Fayette County

Nearly $50 million in federal COVID aid flowed to Lexington. Here’s how it was spent.

Since the coronavirus pandemic began in March 2020, the city of Lexington has received $44.6 million in federal coronavirus relief money through various federal programs.

That money has helped shore up the current-year $378 million budget. The city is currently running a surplus of about $20 million and has yet to tap $30.6 million in various savings accounts that were used to balance the lean budget, which included more than $12 million in cuts.

That $44.6 million in various federal relief programs has kept the city in the black during the bleakest of times, city officials said this week.

“We wouldn’t have made it,” said Lexington Mayor Linda Gorton of the federal relief funding. “This has helped us survive.”

The bulk of the $44.6 million — approximately $26 million — went to pay salaries of the city’s police and fire department and other first responders as allowed under the federal guidelines. An additional $1 million was spent on personal protection equipment, salaries of other frontline employees tasked with responding to the pandemic and technology expenses to allow city employees to work remotely.

A U.S. Department of Justice grant for $478,748 also helped pay for personal protection equipment for police and corrections officers at the Fayette County Detention Center that other federal money didn’t cover, according to documents provided to the Lexington Herald-Leader by the city.

The Family Care Center and a parks department after-school program received $455,550 in payments to ensure the two child care programs could continue to operate at a reduced capacity during the pandemic. The Lexington Senior Citizens Center received $86,258 to support technology and other changes needed to put many of its classes online after it had to close in March 2020. The Fayette County Clerk’s office received $127,282 for expenses — mostly additional staff and other costs — to process absentee ballots during the primary and the general election.

About a third of the money — more than $16.5 million — has been allocated to house homeless people or help people avoid homelessness through rental assistance programs.

Of the $16.5 million, $6.87 million came from the U.S. Department of Housing and Urban Development for homelessness services. That money has been used to help the city’s shelter system safely house people during the pandemic by providing additional space.

Some of those expenses included additional shower trucks, an outdoor tent and a warming shelter at the Hope Center, the city’s main homeless shelter for men. Part of that $6.8 million also paid to put homeless people in hotel rooms if and when the city’s shelter system could not safely house people, said Charlie Lanter, the city’s director of grants and special programs.

Lexington also received $9.67 million earlier this year to help pay residents’ back rent and past-due electric, gas and water bills. That was in addition to the $1.5 million the city already allocated for rental assistance with city funds in September.

The $9.6 million housing stabilization fund has been operating for three weeks but has already allocated $490,000 to pay back rent and utilities to landlords, Lanter said. Last week alone, the program, which is run through a partnership with the Community Action Council, allocated $240,000.

“There are thousands of people who need that help,” Lanter said.

Gorton said Monday she is cautiously optimistic the city’s revenues — the amount of taxes and fees it collects — are on the upswing after plummeting last spring due to coronavirus-related job losses.

“I’m optimistic,” Gorton said.

Lanter said federal legislation pending in Congress could give the city more money, including another $9 million for rental assistance. But the city won’t know exactly how much money it will receive until and if the legislation is passed.

This story was originally published March 9, 2021 at 7:43 AM.

Beth Musgrave
Lexington Herald-Leader
Beth Musgrave has covered government and politics for the Herald-Leader for more than a decade. A graduate of Northwestern University, she has worked as a reporter in Kentucky, Indiana, Mississippi, Illinois and Washington D.C. Support my work with a digital subscription
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