Annual Budget Process
The City of Lexington is a multimillion government operation with 334 full-time employees. The Annual Budget for the organization, which must be adopted by June 30th, is the single most important policy statement made by City Council and the ultimate partnership between City Council, staff, citizens, customers and partner agencies for that fiscal year. This action sets service levels for citizens and utility customers, seeks efficiencies in city government, pursues economic development initiatives and nourishes partnerships, guards public safety and public health, provides quality of life opportunities in recreation and golf, supports public schools, ensures reliable utility services, enhances customer service, and maintains public infrastructure and the financial integrity to meet service and debt obligations.
Under the leadership of the City Manager's Office and administered by Finance staff, city departments collaborate to prepare the extensive annual budget report; as well as the required presentation material for City Council budget work sessions and the legally required citizen public hearing. At the public hearing, the City Manager's presentation recaps an overview of service levels and policy established with adoption of the budget. The Introduction section of the Annual Budget provides employment breakdown by department and a summary of financial information.
Fiscal Year 2016-2017 Annual Budget Document
The Annual Budget for FY 2016-17 totals $97,352,359, with $71 million or 73% of that figure tied to providing the business enterprise utility services of electric, natural gas and water resources.
The annual budget report is divided into several different sections. To help orient, the primary sections are listed below with a brief description, as well as the ability to download the complete document:
- Introduction [PDF] includes City Manager's Budget Message; as well as background information about the city, full-time employee breakdown by department, the budget process and summary financial information.
- City Manager's Budget Message [PDF] includes overview of key initiatives and economic factors, authorized service levels, personnel action, and financial and revenue requirements to support city services.
- General Fund [PDF] main operating cost center which includes public safety, business and community development, street maintenance, recycling and waste collection, recreation, administrative departments and economic development initiatives. These core city services are primarily supported by ad valorem property tax, consumer sales tax, state collected local revenues, user specific fees and profit transfers from the electric and natural gas utilities.
- Special Revenue Funds [PDF] includes: Controlled Substance which accounts for federal and state drug forfeiture funds restricted for public safety; and Special Tax District which accounts for the additional $.20 per $100 ad valorem tax levied and passed through to Uptown Lexington, Inc. for revitalization of the uptown district.
- Electric Fund [PDF] business cost center for the electric utility supported by customer rates and fees.
- Water and Wastewater Fund [PDF] business cost center for water resources supported by customer rates and fees.
- Natural Gas Fund [PDF] business cost center for the natural gas utility supported by customer rates and fees.
- Golf Fund [PDF] business cost center for the municipally owned Lexington Golf Club supported by customer fees; while the General Fund pays the annual debt service for the course renovations to be paid in full December 2018.
- Fleet Management Fund [PDF] internal cost center to allocate fleet maintenance costs across city departments.
- Group Insurance Fund [PDF] internal cost center to allocate employee and retiree health insurance costs across city departments.
- Risk Management Fund [PDF] internal cost center to allocate liability and workers' compensation insurance costs across city departments.
- Utility Administration Fund [PDF] internal cost center to allocate utility support service costs of billing and customer service, meter reading, warehouse inventory, marketing and public utility administration; which is supported by administrative charges to the three utility funds and the General Fund.
- Capital Reserve Fund [PDF] internal cost center to set aside and withdraw savings in any given year for major capital improvements in the three utilities, as well as fund fleet management pooled vehicle and equipment replacements.
- Rate Stabilization Fund [PDF] internal cost center to set aside and withdraw savings in any given year to stabilize retail rates for electric and natural gas customers.
- Capital Projects Fund [PDF] recap of major capital infrastructure improvements being financed by debt or pay-as-you-go with cash from operations or capital reserve.
- Appendix [PDF] includes official ordinances and resolutions adopted by City Council which establish the budget and policy, also includes glossary of terms.
- Annual Budget Fiscal Year 2016-17 [PDF] to download the annual budget report in its entirety.
Requests for information regarding Annual Budget
Questions regarding the City's Annual Budget can be directed to the City Manager's Office or the Director of Finance.
Archived Budget Documents