Florence City Council June 2

Caucus Meeting. All City Council members were present except Councilwoman Diane Whalen.  Mayor Aubuchon-Metzger presided over the meeting. Video

1. Swearing-in: New Police Officer Alexander Cly (Air Force veteran, prior Alexandria PD).

2. Presentation:  Principal Ryan Burch, 5 years at Florence Elementary, 4 as principal, gave a detailed update he hopes to present biannually

• History & Community
  • School since 1932 (nearing 100 years).
  • Strong traditions.
  • Seven current staff (incl. SRO Chris Combs) attended as students.
• Enrollment & Demographics
  • 610 students.
  • Largest grades: Kindergarten & 2nd.
  • Significantly above district/state averages being economically disadvantaged,
  • ELL – English Language Learners
  • Students with disabilities, and homeless.
  • Lower kindergarten readiness.
  • Attendance near district average (above state); improving toward 96% goal with interventions.
• Social-Emotional Learning & Staff
  • Panorama survey (grades 3-5, 3x/year):
  • 5-year upward trend in all 7 categories (supportive relationships, self-awareness, etc.).
  • 42 certified teachers; avg.
    • 11 years experience (below district/state).
    • Student-teacher ratio favorable.
    • Turnover 13.7% (below district/state).
    • Staff working conditions survey improved in nearly every category.
• Upgrades
  • $10k additional cameras;
  • $14k playground enclosure.
  • District intercom upgrade (lanyard emergency buttons).
  • Interactive view boards replacing projectors.
  • Desktop/Chromebook refreshes.
  • District phone system upgrade.
• Academics (KSA, grades 3-5)
  • Reading 44% proficient (district 58% & state 49%).
  • Focus on reducing novices via school improvement plan.
  • Strong English learner progress.
  • Science/social studies/combined writing
  • Climate/safety also factor into accountability.
• Growth Benchmarks (Spring National Percentile Scores) Principal Burch highlighted these as strong indicators for future KSA results:
  • Kindergarten: Reading 54th percentile, Math 56th percentile1st Grade: Reading 60th, Math 67th

• 2nd Grade: Reading 57th, Math 69th
• 3rd Grade: Reading 40th, Math 49th
• 4th Grade: Reading >70th, Math >53^th
• 5th Grade: Reading 58th, Math 68^th

• Burch stated students are performing above the 50th percentile nationally on the same tests: “better than most of the schools and the students across the nation.”
• KSA District/State Comparisons (Last Year)

• Reading Proficiency:
  • Florence Elementary 44%
  • Boone County District: 58%
  • Kentucky State: 49%
• Florence was rated “orange” (needs improvement) overall.
• Reading + Math = 51% of accountability score.
• Science + Social Studies + Combined Writing = 40%.
• English learner progress = 5%.
• School climate/safety survey = 4%.

(Please note Florence Reading Proficiency is below not only the district average but also the state average.)

• Improvement Focus School improvement plan targets reducing novice (lowest-performing) students, especially in reading and math. English learner progress noted as a relative strength.
• Awards
  • Lindsay Chapel (Family Resource):
  • Extraordinary Service Award & Boone County Break the Mold.
  • Taylor Padgett (5th grade): Golden Apple Award.
  • SRO Chris Combs: Boone County Break the Mold.
• Family/Community Events
  • At least one PTO + one Family Resource event monthly (Title I requirement).
  • Literacy night,
  • Family math night (grocery budgeting),
  • Color run,
  • Dances.
• Burch invited the council to visit for events or tours.

3. Boone County Planning Commission Budget: Kevin Costello presented.

• Budget to $452,587.
• Proclamation for his retirement after 30+ years.
• Annual budget presentation request
• Noted he is retiring after 30+ years of service (started ~1993).

• Development & Population Trends
  • New single-family home construction slowed significantly: peaked at ~1,500 homes/month, now averaging ~400/month.
  • Shift toward apartments, condominiums, patio homes, hotels, and recreation uses.
  • Population is aging; significant senior housing has been built in the last 5–10 years, with more planned.
  • Florence is largely built out and now focused on redevelopment (e.g., malls and underperforming sites).
• Key Accomplishments
  • Completed update of the county comprehensive plan; will closely monitor progress on goals.
  • Improved tracking of land uses (apartments, industrial acres, etc.).
  • Worked with city staff on zoning updates and text amendments (cannabis and manufactured housing per state law changes).
  • Experimenting with 3D modeling in staff reports to show development impact on neighboring properties.
  • Starting in June, zone change staff reports will include tracked data on acres for specific land uses.
• Budget Request
  • Overall Planning Commission budget up $86,000 (+3.5%).
  • Government funding up ~6% (~$95,000)
  • total government funding ≈ $1.5 million.
  • City of Florence request
  • +$22,000 increase
  • Total of $452,587.
  • No increase in staff.
  • Maintains contracts for legal and engineering services;
  • considering contracting social media support (no full-time position needed)

• Retirement Recognition
  • Mayor proclaimed June 2, 2026, as “Kevin Costello Day” in Florence and honored his leadership on six comprehensive plan updates:
    • Countywide GIS implementation
    • Historic preservation program
    • joint city-county public improvement inspection program
    • Staff reorganization.
  • Council thanked him for his long service

Bluegrass Backyard Recreations LLC (7544 Burlington Pike, 2.53 acres): approved with conditions. Conditions: max 26 outdoor structures, lighting/signage limits.

5. Drury Florence LLC/Drury Plaza Hotel: approved with connection condition.

• Zoning Resolution
• Location: 7911 and 7915 US Highway 42 (southeast side of the driveway on the existing Drury Plaza Hotel site).\
• Zoned C3 PDPO (Commercial Services Planned Development – Parkway Corridor Overlay). 
• Current hotel lot: approximately 4.9569 acres.
• Proposed Changes
• “Shave off” roughly 1 acre from the existing Drury Plaza Hotel lot.
• Add that 1 acre to Outlot 1 for future development.
• This adjustment increases the building intensity bonus from the previously approved 27.195% (2024) to 42.3%
• The new intensity remains below the 50% maximum allowed in a PD zone (approximately 8% under the cap).
• Current hotel building: 113,489 sq ft.

6. Union LLC/Plantation Luxury Flats (Planet Fitness, 3.9 acres): approved with conditions: Masonry architecture, parking waiver 223 spaces, fencing, lighting

Zoning Resolutions 4-6 (all recommended by Planning Commission/P&Z Committee; Council Members Gary Winn & Patricia Wingo)

7. Board Appointments:

• Reappointments to Code Enforcement Board: James Johnson and Bill Sharp
• Board of Adjustments: Linda Schaefer
• OKI: Amy Stewart and Joe Newton (alternate)

8. Budget Amendment #2 (FY 2025-26):

• Increases for temp staff
• back taxes, health/dental reinsurance (~$800k)
• insurance costs
• depreciation

9. Mayor’s Budget Address (FY 2026-27):

• 2.4% revenue growth despite tax cuts.
• Revenue diversion under investigation/audits.
• COLA 2.44%+ with new pay plan (retention focus per 2025 HR survey).
• New paid holiday: Veterans Day (14 total).
  • Police: +3 officers, New tasers.
  • Fire: Paramedic lieutenant, fleet upgrades.
• Public Services:
  • Parks/aquatic master plans
  • Vehicle replacements.
  • Infrastructure:
  • MARF (Municipal Aid Road Fund)
    • Multiple streets/sidewalks,
    • Water/sewer AI tech.
  • City projects down 80% (focus completion).
  • Finance:
    • Separate IT budget,
    • 4th clerk.
  • Thanks to staff/council for tax cuts/fiscal conservatism.

10. Jason Lewis, Finance Director, presented **Budget Amendment #2 for FY 2025-26** (current fiscal year). It covers five adjustments:

Temporary Employee Increase (Administration Dept.) Needed due to a sudden resignation from a critical clerk on health emergency leave during the busy April–June period.

• The Water & Sewer admin budget absorbs the former clerk’s salary/benefits to offset the cost.
• Miscellaneous / Back Taxes Increase (Administration Dept.) due to Revenue Diversion being investigated by the FBI
• Covers back sales and use taxes owed to the state since January 2023.
• The city self-reported the issue and met with the Kentucky Department of Revenue about 1.5 months prior.
• Exact amount still being finalized;
• Payment required before fiscal year-end.
• Health/Dental Reinsurance Revenue (~$800,000)
  • Stop-loss reimbursement received from the insurance carrier in July. This is recorded as revenue in the health insurance fund
    • Health Insurance Expenditure Increases (multiple line items)
• Driven by higher-than-expected pharmacy and prescription drug costs plus elevated claims. The city holds quarterly meetings with MedBen (plan administrator) to monitor.
• Depreciation Increase(Water-Sewer)
• Higher annual depreciation expense as several water and sewer capital projects come online and enter service.
• No dollar amounts were given for items 1, 2, 4, or 5. Council asked no questions and offered no discussion.

11. Jason Lewis (Finance Director) & Josh Hunt (Administration Director): Preliminary Budget Proposal – FY 2026-27 

• (Presented immediately after Mayor’s budget address on June 2, 2026)
• Lewis spoke first, stating there was “nothing to highlight here that’s different from what we’ve discussed at the budget retreat.” He invited questions (none asked) and noted most details were already covered in the Mayor’s speech. Hunt followed on personnel/job description amendments, deferring technical questions to HR Director Laura.
• Revenues
  • General Fund projected 2.4% growth despite property tax cuts and insurance premium tax reduction.
  • Payroll tax (largest source, ~40% of General Fund) expected to grow only 1% due to slowing hiring.
  • 15% of payroll taxes go to infrastructure fund.
  • Interest income up from restructured $70 million investment portfolio (August 2025).
  • Health/dental fund includes **$800k** stop-loss reinsurance reimbursement (already received July).
• Expenditures & Operating Pressures
  • Operating costs have risen over three years due to increased staffing needs, higher service call volume, material prices, community engagement, and technology.
  • Reference made to **Budget Amendment #2 (FY 2025-26)** adjustments already presented earlier in the meeting.
• Pay Plan & COLA (First new plan since 2016)
  • 2.4% COLA based on February CPI (ordinance requires minimum 2%).
  • New structure adds **lengthened steps** for entry-level positions (firefighters/EMTs, police officers, field technicians) — top request from 2025 employee survey.
  • Goal: Improve retention while controlling costs and complying with Senate Bill 10 (health insurance contribution impacts).
  • Mayor/council salaries receive separate 2.7% rubber-dollar COLA per KRS.
• Structural & Transparency Changes
  • Separate IT budget created (~$2.6 million) for better tracking and accountability.
  • New Rentals Fund to properly account for business-type activities (park shelters, Nature Park Event Center, Gathering House, future Lincoln Woods ball fields).
  • Opioid Abatement Fund established for >$1 million in settlement funds; third-party administrators will allocate for treatment/remediation starting July.
  • Capital accounts restructured with external auditors (Barnstunning) for clearer year-over-year comparisons.
• Response to prior revenue diversion (under federal investigation):
• Added staffing
• Oversight
• Controls
• Technology investments
• Personnel & Job Descriptions Jason Lewis (Finance focus):
• Major emphasis on segregation of duties and governance controls (identified as risk area by Dean Dorton audit and internal review).
• New reporting structure within Finance Department.
• Updated job descriptions, including adding internal auditor responsibilities to the Staff Accountant role.
• Josh Hunt (Administration/Personnel focus):
• Most job description changes are minor, primarily adjustments to reporting relationships within his department.
• Personnel policy amendments (prepared by HR Director Laura) are mostly mandated updates:
• Equal Employment Opportunity
• ADA compliance
• Harassment procedures
• Kentucky Pregnant Workers Act
• Introductory period, promotions, grievance procedures
• Hunt praised the HR memo summarizing changes and offered to bring Laura in for technical questions.

Council Interaction: no questions or discussion from council members on the preliminary proposal. The presentation was largely procedural, with Lewis and Hunt confirming alignment with prior budget retreat discussions and the Mayor’s address.

12. Personnel Policy Amendments: Mandated updates (EEO, ADA, harassment, Pregnant Workers Act, etc.)

13. MARF (Municipal Aid Road Fund) – Eric Hall Presentation

• MARF is state funding from motor fuel taxes, distributed to cities based on population. It is used for street maintenance and repairs.
• In-House Repairs (City Staff)
• City crews will perform base repairs (concrete, curbs, etc.) on 21 streets to address the worst conditions and reduce costs before any overlay work: Tamarack Area (8 streets), Cypress Lane, Evergreen Drive, Grand Fur Court, Hemlock Court, Juniper Lane, Large Court, Red Cedar Court, Tamarack Drive, Algiers Area (2 streets); Algiers Street, Carnival Court. Other streets: Sanders Drive, Old Hopeful Road, Bowman Way, Terrace Court, Beam Boulevard, Pat Day Drive, Charles R. Kalen Drive, Lacresta Drive, Sycamore Drive, Meadow Lane, Orchard Drive 
• Contracted Work: $290,000 allocated for mill and overlay on Gettysburg Lane, Planners Trail, Russell Street; separate larger project, nearly $750,000 for mill and overlay, Wetherington Boulevard

14. Mayor’s Report:

• 19 June – Juneteenth closure – Note the city was not closed for Veterans Day in 2025
• 3 July – Independence Day at Thomas More Stadium;
• 9 July – Cookies & Conversations;
• City named Top Workplace 2026. (One of 127 organizations by the Cincinnati Enquirer. There is no ranking on the list.)

15. Public Comments:

• Roger Burger on AI data centers (zoning/utilities). City Manager Josh Hunt addressed the issue and stated Data Centers were already addressed in the city code.
• Naomi Liebson on pothole her car is “bottoming out” when she attempts to drive down the street

16. Closed Session: KRS 61.810(1)(c) litigation. Approved.

No major votes beyond procedural. Focus on budget, development, staffing.

Mayoral candidate David Rose was present. Council candidates Shari Kilmer, Jim Leach, and Jeff Whitaker were present in the audience.