LEXINGTON, Ky. — The Lexington-Fayette Urban County Council held its first major budget discussion meeting Tuesday, April 21, as members began reviewing Mayor Linda Gorton's proposed $546 million fiscal year 2027 budget.

The Committee of the Whole meeting at the Council Chamber covered three primary agenda items: a third-quarter financial update for the current fiscal year, the mayor's proposed FY27 budget, and a discussion of revenue adoption. The meeting marked the formal beginning of council members' deliberation on spending priorities for the fiscal year that begins July 1, 2026 and ends June 30, 2027.

The proposed budget represents approximately $6 million more than the previous fiscal year and is built on what Gorton described as fiscal restraint. The budget anticipates 4 percent revenue growth, though rising costs in utilities and other everyday expenses continue to keep pace with available funds.

The proposal creates only three new city positions, the lowest number since 2021, and limits city borrowing. The budget includes several targeted investments, including $5.1 million for snow and ice response, a $2.6 million police technology contract, and parks improvements.

Additional funding includes $1.5 million to replace heavy equipment in the fire department, $700,000 for emergency medical equipment, $230,000 to remodel a gym for police, and $282,000 to update Enhanced-911 computer equipment. The budget also creates a plan to decide how Lexington will spend money from opioid settlement funds.

The council faces budget deliberations against the backdrop of slowing revenue growth, with projections showing 5.6% combined growth in FY 2026, a slowdown from double-digit growth rates the city experienced in past years. Council members will continue detailed budget discussions through a series of "link" committee meetings where groups of council members tackle budget items and develop recommendations.

A public budget hearing is scheduled for Thursday, May 14, 2026, at 6 p.m. in Council Chambers at 200 E. Main Street. Council must adopt the final budget by June 15.