The 2026 fiscal year budget includes nearly $300 million for public safety, $28.2 million for improvements to the city's sewer system, $19.2 million for street improvement projects, $4.9 million for the Affordable Housing Fund, and 3% raises for all non-union city employees. There are no tax increases in this year's budget.
Budget Chair James Brown released a statement saying;
“We are fortunate to work alongside Mayor Linda Gorton’s Administration,
who put together a robust starting point for our work. Through this budget, we have affirmed our commitment to community safety, roadway improvements and maintenance, uplifting our neighbors in need, and supporting the pillars of our local economy.”
The budget begins on July 1st.
Highlights of the FY26 budget plan include:
COMMUNITY SAFETY
- $400 million+ across all Public Safety Divisions
- $3 million to fund the design of a new Fire Training Academy
- Funding for two police and two fire recruit classes
- $623,000 in capital improvements for Community Corrections
- Expanded Community Paramedicine Program
PAVING & SIDEWALKS
- $14 million for street paving & maintenance
- $400,000 to help Lexington residents repair unsafe sidewalks & avoid fines
- $1.25 million for sidewalk connectivity program
PARKS
- Three schools added to the Extended School Program (ESP)
- Funding of a Master Plan to gather community feedback on how to spend the $8 million of capital funding from the new “Parks Fund”, established by voters in 2024
HOUSING
- $8 million+ investment in the Affordable Housing Fund
- New Outreach Coordinator for Office of Homelessness Prevention & Intervention
COMMUNITY SERVICES
- $300,000 for Emergency Financial Assistance
- $4.9 million to support local nonprofits through the ESR program
- Increased funding for community centers
ECONOMIC DEVELOPMENT
- $250,000 for Bluegrass Ag Tech Grants
- $400,000 for local workforce development
- $500,000 to enhance public transportation services
ENVIRONMENT
- $150,000 to expand Lexington’s tree canopy
- $500,000 to improve recycling and yard waste programs
- Funding to repair transfer station at Old Frankfort Pike
- Reduced reliance on contractors to maintain public greenways, trails & corridors by investing in full-time horticulturalists