ASHLAND — Ashland City Council heard a preview of the city’s financial situation for 2025 at Tuesday’s meeting, which included a hearing for proposed appropriations.
Larry Paxton, the city’s finance director, told council members this year’s hearing took place earlier than is typical — usually, the hearing would take place closer to the year’s end.
Since last night was only a hearing, council took no action on approving the spending plan.
Paxton told council the city’s expected revenue would total around $66 million, while it has budgeted for expenditures of around $84 million. The city also has a cash balance of around $18 million.
In 2024, council approved an $82.6 million spending plan, up 8.9% from 2023’s $75.8 million plan.
Paxton explained the $84 million figure he projected for 2025 factors in a potential increase in pension costs for the city.
House Bill 296, which has passed the state’s House of Representatives, would increase the amount employers must contribute to police pensions. The increases would come in phases. The bill still needs to pass the state Senate.
He added the city anticipates increased operating costs, too.
While the city anticipates expenditures of $84 million, Paxton clarified it doesn’t spend every dollar that comes up in the budget.
“We wouldn’t do that at our home and we certainly don’t do it here,” Paxton said.
Instead, it’s a matter of being prepared for all the possible costs that may come up during the year.
For example, he said the sanitation department has a fleet of trucks. Some are “in order” and others need some upkeep. So, appropriations are prepared with those types of potential challenges in mind.
Paxton told city council the next step in the process is for council to formally adopt the year’s appropriations. Council set a special meeting to vote on that adoption. That special meeting will take place Dec. 30 at 11:30 a.m.
