Lexington, Ky. – The Urban County Council voted to move $2.3 million into the city’s Rainy Day Fund.
Mayor Jim Gray, who has made solid financial management a hallmark of his administration, asked Council to increase the size of the fund. With the addition of $2.3 million, the Rainy Day Fund now totals $29.7 million, representing 9.1 percent of the General Fund.
“We’re setting aside money for emergencies, so our city can be prepared,” Gray said. “It’s the responsible thing to do.”
The money comes from a $19.5 million surplus left over from the 2015 budget year, which ended June 30. Lexington’s overall General Fund balance is $83 million. Lexington has had year-end surpluses for the last four years, thanks to an improving economy and an effort to reform employee health care and reduce pension costs.
The city established the Rainy Day Fund in the 1990s. Funds have never been withdrawn from it.