Increased revenues largely offset public safety related expenditures
Louisville, KY., – Louisville Metro Government has ended the 2016-2017 fiscal year with a balanced budget while also growing the “Rainy Day Fund” to $68.9 million, up from $67.9 million, Chief Financial Officer Daniel Frockt announced today.
A year-end budget balancing ordinance — sponsored by Councilwoman Marianne Butler — was filed today with Metro Council to close out the year following the annual financial audit.
Final General Fund revenues were $589 million—about $4 million (or 0.7%) more than the most recent forecast of $584.9 million, thanks in large part to 5.3% growth in employee wages throughout Louisville Metro. The additional revenues will be used for appropriations in the public safety realm, primarily in LMPD (largely due to overtime, which was expected as the city put more resources into crime fighting) and Metro Corrections (due to an increased inmate volume).
In addition to maintaining the city’s balanced budget and high credit ratings, fiscal year 2016-17 saw the highest investment levels in street paving and public safety, the opening of the South Central Regional Library, and the restoration of historic City Hall and Metro Hall. “The revenue strength reflects both job and wage growth which has allowed the city to execute its strategic plan, especially with regard to investments in public safety and infrastructure,” Frockt said.
The proposed ordinance does not include any new appropriations or budget reductions to bring the city in balance. As with all years, it will reconcile accounting adjustments in concert with the final budget totals. Looking ahead, Frockt stated that he does not anticipate any mid-year ordinance adjustment for fiscal year 2017-18 (Metro’s current fiscal year) and that the city will need to be mindful of a potentially larger pension bill from Frankfort in fiscal year 2018-19.