Lexington eyes giving COVID money to nonprofits, mentor and minority business programs
Lexington leaders agreed Thursday to spend $375,000 from federal coronavirus relief money to give $5,000 in one-time supplemental pay to 50 Fayette County Sheriff’s deputies.
In addition, the Lexington-Fayette Urban County Council tentatively agreed to set aside millions of dollars from COVID relief money for nonprofit capital improvement projects, minority business and youth mentoring programs.
The council is scheduled on Dec. 2 to vet more projects that may be eligible for American Rescue Plan Act funding. The city will receive up to $121 million in federal funding over the next two years.
The city has set aside coronavirus relief money for the following initiatives and projects:
- More than $15 million for one-time supplemental pay for city employees.
- $10 million for affordable housing.
- $1 million for VisitLex to develop new tourism initiatives to help the battered tourism industry.
- $30,000 for a broadband expansion project in northern Fayette County.
It also used some federal coronavirus relief money to fund some parks projects and social service programs in this year’s budget.
Last month, the council allocated $15 million for one-time supplemental pay for first responders. It later expanded that one-time supplemental pay to all of the nearly 3,000 city employees. Those who do not qualify for $5,000 bonuses under the American Rescue Plan Act will receive $3,500 in one-time pay from other city revenues. The council also agreed to give a second 3 percent raise to all non-bargaining employees. It already approved a 3 percent raise in the current-year budget, which started July 1.
Fayette County Sheriff Kathy Witt told the council last week her deputies worked throughout the pandemic and qualified for one-time supplemental pay. Sheriff deputies did not qualify for any state coronavirus relief money because they are a function of county government, Witt told the council.
Councilman Chuck Ellinger agreed and asked the council to allocate the $375,000 for the one-time pay. That number also includes fringe benefits, including additional payments into the pension system.
The 15-member council also tentatively agreed to give $991,000 to Commerce Lexington’s Minority Business Incubator. The program will be able to expand to include more businesses. It also agreed to give $240,000 to One Lexington, a city-run violence prevention program, to expand a pilot mentoring program to 100 to 125 at-risk youths for 10 weeks.
Much of the debate Thursday focused on allocating money to nonprofits for one-time capital projects. The council asked the public for possible projects for federal coronavirus money and received more than 550 proposals. Many of those were from nonprofits for either capital projects or programming.
Mayor Linda Gorton had proposed $6 million for nonprofit capital projects. A council subcommittee upped that amount to $9 million for both capital projects and programming.
Chief Administrative Officer Sally Hamilton said the administration did not want to include programming because those were ongoing costs. Capital projects, such as replacement of roofs or HVAC systems, were one-time costs and were less burdensome for the city to track to comply with extensive American Rescue Plan reporting requirements, Hamilton said.
Still, some on the council said the city received multiple proposals for programming, including expanding some for youths.
Ultimately, the council opted to only allow capital projects. Hamilton said if the council gives final approval for the $9 million, the administration will return to the council with how that application process would work.
Councilwoman Amanda Bledsoe also suggested the council consider setting aside an additional $5 million — at its next meeting to discuss coronavirus spending — for the city’s homeless providers for capital projects.
“The Hope Center and the Salvation Army can take up all that money,” Bledsoe said of the $9 million. The Hope Center and the Salvation Army are the city’s two largest homeless shelters. The council is also considering a proposal for $5 million for transitional housing. The city has already set aside $10 million for affordable housing initiatives.
The vote on the $9 million for nonprofits and money for mentoring and minority business programs is tentative. The council will take a final vote on all the proposals at a later date.
This story was originally published November 5, 2021 at 11:56 AM.
