An overview of the Economic Contingency Fund, and proposed amendment

In Tuesday’s Budget, Finance, and Economic Development (BFED) Committee, Councilmembers will hear a presentation on the history and current status of LFUCG’s Economic Contingency Fund.

The Economic Contingency Fund was established in 1996, and serves as a savings fund that Council can draw from for financial support during a natural disaster, a Budget shortfall, or other circumstances that create financial instability the City had not planned for.

Lexington’s goal is to maintain 10% of the previous year’s General Fund balance in the Economic Contingency Fund. However, due to the COVID-19 pandemic, Lexington withdrew funds from the Fund and has not resumed making contributions to the Fund.

• Right now, the fund is at roughly 8.2% of the FY23 General Fund, or $39.2 million.

• The current 10% goal is roughly $45 million.

Republished from CivicLex.

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