With disability rates on the rise and paratransit still falling short, Lexington is investing in two microtransit initiatives developed by local nonprofits.
On Tuesday, April 14, Lexington Mayor Linda Gorton outlined her spending priorities for the fiscal year 2026-27 budget, including additional dollars to battle snow and ice, a $2.6 million police technology contract, parks improvements, and more.
"This year, our budget is challenging," Gorton said in her budget address, which she presented to Councilmembers and residents at the Government Center.
She set the tone for this year's budget, which Gorton described as an exercise in "fiscal restraint" as the city sees rising costs and slow growth in payroll tax revenue.
"Our city has staying power. We have grit. We prevail. In our 250-year history, we have consistently overcome our challenges, and we will continue to do so into the future," Gorton said, according to a copy of her remarks shared with local media.
Mayor Gorton is proposing a $546 million General Fund budget. The city has more flexibility in what it spends with this fund, which is fueled by revenue from the payroll tax and business net profits taxes.
The complete budget totals $847 million, but about $301 million of that amount are restricted funds, meaning the money can only be spent on dedicated purposes. As Gorton explained in her budget address, it includes funds from property taxes, state road funds, and dedicated fees that pay for garbage collection, sewer operations, the landfill, recycling, and other government services.
In her address, Gorton described the local economy as "healthy," and said it has resulted in an estimated 4% revenue growth for the city this year.
However, "our expenses have also grown, just as they have grown in your household budgets," Gorton said, according to a copy of her address.
"For example, we estimate that due to higher rates, utility costs will increase by over $2 million this year. There are a lot of demands for each public dollar," Gorton said in her address.
Gorton said a major theme of her budget is "fiscal restraint." It's a balanced budget with no tax increases, she said. Some top-line figures from the Mayor's proposed General Fund budget include:
$10 million for the city's total bonding package, or how much money it wants to borrow for projects. According to Gorton, it's the lowest since 2021 during the coronavirus pandemic. In the past 10 years, the city has bonded an average of $32.8 million per year, Gorton said.
3 new positions, including a new development liaison to help coordinate and help streamline local development, including for affordable and workforce housing. Gorton said it would be the lowest number of positions created in the budget since 2021.
4.8% increase in recurring expenses. Gorton said this will "hold the line" on new spending during a period of inflation, compared to last year's 5.4%.
$78 million in planned capital spending on building projects.
What does the Mayor's budget fund?
Here's a walk-through of the spending priorities Gorton laid out:
Public safety
More than half of the General Fund budget goes to public safety spending, with 54.6% set aside for police, fire, corrections, E-911 and Emergency Management.
This includes a $2.6 million police technology contract for 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.
Additionally, the Mayor is budgeting $230,000 to remodel a gym for police. The city has also identified a site for a police training center on the University of Kentucky's Coldstream Research Campus. Design work will begin on the project pending approval by the Industrial Authority Board and the Urban County Council.
Another $1.5 million will go toward replacing heavy equipment in the city's fire department. A fire training center is in the design phase, Gorton said.
$700,000 is being set aside to replace emergency medical equipment.
Snow and ice
After two winter storms created frustration and safety issues for residents this year, prompting the city's public works commissioner to resign, Gorton is upping the city's investment in snow and ice response.
"Funding for this fight – totaling $5.1 million – will help us bring in the support we need when our streets are icy and snow-covered by having contracts in place with a mix of local and regional contractors who have the heavy equipment needed to break up ice," Gorton said, according to a copy of her remarks.
It 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.
"Although increased funding is definitely needed, it’s just the beginning of the changes we are making. We are redesigning our winter weather plan, improving communication and oversight, increasing training for drivers, and more," Gorton said.
Parks
The second year of Park Fund projects includes a total of $7.5 million, Gorton said.
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
Improvements at Castlewood Park, including to the community center
Gorton said the city also plans to spend $1.2 million on basic maintenance projects at Raven Run, Douglass, Masterson Station and other park facilities.
Opioid response
Gorton previously shared some general spending priorities for roughly $30 million in national opioid settlement money the city expects to receive over 18 years. The city has receive $9 million so far.
On Tuesday, Gorton shared more specifics about how that money will be spent, which she plans to present to Council later this month. They include:
$2 million for small and large grant programs for local nonprofits addressing substance use disorder.
$2.2 million supportive housing and treatment services for people experiencing homelessness.
$3 million will be deposited in an interest-bearing account to fund programs each year.
$1.8 million for other needs.
Other spending projects
A few other initiatives Gorton called out in her speech Tuesday include:
$5 million on the city's Extended Social Resource two-year grant program. The program supports the work of local nonprofits working on community needs and emergency shelter.
Spending on private security downtown in areas such as Phoenix Park, the Courthouse Plaza and Tandy Park. This will be accompanied by an increased police presence and enhanced lighting, Gorton said.
Building new sections of Town Branch Trail.
Rebuilding a part of North Limestone, including bike lanes and sidewalks, between Withers Avenue and New Circle Road.
Funding to help begin part of the design and right-of-way for the Scott Street Connector, which will connect Oliver Lewis Way to South Limestone near UK's campus.
New plans for Tates Creek Community Center, with expanded hours and programming for all ages.
2% cost-of-living pay raise for non-sworn employees.
$70,000 for One Lexington's budget to expand support for gun violence victims. The funding would go to survivor-led nonprofits for support initiatives.
$282,000 to update Enhanced-911 computer equipment.
What comes next in the budget process?
Urban County Councilmembers are set to begin their budget discussions during a Committee of the Whole meeting next Tuesday, April 21st, according to Engage Lexington.
A series of "link" meetings will also take place shortly. During these meetings, Councilmembers meet in groups of three to tackle budget items, discuss with various city departments and develop their own recommendations.
The Mayor and Councilmembers ultimately have to work together to develop and adopt a budget by June 15th.
There are multiple opportunities for you to weigh in on the budget while it's being developed. These include:
Fill out Council's budget survey, which is available on Engage Lexington. The survey closes Friday, April 17th.
Speak in person during public comment sessions at upcoming Council Work Sessions or Council meetings. You can find calendar dates for those here.
The Mayor will also hold a public budget hearing on May 14th at 6 p.m. You can find more details on that here.
Aaron covers the Lexington Fayette Urban County Council as a City Hall Reporter for CivicLex. His background is in Service Journalism, and he’s passionate about helping Lexington residents stay informed about happenings in local government.
Lexington's payroll growth is expected to grow at a slower rate over the coming years, likely impacting the city's ability to create new positions and recurring programs.
