Budget, Finance, & Economic Development Committee Presentations

There are three big presentations going on in Tuesday’s Budget, Finance, & Economic Development Committee Meeting. 

Budget and Financial Update
The Committee will hear a presentation on city financials. This will include an outlook on the city’s revenues and expenses for a performance review of July and August, a comparison of last year’s August financial performance with this year, and variances in ARPA expenses in the Negative Economic Impact sector. This presentation is for information only and no decisions will be made. The detailed presentation starts on page seven of this packet.

Jobs Fund Update
The Jobs Fund was created in 2013 to provide funding to businesses committed to creating and retaining jobs in Lexington. The Jobs Funds are administered by The Economic Development Investment Board (EDIB).

There are three monetary awards available to businesses:

• $100,000 for a forgivable loan agreement

• Up to $250,000 for a loan agreement

• Up to $50,000 for grants — EDIB recommends removing this option.

Some of the qualifications a business must meet to qualify for the funds are to be located in or moving to Lexington, pay at least $24 per hour wages, and produce a trade-able good or service.

There are currently 29 awards totaling $3.63 million for 281 jobs.

Economic Development Grant Update
The Economic Develop Grant program aims to provide economic and workforce development and workforce retention services to businesses in Lexington. The Economic Development Grant Fund was provided $200,000 in FY22, with five partners receiving funding.

The program has helped with 346 job placements at an average wage of $12.88. 60% of the jobs are in the manufacturing sector, with 15% in skilled trades and 10% in hospitality.

No decisions were made by council members after hearing presentations at the Budget, Finance, and Economic Development Committee meeting.

The committee did pass a draft ordinance for budget adjustments, which are different than Budget Amendments. This ordinance comes from a recommendation by the 2019 Budget Process Work Group.

The purpose of this ordinance is to consolidate budget language into a single ordinance and to streamline the process of making budget amendments and adjustments.Budget Amendments are seen at work sessions and approved in Council Meetings. Amendments are when the administration requests to move revenue or fund balances between divisions. Budget Adjustments do not require council approval, but the council is provided a weekly report on adjustments. They are financial movements within a single government division by LFUCG personnel.

To read this ordinance, go to Page 48 in the linked drive in the packet labeled 'Revised 9-20-22 BFED Packet'.