN FRONT OF ME. CAN YOU GET THAT FOR ME? THANKS. I APPRECIATE IT. THERE YOU GO. I WAS QUICK. SO NOW WE'RE SWITCHING TO OFFICE OF MANAGEMENT AND BUDGET. SO IF YOU'RE ON YOUR TO BE IN THE

[ ID 24-0264     Office of Management and Budget]

ABSOLUTELY. UM CAN I ASK YOU A QUESTION ABOUT THE ARENA AUTHORITY? I KNOW COVID WAS SOMEWHAT PAINFUL. UM AND I KNOW THERE WAS A BIT OF CONVERSATION LAST YEAR ABOUT, UM THE AMOUNT OF REVENUE THAT WAS NOT GENERATED BECAUSE EVERYTHING WAS SHUT DOWN. AND THE IMPACT THAT WOULD HAVE ON THE TIFF. UM ARE WE LOOKING AT THAT IN THIS YEAR'S BUDGET? UM AND IF WE ARE HOW WHAT IMPACT IS THAT GONNA HAVE ON THIS YEAR'S BUDGET? THE LACK OF REVENUE BECAUSE WE'VE NOT RECOVERED FULLY. THE LACK OF REVENUE IS NOT FACTORED INTO OUR BUDGET PER SE. WE JUST HAVE THE $10.8 MILLION FOR THE RENA PAYMENT BUDGET IN GENERAL ADJUSTMENTS. OK, THAT'S WHAT YOU'RE ASKING. RIGHT? YEAH, WE DO GET SO THAT ISSUE IS OUR ISSUE BECAUSE WE HAVE A SET AMOUNT THAT WE PAY BACK RIGHT, OK? COUNCILOR MP ARGENTI. THANK YOU. WELL III. I WOULD SAY IT'S STILL OUR ISSUE BECAUSE IT'S 10.8 MILLION THAT WE'VE BEEN PAYING EVERY YEAR FOR MANY, MANY YEARS. AND I GUESS MY QUESTION IS HOW MANY MORE YEARS I DON'T HAVE THAT NUMBER IN FRONT OF ME.

UH, COUNCILMAN, BUT I, UH FROM MEMORY. I WANNA SAY IT'S 2040 OR SOMEWHERE AROUND. THAT TIME FRAME. WE CAN GET YOU THE DETAILS OF THAT'S WHAT YOU'RE AFTER. OK THANK YOU. I'M SORRY, COUNCILMAN II. I DID NOT MEAN TO IMPLY THAT THE 10.8 IS NOT OUR ISSUE. I MEAN, IF YOU HAVE LESS IF YOU HAVE EVERYTHING AROUND YOU, IT'S IT. UH, YOU KNOW IF YOU'RE ONLY BRINGING IN 200 PEOPLE TO A BASKETBALL GAME. THAT'S THAT DOESN'T AFFECT OUR OUR PAYMENT ONE WAY OR THE OTHER. YEAH YEAH, AND I UNDERSTAND AND MAKE THE MISTAKE. I KNOW I UNDERSTOOD WHAT YOU MEANT, MR. CHAIR I THINK MY BUT I'VE HEARD TWO THINGS. AND THAT'S WHAT ERIN, IF YOU DON'T MIND WHEN IN YOUR FOLLOW UP IF YOU COULD CLARIFY A COUPLE ADDITIONAL THINGS NUMBER ONE.

I'VE BEEN TOLD THAT THE STATE TRIED TO ACCELERATE THEIR PAYMENTS, WHICH, BECAUSE THERE'S THIS VARIABLE IF THEY ACCELERATED IT AND WERE SUCCESSFUL IN DOING THAT IT WOULD REDUCE THE AMOUNT OF TIME WE HAVE TO PAY OUR 10.8 MILLION REDUCED AMOUNT OF YEARS. SO I WANT TO KNOW IF THAT IS TRUE OR NOT, OR IF THERE'S MORE YEARS DUE TO THE PANDEMIC AND THE IMPACTS ON THAT, SO, YEAH, I, I THINK GETTING BACK TO RE LEVEL SETTING HOW MUCH MONEY WE'RE TALKING ABOUT, BECAUSE AGAIN IF WE'RE TALKING 2040 AS AN EXAMPLE . I THINK WE'D HAVE BEEN PAID.

YOU KNOW THE, UH, TAXPAYERS OF LOUISVILLE METRO WOULD HAVE PAID SOMETHING JUST LOCAL METRO TAXPAYERS, NOT THE STATE SALES TAX TIFF ARE GONNA PAY SOMETHING TO THE 2 TO $350 MILLION BY THE TIME THIS IS ALL OVER, UM SO II. I THINK IT'S FAIR THAT WE CONTINUE TO BE TRANSPARENT WITH HOW MUCH LONGER THAT PAYMENT IS GOING TO TAKE BECAUSE TO COUNCIL TO OWEN'S POINT EARLIER THAT IS ACTUALLY A PAYMENT THAT WHEN IT'S OVER, IT'S NOT AS THOUGH WE CAN JUST BOND MORE MONEY ON IT OR SOMETHING. IT'LL JUST GO AWAY AND WE'LL HAVE 10.8 MILLION BACK TO OUR, UH, BACK TO OUR BOTTOM

[01:35:05]

SO IN THE IN THE MAYOR'S BUDGET ADDRESS HE SPOKE ABOUT UM, CUTTING THE 1% OR THE LEAST OF THE MOST IMPORTANT THINGS. SO WHAT IS IT? WHAT CUT? DID WE I? I SEE THE NUMBER OF CUT HERE, UH, IN DEPARTMENT EXPENSES. SO WHAT CUT WHAT ACTUALLY WAS REDUCED SPECIFICALLY FOR TO MAKE YOURS ABOUT 180,000. 180,000, RIGHT. BUT WHAT WHAT WHAT WAS CUT IN ORDER. WHAT ARE WE GOING TO CUT THE WAY WE PLAN TO REALIZE THAT SAVINGS IS, UM WE'RE MOSTLY PERSONNEL, UH, IN THE OFFICE OF MANAGEMENT BUDGET. UM YOU KNOW, WE HAVE SMALL BUDGETS FOR TRAINING AND SUPPLIES AND THINGS OF THAT NATURE, BUT BUT THERE'S NOT, UM UH, PERSONNEL IS REALLY WHERE WE NEED TO LOOK IN IN TERMS OF CUTTING THAT NOW I DON'T MEAN TO SAY THAT IN TERMS OF LETTING POSITIONS GO. WE HAVE A NUMBER OF VACANCIES. UM AND WE'RE REALLY GOING TO JUST BE STRATEGIC ABOUT, UM, WHEN VACANCIES COME ABOUT IS THIS A VACANCY WE REALLY HAVE TO FILL.

UM AND, UH, JUST MANAGE OUR VACANCIES, AND I BELIEVE THAT WE WILL BE SUCCESSFUL AT REALIZING THAT SAVINGS DO YOU KNOW HOW MANY VACANCIES YOU HAVE? NO. OK, THAT'S YEAH, NOT OFF THE TOP OF MY HEAD, BUT WE CAN GET THAT FOR YOU. IT'S I WOULD SAY IT'S 10 TO 15 VACANCIES. SO BACK TO THE CONVERSATION WE WERE HAVING EARLIER SO OUR I CAN'T REMEMBER. I KNOW AT ONE POINT WE TALKED ABOUT THIS ABOUT LIKE WHAT? WHAT THE PERCENTAGE OF WHAT? WHAT YOUR PERCENTAGE NOT JUST O AND B, BUT GENERAL PERCENTAGE OF TURNOVER BEFORE WE COME. I THINK IT'S ON THIS SCHEDULE. JUST CURIOUS LIKE IT'S 14% 14 OK? SO JUST AS I QUESTION KIND OF A BIT OF A FOLLOW UP FROM WHAT WE'RE IF WE'RE CUTTING THE THESE AND WE HAVE THAT TURNOVER ANYWAY. SO AT ANY GIVEN TIME WE HAVE 14. OR SO. MAYBE A LITTLE BIT LESS, BUT 14% VACANCY. UM IT SEEMS TO ME I DON'T KNOW THE EXACT NUMBERS THERE, BUT IT SEEMS LIKE THAT CAN BE A PRETTY SIGNIFICANT PART OF THE 1% THAT FOLKS ARE ARE COUNTING CORRECT. J KRAMER. THANK YOU. UM, I'M LOOKING AT, UM PROFESSIONAL SERVICES EXPENDITURE. UH 24 VERSUS 25 AND BOND PRINCIPAL PAYMENT 24 VERSUS 25. WE'RE GOING FROM, UH 2,000,005 91. UM DOWN TO 2,000,094 FOR THE PROFESSIONAL SERVICES. UM THERE'S IT'S A DECREASE OF 496,000. CAN YOU SPEAK TO THAT? WHAT? WHERE? WHY ARE WE SEEING I MEAN, I'M HAPPY ABOUT IT. DON'T GET ME WRONG, BUT IT'S A HALF A MILLION DOLLAR REDUCTION THERE. OF COURSE, THAT I WAS A PAID COMMUNICATIONS. SO WE HAD ABOUT $100,000 IN THERE THAT WAS FOR PAID DIGITAL COMMUNICATIONS THAT WE REDUCED THAT FOR THAT WAS PUT IN LAST YEAR'S BUDGET. IT'S NO LONGER NEEDED FOR 25. SO THAT WAS A REDUCTION. UM WE'D HAVE TO GET YOU THE DETAIL ON THE ON THE OTHER SPECIFICS, BUT IT IT'S REALLY JUST A CHANGE IN THE NEED FROM PROFESSIONAL VISIT PROFESSIONAL. THERE WERE SOME BODY LANGUAGE FROM PEOPLE BEHIND YOU THAT INDICATED THEY MAY HAVE AN ANSWER. HA! SO MUCH. I'M I'M NOT GONNA PUT ANYTHING ON I AM NOT GONNA PUT ANYBODY ON THE SPOT. I'M NOT DOING THAT I. I APPRECIATE ALL THE WORK THAT THEY DO, AND I'M NOT GONNA I'M NOT GONNA ASK FOR THAT. YOU'RE NOT VERY GOOD AT READING BODY LANGUAGE. WELL LET'S CLAIM THAT LET'S CLAIM THAT'S WHAT HAPPENED . UM AND THEN THE SECOND QUESTION WAS THE BOND PRINCIPAL PAYMENT. UM IN FY 24. IT'S SHOWING UP AS A ZERO, BUT THIS YEAR IT'S 100,000. WHAT MIGHT THAT BE? WE BELIEVE IT. IT MAY BE TIED TO THE BOND PAYMENT AND THE REVENUE COMMISSION. BUT WE'LL DOUBLE CHECK THAT FOR YOU. OK, THANK YOU. YEAH. SO ANY FURTHER QUESTIONS

[01:40:14]

REALLY? NO FURTHER QUESTIONS. WE CAN MOVE ON TO THE HUMAN RESOURCES, THEN BECAUSE, UH, THE

[ ID 24-0265     Human Resources]

RIGHT? NO. WELCOME AND YOU JUST INTRODUCE YOURSELF FOR THE RECORD, PLEASE. MY NAME IS ERNESTINE BOOTH. HENRY I'M THE EXECUTIVE DIRECTOR OF HUMAN RESOURCES. VERY GOOD. SO I'LL START WITH ONE HERE. SO, UM CAN YOU, UH, CAN YOU TALK ABOUT WHAT'S THE SO WE'RE HEARING ABOUT EACH INDIVIDUAL APARTMENT AND MAKING THE CUTS AND SOME OF THOSE WILL BE IN, UM PERSONNEL AND THEN AND THEN HAVING VACANCIES. SO CAN YOU EXPLAIN TO US A LITTLE BIT ABOUT THE ROLE OF HUMAN RESOURCES VERSUS THE ROLE OF THE DEPARTMENT IN FILLING THEIR OWN VACANCIES, SO HUMAN RESOURCES IS RESPONSIBLE FOR ALL OF THE HIRES. WE COMPLETE THE OFFICIAL OFFERS FOR ALL METRO EMPLOYEES. THE DEPARTMENT UM, THEY DO ASSIST IN RECRUITING. WE HAVE TWO TALENT ACQUISITION COORDINATOR POSITIONS THAT ASSIST WITH THE RECRUITMENT PROCESS. BUT DEPARTMENTS REALLY DO TAKE AN ACTIVE ROLE IN THE RECRUITING FOR THEIR VACANCIES. OK SO THEY RECRUIT COMES TO YOU. YOU DO ALL THE VETTING QUESTIONS ALL THAT SORT OF THING AND THEN MAKE THE RECOMMENDATION DEPARTMENT. SO DO YOU HIRE OR DOES THE DEPARTMENT DO THE ACTUAL CHOICE? THE DEPARTMENT SO ONCE THE, UM THE CANDIDATES ARE SCREENED. WE REFER THOSE TO THE DEPARTMENTS.

THE DEPARTMENTS SCHEDULE THEIR INTERVIEWS, THEY INTERVIEW THE CANDIDATES, AND THEN THEY SEND OVER A RECOMMENDATION TO HER SO ONCE THEY ONCE IF YOU SEND OVER OR WHATEVER. UM ONCE YOU'VE DONE THAT THEY'VE BEEN PROPERLY SCREENED SO THAT THEY CAN MAKE A DECISION FROM ANY OF THOSE THREE. HOWEVER MANY SEND OVER. IS THAT ESSENTIALLY WHAT YOU SEND OVER THREE OR FOUR? WELL IT DEPENDS. SO SOME POSITIONS WE SEND OVER HUNDREDS OF CANDIDATES . IF IT'S AN OPEN, CONTINUOUS POSITION WHERE WE'RE CONSTANTLY SCREENING FOR APPLICANTS, OTHERS WE SEND OVER FIVE OR SIX. SOME.

WE DON'T GET ANY APPLICANTS AT ALL FOR THOSE POSITIONS TO SEND OVER, SO IT VARIES. I CANNOT IMAGINE BEING DEPARTMENT. UH IN IN CHARGE OF A DEPARTMENT THAT YOU SEND OVER 100 APPLICANTS THAT SCREEN FOR ME, BUT ANYWAY. SO IF WE ASK YOU ON THE COUNCIL SIDE TO SEND US OVER SOMETHING DON'T SEND 100. OK, OK. SO I'M ASSUMING THAT YOU TWO ARE LOOKING TO MAKE, UM, THE 1% AND WHAT? WHAT SO WHERE? WHERE ARE WE DOING THAT IN YOUR DEPARTMENT. SO WE ARE LOOKING AT OUR HR S ANALYSTS AND LABOR IMPLEMENTATION LIAISON POSITIONS . UM BECAUSE OF WORK DAY, WE REALLY DON'T HAVE THE NEED FOR ANOTHER ANALYST AT THE MOMENT AND THEN WITH THE LABOR IMPLEMENTATION, UM, WE IMPLEMENT THIS THE PROCESS A LITTLE BIT DIFFERENT THAN WHAT WE WERE ACCUSTOMED TO. AND PEOPLE SOFT SO POSITION IS ALSO NOT NEEDED. OK SO THAT'S ONE OF THOSE EXAMPLES OF WHAT YOU SHIFT TO ANOTHER SYSTEM AND THEN THAT POSITION. WHILE THAT PERSON MIGHT MIGHT BE ABLE TO SHIFT TO SOME OTHER JOB, THEY DON'T NEED THAT. YOU DON'T NEED THAT PARTICULAR SHIFT, BUT NEITHER OF THOSE HAS ANYTHING TO DO WITH, UH COVID, RIGHT? AND COUNCIL

[01:45:02]

THAT MEANS WE SURVIVED WITHOUT TH I'M WONDERING WHAT THAT MEANS GOING FORWARD. A 90 NEW POSITIONS, ADDED. I DON'T KNOW IF WE FILLED ALL 90 POSITIONS. INTIMIDATING. MY ON YOU CAN ANSWER CEREAL. OK FROM FROM THE HR PERSPECTIVE. I BELIEVE THAT WE DID FILL THE POSITIONS BUT THEN HAD INDIVIDUALS THAT VACATED POSITIONS SO I DON'T KNOW IF WE STILL CURRENTLY HAVE ALL 90 POSITIONS FILLED AT THE MOMENT. BUT WE DID IT AT LEAST AT SOME POINT WE DID AT SOME POINT WE DID BECAUSE WE WERE TRYING TO KEEP TRACK OF ALL OF THOSE POSITIONS THAT WE HAD OUT THERE. I MEAN, FOLKS MOVED THROUGH JOBS SO I CAN UNDERSTAND WHERE THEY MAY NOT ALL BE FILLED. CONSISTENTLY BUT WE DID AT LEAST HIRE THEM ALL, WHICH SAYS THAT THE DEPARTMENTS WERE ANXIOUS AND HAPPY TO GET THEM. UM AND ANY REDUCTION IS NOT BECAUSE WE DECIDED WE DIDN'T NEED THEM. IT'S JUST THE NORMAL PROCESS OF THINGS. OK, UM SO AS WE LOOK AT THE 71 THAT ARE BEING ADDED IN THIS YEAR'S BUDGET. ARE ANY OF THOSE 71 POSITIONS FUNDED BY

[01:50:03]

THAN THERE ARE GENERAL FUND. BUT THERE'S MONEY THAT MOVES INTO THE GENERAL FUND THAT MAY NOT BE COMING IN AGAIN NEXT YEAR. THAT'S CORRECT. I MEAN THAT THAT SORT OF GETS BACK TO THE QUESTION. AARON HAD EARLIER, UM IN OUR REVENUE PRESENTATION. THE QUESTION WAS ASKED IF POSITIONS ARE FUNDED SPECIFICALLY WITH NON RECURRING OR RECURRING RESOURCES AND THE WAY WE APPROACH THE BUDGET HISTORICALLY, AND THIS YEAR IS THAT WE IDENTIFY NON RECURRING SOURCES THAT WILL JUST HELP OFFSET THE OVERALL BUDGET. IT'S NOT NECESSARILY DIRECTED ONE WAY OR THE OTHER TOWARDS PERSONNEL OR OTHER OPERATING EXPENDITURES. AGAIN. I'M I'M SURE THAT WE'RE SETTING OURSELVES UP FOR FUTURE CONVERSATION. UM I WANTED TO TAKE A LOOK TO IT. UH FOR SOME OF US FOR SOME NUMBER OF YEARS, WE'VE BEEN HAVING SOME AMOUNT OF CONVERSATION AROUND. UM THE TUITION REIMBURSEMENT AND CHILD CARE. UM IT FELT LIKE THERE WAS A DESIRE TO DO A BETTER JOB OF HELPING OUR EMPLOYEES RECOGNIZE AND UNDERSTAND THAT THIS IS A REAL BENEFIT THAT WE FELT LIKE IT WAS. YOU KNOW, AN APPROPRIATE ASSIST FOR SOME OF OUR FOLKS, BUT WE'RE REDUCING IT. ABOUT $50,000 IN TUITION, UH, REIMBURSEMENT AND 48,000 IN CHILD CARE SERVICES. I'M GONNA ASK THE SAME QUESTION I DID LAST YEAR. IS THIS BECAUSE OUR EMPLOYEES JUST ARE GOING TO COLLEGE OR DON'T HAVE KIDS ANYMORE, OR IS IT JUST? IT'S TOO MUCH TROUBLE TO TRY AND GO THROUGH THE PROCESS, AND SO IT'S EASIER JUST TO NOT DEAL WITH IT IS BECAUSE WE INCREASED OUR OUR SALARIES, SO SOME OF THE INDIVIDUALS THAT WERE ELIGIBLE BEFORE FELL OFF, AND, UM, THAT EXPLAINS THE CHILD CARE, CORRECT , BUT NOT THE AS FAR AS TUITION REIMBURSEMENT WE'VE ADVERTISED.

WE'VE TRIED TO ENCOURAGE EMPLOYEES TO PARTICIPATE. WE'VE WORKED CULTURE AND HAVING OUR SUPERVISORS, UM, HAVE CONVERSATIONS. WE'RE JUST NOT GETTING, UM INDIVIDUALS THAT ARE INTERESTED IN IN PURSUING. WE'VE ALSO ADJUSTED SOME OF OUR OUR GRADES. UM, SO THAT THE, UH MINIMU EDUCATION, SO THAT MIGHT BE A PIECE OF IT AS WELL. UM BUT THEY'RE JUST NOT APPLYING FOR THE TUITION REIMBURSEMENT LIKE THEY HAD BEEN, AND SO WE ADJUSTED BASED ON THE ACTUAL SPEND EXPENSE. OK? THANK YOU. SO WHEN? IN THE 2024 THE 90 POSITIONS OF THOSE 90 POSITIONS 33 WERE L MP D. UM SO OF THE 71. I DON'T HAVE. IT'S PROBABLY IS SOMEWHERE IN HERE, BUT I DON'T HAVE IT. I DON'T KNOW IF YOU KNOW THAT. WHAT? WHAT THE NUMBER IS FOR THE, UH LNPD 71 DOESN'T INCLUDE ANY L MD ADDITIONS NOT SPECIFICALLY OK. MM. COUNCILMAN MCCRANEY.

CHAIRMAN. THANK YOU FOR BEING HERE. HELLO? UM I WANT TO ADD. I HAD A QUESTION ABOUT THE TUITION REIMBURSEMENT AS WELL. AND I NOTICED THAT YOU'RE CUTTING IT. BUT IS THERE ANY WAY IF WE'RE NOT GETTING EMPLOYEES TO REALLY TAKE ADVANTAGE OF IT CAN THERE CAN WE LOOK AT AND I ASKED THIS LAST YEAR, BUT IT DIDN'T HAPPEN, INCREASING THE AMOUNT THAT WE DO OFFER TO THOSE WHO DO TAKE ADVANTAGE OF IT. SO THAT IS REALLY DRIVEN BY ORDINANCE. SO IF WE WANTED TO MODIFY THE AMOUNT THAT'S BEING OFFERED SURE THAT SHOULD THAT SHOULD BE CONSIDERED. I THINK I ALSO MENTIONED LAST YEAR ABOUT THE CERTIFICATIONS AND INDIVIDUALS, UM, POTENTIALLY PAYING FOR CERTIFICATION WITH THE TUITION REIMBURSEMENT. BUT AGAIN, THOSE WOULD BOTH NEED TO BE, UM, AMENDMENTS TO THE ORDINANCE ORDINANCE. OK THAT'S GONNA BE MY NEXT ORDINANCE. I WISH I WOULD HAVE THOUGHT ABOUT THAT TWO YEARS AGO. UH THE OTHER THING I WANTED TO ASK IS, UM MY OTHER QUESTION. OH, YOU'RE GONNA HAVE TO COME BACK. I HAVE FORGOTTEN MY QUESTION. I'LL COME BACK. WE WILL PUT YOU BACK IN COUNCILMAN P ARGENTI. THANK YOU, MR CHAIR. UH, DIRECTOR. WHAT IS, UH, DELOITTE TO WHAT ARE THEY DOING FOR YOUR DEPARTMENT? RIGHT NOW THEY ARE ASSISTING WITH THE HIRING CYCLE PROCESS. SO WE ARE DOING A FULL REVIEW OF THE HIRING CYCLE. AND THEY ARE, UM, FACILITATING THAT REVIEW. YEAH. WHY WERE THEY HIRED TO DO THAT? BECAUSE WE RECOGNIZE THAT OUR HIRING TIME WASN'T WHERE WE WOULD WANT IT TO BE RIGHT NOW. WE'RE AVERAGING ABOUT 130 DAYS.

UM FOR EVERY POSTING, UM, YOU KNOW, EVEN WITH OTHER GOVERNMENT ENTITIES, YOU KNOW, THEY'RE AT

[01:55:01]