Council holds first readings on 2025 tax rate and fiscal 2025–26 budget; caravan (CARTA) funding options remain open
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Summary
Council approved first readings of the tax rate (0.7993 per $100, revenue neutral) and the FY2025–26 budget, discussed transferring workers' compensation savings to the CIP, and reviewed a potential $44,820 county contribution to the city's Caravan service, with a final decision scheduled at second reading.
The East Ridge City Council on June 12 approved first readings of the ordinance setting the 2025 property tax rate and the ordinance adopting the fiscal year 2025–26 budget, and discussed a pending county contribution to the city’s Caravan (paratransit) service.
City Manager Miller briefed council that the city’s certified assessed value rose sharply from about $554.2 million to $866.6 million, allowing the city to roll back the rate to 0.7993 per $100 of assessed value and remain roughly revenue neutral. Under the roll‑back rate the projected property tax yield is about $6,788,564, roughly $530 below last year’s yield.
The proposed general operating budget for FY2025–26 stands at $27,827,365, about $561,000 above the current fiscal year. Manager Miller said the city awarded a lower workers’ compensation bid that produced an estimated $134,749 in savings; he proposed transferring that amount from the general fund to the Capital Improvement Program (CIP) to increase planned CIP transfers from $500,000 to $634,749.
The council also discussed the Caravan service (provided by Carta) that runs trips for medical, dental, dialysis and other needs. County commissioners Chauncey and Sharp pursued an amendment in the Hamilton County budget that would provide $54,720 to the program; Miller said East Ridge’s share would be $44,820 while Red Bank would receive $9,180. The city currently budgets $100,000 for Caravan service. Council options outlined were to (a) reduce East Ridge’s appropriation by $44,820 and limit city‑funded trips to medical, dental and dialysis, or (b) increase the city’s appropriation by $44,820 (to about $144,820) to preserve the broader trip mix, including shopping and entertainment. The manager asked council for a direction at second reading.
Council heard operational details about the cost per trip: the city’s program had been operating with a per‑trip rate that increased to $47 one‑way ($94 round trip) after other funding sources were exhausted; manager said the program ran out of grant money in May.
Votes: Ordinance 12‑25 (tax rate) passed first reading on a motion by Vice Mayor Tyler, seconded by Councilmember Andrea Witt; the roll call reflected unanimous support on first reading. Ordinance 12‑26 (annual appropriations budget for FY2025–26) likewise passed first reading on a motion by Councilmember Witt and second by Vice Mayor Tyler; roll call support was recorded and the ordinance will return for second and final reading on June 26, 2025.
Why this matters: the tax rate decision and budget set the fiscal framework for city services and capital projects. The Caravan funding question affects paratransit service levels for residents who use medical and nonmedical trips; council must decide whether to use county funds to broaden service or tighten the city’s contribution and narrow trip purposes.
Ending: The tax rate and budget will return for second and final readings on June 26. The manager asked council to indicate preference on the CARTA/Caravan funding at that meeting so staff can finalize budget appropriations.
