The Lexington-Fayette Urban County Council on Thursday adopted 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. It’s an increase of more than 5% over the current budget of $505 million. The council’s final vote was unanimous: 15-0.
It is the largest budget in the city’s history and does not include any tax increases.
Mayor Linda Gorton’s budget proposal included $24 million for a second senior center and therapeutic recreation center at Shillito Park; 3% pay increase for most city employees; $2.1 million for a new regional industrial park; and $75,000 for 25 license plate reader cameras.
The council added more than $3.2 million in additional expenses. Ten new positions were added, including two for the police and additional staff for district traffic management. The total cost to add that staff is $750,000.
It also added $2 million for a fund intended to help developers pay for infrastructure improvements for hard-to-develop land within the city’s growth boundary.
To pay for those additional staff, the council 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 budget year with healthy surpluses, sometimes exceeding $20 million.
But hiring additional people will entail additional costs in the coming years. Gorton has warned that the township’s revenues are being bolstered by federal American Rescue Plan Act funding. Part of those surpluses were also due to that extra money: $121 million over two years.
Gorton, who has until June 23 to issue vetoes, has not yet decided whether she will veto the additional staff the council added, said Susan Straub, a city spokeswoman.
Gorton’s budget included money for 15 new positions. With the council changes, there is money in the new budget for 25 additional posts.
“The mayor is concerned about increasing revenue to pay for the 10 positions,” Straub said.
How to balance the 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 a 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 has doubled
Another big change for the budget that starts July 1 is more money for affordable housing and homelessness services.
The council has passed several ordinances in recent years that allocate a percentage of the city budget to affordable housing and homelessness prevention.
The budget includes $4.79 million in spending on affordable housing. The city typically spends $2 million a year.
The budget of 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 shelter to expand the city’s current shelter system during the colder months.
One Lexington, the city’s violence intervention program for teens and young adults, will get an increase of about $20,000 for more trauma-informed care.
