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Lexington mayor Jim Newberry on Friday asked the city’s division directors to propose budget cuts to make up for a large part of an estimated $12 million -$13 million revenue shortfall in the current budget year.

“Like cities and states all over the country, our revenue projections are not meeting expectations and we will once again tighten our belt at city hall,” Newberry said. “Over the past 3 years we have cut the fat out of the city budget. This year we will likely have to cut services to balance the budget. My goal is to devise a plan that has the least impact possible on our citizens, who depend on many of our services.”

The city is anticipating that General Fund revenue in the current budget year (July 2009-June 2010) will fall below revenue in the previous budget year (July 2008-June 2009) for only the second time in the 35-year history of the Urban-County Government. The first time it happened was in 1996. The General Fund revenue projection in the adopted budget for the current budget year is $279.6 million. The city finished the previous budget year (July 2008-June 2009) with actual General Fund revenues of $271.5 million.

Newberry said he will consider additional cuts proposed by Commissioners and Division Directors, plus a broad array of other options, before presenting a budget reduction plan to Council in January. Those options may include lay-offs, a pay reduction, furloughs, elimination of city programs or other cost-cutting measures.