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Lexington's Urban County Council approves city's 2026 fiscal year budget

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LEXINGTON, Ky. (LEX 18) — A release from Lexington's Urban County Council reported that the city's 2026 fiscal year budget was approved during the council meeting on Thursday.

Council Member James Brown, Chair of the Budget, Finance & Economics Development Committee stated, "Thank you to my council colleagues for fulfilling one of our core responsibilities each year: the oversight and approval of a balanced budget that meets the needs of Lexingtonians."

After Mayor Gorton's proposed budget was released on April 15, the council began to work on finalizing the nearly $1 billion investment, which was approved on Thursday.

The release read that the budget approval process involved small groups of council members working to examine specific portions of the budget in order to finalize final recommendations.

"We are fortunate to work alongside Mayor Linda Gorton's Administration, who put together a robust starting point for our work," added Brown. "Through this budget, we have affirmed our commitment to community safety, roadway improvements and maintenance, uplifting our neighbors in need, and supporting the pillars of our local community."

Here are the highlights of the Fiscal Year 2026 budget plan as listed in the release:

Community Safety:

  • $400 million+ across all Public Safety Divisions;
  • $3 million to fund the design of a new Fire Training Academy;
  • Funding for two police and two fire recruit classes;
  • $623,000 in capital improvements for Community Corrections; and
  • Expanded Community Paramedicine Programs.

Paving and Sidewalks:

  • $14 million for street paving and maintenance;
  • $400,000 to help Lexington residents repair unsafe sidewalks and avoid fines; and
  • $1.25 million for sidewalk connectivity program.

Parks:

  • Three schools added to the Extended School Program (ESP); and
  • Funding to update the Parks Master Plan and gather community input on allocating the newly established "Parks Fund."

Housing:

  • $8 million+ investment in the Affordable Housing Fund; and
  • New Encampment Coordinator for Office of Homelessness Prevention and Intervention.

Community Services:

  • $300,000 for Emergency Financial Assistance;
  • $4.9 million to support local noprofits through the ESR program; and
  • Increased funding for community centers.

Economic Development:

  • $250,000 for Bluegrass AG Tech Grants;
  • $400,000 for local workforce development; and
  • $500,000 to enhance public transportation services.

Environment:

  • $150,000 to expand Lexington's tree canopy;
  • $500,000 to improve recycling and yard waste programs;
  • Funding to repair transfer station at Old Frankfort Pike; and
  • Reduced reliance on contractors to maintain public greenways, trails, and corridors by investing in full time horticulture.

Find more information on FY26 final budget and other council projects here.