Lexington City Council is considering a resolution to appropriate funds to give city employees a $1,500 loyalty bonus which will be paid in early August.
The resolution, which was presented to Council at its June 18 meeting for consideration and a public hearing, proposed a $267,000 appropriation from city funds in the upcoming fiscal year. Of that, $240,300 would come from the city’s general fund and $26,700 would come from the city’s utility fund.
In addition to the proposed $1,500 bonus for city employees, it also included a proposed $740 bonus for employees of Lexington City Schools.
No one from the public spoke during the public hearing, and Council continued discussion of the resolution to its next meeting on July 2, wanting to wait to see what the state budget would provide for school employee salaries.
The state budget, which was approved early last week, provides a 4 percent increase to salaries, plus a 2 percent bonus that had already been approved in FY26 (to be paid in either FY26 or FY27). In its budget, Lexington approved a 3 percent cost of living adjustment in addition to the 2 percent bonus for school employees. That additional 1 percent increase in salaries at the state level removed the need for the city to appropriate the proposed $740 bonus from its funds.
As a result, a proposed amendment to the resolution has been prepared for Council’s consideration at this week’s meeting. The amendment requests an appropriation of $206,383 for the bonus for full-time city employees ($190,397 from the general fund, $15,986 from the utility fund).
City Manager Tom Carroll confirmed to The News-Gazette on Friday that, under the new proposal, Lexington City Schools employees will still receive a bonus, but the bonus is coming from the state budget rather than the city budget.
