Lexington’s city council has made a number of changes to Mayor Linda Gorton’s initial budget recommendations. Council has voted to restore millions of dollars for outside partner agencies and affordable housing.
The restoration of money comes as the city learned it will receive about five million dollars in federal relief later this summer. Council acted to use federal money to replenish the city’s rainy day fund. Council Budget Committee Chair Amanda Mays Bledsoe said the local government needs to move away from the current level of support to non-profit groups. “And I just want that to be said for at least our non-profit community. We support them, we care about you, but this is a bridge warning. You’ve got a year and we’re going to help you through funding. But, it’s going to be tough to continue like this,” said Mays Bledsoe.
The city is facing a projected $40 million dollar loss in revenues in the coming fiscal year. The council also voted to establish a local economic stimulus package of $2.5 million to help area small businesses recover from the effects of coronavirus related shutdowns. 50% of the funding would go to women and minority owned small businesses with owners in Lexington. Preston Worley said the mayor’s office is looking into a loan program with additional money. “What I want to do is grants, not loans, probably smaller than this $5 million package with loans to go ahead and get money out there to small businesses quickly,” explained Worley.
A final vote on the budget is scheduled in the coming weeks.
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