Following a vote Thursday by Metro Council, Louisville Metro Government (LMG) has suspended all work on the current budget’s debt-funded capital projects, effective immediately. 

The Council voted 18-8 to suspend the bond ordinance that would fund the projects, which the Council has twice approved – first when approving the FY19 budget in June, and then again the next month, when approving the bond reimbursement ordinance.

These are bonds that were authorized to pay for projects ranging from paving and sidewalks throughout the city, to funding for the Northeast Regional Library and seed funding for the Louisville Urban League’s Sports and Learning Complex in Russell. A portion of the $83 million bond issue, $19.3 million, has already been spent, and another $19 million is obligated to our contractors for work in progress.

“We executed the projects that the Council publicly appropriated last June,” said Daniel Frockt, the city’s Chief Financial Officer. “The bond ordinance that was tabled on Thursday is simply the mechanism to pay for projects already approved.”

Now, given the uncertainty over how much of the bond issue will be approved and when it will be approved, Frockt said in a letter to LMG directors, suspending work is the “prudent” action while working with contractors to minimize the impact of a suspension, in terms of financial penalties, project delays and equipment purchases.

In a letter to the Mayor’s office and Council President David James, Assistant Jefferson County Attorney Matt Golden advised of the legal risks of the bond ordinance being tabled, writing that “the consequences for the tabling the bond ordinance on Thursday night could be significant.”

“With these funding uncertainties, Metro may need to consider terminating or suspending the contracts for these projects,” he wrote, though that “may potentially result in claims against Metro. … Similarly, asking a contractor to stop work temporarily may put Metro at risk for additional claims of contract delay,” including the costs of demobilizing and remobilizing its workforce, or any increased costs in materials which occur during the delay.

Golden added that given that the scope of the contracts is in the millions, “the damages that flow from these breaches may be significant.”

Mayor Greg Fischer described the Council vote – made unexpectedly and without consultation with the city’s Office for Management and Budget – as deeply troubling, as it creates the possibility of damages and/or losing vendors who cannot wait for a decision and puts worthy projects in jeopardy.

Responding to Council members who said the vote was meant to slow spending, the Mayor added: “We have worked very hard over the years to get the city’s financial condition rated in the top quartile of America’s municipalities. There is a responsible way to approach disagreements on spending – but putting the fiscal credibility of Louisville Metro government on the line is not the way to do it.”

“New council members may not have known the implications of their action, but all who voted to table the ordinance have unnecessarily thrown our hard-earned recognition for fiscal dependability into question,” he said. “I urge them to get their questions answered quickly so we can minimize the legal and financial complications their action has caused.”

With the help of several organizations with the goal to expand Louisville’s tree canopy, Councilman Brandon Coan (D-8) has announced the third annual Planting O’ the Green will plant 166 trees in the weeks surrounding the St. Patrick’s Day Parade.

“In honor of this year’s 46th St. Patrick’s Parade, we’re planting 46 trees in District 8, 46 trees in District 3, 46 trees in District 4, and more trees in District 5,” said Coan.  “Each year, we strive to replenish and expand our tree canopy and I am proud of the volunteers and groups that have joined us to keep moving forward with this goal.”

The Councilman made the announcement with members of the Metro Council, representatives of TreesLouisville, MSD, Brightside, Olmsted Parks Conservancy and the Ancient Order of Hibernians.

“Research shows that trees can remove as much carbon monoxide on an acre, over a year’s time, to equal the amount you produce when you drive your car 26,000 miles. Trees filter harmful dust and pollutants such as ozone, carbon monoxide, and sulfur dioxide from the air we breathe. District Three sits in the backyard of Rubber Town,” said Councilwoman Keisha Dorsey (D-3). “I support the efforts to not only improve the overall environment but protect the residents of District Three both today and in the future.”

“Planting trees helps create a healthier community for everyone by improving the air we breathe. In District 4 we are focusing on planting trees in as many empty tree wells as we can,” says Councilwoman Barbara Sexton Smith (D-4).

On March 20th and 21st, Algonquin Park will be the first location where 46 trees will be planted between 9:00am and 2:30pm. Then on March 22nd, volunteers will help plant 46 trees at Clay and Breckinridge Streets between 10:00am and 12:00pm. On the same day, Elliot Park will see the remaining new trees planted between 9:00am and 2:30pm. The effort wraps up on March 23rd, when Ellison, Crown and Rufer Avenues will receive the final 46 trees are planted by volunteers.

“Elliot Park is a nice neighborhood park for our district, and I am very pleased that we are making sure all areas of our city are enhanced with the beauty of these trees,” says Councilwoman Donna Purvis (D-5).

“Olmsted Parks Conservancy is thrilled to partner with CM Brandon Coan for this year’s Planting O’ the Green. Algonquin Park and Elliott Park both have experienced a natural loss of trees over the years and this program will allow us to jump start a regeneration of that tree canopy. This program exemplifies the adage, “It takes a village” and we are happy to be a part of such a wonderful group of people and organizations working together to increase Louisville’s tree canopy,” said Layla George President/CEO Olmsted Parks Conservancy.

“Urban tree canopy restoration plays a vital role for MSD as we strive toward our vision of safe, clean waterways. Trees provide a host of benefits, such as reducing the urban heat island effect and helping manage excess stormwater runoff generated by hard surfaces like parking lots, roadways, and rooftops. Increased tree canopy means improved habitat for our local wildlife and cleaner, safer waterways for our city,” said Jordan A. Basham of MSD.

John O’Dwyer, President of the Father Abram J. Ryan Division of the Ancient Order of Hibernians, reflected on the meaning of the St. Patrick’s Parade and the impact of Planting O’ The Green.  

“The Hibernians strive to open the spring season each year with the St. Patrick’s Parade, often called the People’s Parade, and it is a time for fun and community. Now we are making the Greenest Parade even greener as the next evolution of this charity event to give back to our fine city,” O’Dwyer said.

 The 46th Annual St. Patrick’s Parade is Saturday, March 9th. For more information about Planting O’ the Green or if you would like to join the volunteers, contact Councilman Coan’s office at 574-1108.

President David James (D-6) will join Council Members Nicole George (D-21), Kevin Triplett (D-15) and Mark Fox (D-13) in hosting a Community Discussion for the public concerning the current pension and Insurance Tax Rate Ordinance and the Metro Budget Shortfall on Saturday, March 9th.

          “The Metro Council has made listening to the public a priority. It is important that we clear up any misinformation about the budget and pension situation. Council members are here to explain and listen, then move forward to solve this problem,” says President James.

          “I look forward to learning the community’s priorities for balancing the pension obligation and city services,” says Councilwoman George.

          “The city is very limited in ways, or options in how to generate the necessary funds to meet our pension obligation.  But we as a council have a responsibility to review all phases of our operation and reach an equitable solution which is why public input is critical,” said Triplett.

          “It is important we listen to the voice of the people as we work to navigate through this very difficult budget shortfall,” Says Councilman Fox.

           The Community Discussion is set for the First Gethsemane Center for Family Development at 1221 First Gethsemane Avenue. The event starts at 2:30pm.

          Also joining the President and Council Members will be Daniel Frockt, CFO of Metro Louisville, Major Josh Judah Commander of the LMPD Fourth Division, and Robert Kirchdorfer of Codes and Regulations.

         For more information about the Community Discussion, contact President James’ office at 574-1106.

Councilwoman Keisha Dorsey will host two additional West Louisville Town Hall meetings for residents of District 3 as a way for the community to give more input on the situation involving the budget and the pension crisis for Metro Government.

“I want to make sure everyone has the chance to be heard and understand what the city is facing as the Metro Council continues to review all options,” said the Councilwoman. “As a member of the Budget Committee, it is important that I understand the impact of the proposed insurance tax rate increases on the people of West Louisville.”

The Councilwoman has arranged to be on hand for two separate meetings for the public. The first will be on March 11th at Southern Star, 2308 Algonquin Parkway, during the Hallmark Neighborhood Association Meeting. The event begins at 7:00pm.

The second meeting Councilwoman Dorsey will host is on March 20th at The Lord’s Kitchen, 1811 Standard Ave between 1:00pm to 2:30pm.

 For more information about the West Louisville Town halls, contact Councilwoman Dorsey’s office at 574-1103.

Mayor Fischer, the Southwest Dream Team and Metro Council members today were joined by local business owners and community members to unveil the fifth annual production of the South Points Scenic Area Map. This tourism initiative is celebrating five years of continued program growth, including a physical map, road signage program, and online presence.

This year, the South Points Scenic Area has expanded to s include the South Louisville Business Association and the Louisville Independent Business Alliance, which hosts the South Points Buy Local Fair at Iroquois Amphitheater each July. Other additions include Khalil’s on Dixie Highway, a local restaurant that has been recognized as a champion for local fundraising efforts, and the return of the South Points Farmers Market, hosted by the Food Literacy Project. The market, held at the Taylor Boulevard Save-A-Lot, brings healthy, farm-fresh produce to the region.

The Southwest Dream Team supports strategies to attract investments in quality of life infrastructure for south and southwest Louisville. “There is a great deal of positive momentum in south and southwest Louisville. From the revitalization of Colonial Gardens, to the improvements on the Dixie Highway corridor, 2019 marks a year of significant growth and achievement in the region,” Mayor Greg Fischer said.

The Southwest Dream Team is expanding its programming to include a civic leadership program, to help residents and business owners alike to connect with local resources and become more engaged in their community. The team and city leaders encourage the greater Louisville community to consider exploring this region for the diverse array of natural and cultural attractions it offers.

The robust calendar of events is family friendly, and spans from historical, cultural, to environmental offerings. (Insert quote from Vince Jarboe, Board President) We encourage you to use the South Points Scenic Area Map as a guide to curate your own experience in south Louisville.

A mobile version of the map can be viewed at www.southpoints.org, and @SPScenicArea on Facebook and Instagram. For more information and to join the conversation visit www.swdreamteam.org, and follow @SWDT on Twitter to stay updated on the work of the Southwest Dream Team.

An alternative proposal has been offered to deal with the $35 million projected deficit in the coming Metro Government budget due to pension obligations, increased health care costs and revenue shortfalls.

It calls for raising the insurance tax rate on all forms of insurance, other than health, in a more conservative manner and raising the car rental fee. It also calls for cuts or policy changes in Metro Government departments and all levels of management.

“Over the past several weeks, we have heard from constituents and agencies and have been working together to find an alternative solution that represents an appropriate balance of cuts with new revenue.  We believe this proposal represents that balance,” says Councilman Markus Winkler (D-17).

“From the beginning, I have said that solving this problem will require both new revenue and an acceleration of the cuts we started last year.  While there is no consensus on all cuts, which will ultimately be determined as part of the budget process, it’s clear the public and Council members want a balanced approach.  I have been working with Councilman Winkler on this proposal and applaud his efforts,” said Councilman Bill Hollander (D-9), who chairs the Council’s Budget Committee.

“I think it is vitally important to ensure for at least the next four years with this increased pension obligation that our employees, community partners and constituents know fully what they can expect from their government. That’s the least we can do and that’s what this proposal does,” says Councilman Pat Mulvihill (D-10), who Chairs the Majority Caucus.

The insurance tax rate will be increased to 9% for the next two fiscal years, then increase to 10% in the following two years. Auto insurance would be slowly phased in beginning in FY 2021 and increase from 5% to just 6.5% by FY 2023. The rental car tax would increase to generate up to $1 million per year.

The plan estimates these increases would generate as much as $50 million in new revenue within four years.

To balance these increases, there is a call for cuts or policy changes in departments of Metro Government. The administration is being asked to consider some of the following areas to determine potential impact and feasibility:

• Hiring freeze for all non-revenue producing positions and non-essential spending
• Beginning July, 5% salary cut or furloughs for all employees earning over $90K annually
• Cut every Metro Council NDF or Cost Center account by $20K
• Increase Metro employee health insurance premiums
• Eliminate COLAs for FY 20
• Eliminate all take home vehicles (with minimal public safety exemptions)
• Move USD to alternating weekly yard waste and recycling
• No yard waste collection in winter
• Move the Belle of Louisville to private funding
• Return Youth Detention Services responsibility to the Commonwealth of Kentucky
• Eliminate funding for the Living Room
• Eliminate capital budget spending on bike lanes for at least two years
• Reduce budgets in every department, focusing on management and communications positions
• Eliminate suburban street sweeping
• Reduce EMS service by one ambulance in areas where suburban districts provide service
• Reduce /eliminate Council designated funds

“These potential cuts are significant and will be felt across all districts and areas of service but will address the structural deficit.  Additional work will be needed to address the full balance of the pension obligation in FY23 and beyond.  We are hopeful that the work of the Ad Hoc Committee on Efficiencies announced today by President James will help develop these long-term solutions,” says Winkler.

The alternative plan calls for asking the Kentucky Attorney General to launch an investigation on insurance red-lining. It asks for an increased effort to lobby the Kentucky General Assembly for additional taxing authority, includes a pledge to revisit insurance rates if additional options become available and includes language that all new insurance premium tax revenue shall be used only for pension cost increases after FY 18.

President David James (D-6) announces the creation of a special Ad Hoc Committee on Efficiencies to review all operations of Metro Government in order to find savings and long-range solutions to deal with potential funding challenges.

          “The current situation we are dealing with is an opportunity to take a realistic and practical look at what Metro Government is facing when it comes to funding and operations,” said James. “It is my hope this committee will be able to finalize a game plan to deal with future funding challenges on the local and state level while Metro Government continues to deliver vital services to our constituents.” 

          The President has named Councilman David Yates (D-25) to chair the new Ad Hoc Committee. Councilman Anthony Piagentini (R-19) will serve as Vice Chair. The President has also asked Council Members Paula McCraney (D-7), Brandon Coan (D-8), Kevin Kramer (R-11), Kevin Triplett (D-15) and Nicole George (D-21) to serve on the Committee.

          “It is my goal to find alternative solutions to the budget deficit caused by the pension crisis, beyond the Mayor’s proposed tax increase, while simultaneously taking a hard look at Metro’s budget so we can cut the fat,” said Councilman Yates.“We need to identify waste and redundancies so we have a lean budget that tax payers know is focused on funding the essential functions and requirements of government first.”

          Currently, Metro Louisville is dealing with increased pension contributions from the state, increased health care costs, and a decline in local revenues.

          “In listening to the public who have come to many meetings on the budget situation, it has become clear: tax increases are not popular and at the same time there are programs and services that people do not want cut,” said the President. “It is my hope this new committee will be able to help us look past just dealing with an immediate crisis and provide insight into sustaining reasonable operations of government.”

          The Ad Hoc Committee has been asked to get underway and present its recommendations before final passage of the FY 2019-2020 Capital and Operating Budgets.