Budget Committee Meeting - September 3, 2026: Property Tax Ordinance and Library Tax Credits
Budget Committee Meeting - September 3, 2026
The Budget Committee of the Louisville Metro Council met on Thursday, September 3, 2026, at 4:32 PM in Council Chambers with a virtual option. Chair Kevin Kramer presided. All 10 committee members were present, with three attending virtually (Parrish-Wright, Reno-Weber, Parker). The committee considered two items: a property tax ordinance for FY2027 and a resolution to accept historic preservation tax credits for the Main Library renovation. The meeting adjourned at 4:56 PM.
Discussion Items
1. O-243-26: Property Tax Ordinance for FY2027
Angela Dunn, Chief Financial Officer, presented the ordinance setting real and personal property tax rates for Metro and the Urban Services District (USD). Key points:
- The proposed real property rate for Metro decreases from last year; the USD rate increases slightly.
- Net new property additions totaled $568 million.
- The FY27 budget plans for $209.2 million in combined real and personal property taxes.
- Countywide property assessments grew over 6%, requiring a rate reduction to stay within the 4% revenue growth cap. The USD area had minimal reassessment (only the Oxmoor area), allowing a rate increase to reach the 4% cap.
- Larry Lenahan (OMB) clarified that the countywide rate includes the USD, and individual homeowners could see increases exceeding 4%.
Committee members discussed the fairness and mechanics of the rates:
- Vice Chair Winkler explained the interplay between assessment growth and the 4% cap.
- Committee Member Piagentini confirmed that net new property is excluded from the cap calculation.
- Committee Member Herndon noted that USD residents see a reduced county rate but an increased USD rate.
- Committee Member Parrish-Wright asked about the $6 billion (approximately 6.4%) assessment growth; staff noted it is not uncommon to exceed 4%.
- Committee Member Chappell expressed concern that USD residents are taxed higher than those outside the USD, despite the USD being an economic driver (tourism, events). She questioned the $6 million revenue surplus over USD service costs. Aaron Jackson (OMB) explained that the surplus is a conservative estimate and funds general services. Piagentini and Winkler countered that USD expenses are not fully captured due to shared services and state law exclusions, making a dollar-for-dollar comparison misleading.
2. R-118-26: Acceptance of Tax Credits for Main Library Renovations
Heather Lowe, Executive Director of the Louisville Free Public Library, presented the resolution authorizing the Mayor to accept up to $1,882,400 from the Kentucky Heritage Council. The funds come from selling Kentucky Historic Preservation and IRA tax credits (totaling $1.8 million) to support the Main Library renovation. The library will use a contracted agency to sell the credits (cost ~$1.424 million), while IRA credits come directly to Metro. Committee Member Herndon, the sponsor, noted the long-awaited project. Vice Chair Winkler clarified that Metro cannot directly use the credits and sells them to a third party, as was done for the Portland Library.
Key Outcomes
- O-243-26: Motion to recommend approval passed 9-1 (Chappell voted Present, all others Yes). The ordinance was sent to Old Business for the full Metro Council meeting on September 10, 2026.
- R-118-26: Motion to recommend approval passed by voice vote without opposition. The resolution was sent to the Consent Calendar for the full Metro Council meeting on September 10, 2026.
Meeting Transcript
And as a as a thank you to the city of Louisville and the neighborhood, we're going to be giving them away. There's one stipulation. And those people that get marked there can get a signed print. So this is something different, and something that we gave a lot of thought about and thought that what can we give back to the community besides a great art show. And this is just one small gift. Unlike resurfacing an existing roadway, we started with a blank slate. But for too long, this landmark has been left without proper attention, without investment, and without needed repairs. And today, I'm excited to offer a first look at the next chapter of the Belvedere. Metro TV, we will start in thirty seconds. Good afternoon. It is four thirty-two on uh Thursday afternoon, September third. I'm Kevin Kramer, Chair of the Budget Committee. I'm joined by Councilman Marcus Winkler, the Vice Chair. Um, joined online by Councilwoman Parker, joined in chambers by Councilman Piagentini, Councilwoman Woolridge, Councilman Joseph, and Councilman Herndon. I believe we have a quote. Okay. Um, a couple items on the agenda today. The first item is ordinance two four three two six. It's an ordinance concerning the levy of two. Sorry. Just joined up also by uh Councilman Wright. And actually, thank you for that. We should read into the record, please, the clerk would. This meeting is being held pursuant to KRS sixty one point eight two six in Council Rule 5A read in full. Thank you. Now we're gonna start with ordinance two four three twenty-six. It is an ordinance concerning the levy of taxes within the Louisville Jarson County Metro government and the Louisville Urban Services District for fiscal year ending June thirtieth, twenty twenty-seven. Second. It's property before us. Thank you. If you'll uh introduce yourself for the record. Good afternoon. I'm Angela Dunn, Chief Financial Officer. Um the ordinance you have before you establishes the property tax rates for both real and personal property. The proposed real property rate for Metro represents a decrease from last year, while the urban services district real property will increase slightly. The public hearing is a chance for citizens to comment on the proposed rates. Just a couple of other important notes. Net new property additions for Louisville Metro totaled 568 million. The FY27 budget and the council approved plans for a combined total of 209,200 209 million two hundred thousand in real and personal property taxes. Early estimates are that this tax levy will leave us likely to achieve that total in aggregate with these rates, the amount of final assessments after appeals along with the actual payment rate once the sheriff mails the tax bills this fall will ultimately determine our collections. And that's it. If you have any questions, that's a lot. Councilman Winkler. Thank you. And Angie, thanks for being here. I just want to clarify for those that are watching, and and maybe you tell me if I'm wrong, and but this is sort of the my general understanding, right? So we have base value of all the property, it's reassessed, right? There's some number it goes up, and then we can either increase or decrease the property tax rate to get up to four percent, after which point it could theoretically trigger a referendum, correct? Correct. We can't exceed a four percent revenue growth based on what the rate does.
openpublica.com