Revenues a plus as Lexington City Council begins budget review
Originally published by WEKU.
As Fayette County prepares for a new fiscal year budget, the revenue picture is positive. That’s according to Urban County Government Finance Commissioner Erin Hensley. She went over City finances last week as the Council Budget Committee begins its review of Mayor Linda Gorton’s recommended budget. Hensley said her office anticipates moderate revenue growth.
“Traditionally pre-pandemic our revenue growth was about three or four percent. We’re actually expecting about six percent next year which is still strong for us, but not the eleven-twelve percent that we’ve experienced over the last couple of years. So, we’re really returning to our normal course of business,” said Hensley.
Hensley said there are about $33 million dollars in 2024 resources that can be carried over into the next budget. The federal COVID recovery funds have gone away. Hensley said the cost of borrowing is declining slightly. All this info will be taken into consideration as Council acts on a new budget in a few months.
Citing hypothetical population growth as an example, Vice Mayor Dan Wu asked if there’s a correlation when it comes to money coming into coffers.
“If our revenue is going up by six percent and our population growth is also going up by six percent then we’re kind of on the even keel. Versus let’s say our population growth was at three percent, our revenue growth is at six percent, to me that would say we have increased profits, increased payroll, right?” asked Wu.
Responding, Revenue Director Wes Holbrook said it may be tied together somewhat. Holbrook said there’s wage and employment growth, but not all people living in Fayette County are working in this county. He said new residents, buying new homes with more property taxes, does mean increased revenues.
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Originally published by WEKU.
Republished with permission.
