Lexington will spend $5.3 million in leftover city money to help cover street paving, the cost of fuel and a new affordable mortgage program.
That comes from a pot of $6 million left unassigned at the close of the last fiscal year, which ended in June. Most of the city’s unspent money has already been assigned to other budget items.
At a Tuesday meeting of the Lexington-Fayette Urban County Council's Budget, Finance and Economic Development Committee, council members approved three of Mayor Linda Gorton’s recommendations.
Those include the approval of $2.1 million in needed street repairs that would otherwise be delayed due to underperforming revenue from the state’s municipal aid program.
“If our revenues continue to underperform, we will either have to amend down that budget, or be unable to meet our commitments,” Commissioner of Finance Erin Hensley told council members.
Another $1.5 million will covering rising fuel costs for the city’s vehicle fleet amid global conflicts, like the war in Iran.
“We get a discounted rate, bulk fuel rates, but we still are seeing a significant impact to our budget, and we don't necessarily have the ability to not respond or to really significantly decrease our usage,” Hensley said.
At-large council member James Brown, who heads the budget committee, indicated he’d like city staff to report back in February on whether the additional money for fuel was needed.
Another $1 million will help create a city program to reduce the cost of mortgage payments for some lower-income households. The allocation is enough to assist 15 to 20 first-time homebuyers, according to a city news release.
The assistance plan will provide applicants a second mortgage of up to 25% of the home’s purchase price, with no interest or monthly payments.
Some funding requests from individual council members were also approved Tuesday. Those include:
- $250,000 for safety improvements at crosswalks
- $150,000 toward new city wayfinding signs
- $96,541 on emergency financial assistance for renters and homeowners
- $50,000 to support the city’s digital accessibility plan
- $50,000 for a typology study pilot project, which would help classify and analyze Lexington’s roadways
The city still has more than $700,000 left unassigned. According to a budget document, council members had more than $10 million worth of individual funding requests.
Brown said the council would hold another meeting to divvy out the rest of the money.
