More than $6 million in increased revenue
LOUISVILLE, Ky. (Dec. 15, 2015) — Louisville Metro Government ended fiscal year 2015 with a surplus of $18.9 million, Mayor Greg Fischer announced today. He cited sound fiscal policies, experienced management and strict budget adherence for the surplus.
The surplus represents $6.3 million in increased revenue and $12.6 million in expense savings.
“This is a good government—and an improving economy—at work,” Fischer said. “Department directors held the line on their budgets, working to ensure that every one of those dollar was well-spent. It illustrates our ability to run a lean, efficient operation— and it took a team effort.”
Pending a vote by Metro Council on Thursday, the surplus will be spent on:
- $6.1 million to pay off debt owed to the Louisville Water Co.
- $3.6 million for the city’s rainy day fund, bringing the balance to $66 million.
- $2.5 million for the city’s risk management fund.
- $2.2 million to cover funding that was expected but not received from grants and other sources.
- $1.6 million for replacement of computer/technology servers.
- $500,000 set aside by the Metro Council budget committee for potential projects that it identifies in the future.
The remaining—about $2.4 million—will be set aside for various government accounting-related expenses, including potential legal costs, said Chief Financial Officer Daniel Frockt.
The surplus announcement comes a month after the top three national credit rating services gave high marks to Louisville’s credit worthiness, and as Metro government was, for the third year in a row, awarded a national Distinguished Budget Presentation Award for excellence in governmental budgeting.
The Government Finance Officers Association of the U.S. and Canada made that award, saying it illustrates a commitment “to meeting the highest principles of governmental budgeting.”
Frockt said the award recognizes the mayor’s charge for all departments to pursue continuous improvement in a transparent and inclusive process.