Louisville leaders to discuss proposal allocating $30.7 million budget surplus

LOUISVILLE, Ky. (WDRB) -- The city of Louisville has a budget surplus of $30.7 million for the 2022 fiscal year.

Mayor Greg Fischer cited "rapid revenue growth and continued efficiencies" when announcing the surplus in a news release on Wednesday.

A proposed ordinance would split the extra money, with $20 million going to boost the city's rainy day fund and $10.7 million being divvied up between "essential services."

Fischer said putting $20 million into the city's rainy day fund would allow "the incoming administration," Mayor-elect Craig Greenberg, "to address its immediate priorities." The surplus money is in addition to $1.3 million included in the mayor's original budget for the year to be allocated to the rainy day fund.

"The next administration will face the typical challenges that come every budget cycle and the increase in the rainy day fund will help them navigate those challenges," Fischer said.

The ordinance would put $1.4 million toward improving the historic Hogan's Fountain Pavilion in Cherokee Park.

A big chunk in the proposal, $4.2 million would go toward renovations of the former Youth Detention Center in Louisville to house the Jefferson County Sheriff's Office.

The sheriff's office, which is currently in the old Fiscal Court building on 6th Street and Court Place, is falling apart. Scaffolding was put up years ago to protect people from falling bricks.

"We have to get the sheriff's office out of that building," said Metro Councilman Bill Hollander, D-9. "There has been some previous appropriation for refitting the old Youth Detention Center for the sheriff's office. Obviously, the administration thinks we need more, so we'll be delving into that as part of the budget process."

Hollander, who also serves as Metro Council Budget Chair, said the Council didn't spend as much as it thought, due to fewer people in the workforce.

"We're having lots of discussions about having more police officers on the street, having other agencies that just don't have enough staffing," he said. "That's a problem, but it also reduces the expenses during this year."

According to the mayor's office, Fischer's administration is operating with 1,259 fewer employees than it was with its first budget in 2012.

With union contracts up next year, and expenses only rising, Hollander thinks the majority of the budget surplus money should go to the rainy day fund.

"There may be councilmembers who have other ideas for things to fund, but I think it's very important, extremely important, that we save most of this money," he said.

Hollander co-sponsored the proposed ordinance with Vice Chair Kevin Kramer. In addition to the funding for renovations to the Youth Detention Center and Hogan's Fountain Pavilion, the proposed ordnance includes:

A $1.3 million capital investment toward the city's Revenue Commission to continue their work improving the tax collection system for Louisville residents.
$1.5 million to supplement ARP Workforce Development priorities "currently under consideration by Metro Council."
$500,000 for the Department of Public Health and Wellness: $230,000 would be used to continue wastewater testing to monitor for COVID-19 spread, and $270,000 to provide "temporary housing for residents who test positive for Monkeypox or COVID and have no means to isolate."
$300,000 would go toward hiring additional staff and purchasing a vehicle to support Youth Transportation Services.
$1 million to Metro Public Works and Assets for lighting projects for "an estimated four city underpasses."

The measure will be considered at a budget committee meeting next Thursday, Nov. 17. It could be voted on by Metro Council as early as Dec. 1.