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Louisville Metro Council Fiscal Year 2019-2020 Louisville Metro Recommended Executive Budget Greg Fischer, Mayor Ellen Hesen, Deputy Mayor Metro Council District 1 Jessica Green District 2 Barbara Shanklin District 3 Keisha Dorsey District 4 Barbara Sexton Smith District 5 Donna L. Purvis District 6 David James District 7 Paula McCraney District 8 Brandon Coan District 9 Bill Hollander District 10 Pat Mulvihill District 11 Kevin Kramer District 12 Rick Blackwell District 13 Mark H. Fox District 14 Cindi Fowler District 15 Kevin Triplett District 16 Scott Reed District 17 Markus Winkler District 18 Marilyn Parker District 19 Anthony Piagentini District 20 Stuart Benson District 21 Nicole George District 22 Robin Engel District 23 James Peden District 24 Madonna Flood District 25 David Yates District 26 Brent Ackerson https://louisvilleky.gov/ i This Page Left Intentionally Blank ii https://louisvilleky.gov/ OFFICE OF THE MAYOR LOUISVILLE, KENTUCKY GREG FISCHER MAYOR April 25, 2019 Dear Fellow Citizens and Metro Council Members: The FY20 Recommended Budget I present to you manages the impact of a $35 million deficit, driven largely by repeated 12 percent annual increases in the city’s state pension costs, while minimizing the impact on our city’s most vulnerable. A majority of Metro Council members voted March 21, 2019 against a proposal to generate new revenue that would have fully addressed this year’s deficit and those anticipated in future years due to state-driven pension increases. This plan translates that vote into a budget. FY20 is the second of at least five fiscal years during which Louisville Metro Government’s (LMG) pension obligation will dramatically increase due to revised assumptions made by the Kentucky Retirement Systems in July 2017 and April 2019. Despite a growing economy evidenced by the creation of 80,000 new jobs, the opening of 2,700 new businesses, and $13 billion in capital investment across private and public sectors, the tripling of LMG’s pension costs requires that this budget be balanced primarily by cuts given no new revenue source. The cuts reflected in this plan, with total expenditures of $838 million including $623 million of General Fund dollars, affect areas throughout the city, and span LMG agencies and departments, including the Mayor’s Office and Metro Council. As our first and greatest responsibility to the people of Louisville, public safety is a top priority of this budget. However, given that public safety agencies comprise approximately 60 percent of the budget, exempting them from cuts was impractical. Minimizing the pain of cuts inflicted on our most vulnerable neighbors is another priority of this budget, reflected in the investment of $1 million for homeless services, $1.1 million for community ministries, and $5 million for affordable housing. Unfortunately, layoffs were an unavoidable element of this spending plan because personnel costs make up approximately 70 percent of the budget. The capital budget is the smallest proposed in six years, with investments focused primarily on maintenance and affordable housing. Despite the challenge we face as a result of the increasing pension burden, I remain relentlessly optimistic about our city’s momentum and its future. By working together to implement structurally sound, fiscally responsible solutions, including the creation of additional revenue, we can limit future budget cuts and instead invest in our work to sustain a thriving city that competes and wins in the global marketplace and whose reputation for compassion, innovation and opportunity continues to grow on the world stage. Sincerely, Greg Fischer Mayor WWW.LOUISVILLEKY.GOV LOUISVILLE METRO HALL 527 WEST JEFFERSON STREET LOUISVILLE, KENTUCKY 40202 502.574.2003 https://louisvilleky.gov/ iii 2019-2020 LOUISVILLE METRO RECOMMENDED EXECUTIVE BUDGET TABLE OF CONTENTS Pre-Introduction Title Page – Listing of Mayor and Metro Council Members ............................................................................ i Letter from Mayor Greg Fischer ..................................................................................................................... iii Table of Contents ........................................................................................................................................... iv Introduction Louisville Metro Government Organizational Chart ..................................................................................... 1 GFOA Distinguished Budget Presentation Award ......................................................................................... 3 Citizen’s Bill of Rights ...................................................................................................................................... 4 Mission, Vision, and Team Values .................................................................................................................. 5 Budget/Strategic Plan Alignment ................................................................................................................... 6 Budget Background, Process, and Financial Policies ..................................................................................... 12 Fund Structure and Changes in Fund Balances Statement .......................................................................... 21 Louisville: Then & Now ................................................................................................................................. 24 Revenue Descriptions ................................................................................................................................... 34 Revenue Estimates and Receipts Summary .................................................................................................. 39 Revenue Estimates and Receipts Table ......................................................................................................... 41 Sources of Revenue Chart ............................................................................................................................. 43 Debt Service Narrative & Tables ................................................................................................................... 44 Summary of Appropriations – General Fund, MA/CRA, Community Development Fund, and Capital/Other ................................................................................................................................................ 59 Expenditure Chart – General Fund, MA/CRA, Community Development Fund, and Capital/Other .......... 61 Summary of Appropriations – All Funds ....................................................................................................... 62 Summary of Annual Fund Appropriations .................................................................................................... 64 Personnel Overview ....................................................................................................................................... 65 Personnel Summary by Agency .................................................................................................................... 66 Louisville Metro Government Operations (Operating) Metro Government Operating Budget Summary ........................................................................................ 69 Mayor’s Office .............................................................................................................................................. 71 Louisville Metro Council ............................................................................................................................... 74 Office of Internal Audit ................................................................................................................................. 77 Criminal Justice Commission ........................................................................................................................ 80 Chief of Police Louisville Metro Police Department ....................................................................................................... 83 Deputy Chief of Staff Louisville Free Public Library .................................................................................................................. 87 Chief of Public Services Facilities and Fleet Management ............................................................................................................ 91 Louisville Fire .......................................................................................................................................... 94 Emergency Services ................................................................................................................................ 97 Department of Corrections ................................................................................................................... 101 Public Works & Assets .......................................................................................................................... 105 Metro Animal Services .......................................................................................................................... 109 iv https://louisvilleky.gov/ 2019-2020 LOUISVILLE METRO RECOMMENDED EXECUTIVE BUDGET Chief of Community Building Youth Detention Services .................................................................................................................... 112 Public Health & Wellness ....................................................................................................................
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