10 things you should know about Lexington’s proposed $370 million budget

Lexington Mayor Jim Gray unveiled a more than $370 million budget Tuesday that has little new money for big-ticket projects but includes funding to hire 25 new firefighters, $100,000 for metal detectors at Lexington schools and more than $2.6 million for parks improvements.

Gray, in his eighth and final annual budget proposal, said the $370.7 million general fund budget for the fiscal year that begins July 1 was hampered by political uncertainty in Frankfort.

Just how much the city will have to contribute toward the pensions of employees who are part of the state’s County Employees Retirement System is still unclear. The General Assembly passed Senate Bill 362, which would cap the increase in local government’s pension payments at 12 percent a year for a decade, but Gov. Matt Bevin vetoed the bill last week.

There may be enough votes in the House and Senate to overturn the veto when lawmakers return to Frankfort on Friday. But if that doesn’t happen, Lexington’s pension payment would jump from $3.1 million to $10 million.

“Like the mayors of cities across Kentucky, I hope the legislators and governor can work together later this week to give final passage to a phase-in bill,” Gray said. Fortunately, the Lexington council set aside money from last year’s budget surplus for future pension obligations. The city will have the $10 million it needs if the legislature does not override Bevin’s veto, he said.

The budget now goes to the Lexington-Fayette Urban County Council, which can make changes to Gray’s budget proposal. The 15-member council will take a final vote on the budget by mid-June. It’s first budget workshop is April 17.

“The budget I am proposing today will once again focus on creating good-paying jobs and running a lean and efficient city government as we continue to create forward momentum and upward growth,” Gray said in his budget address.

Here are 10 things to know about Gray’s proposed budget:

▪ It includes no tax increases.

▪ The $370 million budget calls for spending 3.5 percent more than the 2017 budget of $358 million. It includes up to $44.4 million in borrowing, up from last year’s $36 million in borrowing. That $44 million includes up to $20 million in additional borrowing for the expansion and renovation of the Lexington Convention Center.

▪ More than half of the general fund budget, 55 percent, would go to public safety. Gray’s plan includes money for 25 new firefighters, 24 of which will staff the new Masterson Station fire station, which is scheduled to open in May. It also includes $2.7 million for new fire trucks, $2.5 million for new police cars and an extra $1.3 million for fire station maintenance.

▪ The plan would spend $100,000 to help Fayette County Public Schools purchase metal detectors at some of its schools. Gray acknowledged that using city funds to help schools with public safety is unusual. “But I believe school safety and public safety go hand in hand,” he said.

▪ City employees not covered by a collective bargaining agreement — most employees other than police and fire — will receive a 2 percent raise. In addition, the city will increase its minimum wage for seasonal and part-time employees to $10.10. The city committed three years ago to increasing its minimum wage to $10.10 over several years.

▪ The city would spend $2.6 million on park improvements, including a new playground at Shilito Park, a walking trail in Meadowthorpe Park and new basketball courts at Jacobson Park. The plan also sets aside $150,000 to maintain the city’s trail system and $300,000 for improvements to major corridors, such as new signs and improvements to Richmond Road.

▪ Gray has proposed $12 million for city paving projects and $250,000 for pedestrian safety improvements. Those include extending sidewalks in some areas, improving existing pedestrian crossings and adding new crosswallks. In 2017, eight pedestrians were killed on Lexington streets, just shy of the 10 pedestrians killed in 2016, a record-high.

▪ The mayor would fund affordable housing, homelessness initiatives and grants to social service agencies at the same level as the previous year. Social service agencies would compete for $3 million. Affordable housing programs would get $2 million. The Office of Homelessness Prevention and Intervention is slated to get $750,000.

▪ The city’s JOBS program, which provides incentives for businesses to create high-paying jobs, would receive $270,000, as would a jobs training program. That’s a slight decrease from this year, when both programs got $300,000. The programs have money left over from prior year’s budgets that can be used to fund any gaps, Gray said.

▪ The plan provides no money to hire the additional 30 police officers needed to start a fourth police sector in Lexington. The current budget included money for 30 new police officers, which is half the amount needed to create a new police sector that Gray proposed in his 2017 budget address. Gray said other pressures on the budget forced the city to delay that plan, but it’s not off the table.

“It’s something the council will want to take a look at,” said councilman Kevin Stinnett, who is chairman of the budget committee.

Lexington has 630 police officers, the most in city history.

This story was originally published April 10, 2018 at 3:09 PM with the headline "10 things you should know about Lexington’s proposed $370 million budget."