Lexington Mayor Proposes $546M Budget with No Tax Hikes

Gorton's plan focuses on public safety and infrastructure amid rising utility costs

Apr. 14, 2026 at 10:48pm

Got story updates? Submit your updates here. ›

A serene, cinematic painting of a government building in Lexington, Kentucky, with warm sunlight casting long shadows across the facade, capturing the quiet contemplation of municipal fiscal planning.Lexington's mayor proposes a balanced budget that maintains public services without raising taxes, reflecting the city's efforts to responsibly manage its finances.Lexington Today

Lexington Mayor Linda Gorton has proposed a $546 million general fund budget for the 2026-27 fiscal year, with over half the spending dedicated to public safety. The proposal relies on limited borrowing and includes no tax increases, though it faces challenges from rising utility rates that are expected to cost the city an additional $2 million.

Why it matters

As a key city in Kentucky, Lexington's budget priorities and fiscal management set an important precedent. This proposal aims to balance public needs, infrastructure investments, and financial responsibility without burdening taxpayers, despite rising costs in areas like utilities and snow removal.

The details

Gorton's budget plan authorizes three new city positions, the lowest number added since 2021, and includes $78 million in capital spending. To address issues uncovered after a winter storm, the proposal includes nearly $2 million more for snow and ice removal, bringing the total to $5.1 million. Despite the fiscal constraints, Gorton described the budget as 'balanced' and 'right-sized'.

  • Lexington's City Council has until June to adopt the 2027 fiscal year general fund budget.
  • In late January, a winter storm prompted a study that uncovered major failures in the city's response.

The players

Linda Gorton

The mayor of Lexington, Kentucky, who has proposed the $546 million city budget for the 2026-27 fiscal year.

Got photos? Submit your photos here. ›

What they’re saying

“'This budget is a budget built on fiscal restraint.'”

— Linda Gorton, Mayor of Lexington

“'The cost of all utilities have gone up and that is the same for government.'”

— Linda Gorton, Mayor of Lexington

“'It's a balanced right size budget that has no tax increases.'”

— Linda Gorton, Mayor of Lexington

What’s next

The Lexington City Council has until June to adopt the 2027 fiscal year general fund budget proposed by Mayor Gorton.

The takeaway

Lexington's mayor has put forward a fiscally responsible budget plan that aims to maintain public services and infrastructure without raising taxes, despite challenges from rising utility costs. This approach reflects the city's efforts to balance community needs with financial prudence.