City passes first reading of 2022 budget
Jun. 12—ASHLAND — The Ashland City Commission voted Friday to pass a first reading of the $80 million 2022 financial year budget.
The budget, which needs to be passed by July 1, was publicly unveiled Thursday during a budget workshop following the regular Thursday meeting. Finance Director Tony Grub said the budget is about a 30.1% increase over the 2021 budget, which is partially due to a leaner than average budget last year in anticipation of revenue shortfalls due to COVID and federal dollars plus a large bond passed for this budget cycle.
The budget comes in at about $88.159 million on paper, but some of that figure is due to transfers from one fund to another. Grub said setting aside those transfers — which are listed in the budget for accounting purposes — the "real budget" is $80.168 million.
Setting aside the $12.75 million bond and $6.737 million from the feds for coronavirus relief, Grub told Commissioner Josh Blanton the budget is pretty much in line with a typical year.
The city of Ashland is split into two major funds — one for general (fire, police, finance etc.) and one for utilities (water, sewer). There are minor funds as well, for the flood wall, the bus system and recreation. According to the highlights, overall 37% of the budget will go towards personnel costs (there is a 4. % cost of living adjustment for employees) and 26.1% of the money is going into capital projects.
The capital projects budgeting shows some rather ambitious goals for the 2022 fiscal year.
About $2.75 million has been devoted in the budget to the demolition of blighted properties, a move Mayor Matt Perkins touted as "the most money we've ever programmed for this effort." About $2.5 million of that is coming out of the bond, which will be used for the tear down of the G.B. Johnson Building. About $125,000 from the Community Development Block Grant is slated for demolitions on top of the $2.75 million set aside.
About $3.19 million has been set aside for the roundabout project in downtown, but that is in anticipation of future grants. Perkins and the commissioners stressed nothing has been decided on the downtown roundabout issues — Grub said the money was merely budgeted there as place holder in case the grants come through.
The bond will also free up about $3.35 million for paving projects, although those aren't all slotted for a single fiscal year. Another $1 million is going into sidewalks and about $12.5 million is going into capital projects for water and waste water.
The city is also looking into procuring a parking garage downtown, so $225,000 is slotted for improvements to it. At the work session, Commissioner Cheryl Spriggs came out swinging against it, worried about saddling tax payers with hiring two maintenance folks to take care of it.
Like the roundabouts, that project is also far from a done deal.
The police station in the budget is also supposed to be paid off to the tune of $3.35 million according to the budget highlights.
Tucked away in the dues and fees section of the highlights is $20,000 slotted for Poage Landing Days. Commissioner Marty Gute put his foot down about the event, stating that the city should only give the money to the organizers if they put up one big tent like in years past.
"We will make it contingent on the tent," Perkins said.
(606) 326-2653 — henry@dailyindependent.com
