Lexington council approves $540 million city budget. Here’s what’s in it
The Lexington-Fayette Urban County Council unanimously passed a $540.2 million spending plan Thursday that includes money to improve sidewalks, millions for sewer system renovations and raises for most city employees.
The budget is for the fiscal year that begins July 1, and includes no tax increases.
It is the largest budget in the city’s history, up 7% from two years ago, which was the first time the budget surpassed $500 million.
Mayor Linda Gorton’s budget proposal included $28.2 million for improvements to the city sewer system; 3% raises for all non-union city employees; $19.2 million for street improvement projects, like connecting sidewalks and installing new traffic lights; and $3.4 million for new snow plows and street salt.
The council added nearly $1 million in additional spending. It added five positions, including an additional social worker for Lexington’s Community Paramedicine Program and a deputy director of accounting.
The total cost to add that staff is $305,508.32. Most of that money comes from decreasing spending in other budgeted areas, like lowering the cost of allotted overtime for the fire department.
Gorton’s budget included funding for 16.5 new positions. With council changes, the new budget has money for 21.5 new positions.
“I am always concerned when positions are added because the cost of salaries and benefits will continue in future budgets,” Gorton told the Herald-Leader.
Last year, Gorton vetoed personnel expenses added by the council, but that was ultimately overridden. Gorton doesn’t plan to make any vetoes this year, spokeswoman Susan Straub said.
City council also added $500,000 to the budget for Lextran, the city’s bus service, to run two pilot programs.
The downtown connector pilot program will run a bus on weekends from 4 p.m. through midnight connecting downtown to the distillery district.
A second pilot program will test micro-transit, a government-funded rideshare service — like Uber or Lyft — for trips where Lextran buses don’t go.
The budget uses $18 million in bonding or borrowing, the smallest debt since the COVID pandemic. That includes $6.2 million for new city, police and road management vehicles, and $3 million to design a new training facility for the Lexington Fire Department.
The budget includes $14 million for paving, the same amount as last year’s budget.
This story was originally published June 12, 2025 at 7:49 PM.