LOUISVILLE, Ky. (WDRB) — Louisville Metro Government said it has discovered an unexpected fiscal year-end surplus of $4 million.
The balance is a result of higher-than-expected public service corporation property taxes and non-recurring capital gains, coupled with lower-than-projected spending in some departments, the city said in a news release.
Daniel Frockt, the city's chief financial officer, said the difference between the 2019 fiscal year budget, of $621.4 million, and actual revenue, of $626 million, was just 0.7%.
"Our city’s budget team is regularly on point at forecasting, and this small difference is clearly evidence of that," Frockt said.
The fiscal year ended June 30.
Mayor Greg Fischer said he wants to use $300,000 of the surplus to move up a 2020 Louisville Metro Police Department recruiting class from June to May of next year. LMPD eliminated a class as part of the city's major budget cuts this year. The city had projected a shortfall of $25 million, blaming it primarily on higher state pension obligations.
Fischer also said he wants to put $2.7 million toward the city's growing pension obligations in increments of $900,000 in each of the next three fiscal years. The mayor also proposed putting $1 million toward the city's "Rainy Day Fund."
Fischer's administration will introduce a year-end ordinance on Nov. 18 that will balance all accounts from the 2019 fiscal year, the release said. Metro Council is expected to adopt the ordinance on Dec. 12.
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