After tense Metro budget conversations in the spring, the government is still dealing with some of the fallout, like newly proposed rules and studies. One key concern from that time was that to find cash to balance the city budget, Metro tried to sell off some of its properties.
That’s a moneymaking method that the Metro Council ended for good with a vote Tuesday night.
Councilwoman Kathleen Murphy sponsored the rule change so that the city can’t sell properties to fund routine government operations — that those land sale dollars could only go toward investing in other property or paying down debt.
Murphy says her constituents were clamoring for the city to get its “financial house in order,” criticizing the sale of valuable land to meet one-time costs.
“There are multiple buckets out there that fund the government, other than just selling property,” Murphy said. “At some point we won’t have any more property to sell, right, if we just keep selling it off.”
Initially, Metro leaders pushed back on Murphy, largely because about $24 million in Metro budget needs are tied to property sales this year.
But she agreed that the rule could take effect next year, and she included an allowance so that Metro can still have flexibility with funds gained from the sale of tax-delinquent properties.
The Metro Council voted 34-0 in favor of the rule on Tuesday.
Other fiscal changes are already underway in reaction to recent budget challenges. The council hired its own fiscal advisor and has created a commission to probe the city budget in search of savings. The city has also paused the use of tax increment financing so that its rules can be reviewed.
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