Council approves Mayor's proposed budget. What's next?

During a June 9th meeting, Lexington's Urban County Council gave final approval to the budget for fiscal year 2027, which begins July 1 and proceeds through June 30, 2027. The budget vote was unanimous, with all 15 Councilmembers voting in its favor.

In April, Mayor Gorton outlined her spending priorities for the budget, which totals $847 million. About $301 million of that amount are restricted funds, meaning the money can only be spent on dedicated purposes and prior commitments.

That leaves a general fund budget of $546 million. The city typically has more wiggle room with what it spends through this fund, which is fueled by revenue (income) from the payroll tax and business net profits tax.

In her April budget address, Gorton described Lexington's economy as "healthy" and said it's produced 4% revenue growth for the city. It's a balanced budget with no new taxes. However, the Mayor also said a major goal of this year's budget is "fiscal restraint," as Lexington faces rising costs and slowing revenue growth.

Personnel, for example, is a major expense for the Lexington-Fayette Urban County Government. The Mayor proposed adding just three new positions this year: A new development liaison position to help streamline Lexington's permitting process and two new staff positions at the new Senior & Therapeutic Recreation Center at Shillito Park.

What's next for the budget?

Council is required to adopt a new budget by June 15th each year as a provision of Lexington's charter.

With that hurdle now cleared, the next major discussion will come in October. At that time of year, Council typically votes on how to spend the city's fund balance – essentially left over money – from the previous fiscal year. While most of the fund balance is already committed to specific expenses at that point, there is typically an unassigned amount Council can distribute to different programs and projects.

During Council's May 26th Committee of the Whole meeting, Councilmembers referred some spending priorities to that forthcoming fund balance discussion, including $50,000 for Lexington's Digital Accessibility Plan, for example.

Additionally, Council can vote to make changes and adjustments to the budget throughout the year if needed.

What did the Mayor and Council fund in the budget?

The budget sets aside nearly $300 million from the general fund for the city's public safety divisions, such as police, fire and similar divisions, according to a Council news release.

Other budget highlights include:

$2.6 million for a police technology contract. It includes unlimited computer storage for digital evidence, new Tasers for officers that offer better accuracy and range, and funding for Fusus, a real-time intelligence center that integrates footage from Flock license plate readers and traffic cameras around the city.
$1.5 million to replace heavy equipment for the city's Fire Department.
$5.1 million to support the city's winter storm response. That represents an increase of almost $2 million compared to last year's spending. The city is also spending more on salt, the organic de-icing agent Beet Heet, new trucks, additional salt spreaders, overtime for crews, and additional contractors.
$7.5 million for the second year of Park Fund projects. Gorton proposed replacing sports courts at nine parks, including a $1.1 million investment in the city's Dirt Bowl courts. Other projects include replacing the gazebo at Woodland Park, establishing a trail at Kelley's Landing, building a playground at Addison Park, and improvements at Castlewood Park, including to the community center. The city also plans to spend roughly $1.2 million on basic maintenance projects at Raven Run, Douglass, Masterson Station and other park facilities.
$13 million for street paving and maintenance.
$200,000 for a new pothole repair fund.
$5 million for the city's Affordable Housing Fund.
$2.2 million to support Lexington's winter warming operations.

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Dive deeper:
For more details about the budget and its spending priorities, read our previous coverage here.

In recent weeks, Council has approved its own spending priorities, directing an additional $2.75 million toward them.

Some examples include adding two new security personnel and equipment to Lexington's Government Center, along with extra money to support the city's vehicle fleet and efforts to make its parks and facilities more accessible to people with disabilities.

The full list of spending requests Council approved is as follows:

$1.5 million to help implement Lexington's Americans with Disabilities Act Transition Plan.
$1 million to help with costs for the city's fleet of vehicles.
$135,098 for new security equipment and two additional security personnel for Lexington's Government Center.
$50,000 for Fire and Emergency Services to create a health and wellness coordinator pilot program.
$25,000 for temporary clerical and administrative support at Office of the Citizen's Advocate. The office functions much like an ombudsman. However, the office's case load and case complexity have increased, causing it to cutback community outreach.
$25,000 to implement the Greenspace Trust Coldstream Master Plan, funded through the water quality management fund.
$20,000 from the beginning Fiscal Year 2027 fund balance to support the Police Activities League.