Weekly Blog

CFN Updates

May 1, 2025

Behind the City’s Budget + Why It Matters

Last week, Mayor Craig Greenberg unveiled his FY 2025–26 budget, launching Metro Council’s fast-paced push to finalize the city’s spending plan before June 30. Over the next six weeks, Council will hold a marathon of public hearings and behind-the-scenes negotiations that shape everything from library hours to housing investments.


Yet for most residents, the process remains opaque and inaccessible. Strengthening civic engagement means ensuring people can understand what’s happening. When budget decisions are translated clearly and shared widely, more Louisvillians can speak up, weigh in, and help steer the city’s priorities in real time.


We at CFN watch this process closely, and we’re using AI to help make our research and insights available to you, public officials and other civic engagement enthusiasts in ways never before possible. As a first exercise, we asked ChatGPT to answer a number of questions we would have about the budget address and got these answers. If this is your thing, stay tuned for more in the coming weeks!



Summary of Budget Changes for Louisville Metro Government

FY 2025–2026

Overall Themes

The FY 2025–2026 budget focuses on:

  • Public safety enhancements
  • Government efficiency (e.g., AI integration)
  • Early childhood and youth services
  • Wage increases (5% raise for non-union employees)
  • Infrastructure, housing, and cleanliness initiatives

Departments with the Largest Increases

1. Public Works & Assets

  • Increase: Over $10 million
  • Details:
  • $1.75M for city cleanliness efforts (street sweeping, litter baskets)
  • 32 new positions transferred from Office of Planning
  • Transportation-related planning responsibilities added

2. Office of Management & Budget (OMB)

  • Increase: Approx. $13.7 million
  • Details:
  • $6M to fund suburban EMS runs inside the Urban Services District
  • $7.5M for non-union employee wage adjustments
  • $600K to Evolve502
  • $100K to TARC for Metro employee ridership program

3. Louisville Metro Police Department (LMPD)

  • Increase: Net increase despite some line-item cuts
  • Details:
  • $750K for consent decree monitoring
  • $1.02M to continue protactical performance contract
  • 5 positions transferred in from Records Compliance
  • Despite these, $3.55M in reductions in specific areas (see decreases below)

4. Parks & Recreation

  • Increase: Over $1 million
  • Details:
  • $423K for staffing/security at Algonquin & Camp Taylor pools
  • $300K to YMCA for early learning readiness
  • Transfers in funds for conservation and cooperative extension ($363K)

5. Metro Technology Services

  • Increase: Approx. $3.4 million
  • Details:
  • $1.89M for new AI programs
  • $1.53M for computer replacements
  • 4 new positions added, 3 more transferred in

Departments with the Largest Decreases

1. Office of Strategic Initiatives (formerly Office of Philanthropy)

  • Decrease: $4.48 million
  • Cause: End of state-required funding for Thrive by Five initiative (mineral severance tax)

2. LMPD – Specific Line Items

  • Reductions Totaling $3.55 million:
  • $2M in non-scheduled overtime
  • $948.5K in safety/security equipment
  • $400K in safety supplies
  • $200K in advertising

3. Sister Cities Program (Economic Development)

  • Eliminated: $30,000

4. Brightside

  • Decrease: One full-time position eliminated

Other Notable Increases

  • Library: $1M for books and reopening Fern Creek branch (with match from Foundation)
  • Office of Social Services: $1M to Volunteers of America, $500K to Dare to Care
  • Emergency Services: $1.6M for drone program and 9-1-1 call triage nurses
  • Metro Animal Services: $350K for operations and humane society programs

Takeaway

The 2025–2026 budget invests heavily in:

  • Public safety
  • Staffing and compensation
  • Infrastructure and cleanliness
  • Youth and early education

At the same time, it phases out or consolidates select initiatives (e.g., Thrive by Five, Sister Cities) to reallocate resources.

FY 2025–2026 Recommended Budget

Total Revenue Forecast

  • Total Available Funds: $953.1 million
  • Increase from FY25: $35.8 million (+3.9%)
  • General Fund (GF) Revenue: $876 million (up from $857.8M in FY25)
  • Growth Rate (GF only): +2.1%
  • Excluding debt and fees: GF revenue grows by +2.6%

Key Revenue Increases

1. Employee Withholdings (Payroll Tax)

  • FY26 Estimate: $397.7 million
  • Growth: +3.9% from FY25
  • Share of GF Revenue: 45%
  • Note: Adjusted intrinsic growth rate is 4.5% due to a prior-year reporting anomaly

2. Real & Personal Property Taxes

  • FY26 Estimate: $201 million
  • Growth: +4.3%
  • Share of GF Revenue: 23%
  • Factors: Higher property assessments and rate adjustments

3. Insurance Premium Taxes

  • FY26 Estimate: $99.7 million
  • Growth: +4.0%
  • Share of GF Revenue: 11%

4. Local Corporate Net Profits

  • FY26 Estimate: $103.5 million
  • Growth: +1.8%
  • Share of GF Revenue: 12%

5. Water Company Dividend

  • FY26 Estimate: $37.7 million
  • Increase: Up from $33.9M in FY25
  • Reason: Rolling 3-year average formula now includes previous pension obligation adjustments

Revenue Holding Flat

  • Municipal Aid & County Road Aid:
  • FY26 Estimate: $14.3 million
  • No Change from FY25

Revenue Decreases

1. Mineral Severance Taxes

  • FY26 Estimate: $520,000
  • Decrease: Down from $610,000
  • Reason: Reduction in state-level extraction revenues

2. Election Expense Refund

  • FY26 Estimate: $160,000
  • Decrease: From $311,000
  • Reason: Fewer elections scheduled in FY26

3. Investment Income

  • FY26 Estimate: $7.67 million
  • Decrease: From $16.68 million in FY25
  • Reason: Lower projected interest rates and capital gains

Revenue Breakdown by Source (FY26)

Revenue Source% of Total RevenueOccupational Taxes56.2%Property Taxes23.5%Insurance Premium & Net Profits23% (combined)Water Company Dividend4.0%Licenses & Permits3.2%Charges for Services2.4%Intergovernmental Revenue1.6%Municipal/County Road Aid1.5%Community Development (Federal)1.2%Other/Capital Funds5.4%

Overview of New Capital Spending

Louisville Metro Government FY 2025–2026

Total Capital Budget:

$240.3 million

  • Funded by:
  • Federal funds: $70.8M (29.4%)
  • Bonds: $69.2M (28.8%)
  • Capital Fund (Local): $34.6M (14.4%)
  • State funds: $15.3M (6.4%)
  • Other funds: Notes, Agency Receipts, CDBG, etc.

Major Capital Project Categories

1. Infrastructure & Streets

  • Metro Street Paving: $30M
  • Sidewalk Repair & Alley Paving: $3M
  • West Louisville Streetscape & 2nd/3rd St Conversions: $12.7M
  • Trail & Bike Projects (Louisville Loop, Highland Park Bike Park, etc.): $10M+

2. 

Parks & Recreation

  • Deferred Maintenance: $3.2M
  • GG Moore Park Improvements: $500K
  • Olmsted Park Match Projects: $1.25M
  • Environmental Resiliency (Urban Tree Canopy): $250K

3. Libraries

  • Fern Creek Library Project: $2M (State-funded)
  • Capital Campaign (Main, Parkland, Portland Libraries): $7.65M

4. Public Safety & Facilities

  • LMPD HQ Renovation: $9.25M
  • Fleet Replacement (Police, Fire, EMS, Parks): $17.1M
  • ADA Compliance for Metro Websites: $445K
  • Data Center Upgrades & Cybersecurity: $5.75M

5. Housing & Community Development

  • Affordable Housing Trust Fund: $15M
  • Homeowner & Rental Preservation: $3.4M
  • Shelter Renovation & Ramp Removal: $1.2M
  • One West Capital Improvements: $1.1M

6. Economic Development

  • South & East End Infrastructure Funds: $6M
  • Downtown Infrastructure Fund: $2.5M
  • Simmons College STEAM Hub: $3M

7. Other Notable Projects

  • Transit Hub Acquisition: $3M
  • Election Poll Books (Clerk’s Office): $4.07M
  • Flood Gate Upgrades at Slugger Field: $215K
  • Kentucky Science Center Maintenance: $300K

Capital Spending by Function

FunctionShare of Capital BudgetPublic Health & Services58.4%Economic Development16.3%Operations & Budget17.0%Chief of Police1.5%Emergency Services2.4%Elected Officials (combined)4.4%           


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The Nia Center Moment: Community Ownership, Built to Last

By carlad • March 8, 2026
Louisville has a rare opportunity right now: to move a major community asset from uncertainty to permanence. For years, the Nia Center has represented something bigger than square footage: a visible, West End hub where small businesses and community-serving organizations can grow side by side. What makes this moment different is that the work has shifted from “wouldn’t it be great” to the close-ready realities that actually determine outcomes—finalizing deal structure, aligning the capital stack, and putting the documentation in place so the project can close, stabilize, and deliver. As the fiscal sponsor supporting the West Louisville Dream Team, we’re in the process of submitting final materials to a host of potential funders and investors needed to complete the acquisition, including, importantly, a request to the West End Opportunity Partnership (see details below). Funding is the unlock at this point. The overall raise is $4,000,000 to acquire, close, and begin revitalization of the Nia Center. The financing process now runs on dates: proof of financing is due April 3, 2026 , with a targeted closing window in late May / early June 2026 . The request to the West End Opportunity Partnership, in plain terms As part of completing the $4.0 million raise, we, as fiscal sponsor and applicant on behalf of the West Louisville Dream Team (WLDT) and the community ownership offering it is preparing, is requesting $1,950,000 from The Partnership. That request has two parts: $1,500,000 as preferred redeemable equity and $450,000 as a grant for building improvements and upgrades. The $1.5 million earns a 4% annual return with liquidation preference ahead of common equity, meaning it has stronger protection than the common shares that will be held by CFN on behalf of WLDT and the community during the term of the fiscal sponsorship. WLDT/CFN can start paying it back after three years, and if it hasn’t been repaid by ten years, The Partnership can require repayment. There’s no extra penalty for paying it back early. At a future refinance or sale, The Partnership also has an option to convert a portion into up to 5% ownership instead of taking all cash back. If The Partnership prefers, part of this $1.5 million can be structured as a subordinated loan, at interest of 4% and a balloon payment in 15 years. The $450,000 grant goes directly toward the building improvements and upgrades that have been planned for the building to improve the tenant experience and protect long-term value. It also serves as an anchor within a broader $1,000,000 upgrades grant campaign, helping accelerate visible improvements while the building moves into its next chapter. What happens next The next phase is disciplined and time-bound: finish financing commitments, continue tenant engagement and pre-leasing progress, and complete closing preparations so the project can move into early upgrades and stabilized operations. If we do this right, the Nia Center becomes a proof point—showing what it looks like when community leadership and structured capital work together to produce something durable: a stronger hub for Black, Brown and local entrepreneurship, and an ownership pathway that isn’t theoretical, but real enough to close on. This is the Nia Center moment. The work now is to turn community voice and values into execution, and long-term community ownership.
A large ornate bronze fountain with water cascading into a pool, surrounded by a wrought-iron fence and greenery.

St. James Court, Then and Now: The Story That Shaped CFN

By Center for Neighborhoods • March 2, 2026
CFN has evolved from a design center doing primarily human-centered architecture work into an organization focused on education, engagement, and resident leadership—training and programs that help neighbors define priorities and build power together.
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Bring Your Expertise to the Block: Join CFN’s Expert Network

By Center for Neighborhoods • February 21, 2026
Louisville doesn’t need more ideas. It needs more capacity to execute—in neighborhoods, with residents, and in ways that actually last. That’s why Center for Neighborhoods is building a citywide Expert Network of experienced planners, facilitators, designers, organizers, analysts, developers, and project leaders.

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