Although many cities throughout Ohio are mired in economic instability, the city of Athens is planning the 2013 budget with a multi-million dollar surplus in its pocket.
Athens city officials expect a $3 million carryover from 2012 to 2013 that will help ease the process of planning next year’s $34 million budget.
Deputy Auditor Ray Hazlett –– who called the $3 million surplus “larger than normal” –– attributed much of the surplus to wise financial decisions from the city’s department heads.
“All departments were careful about the money they were spending,” Hazlett said. “Everybody tightened their belts just to be sure, and it really worked.”
Although the surplus is commendable, said Mayor Paul Wiehl, the amount is relatively small and is not large enough to warrant a change in the city’s income tax.
“We’re in better shape than other cities,” Wiehl said. “I’d hate to say we’re flushed, though, because all it could take is a 12-inch rain, and we’re back to where we started.”
Still, the $3 million carryover makes it easier for city officials to make next year’s budget, he said.
“Our budget is around $33 (million) or $34 million, and (the carryover) is 10 percent of that,” Wiehl said. “That’s a nice buffer to have.”
The surplus will make for a more efficient budget in 2013 than its 2012 counterpart, said Athens City Councilwoman Chris Knisely, D-at large.
“We’re in a healthier position (this year) in terms of our carryover,” Knisely said. “Last year, we only had a $1 million carryover.”
This multi-million dollar cushion helps to compensate for expected losses in local revenue next year, Knisely said.
“We will not have the estate tax income, which raised as much as $250,000 in a given year,” she said. “We also have seen continued loss of local revenue funds from the state totaling almost $500,000.”
Despite the loss in revenue, the city doesn’t plan on making cuts in spending, Wiehl said, adding that the 2013 budget may be larger than normal.
“I don’t expect cuts,” Wiehl said. “(The 2013 budget) will probably be the same (amount) as last year’s budget, if not larger.”
Police and fire services are expected to once again make up the biggest part of the budget, Hazlett said, adding that the two departments will be budgeted almost $6.5 million in total –– about 52 percent of the estimated $12.5 million in the general fund.
Although police and fire need most of the city’s finances, Wiehl said he would like to see the transportation fund expanded to total 1 percent of the remaining $21.5 million not in the general fund.
Wiehl said he expects more demand for public transportation in 2013.
“The anticipation is that there are plans at the end of 2013 to increase ridership (for Athens Transit),” Wiehl said at an Athens City Council meeting Monday. “We need that commitment of funds coming in there.”
The city budget must be approved before the end of the year, and the ordinance will have its first reading Dec. 3 during the Athens City Council meeting.
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