Ashtabula City Council gives OK to budget

ASHTABULA – The City of Ashtabula has a spending plan for the new year.
At its Dec. 15th meeting, council passed a budget ordinance to provide for appropriations for the current expenses and other expenditures of the city from Jan. 1, 2026, through Dec. 31, 2026.
The budget narrative notes that the city’s budget is crafted with the intention of ensuring that the city’s operational costs are effectively managed.
“By utilizing historical data, assessing the reasonableness of anticipated expenses, and focusing on achieving essential projects and desired outcomes, we demonstrate our commitment to serving the community,” the budget narrative reads. “This budget not only details the city’s 2026 expenditures and revenues, but it also provides an estimate for the fund balance at the end of 2026.”
According to the budget narrative, the Fund Summary reveals a projected deficit of $862,340.42 in the General Fund for 2026.
“This deficit will be covered by carryover funds, but it highlights a critical challenge we face: the salaries for both union and non-union personnel are set at much higher increases than in the previous years,” the budget narrative states. “To address this substantial increase in expenses, it is imperative that the City and Court explore new revenue streams. By doing so, we can ensure the City’s financial sustainability while protecting our reserves for unforeseen expenses in the future.”
According to a copy of the 2026 budget, provisions included in the spending plan include elimination of the 5-percent pension pickup for all city and court employees, various hourly rate increases of up to 4 percent for the court employees, and a 10-percent decrease in medical insurance for the first half of 2026.
“Health insurance expenses might increase considerably during the year 2026 because of the aging employee population,” the budget narrative states. “However, the Nurse Navigator and Concierge Health Network programs proved to be a highly efficient cost saving strategy.” It also notes the EPLS specialty prescription program should help both the city and employees with cost savings.
With wage increases for the next three years having been negotiated with the unions, the budget included an assumed estimated increase, including an increase for non-union employees.
Council has since approved an ordinance accepting and ratifying the terms of a tentative agreement with three employee organizations and authorizing the city manager to enter into collective bargaining agreements incorporating the terms, as well as an ordinance approving and adopting pay rates and other terms and conditions of employment for current non-union personnel employed by the city.
In addition, the budget narrative includes a breakdown of various funds and accounts.
It notes that increases in the 101.113.5101 – 101.113.5131 accounts (Finance Department – Salaries and Wages, Salaries and Wages Overtime, PERS and Pension Pickup) are attributed to an ongoing transition in the Finance Department and the search for a new assistant finance director.
Increases in accounts 101.139.5466 (Fees & Revenue Rcvd – Audit Costs), 225.140.5320 (Sanitation Department General Government – Professional Services), and 503.140.5320 (Water Pollution Control/Wastewater Treatment Department General Government – Professional Services) are attributed to the higher costs for the audit and GAAP conversion due to hiring a new accounting firm under unfavorable market conditions, according to the budget narrative.
The budget notes that Account 101.140.5817 (General Fund – General Government – Settlement of Claims) is expected to decrease.
Also, in Fund 205 (Public Works), the salary for the Public Works Department has increased due to the salary weight reallocation to help the 225 Sanitation Fund as well as upgraded salaries, per collective bargaining agreements, the budget states.
In Funds 214 (Ashtabula Municipal Court – Probation), 215 (Ashtabula Municipal Court – Computer), 216 (Ashtabula Municipal Court – Security) and 220 (Court Special Projects), there is a decrease in salaries due to the reallocation of the salary weights to the General Fund and more active utilization of grants, according to the budget narrative.
“The Court revenue accounts in the General Fund are expected to experience a significant increase due to the collection of fines through the Attorney’s General Office,” the budget also notes.
According to the budget, there are increases in 101.090.4014 (General Fund – Transfers In – Transfer in Ashtabula Municipal Court) because the court intends on giving the city a $10,000 reimbursement to help offset court improvements at the end of 2026.
In Fund 222 (Local Opioid Settlement Fund), a full police lieutenant’s salary with benefits is budgeted.
The budget notes that Fund 225 (Sanitation Department) will continue experiencing shortfalls in both operating and capital needs due to low trash collection, private haulers’, and commercial dumpsters’ fees.
According to the budget, Fund 504 (Water Pollution Control – Capital) will start repayments of the advance from the General Fund to repay $358,488.89 amortized over the next five years.
Additionally, the city noted that if it successfully receives all estimated revenues and keeps its current expenditure levels, it should expect estimated carryover balances into 2027 at the end of 2026 in the following amounts: General Fund (101): $4,307,361.81; Permanent Improvement (412): $44,228.38; Paving Levy (212): $719,198.23; Sanitation (225): $206,409.58; Wastewater (503): $1,020,009.92; and WPC Capital (504): $130,625.37.
“It is important to note that, in most cases, these amounts are obligated and not yet liquidated,” the budget narrative states. “Additionally, we should consider that expenses may rise due to recent weather conditions.”
According to the budget narrative, the General Fund will cover the deficits in the following areas: Police Levy, Street Lighting, Food Service, Public Works, Public Health Nursing, Parking Deck Fund, Police & Fire Pension, and Housing Code Enforcement.
“While we are optimistic about our financial outlook for 2026, it’s important to note that this budget does not factor in potential inflation resulting from changing economic conditions,” the budget narrative states.