What is in the Mayor’s Proposed Budget this year?
This snapshot is created based on the full Mayor’s Proposed Budget and the Division Summary published by LFUCG’s Finance Department. You can also view the Budget Database we use to create the graphs and totals in this guide!
On April 16th, Mayor Linda Gorton released her proposed budget for Fiscal Year 2024/25, which for LFUCG is from July 1, 2024 - June 30, 2025. This 500 page document sets how the City of Lexington spends its revenue, on programs, staff, equipment, projects, and more. At CivicLex, we like to say that the budget is a direct expression of what our city values, literally!
The FY 24/25 budget is the largest in Lexington’s history. The General Fund, the largest and most versatile ‘pot’ of money the city has, is $531.8 million, and the total budget is over $938 million. However, a lot of the conversation around the budget this year is about how the recent growth of Lexington’s revenue is starting to level off - the federal money from the American Rescue Plan Act (ARPA) is all allocated and mainly spent, and Lexington’s economy is still growing, but not as quickly as it has over the past few years.
This means that while the Mayor’s Proposed Budget is still large, there are some cuts and not all Department’s requests are being fully funded. However, Council has been reviewing the proposed budget and can change any piece of it with a majority vote, a process that will start at the Budget Committee of the Whole (COW) meeting on May 28th.
Looking at the proposed budget by sector
Every year, CivicLex interprets the budget by sector. We use the entire budget document and the division summary published by LFUCG and estimate what sector we think each item most closely aligns with. Please note: this is not an official categorization of the LFUCG budget, just an educational interpretation. The Mayor’s Proposed Budget can be loosely organized into the following sectors:
Public Safety - $394 million
General Government - $218 million
Environment and Energy - $172 million
Recreation, Culture, and Arts - $57 million
Transportation - $40 million
Social Services and Public Health - $46 million
Housing and Development - $25 million
Community Design - $10 million
Economic Development - $5 million
Agriculture and Food Systems - $2 million
You can see what items we count under each sector in this view of our budget database.
Looking at the proposed budget by Department
Council: $4.7 million, ↓1% from FY24 Budget
Council includes two departments: the Clerk of the Urban County Council and the Council Office. The Council Office includes all 15 elected Councilmembers, their aides, and six other administrative positions, for a total of 36 staff. The Clerk of the Urban County Council is the official record keeper of LFUCG, with a total of 5 staff members.
This year, there is new money in Council’s budget request for a software to help gather public input on local issues and legislation (the new Engage Lexington website). In 2024, Councilmembers will be paid a salary of just under $40,000/year for district and at-large councilmembers and $43,000 for the Vice Mayor.
Chief Development Officer: $5 million, ↑ 63% from FY24 Budget
The Chief Development Officer is responsible for managing LFUCG’s economic development projects. The mission of the CDO is to grow Lexington’s economy. The department includes the Chief Development Officer Kevin Atkins and 5 other staff members.
This year, the Chief Development Officer received prefunding for several economic development projects, including $2.1 million for the Coldstream Legacy Business Park and $400,000 for the Workforce Development Program.
Chief Administrative Officer: $54 million, ↑13% from FY24 Budget
The Chief Administrative Officer (CAO) and their staff supervise the Divisions of Government Communications, Human Resources, LexCall, and the Office of Diversity and Inclusion. Commissioners from each department also report to the CAO. The CAO’s office has 5 staff members, including CAO Sally Hamilton.
LexCall is LFUCG’s call center, and is responsible for receiving and processing public and ‘in-house’ requests for information. They have 17 staff members. Government Communications includes Lex TV, which provides live television of LFUCG, and the Office of Public Information, which helps residents and media understand and engage with local government. They have 10 staff members. Human Resources manages staffing, hiring, and benefits for LFUCG staff. The majority of their budget is from the Medical Insurance Fund, which pays for staff medical insurance. Human Resources has 29 staff members.
Planning and Preservation: $6.8 million, ↑16% from FY24
Planning and Preservation Administration supervises the Divisions of Planning, Historic Preservation, and the Purchase of Development Rights Program. They have 4 staff members, including Commissioner of Planning and Preservation Keith Horn. The Division of Planning provides long and short term guidance on how our city grows and how we use our land, including by writing and updating the Comprehensive Plan and reviewing development applications. Planning is budgeted to have 34 staff members in FY25, an increase of 4 from last year. Engineering oversees the design & implementation of capital projects, including roadway construction. Historic Preservation works with local and federal agencies to preserve historic properties They have 4 staff members. Purchase of Development Rights is a program for LFUCG to buy the rights to develop agricultural land, in order to prevent it from being developed.
Internal Audit: $755,000, ↑.09% from FY24
The Division of Internal Audit is designed to independently evaluate and consult on LFUCG’s management and operations. The division is supervised by the Internal Audit Board, which includes community members, council members, and a representative of the mayor. In recent years, Internal Audit has published reports on topics like LFUCG’s E-911 Fee Collections, Fire Fleet Maintenance Inventory, Swimming Pool Collections, and Affordable Housing Program. They have 5 staff members.
Law: $18.7 million, ↑5% from FY24
The Law Department provides legal advice and representation to all of LFUCG. The law department provides day to day legal advice, and is also in charge of reviewing any contracts, ordinances, or resolutions that the City takes on. They manage any lawsuits brought against LFUCG, and represent the city in front of courts and other administrative bodies. In FY25, they are budgeted to have 23 staff members, including Commissioner of Law Susan Speckert.
Finance: $14.6 million, ↑4% from FY24
The Finance Administration manages debts, capital projects, banking, government funding, reporting, and other financial projects for the City. They have 7 staff positions, including Commissioner of Finance Erin Hensley.
Budgeting is in charge of creating the annual budget expenditures and conducting budget reviews and forecasts. They have 6 staff positions. Accounting handles payroll, invoices, and reports for the City, with 20 staff positions. Revenue manages the revenue side of the annual budget, and runs revenue programs like LEXServ and EMS billing. Revenue is budgeted to have 41 staff positions in FY25, an increase of 1 from last year. Central Purchasing (also called Procurement) acquires goods and services for LFUCG and has 8 staff positions.
Office of Information Technology: $17.9 million, ↑7.8% from FY 24
The Office of Information and Technology provides IT infrastructure and computing technology to LFUCG. They have 3 staff positions, including Chief Information Officer Liz Rodgers. Computer Services is the largest department in the IT department, and is responsible for all computer support, phones, geographic data, and computer security for the City. Computer Services is budgeted to have 39 staff positions.
Enterprise Solutions has two main units. The first manages PeopleSoft, the city’s Human Resources and day to day operations software. The second unit supports the Geographic Information Systems (GIS) work of the city, including mapping projects for LFUCG staff and community members. GIS works with a variety partners, including public safety, waste management, snow removal, code enforcement, and stormwater. Across these units, Enterprise Solutions is budgeted to have 15 staff positions.
Environmental Quality and Public Works: $200 million, ↑2.8% from FY24
Environmental Quality and Public Works is a large collection of divisions that provide infrastructure and protect the environment in Lexington. The EQPW administration supervises EQPW divisions and manages the Urban Service Tax District, streetlight refunds, snow plan updates, the Pavement Management System, and other construction projects. The Division of Water Quality handles water quality issues and stormwater remediation issues to comply with Lexington’s EPA Consent Decree. Waste Management handles waste services for much of the city’s businesses and residents. Environmental Services houses the main point of the city’s engagement with the public regarding environmental issues.
Public Safety: $392 million, ↑8.9% from FY24
The Public Safety Commissioner supervises all LFUCG public safety divisions, including the ABC administrator, the Lexington Humane Society/ Animal Care and Control, LFUCG security, and the other divisions listed in this section. The Public Safety Commissioner has 18 staff members, including Public Safety Commissioner Ken Armstrong.
The Department of Emergency Management works on preparing for, responding to, and mitigating potential emergency in Lexington, including natural disasters, major accidents, and public health hazards. They have 9 staff members. Community Corrections manages Lexington’s Corrections Facility, the City/County Jail. They are budgeted to have 350 staff members. Police is LFUCG’s largest Department, with an authorized strength of 762 staff members, including 630 sworn officers. Enhanced 911, or E-911 is Lexington’s 911 service, responsible for answering emergency calls and dispatching Police or Fire and Emergency Services. E-911 is budgeted to have 79 staff members. Fire and Emergency Services is the largest fire department in Kentucky, with 657 budgeted positions.
Social Services: $39 million, ↑120% from FY24
Family Services provides services to families with young children and operates Lexington’s Family Care Center with 46 staff members. Social Services Administration houses substance and domestic violence prevention programs as well as Partners for Youth, and has 11 staff members including Commissioner of Social Services Kacy Allen-Bryant. Youth Services operate youth programs including the Audrey Grievous Center, CASA of Lexington, Juvenile Probation, and the Parents and Guardian Empowerment Program. Youth services is budgeted to have 30 staff members. Aging & Disability Services provides outreach services for senior adults and operates Lexington’s four senior centers with 13 staff members.
General Services: $73 million
The General Services Commissioner manages operations, offices, and property. They have 8 staff members, including Commissioner of General Services Chris Ford. Facilities and Fleet Management is responsible for managing LFUCG’s buildings, vehicles, and equipment, with 96 budgeted staff positions. Parks and Recreation is also under the General Services Commissioner, and is in charge of LFUCG’s parks, community programs, and special events. Parks and Rec is budgeted to have 152 staff positions.
Housing Advocacy and Community Development: $20 million
The Department of Housing Advocacy and Community Development is a new LFUCG department focused on housing affordability and strengthening neighborhoods. The Department is managed by Commissioner of Housing Advocacy and Community Development Charlie Lanter, along with 9 other staff members. The Affordable Housing Fund is managed by Grants and Special Programs, and offers grants and loans to build or preserve affordable housing in Lexington. Grants and Special Programs is budgeted to have 20 staff positions. Code Enforcement addresses building violations of local ordinances and conducts inspections of properties, with 25 staff members. Community and Resident Services manages programs for Lexington residents experiencing extreme financial hardship related to housing, with 13 staff members.
Non-departmental and Constitutional: $86 million
Non-Departmental
The majority of Non-Departmental allocations go to Debt Services, which is LFUCG making payments on past bonded projects. This category also includes Contingency, or backup funding for unexpected personnel changes.
Indirect Cost Allocation is related to the overhead costs of LFUCG that cannot be attributed to a specific department or division. Many items in this category are some combination of all three. The City uses bonds to pay for projects that are too expensive to pay for at once but will have a benefit for many years. It can also be beneficial to pay for something over an extended period of time, because as inflation goes up the relative value of the payment decreases.
Constitutional
Lexington/Fayette County has a handful of “Constitutionals”, or elected county officials left over from before the City/County merger. Some of the offices are partially or fully funded by LFUCG, and some have other funding sources.
The Coroner investigates deaths and issues death certificates. The County Clerk manages vehicle registration, elections and city records. The County Attorney prosecutes cases from Fayette County in district court. The Property Value Administrator collects property taxes and keeps records of property ownership. The Circuit Court handles general jurisdiction felonies and major misdemeanor cases.
Partner Agencies: $30 million
LFUCG allocates funding to a variety of Partner Agencies that perform public services on behalf of the city. These agencies include the Lexington Public Library, the Kentucky Theatre, and the Human Rights Commission. This also includes the Extended Social Resources or ESR program, an LFUCG nonprofit grant program.
