Finance Committee Agenda and Packet 2024 08 15

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City Council Finance Committee Meeting Minutes July 18, 2024 Page 2 of 5 Councilmember Kern asked about the entry findings that were recommended to be changed. The Director of Finance commented that the correction has been made as the auditor proposed. Councilmember Hamlington commented on the reference to management asking what individuals are included in the term "management." Janeen Hathcock commented that "management" is anyone responsible for financial statements, such as the Director of Finance or any of his direct reports. Public Comments: None. Monthly Revenue and Sales Tax Report: The Sales Tax Department presented the monthly Revenue and Sales Tax Report. The report and an accompanying presentation were included in the meeting packet. Committee Comments: Councilmember Kern expressed appreciation for the approach taken by the sales tax department. She asked if any of the 50% of nonrespondents needed assistance filing. The Revenue & Sales Tax Manager commented that the businesses in the Economic Nexus system are mostly out of state businesses that need to start filing with Louisville. Local businesses are more affected by the non -filing list. Public Comments: None. Utility Rate Update: The Director of Public Works and Deputy Director of Utilities gave a presentation on the 2025 preliminary utility rates and fees. The presentation was included in the meeting packet. Committee Comments: Councilmember Kern expressed concern around the level of the wastewater rate increase and she asked how it can be managed to not have a large increase for 2025. The Director of Public Works noted that if the city had implemented a 25% increase last year the wastewater rate increase wouldn't have been as dramatic as currently proposed for 2025. He also commented that a 0% turnback would be more realistic for these funds. Councilmember Kern asked if there are any other suggestions that can be considered to avoid such a large increase in wastewater rates. The Director of Public Works commented that the fund balance could be allowed to be reduced but it doesn't follow our policies and increases the risk to the fund. He cautioned against trying to ease the rates while not meeting the needs of the fund. Councilmember Hamlington commented that with the recent community survey results it's clear that this is an important issue for residents. She commented that she doesn't know if residents are aware that the rates are variable, and she expressed concerns that there might be an assumption that a 50% increase this year might be construed as a continuing level of annual increase. She asked if there are other ways to achieve the same outcome or close approximation of it and would like to explore ideas, such as a one- time fee. She also expressed concern that lack of staff is how we are able to meet our cash reserves, 4