The Lexington-Fayette Urban County Council on Thursday approved a $532.9 million spending plan that includes money for 25 new positions, millions for a second senior center and raises for most city employees.
The budget is for the fiscal year beginning July 1. That’s a more than 5% increase over the current year’s budget of $505 million. The board’s final vote was unanimous, 15-0.
It is the largest budget in the city’s history and does not include tax increases.
Mayor Linda Gorton’s budget proposal included $24 million for a second senior center and therapeutic recreation center in Shillito Park; 3% raises for most city employees; US$2.1 million for a new regional industrial park; and $75,000 for 25 license plate reader cameras.
The council added more than US$3.2 million in additional expenses. It added 10 new positions, including two positions for police and additional staff for neighborhood traffic management. The total cost to add this team is $750,000.
It also added $2 million to a fund intended to help developers pay for infrastructure improvements on hard-to-develop land within the city’s growth limits.
To pay for this additional staff, the board voted to increase the revenue estimate for the next fiscal year.
That estimate — which determines how much money the city will receive in taxes and fees — has been below the projected estimate for the past three years. That means the city ended its fiscal year with healthy surpluses, sometimes exceeding $20 million.
But hiring more people will mean additional costs in the coming years. Gorton warned that the city council’s revenues have been boosted by federal funding from the American Rescue Plan Act. Some of those surpluses are also due to that additional money — $121 million over two years.
Gorton, who has until June 23 to make any vetoes, has not yet decided whether to veto the additional staff the council has added, said Susan Straub, a city spokeswoman.
Gorton’s budget included money for 15 new positions. With the changes to the board, the new budget has funding for 25 additional positions.
“The mayor is concerned about raising revenue to pay for the 10 positions,” Straub said.
How to balance your budget
The city is using some “one-time money” to balance its budget, including $32 million from various city savings accounts.
The budget also uses $45 million in bonds or loans.
Included in that loan is $24 million for a second senior center and therapeutic recreation center. The city’s current senior center at Idle Hour Park has been full since it opened in 2016. The city will also use borrowed money to buy police and fire vehicles, and another $12 million will be set aside for paving.
In total, the budget includes $14 million, a combination of grants, city money and loans, for paving.
Money for affordable housing and homeless services doubled
Another big change in the budget starting July 1 is more money for affordable housing and services for homeless people.
The council has approved several ordinances in recent years that allocate a percentage of the city’s budget to affordable housing and homelessness prevention efforts.
The budget contains $4.79 million in affordable housing spending. The city typically spends $2 million a year.
The budget for the city’s Office of Homeless Prevention and Intervention will also nearly double, from $750,000 to $1.4 million. In addition to the $1.4 million, the budget also includes $2 million for a winter heated shelter to augment the city’s current shelter system during the colder months.
One Lexington, the city’s violence intervention program for teens and young adults, will receive an increase of about $20,000 for more trauma-informed care.
