Planning For Lexington’s Future

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Doug Martin

Last month I looked back at some of the issues we faced during my four years on the Urban County Council. This month I want to talk about some of the challenges and opportunities ahead.

Our most serious challenge is the unfunded pension liability. As of July 2011, we owed about $585 million for pensions, pension bond debt and retiree medical benefits for public safety employees, and this has been growing by about $52 million per year. There is plenty of blame to go around – the council underfunded pensions for decades, and public safety unions successfully lobbied the legislature for higher cost of living adjustments, greater pension benefits and lower retirement ages. And elected officials engaging in patronage are rarely (if ever) held accountable or called out for the political support they receive from grateful employees and retirees. Lexington’s citizens will already face increased taxes and decreased city services as we pay down the pension, but Lexington must embrace aggressive pension reform to avoid a financial catastrophe.

Lexington will also have to pay about $540 million to fix our sewers, as required by the EPA Consent Decree. Given a project of this scale, Lexington cannot afford budget overages, missed deadlines or political back scratching from LFUCG contractors. Lexington needs an independent construction manager to watch over all aspects of this project.

These issues are symptomatic of a larger problem. For years, Lexington has ignored long-term obligations such as pensions, retiree benefits, sewers, roads, parks, infrastructure and building maintenance. What we need is a yearly analysis of LFUCG’s long-term financial obligations for the upcoming five- to 10-year period. We also need a new independent board comprised of our most respected community leaders, to provide the sustained leadership and vision that Lexington needs to address our aspirations and most important challenges over an extended period of time.

We must also invest in community amenities that will help Lexington recruit and retain the bright and highly skilled talent needed to compete in the global marketplace. Today’s workforce is very mobile, and many high-paying jobs can locate in Lexington as easily as San Francisco or New Delhi. Competing for global jobs means that we must make Lexington one of the most desirable places to live.

About Doug Martin

Doug Martin is Lexington’s 10th District Council Representative. Visit his Council web page at, and follow him on Twitter @DougMartin10th. You can also subscribe to Doug’s weekly 10th District Newsletter by e-mailing
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