The Town of Lexington held a special called budget workshop in late April in preparation for the upcoming fiscal year.

The May 4 town council meeting marked the first reading of the proposed fiscal year 2026-27 budget, which includes an increase in spending from last year, but a millage increase is not anticipated.

The fiscal year begins July 1, so council is reviewing proposed spending to have a balanced budget by the end of June.

“The town’s budget process is thoughtful, transparent and focused on long-term responsibility,” Lexington Mayor Hazel Livingston said. “Every dollar is reviewed carefully to balance the needs of today with planning for the future. Our goal is to provide excellent services, support our employees, invest in infrastructure and be good stewards of taxpayer dollars.”

In short, millage, or a mill, is used to calculate local property taxes.

“One mill is equal to one thousandth of a dollar per $1 of assessed property value,” according to the Municipal Association of South Carolina. “If a city council approves a tax of 90 mills, then the taxpayer will pay $90 per $1,000 of assessed property value.”

"There's no way for us to maintain the services that we do and provide all the things that we do without raising taxes. The only reason we're able to do that is because of our growth," Mayor Pro-Tem Todd Carnes said at the May 4 meeting. "I know growth is a pain point for a lot of people, but the expansion of the town, the growth of the town, new businesses, impact fees, accommodation taxes, hospitality taxes, and it's not going to last forever.

"At some point, the tax levies are going to have to catch up. You can't continue to add services and add things without that. We're just in a unique spot right now because we are growing and we are adding a lot of new enterprises. ... We kind of get a free pass here for a season, and at some point, that's probably going to have to rectify itself."

The town projects general fund revenue growth of $277,827, a 1.5% increase from last year, driven by growth in property taxes and business licenses.

The budget also includes maintenance of roads, traffic signals and cameras. According to the town’s director of transportation, Randy Edwards, Lexington oversees 48 traffic intersections.

Maintaining those signals is expected to cost about $50,000 this upcoming fiscal year.

Livingston said the town plans to continue using hospitality tax revenue for road and traffic improvements.

“We know that traffic is the biggest concern of our community,” Councilman Gavin Smith said.

Traffic and roadway updates account for 9% of general fund expenditures, while the police department and public safety efforts account for 46%, according to town documents.

The projected police department budget for the upcoming fiscal year is $8,932,234.

“Approximately 46% of the town’s general fund being allocated to public safety reflects our commitment to protecting the people of Lexington,” Livingston said. “Our police department has 69 dedicated employees who serve our community each day, and those funds support salaries, training, equipment, vehicles, technology, emergency response capabilities and the resources needed to keep our town safe. Public safety is one of the most important responsibilities of local government, and investing in it helps maintain the quality of life our citizens expect and deserve.”

The budget should undergo a second reading at the next town council meeting on June 1.

This article has been updated for clarity on millage.