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Chillicothe plans scaled‑back paving, budget cuts as Pixel closure threatens income tax revenue
Summary
Mayor and finance committee described near‑term budget planning after a paving levy failed to reach the ballot and Pixel's operation changes threaten income tax and utility revenues; council approved several routine financial ordinances to return unused federal funds and cover insurance increases.
Mayor Matthew Feeney told council on Aug. 25 that the failure to place a paving renewal on the ballot means the city’s income tax will drop from 2% to 1.8% on Jan. 1, 2026, unless voters approve a measure in a future election. "That does a couple of things for us, but mostly, it means we don't have enough money to do a standard paving program in 2026," Feeney said, adding the city can run a smaller paving program next year using savings and its 2025 OPWC application.
Feeney said the closure or scaling back of Pixel's operations will reduce income tax receipts and utility consumption, and the city has begun budget planning to limit layoffs and retain permanent employees where possible. He said department heads were asked to draft operations budgets with an initial 20%…
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