Louisville to end 2015 with $19 million extra - WDRB 41 Louisville News

Louisville to end 2015 with $19 million extra

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LOUISVILLE, Ky. (WDRB) -- Metro government finds itself with almost $19 million extra in the bank for the year, but only $3.5 million of it will stay in the city's savings account.

The mayor says the city will spend the rest of the money to replace computer servers, pay for insurance and legal fees and pay debt owed to the water company.

"Business is improving," Mayor Greg Fischer said. "Profits are improving, so we get a percent age of that as well. Property taxes are up as well. So a rising tide is lifting all boats with the economy right now."

The city budget runs about $557 million for the year.

The surplus comes, in part, because the city's cut expenses. But Louisvillians also paid more in taxes this year because of rising property values and expanded business.

$6.3 million in increased revenue and $12.6 million in fewer expenses make up the $18.9 million surplus.

Specific spending of the surplus, from the mayor's office include:

  • $6.1 million to pay off debt owed to the Louisville Water Co.
  • $3.6 million to bring the city's rainy day fund (savings account) to $66 million.
  • $2.5 million for the city's risk management fund.
  • $2.4 million for government accounting expenses and related potential legal costs.
  • $2.2 million for funding not received, yet expected from grants and other sources.
  • $1.6 million to replace computer servers.
  • $500,000 set aside by Metro Council budget committee for future projects.

The city's chief finance officer expects revenue to increase into 2016 and the next budget cycle.

"We anticipate net profits, withholdings and property taxes -- which are our three main legs (of support, like a bar stool) -- to continue to do well," said metro government CFO Daniel Frockt.

Copyright 2015 WDRB News. All rights reserved.

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