# Urban County Council - Mayor's Budget Address - April 7, 2015 > Auto-transcribed civic record · April 7, 2015 - **Permalink**: https://meetings.lexingtonky.news/meeting/3621 - **Source video**: https://lfucg.granicus.com/player/clip/3621?view_id=14&redirect=true - **Date**: 2015-04-07 - **Last revised**: July 15, 2026 - **Length**: 2,729 words > ⚠️ **Auto-generated content.** Audio from the official Granicus video was auto-transcribed with OpenAI's open-source Whisper large-v3-turbo model, run locally by The Lexington Times. Structured facts were extracted with GPT-4o; the narrative summary was written by Anthropic Claude. Verbatim wording may contain errors. See [methodology](https://meetings.lexingtonky.news/about/methodology) or [report a correction](mailto:editor@lexingtonky.news). --- ## Meeting Overview The Urban County Council met on April 7, 2015, at 3:00 p.m. in the Council Chambers located at 200 E. Main St, Lexington, KY 40507. Mayor Jim Gray presided over the meeting. The council heard one agenda item: the Mayor's Budget Address for Fiscal Year 2016, which was presented for informational purposes. The council received three public comments during the meeting. No votes were taken during this session. ## Attendance The following individuals were present at the meeting on April 7, 2015: * Kay * Lamb * Lane * Moloney * Mossotti * Scutchfield * Stinnett * Akers * Bledsoe * F. Brown * J. Brown * Evans * Farmer * Gibbs * Henson No members were recorded as absent or late. ## Budget and Financial Actions The meeting on April 7, 2015 included appropriations and grants totaling over $48 million for various capital projects and operational improvements. **Major Capital Projects** The largest appropriations were directed toward infrastructure and historic preservation: * Investment in the 1899 historic courthouse: $22,000,000 * Funding for sidewalk and road paving, including Man-O-War and neighborhood streets: $10,000,000 * Funding for Town Branch Commons: $10,000,000 **Education and Community Services** * Grant to Bluegrass Community and Technical College for the Newtown campus: $1,000,000 * Funding for social service partner agencies: $3,000,000 **Public Safety and Infrastructure** * Funding for public safety improvements including 10 new officers, patrol cars, body cameras, and equipment: $1,000,000 * Funding for the Parks Master Plan: $250,000 **Economic Development and Operations** * Funding for the Jobs Fund: $1,000,000 * Funding for development and design excellence infrastructure assistance: $1,000,000 * Funding for the City Hall facilities study update: approximately $3,000,000 (half of annual maintenance cost) **Additional Appropriations** The meeting also included appropriations for the Office of Project Management, cybersecurity and 3-1-1 call center enhancements, and Senior Citizens Center operating costs, though specific amounts were not specified in the available records. ## Public Comment Three speakers addressed the meeting on April 7, 2015. **Town Branch Trail and Commons** [timestamp: 00:14:40] Ann Bakhaus, representing dedicated citizens, spoke about the Town Branch Trail and Commons project. She highlighted the importance of Town Branch as a piece of Lexington's authentic history and praised the community's efforts to leverage it through the Town Branch Trail and the upcoming Commons. **BCTC Newtown Campus** [timestamp: 00:17:28] President Augusta Julian was present to support a proposed $1 million investment in the BCTC Newtown Campus, which is part of a matching grant program. **Martin Luther King Park Improvements** [timestamp: 00:21:28] Charles Fields expressed gratitude for the funding allocated to Martin Luther King Park. He referenced Lamentations 3:25 to emphasize that good things come to those who wait. ## Mayor's Budget Address - FY2016 Mayor Jim Gray delivered the FY2016 Budget Address [timestamp: 00:02:33], presenting the city's financial outlook and proposed investments across multiple municipal priorities. **Presentation Overview** The Mayor outlined the city's financial health and revenue projections for the fiscal year. The address covered proposed investments in the following areas: - Public safety - Infrastructure - Parks - Economic development - Historic preservation **Key Themes** Mayor Gray emphasized responsible fiscal management and efficiency gains throughout city operations. The budget address focused on long-term city-building initiatives designed to support sustainable growth and community development. **Outcome** This agenda item was informational in nature, with the Mayor presenting the FY2016 budget framework to the council and public. --- ## Full transcript Music Thank you. Thank you. Thank you. Good afternoon. Good afternoon. Welcome, everyone. This is a special call meeting of the Urban County Council. It is my privilege for this special occasion to introduce our Mayor, Jim Gray. Thank you. Thank you, Vice Mayor. Good afternoon, Vice Mayor Kay. Thank you. Good afternoon, Council members and friends. And welcome new Councilmember James Brown. Let's give a hand there. Today, I am presenting the first budget of a new term. It's a new term for some of us. It's a first term for others. And it's a natural time for all of us to look back and take stock and to look ahead to what's next. Council members, I want to especially thank you, each and every one, for your input and for working together with the administration in such a collaborative way. For those who might take a calculator and check budgets, you could begin back in 2011. All of our budgets are online. They're a part of our city's living and transparent history, the financial history of a city council and leadership who tackled decades-old costly problems, thorny problems, and worked together to solve them. We've gone from declining revenues, deficits, and draconian budgets to three years of surpluses. We've put ourselves back on a solid financial track. We've moved from cutbacks and layoffs to making the investments our city needs to move forward. Thanks to a council majority with backbone and fortitude through a lot of tough decisions, today we are a city with a firm grasp on our future. Collectively, we have managed the business of government efficiently. Let's taxi back for just a minute. Let's dial back to 2012. In my State of the City address then, and again in 2014, I said successful businesses recognize there are times when you have to save money to make money, and there are times when you have to spend money to make money, by investing in new plant and equipment, by building your business and your brand, by expanding your markets and your reach. This is a year to make responsible investments, to build Lexington's business and brand, and to address bottled-up demands. First, let's talk about how we pay for our investments. Funds will come from four primary sources. First, annual revenues. Then, surplus funds from budget year 2015. then bond proceeds, and then grants and private partnerships. Our economy is strong. Annual revenue estimates have increased from negative growth in 2011 to an estimated 3.6% growth for this coming year, for 2016. We project operating fund revenues of $324 million in 2016. Now, I have full confidence in this 2016 revenue projection. It is based on advice of University of Kentucky economists. It is based on advice from private economists from the private sector and on the work of Commissioner O'Mara and his revenue team. This revenue estimate is on target. It is not overly optimistic. Now, as to the surplus, this is our third surplus in three years, a reflection of our commitment to holding the line on spending throughout the year and running government efficiently and responsibly. Last year, we used the surplus for capital improvements, largely for police and fire. Our focus on the importance of running government responsibly and efficiently remains firm. This year, in addition to funds for basic services like public safety, we are proposing investments to enrich our city and its quality of life, investments that will touch the lives of many thousands of our citizens. General fund bonds proposed in this budget total $58 million. Now, just a quick timeout here. Before there's too much anxiety about this amount, let's compare this amount with bonding in previous years. For example, in budget year 2010, during the Great Recession, we approved $69 million in bonds, and a year earlier, we approved $70 million in bonds just to address the unfunded liability in our police and fire pension. 10.8 percent of this budget is committed to debt service, up from 10.7 percent. That's one-tenth of one percent increase. Again, a responsible, manageable ratio, especially when interest rates are at generational lows. We will also be looking to grants and public-private partnerships to help with several transformational projects. Now let's move beyond revenue and talk about the cornerstones of this budget. And let me start where we always do. Cornerstone number one, create jobs. Cornerstone number two, run government efficiently. And number three, build a great American city. Then I'll move on to how we reinforce these cornerstones. And how is that? By investing in public safety, and basic services that span the entire city and county. First, cornerstone one, create jobs. A priority on day one, a priority now, a priority tomorrow. The unemployment rate was 8.8% in January 2011, and that's according to the Bureau of Labor Statistics. That same model tells us that our most recent numbers show us at 4%. That's a 54% drop. This budget includes $1 million for our jobs fund, our second investment in this innovative program. So far, four businesses have taken advantage of this unique program. It is creating and retaining good-paying jobs. I propose another $1 million for development and design excellence infrastructure assistance. We are reinforcing our economic development efforts on our strengths, cluster strategies to grow our economy and our brand as a university city with talented people and thriving businesses. We are supporting the efforts of the North Limestone Community Development Corporation, a nonprofit, neighborhood-based group that is attracting grant funding and private investment to the North Limestone Corridor. And a continuing drive to bring affordable, high-speed broadband to Lexington for business, research, and communications is underway. Our goal, make Lexington a gigabit city. Next, cornerstone number two, run government efficiently, and I would add responsibly and transparently. Practicing continuous improvement, we start each day with a question, how can we improve today what we did yesterday? The approach since day one and the reason we are in a position, all of us here today, to talk about investments today. It adds up to a reduction of $116 million in our unfunded pension liability, an annual savings of $12 million a year in employee health insurance, a $60 million reduction in the cost of sewer projects required by the consent decree accomplished through value engineering and good project management. Efficiency improvements continue in this budget through the establishment of an Office of Project Management, which will oversee capital projects with an emphasis on cost savings and efficiencies. Efficiency improvements will also continue in this budget by investing in cybersecurity, through enhancements of our 311 call center, and by providing citizens self-service for city services through our website. Talented employees we all know are essential to the success of any business dedicated to continuous improvement, especially a service business like government. Our employees' hard work should be rewarded. I have included a 3% increase for employees who are not part of union bargaining units. Union bargaining, union employees receive pay adjustments through their contract negotiations. Now lastly, cornerstone number three, build a great American city. Build it through initiatives that will be generationally transformative for our children and our children's children. The historic courthouse, town branch commons, education, initial planning for a relocated city hall, aspirational projects, yes, of course, but essential ones as well. And why? Because building quality of life through creative placemaking will build a great American city. Culture equals jobs, and these projects are deeply embedded in our history and culture. Investing in that history represents investing in the growing international trend that recognizes the importance of the heritage economy. First, the 1899 Historic Courthouse. It is our city's front door. Its image is on practically every branding and marketing document and website in the city. It is one of the most significant public buildings in Kentucky, and it faces a critical moment. Deferred maintenance has allowed deterioration, creating life safety risks and threatening the structure. But that said, a recently completed capital needs assessment managed by the Downtown Development Authority demonstrates that the building is still sound and has another century or more of life in it if we take care of the fundamentals, roof, masonry, windows, doors, wiring, heating, and cooling. Of course it won't be easy, and it won't be inexpensive. We are including $22 million in this budget. Yes, investing in our history says a lot about a city, so I'm also proposing that we partner with the Bluegrass Trust on two important projects, the relocation of the People's Bank building and a restoration plan for La Trobe's Pope Villa. Next, parks and the Town Branch Commons. Great cities have great parks, and we're proposing such a park for our downtown. And in addition, $250,000 to develop a parks master plan to make Lexington's park system one of the best in the nation. Now many of us know the history of Town Branch, the water source around which Lexington was founded 240 years ago. Over the past decade, dedicated citizens have reminded all of us of the importance of Town Branch and its history. Ann Bakas is here with us today, representing just a sampling of those dedicated citizens. They have worked tirelessly to leverage this piece of our authentic history through the establishment of the Town Branch Trail. and it represents the heritage economy at work. The trail currently follows the path of the creek from Masterson Station to Alexandria with plans to extend it to Oliver Lewis Way in the future, connecting neighborhoods and businesses all along the way. Governor Steve Beshear has committed $6.9 million to this project. When Town Branch reaches the downtown, however, it is buried today in a culvert underground. In this budget, we are proposing a transformational alignment that is both practical and durable. The meeting of Town Branch Trail and Town Branch Commons, a two-mile linear park from Oliver Lewis Way to Midland and Third, Isaac Murphy Park. The two will meet behind Rupp Arena. Town Branch surfaces there and continues on into the rural landscape. I've included $10 million in this budget to begin the Town Branch Commons, and we plan to apply for $10 million of federal Tiger Grant support. We're also working in a public-private partnership with the Bluegrass Community Foundation and the Lexington Downtown Development Authority to raise additional private funds for a park worthy of our city and our remarkable history. Before I leave Town Branch on the north side of our city, work is already underway to complete a section of the Legacy Trail to meet the Town Branch Trail at the Isaac Murphy Memorial Art Garden. Now, a third transformational initiative is an investment in the new Bluegrass Community and Technical College Newtown Campus. Bluegrass Community and Technical College's new campus at Newtown and 4th Street brings higher education and workforce training to a historically underserved part of our city. The campus provides new resources for the area and is already attracting private sector investment. BCTC puts a strong emphasis on workforce training, and that's important for many of our citizens who still need jobs. The $1 million we have proposed for BCTC is part of a matching grant program set up by Kentucky legislators. Other Kentucky citizens, other Kentucky cities, rather, are investing in the community colleges in their towns and cities. The grant program requires such a match from the local community. And I am glad to see President Augusta Julian with us today as well. City Hall, Government Center, another important decision. Before the winter storm knocked the issue off our front pages of the newspaper and the TV programs, the fire in City Hall, in the garage, was front and center. And it's been just the latest in a long series of costly repairs. The city moved into what once was the Lafayette Hotel, this building, in 1984. It was supposed to be, it was supposed to have been temporary. At least that's what Council Member Fred Brown told me. More than 30 years later, Council Member Brown, we are still right here, and we are paying for it. Maintenance costs for our 120-year-old building are soaring. The building alone has over $6 million of immediate capital needs just to keep the lights on, much less shore it up for the future. It was never intended to be an office building. It is appropriate for renovation into apartments, for example. So it is simply responsible for us to take a hard look at a newer, modern facility that will save taxpayer money in the long run. I'm proposing we invest about half of what we spend each year to keep this building open, to update the facility study we conducted several years ago, and to plan for next steps. Now, we reinforce our cornerstones, the goals of creating jobs, running government efficiently, and building a great American city through our core values and by continuing to invest in them. Public safety, basic services. Public safety remains our top priority. We're proposing 10 new officers, new patrol cars, and new equipment, including body cameras in police. New equipment and improvements at fire stations in fire. money to finish the public safety operations center, and funds to complete the jail management system in corrections. Since the beginning of 2011, your city has invested almost $1.5 billion in public safety, and that represents a 22% increase over five years. We're also investing in basics like sidewalks and neighborhood streets and roads and the traffic lights that come with them. I'm proposing $10 million for paving on neighborhood streets and on major arteries like Man of War. Our winters have been tough. You all know this. And one of local government's top responsibilities is basic road infrastructure. Our traffic engineering division is proposing a number of initiatives to improve travel times and make travel safer, including neighborhood traffic management, congestion management, funds to repair aging signals, and adaptive signal control. And for the first time, funding has been allocated specifically for pedestrian safety improvements. Parks, another important basic service. I'm proposing $1.9 million, almost $2 million, for parks improvements, including improvements at Douglas for the Dirt Bowl, restrooms at Lansdowne Merrick, tennis courts at Acton, Highland Park Trail, Martin Luther King Parks Concession Stand and Restrooms. Charles Fields, it is good to see you, sir. Your persistence reminds me of Lamentations 3.25. Good things come to those who wait. And also to Veterans Park Playground improvements, Valley Park Skate, and a plan for the Brighton Rail Trail Bridge. We've included operating funds for our new Senior Citizens Center. As you all know, work is underway with completion coming in the spring of 2016. and we've included funds to help our most vulnerable citizens. As state and federal funds have dried up over the past few years, we have almost doubled our funding for our social service partner agencies. This budget, the 2016 budget, proposes $3 million while holding within the council-authorized threshold of 1% of the general fund. And at the top of the list, but mentioned now, we will also continue funding for affordable housing, our homelessness initiatives, and for our nationally recognized PDR program. The bottom line is this. We have distributed investments citywide, investments in building a great American city, in quality of life, in basic services, and throughout the community, in the rural areas, and especially in our neighborhoods. Every council district is included. Now I'd like to close today with a call to action to the council and to the community and to each and every citizen. We can seize this moment for our city. This is our time. A budget is a blueprint, a plan for the future. This plan is part basic service and part aspirational projects. Both are important. We should remember, too, that as we proceed downstream, plans are made so they can be intelligently changed and improved. We are ready to work together, reaching up and lifting up and stretching to grab the brass ring for our city. We know where we've been. We know where we're going. And we know how we're going to get there. Yes, you know. We all know that together we can make a difference. Together we can make good things happen. And thank you all very much. Thank you.