Ashland council renews city line of credit for fiscal 2025–26 operations

At a recessed June 27 meeting, the City of Ashland adopted a second-reading ordinance authorizing the mayor and city officials to renew a line of credit to borrow funds for operational expenses for the period July 1, 2025, through June 30, 2026.

The ordinance authorizes the mayor and Tony Grubb, city manager, or Michelle Veach, assistant chief financial officer, to renew the line of credit on the city’s behalf. The measure was moved and adopted by voice vote during the meeting; no recorded opposition appears in the provided transcript.

Michelle Veach, assistant chief financial officer, said the new renewal uses the same bank and the same borrowing amount as the current line of credit and that the interest terms are tied to prime. “It’s actually point 5% more than what it was last year,” Veach said. She added, “They’re based on a percentage of prime.”

A councilmember asked whether the city expects to be off the line of credit earlier than previously planned, saying, “So we’re looking at, we’re we’re hoping to to get off this line of credit in January,” after earlier expectations of July. The transcript records that staff responded the January timing was the minimum target.

Details of the line — including the specific principal amount and the bank’s contract language — were not read into the provided transcript and therefore are not specified here.

The ordinance gives city leadership authority to complete the borrowing paperwork; the transcript does not record additional follow-up steps or a later vote.