LEXINGTON, Ky. (WTVQ) — The city is restoring some $6 million in funding to housing and social service agencies and to set up a loan program to help small businesses hit hard by the coronavirus-prompted economic slowdown.
The decisions came Tuesday as the Lexington Urban Council worked on Mayor LInda Gorton’s 2020-21 budget plan that takes effect July 1.
The Council will have its first official reading on the $379 million spending plan June 9.
According to the Lexington Herald-Leader, the council decided to tap into $6.4 million from the city’s rainy day funds for the programs for the next fiscal year beginning July 1.
The newspaper says the city will then replenish the rainy day fund with federal reimbursements for expenses the city has had for coronovirus-related expenses ranging from buying PPEs to cleaning buildings.
The city will be eligible for up to $25 million in reimbursements and during the last two months, has has about $5 million in expenses, according to the Herald-Leader.
During Tuesday’s session, set up the $2.5 million grant program for small businesses. Details of how it will work will be hashed out later, the newspaper said.
The council decided to tap $6.4 million from its rainy day funds for the programs in the next fiscal year that begins July 1. The city will then replenish those rainy day funds with up to $25 million in reimbursements from federal stimulus funds for COVID-19 related expenses.
The $6.4 million includes restoring $1.8 million to fund 800 housing units and $2.1 million for shelters for women and children, food banks and other social service programs, according to the newspaper.