Fort Thomas council approves FY25–26 budget and 4% pay-table increase amid questions about reserves
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Summary
Council read and approved budget ordinances including a pay-classification table increase of 4%. Residents and at least one council member pressed for more detail on reserves, projected shortfalls, and transparency around employee compensation.
The Fort Thomas City Council voted on and approved the city’s amended current-year budget and the fiscal year 2025–26 budget and also adopted an amendment to the pay-classification plan that raises the official pay table by 4% effective July 1, 2025.
During public comment, several residents raised budget concerns. A citizen reading directly from the city budget message noted the general fund expenses were projected to exceed revenues after transfers by $7,539,751 and said the mayor and staff indicated they would “present information to support a discussion about whether to consider a tax increase this year and in the future.” Residents pressed for clarity about reserve balances, recent transfers from reserves to cover capital projects, and whether the city was operating at a sustainable level.
City staff and council members described the reserve fund as composed of prior-year surpluses and said the council had intentionally used reserves to pay for capital projects known in advance. City officials said the reserve balance is approximately $15,000,000; staff explained that some multi‑year capital projects will draw on that reserve and that budgeted capital outlays for the coming year will reduce the reserve if all are completed. Councilmembers and residents discussed measures to control operating expenses and scheduled a finance committee review before the end of the summer to assess operating percentages and projections.
Councilmembers also discussed a previously flagged ‘‘pension‑spiking’’ accounting entry. City Administrator Matt Kramer said his review found an accounting duplication that made the amount appear larger in the initial budget pull; after correction the line was reduced in the amended budget.
On personnel compensation, the council voted to amend the personnel and pay classification plan to increase the official pay table by 4% effective July 1, 2025, and to adjust compensation ranges for specified positions. A councilmember announced an intention to register a no vote but the ordinance passed on roll call. Councilmembers discussed transparency for employee pay; staff noted state law constrains how pay information is set by ordinance but said the administration can post compensation data at council direction.
The council also read and approved the budget‑amendment ordinance for fiscal year 2024–25 and a comprehensive set of budgets for fiscal year 2025–26, including the general fund, municipal road aid, debt service, capital projects, health insurance and waste disposal funds.