Lexington has a nearly $56 million surplus. Here’s how it will be spent
The Lexington council gave tentative approval Tuesday to set aside $56 million from surplus funds to spend on parks improvements, affordable housing programs, paving and initiatives to address homelessness.
A sizable chunk — $36.6 million — will go toward future large capital projects including a new city government center or a new senior center.
Both projects have been high on Mayor Linda Gorton’s to-do list. However, the city has not committed to either project. The city is still trying to decide if it will find a new location for the city government center or remain at its current location on Main Street. A second senior center has previously been proposed but never funded in Shillito Park.
The city ended the fiscal year June 30 with a much larger surplus — $196 million. But the bulk of that money has to be set aside for various other costs.
Some examples of those pre-funded expenditures include:
$8 million for health insurance reserves
$29 million for capital fund projects
$24 million in pre-funded items in the current-year budget
$17 million over several years for police, fire and corrections officers pay raises
“We have been absorbing the increase in health insurance costs for the past couple of years,” said Erin Hensley, finance commissioner for the city.
The remaining money in unspent surplus or discretionary spending is $55.9 million, Hensley said.
The city has an additional $38 million in a different savings account.
The Lexington-Fayette Urban County Council initially approved spending much of that money during a Tuesday Budget, Finance and Economic Committee meeting.
The council approved the following items proposed by Gorton’s administration:
$36 million for a large capital project fund for possible new city government center, a new senior center or various public safety buildings
$5 million for affordable housing
$1 million for a winter warming shelter for the unhoused
$1.5 million for Dunbar Community Center improvements
$825,000 for reconstruction of a salt barn on Old Frankfort Pike
$2.25 million for capital projects for council members
$300,000 for emergency assistance for low-income people for utility payments
$400,000 for a new city website
The council also set aside more than $8 million on council initiatives and capital projects.
Some of the projects the council gave tentative approval to fund Tuesday include:
$750,000 for additional funding for homeless solutions and innovations
$1.5 million for a redesign of Phoenix Park
$1.25 million for expansion of Valley Park community building
$130,000 for Commerce Lexington for regional recruitment efforts
$24,000 for crosswalks around Mary Todd Elementary School
$75,000 paving on Kavenaugh Lane
$250,000 for additional paint striping for roads
$340,000 for additional money for sidewalk repairs
$960,000 for repaving of parking lots of Masterson Park Fairgrounds
$250,000 for Coldstream Park master plan update
$30,500 for tree planting along Legacy Trail
$10,000 for grants to small businesses to hook into a new police television security system, FUSUS
$20,000 for long-term plan for Downtown Lexington Partnership
$75,000 for clean up of Cadentown Cemetery
$100,000 for historic markers for rural, Black hamlets
$1 million to help low-income households install solar on homes
$200,000 for a feasibility study for solutions to homelessness
$260,000 for ballistic helmets, shields for the Kentucky Sheriff’s Department employees
$520,000 for additional money for paving of Maddox Lane
Councilwoman Tayna Fogle had proposed $9 million for a new homeless day shelter. Council members said they needed to know more about the plan, including who would run the shelter and whether it was the best use of those funds.
Councilman Preston Worley recommended the city set aside $200,000 for a study to determine the best way the city can address homelessness. Fogle said there have been multiple issues with people needing more services.
The council ultimately agreed to fund the $200,000 study.
