Lexington leaders are investigating ways to reduce a growing deficit in the city’s street light program. Taxpayers could be asked to pitch in.
Many factors are contributing to the street light fund running in the red. The cost of electricity, bulbs, and increasing installations all must be considered. The fund is currently supported through property taxes, but Lexington Council member Kevin Stinnett says that’s not a long term solution. “The current property tax will never keep up with what we’re being charged for the lights, so whatever we choose needs to be able to keep up with that,” said Stinnett. “Off the cuff, the only one that can keep up with it is the franchise fee. It’s tied directly to what electrical rates are.”
The franchise fee for electricity was increased by one percent in 2013. Finance Commissioner Bill Omara says keeping a property tax funding mechanism would not provide sufficient money to install and maintain street lights. “We’ve projected through modeling that by 2025, the street light program a $5 million annual deficit,” explained Omara.
Omara says as the number of street lights grows, increasing tariffs paid to the utility drive up costs. ?
