ARPA funds have provided a major boost for local economies, including Lexington’s. But with those federal dollars drying up, Vice Mayor Dan Wu asked Finance Commissioner Erin Hensley how they’re factoring into the budget going forward.
"In the next couple of years, are you foreseeing zero, or are we still foreseeing a little bit trickling down?" Wu asked.
"We're not expecting zero," Hensley answered. "We still have some ARPA dollars that are here. We did not budget anything more than what we know we have right his minute because we're spending those funds as we go."
Hensley said the city is leaving ARPA money in grants as long as possible to earn more interest. Still, the administration isn’t relying on any of those dollars in its nearly $532 million spending plan.
Despite the process of weaning off those federal dollars, the administration is still proposing the largest budget in city history.
The full council has the ability to make changes to the proposed budget – with a deadline at the end of June to deliver their final product.
