ASHLAND — The city’s street division is slated to receive a raise.
Ashland City Council voted unanimously Tuesday to raise the amount of income tax revenue earmarked for the streets division by 2%.
The raise will amount to around $250,000, said Larry Paxton, the city’s finance director.
He said the city transferred money from the general fund three times in 2024 to help cover expenses. And in one case, the general fund covered an entire expense for a new, $180,000 dump truck, Paxton said.
For nearly six years, the city’s street department received 5% of income tax revenue. As of Tuesday, that number is 7%. The extra 2% is coming from the general fund’s cut of income taxes.
So when income tax revenue from the 1.5% assessment hits the city’s coffers, the money is split three ways.
- General fund: 85%
- Street fund: 7%
- Park fund: 8%
Another 0.5% income tax levy goes to the city’s police, fire and street funds.
“This just kind of shores up the allocation — allows them a little more breathing room to operate because they’ve been kind of tight the last couple years,” Paxton said.
The finance director said the city’s street division does a lot — often times behind the scenes. They plow the roads, pick up the leaves, fix pot holes.
Ashland Mayor Matt Miller said he supports this change.
“If there’s one place that I think our taxpayers would want to see us spend more money, it would certainly be in the work and services provided by the street department, because it impacts people immediately and directly,” he said.
Paxton is hopeful the change, which became an ordinance after city council unanimously approved it, would balance that budget.
“We’re not anticipating a transfer (to the street division) in 2025,” he said.