Lexington Mayor Linda Gorton warns city spending is outpacing revenues and she’s recommending the Urban County Council adopt a more restrained budget for the coming fiscal year.
The mayor is pressing the reset button on city spending.
One reason: "Lexington's fixed expenses in personnel, pensions, debt service, utilities have dramatically increased."
At the same time, revenues are softening – thanks in part to slowing job and wage growth, a dip in franchise fees, and other sources of funding.
The result is a tighter budget than expected, with no raises for non-sworn employees, a 12-day furlough for higher paid senior leadership staff, a freeze on new positions, and cuts for city divisions. But, the mayor stresses, that doesn’t mean Lexington is on the same path as its neighbor down the road.
"I know in Lousisville, they've talked about closing fire stations, laying off people, etc.," Gorton told reporters tuesday morning.
Apart from some slightly scaled-back parks programs, Gorton says Lexingtonians aren’t likely to notice any changes. The spending plan does not include any tax increases or layoffs.
As for the scope of the problem, the mayor says her office requested that city divisions send her budget requests with a 15 percent reduction in their unrestricted accounts. But even with those cuts, the city still faces an $11 million dollar gap. With a $6.5 million shortfall in the current budget, the city has already slowed hiring and reduced operating costs.
Gorton says her spending plan keeps the city on a solid footing.
"It takes a common sense, well-thought-out approach to a very difficult situations with our revenues. It keeps us financially whole as a city and ou rcitizens really shouldn't notice any big changes come July 1," she said.
The mayor said she expects the council will be concerned about the numbers, but she believes the budget keeps the city on a steady financial footing.
If trends continue, however, fiscal year ‘21 could prove to be a bigger challenge.
