LEXINGTON, Ky. (LEX 18) — Lexington Mayor Linda Gorton has proposed a $546 million general fund budget for the 2026-27 fiscal year, dedicating more than half of the proposed spending to public safety.
"This budget is a budget built on fiscal restraint," Gorton said.
The proposal relies on limited borrowing and includes no tax increases. Gorton called it a challenging budget due to increased expenses, specifically citing rising utility rates. She estimates that the city faces an increase in utility costs of over $2 million this year.
"The cost of all utilities have gone up and that is the same for government," Gorton said.
Following a winter storm in late January, Gorton outlined a study that uncovered major failures in how the city responded. To address this, the proposed budget includes an increased investment of nearly $2 million to battle snow and ice, bringing the total to $5.1 million.
"It gets us more salt, more Beet Heet, and so this what we think we need for next year," Gorton said.
The budget authorizes three new city positions, which is the lowest number added since 2021.
"We have our development liaison and we have two positions for our new therapeutic center," Gorton said.
Overall, the plan includes $78 million in capital spending. Gorton said the city has overcome financial challenges through tight fiscal management.
"It's a balanced right size budget that has no tax increases," Gorton said.
"It keeps our sights set as we always do on the future," Gorton said.
The Lexington City Council has until June to adopt the 2027 fiscal year general fund budget.
Other notables from the plan:
- $10 million bond issue
- 4.8% anticipated revenue growth
- 2.6 million for police technology contract: unlimited computer storage, access to a new taser, extends access to Fusus
- 2.2 million winter shelter, $200,000 increase or those who are homeless
- $400,000 towards housing stability services
- Opioid Abatement fund plan subject to Council approval
- $1.5 million for replacement of heavy equipment in fire
