Public Policy: Lexington Mayor Gorton Presents Proposed FY27 Budget to Council

Every year, the Lexington-Fayette Urban County Government (LFUCG) creates and approves a new budget for the upcoming Fiscal Year. On April 14, Linda Gorton delivered her proposed  FY 27 budget to the Lexington-Fayette Urban County Council. The $545 million General Fund budget prioritizes investments in public safety, infrastructure, capital improvements, and quality of place. For LFUCG, the Fiscal Year starts July 1 and ends June 30 of the following year.

The city’s total budget reaches $847 million, with General Fund revenues primarily generated through payroll and business net profits taxes, alongside property taxes, service fees, and other state and federal funding.
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The proposal includes more than $78 million in planned capital spending and $7.5 million dedicated to park projects that enhance community amenities and overall quality of life.

Public safety continues to represent the largest share of General Fund spending, with more than half allocated to police, fire, corrections, E-911, and Emergency Management. Notably, violent crime declined by 10.8 percent between 2024 and 2025. The budget also allocates more than $5 million to strengthen snow and ice preparedness efforts.
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The city’s bonding package is set at $10 million—its lowest level since 2021—reflecting a more conservative approach to debt.

The budget also proposes three new positions, including a development liaison within the Chief Administrative Officer’s Office. This role is intended to help streamline housing development approvals and improve efficiency in the process. Organizations such as Commerce Lexington, Lexington for Everyone, and the Building Industry Association have advocated for this position to help address the community’s estimated need for 22,000 additional housing units to support the workforce.

Additionally, the Mayor’s proposal includes continued funding to support economic development and regionalism including investment in the Regional Competitiveness Plan, a key priority for Commerce Lexington.

NEXT STEPS:
The Urban County Council will now review the Mayor’s proposed budget, hold discussions through Budget Links, and make any necessary revisions. The Council is required to adopt a balanced budget by June 15, 2026. Public comment will be heard in person at the Mayor’s Budget Hearing on Thursday, May 14, 2026, at 6 p.m. or at any Council Work Session or Council Meeting during the budget process.