Finance Committee Agenda and Packet 2023 09 21

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City Council Finance Committee Meeting Minutes August 17, 2023 Page 2 of 5 Questions from the Committee: Councilmember Dickinson asked how the unrestricted funds tie into the rest of the budget, the source of the funds and what they can be used for. The Director of Finance noted that exhibit 3 on page 32 of the report identifies fund balances. It is likely that a large transfer from ARPA to General Fund in 2022 and unanticipated revenue proceeds from the Marshall Fire is a significant amount of the increase in the unrestricted fund balance. Questions from the public: None. Mid -year Financial Report: The Accounting Manager presented the mid -year financial report to the committee. Questions from the Committee: Councilmember Hamlington had a question about the Historic Preservation Fund. Ending fund balance compared to others, it seems disproportionally high revenues for expenditures. She asked if there is an opportunity for HPC to evaluate how funds are distributed and whether adjustments to the program are warranted to increase the disbursement of these funds for incentives. Chair Dickinson agreed that it should be determined how to increase the incentives, making them easier for applicants to receive. Fin Dir noted that 2023 expenditures are increasing and getting closer to The City Manager noted that the Community Development Director and CMO have discussed this issue. The Community Development team is considering ways to further the program. Councilmember Hoefner noted that the water budget revenue exceeded budget by $6-7M. The Director of Public Works noted that there was a one-time payment of sale of water rights around $2.6M. Chair Dickinson replacement capital in water and WWTP — negative expenses in 2021 & 2022 then $3.2M budget. The Director of Public Works noted that water and wastewater are continuing with large projects. With higher levels of precipitation this year, people aren't watering lawns, so water rate revenue is lower than usual. Projects may be delayed due to the external influences of temperatures and precipitation rates. Utility funds are very fluid based on external factors. Councilmember Hamlington asked when we talk about Louisville using less water due to increased precipitation. Ideally in 10+ years, people won't have lawns to be watered. Will that decrease water usage and how do we plan for projects with this consideration. If we lean farther into conservation as a state, Louisville will be in a better position to have plenty of water. This will require looking at policies as a City. Councilmember Hamlington noted that, looking at capital projects fund, some adopted budgets to adjusted budgets have increased significantly. The Director of Finance noted that, in the capital fund, you see carry - forward of projects from year to year. The left -over budget from the previous year is rolled into the current year budget and the budget is adjusted accordingly. 4/21