Quarter three revenues slightly exceed budget; city leaders flag capital timing and service‑fund pressures

Finance staff told the Lexington‑Fayette County Council Committee of the Whole on April 29 that third‑quarter fiscal 2025 revenues were running modestly ahead of expectations while timing of transfers and capital spending is producing a planned one‑year deficit.

The finance office’s presentation showed revenue collections “slightly exceeding budget through quarter 3 with a positive variance of 3%,” according to a staff presentation. Payroll withholding and net‑profits collections were cited as the two largest recurring revenue sources; staff said net‑profits receipts typically spike in April because of tax‑day filings and noted a short delay in mail that may shift some April receipts into the next reporting period.

The upward variance included a roughly $10.7 million year‑to‑date gain, staff said, while personnel budgets showed a 3.5% variance (about $8 million) that has been earmarked for pre‑funding items in the…