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Auditor outlines 2025 budget review, warns reserves below two-month target
Summary
Auditor Sputnay presented the city’s 2025 budget review, reporting $28M in year-to-date general fund expenditures, a year-end cash balance of $4.8M (carryforward ~$4.2M), payroll as the largest cost driver, and a $334,000 marijuana-tax deposit now in the general fund.
Auditor Sputnay presented a detailed review of the City of Chillicothe’s 2025 finances, telling council that year-to-date general-fund expenditures were $28 million versus $24 million in 2024 and that payroll remains the largest expense.
Sputnay said the city ended the year with $4.8 million in general-fund cash and carryforwards of $576,000, leaving an estimated carryover balance of about $4.2 million — below the commonly cited target of two months’ operating expenses. She warned that carryforward levels and timing of revenues can make year-to-year comparisons misleading but urged council to monitor reserves closely.
On revenues, Sputnay highlighted growth in building-permit revenue and EMS fees and noted that income-tax collections rose from about $19.4 million in 2024 to roughly $20 million in 2025. She also said interest income fell after market rates declined but that the office has invested in CDs and liquid accounts to improve returns.
Sputnay explained payroll increases were driven in part by the end of ARPA-funded positions that are now paid from the general fund, increased police and fire salaries and benefits, and typical year-end items such as back pay and in-lieu payouts. She said payroll consumes about three-quarters of general-fund expenditures.
On capital and other funds, the auditor said major sewer-plant projects were funded by an OWDA loan and grants; the city will begin a detailed review of loan payback needs in coming weeks. She added that transit now shows revenue exceeding expenditures after a new contract and an ODOT grant.
Sputnay announced operational items including extended income-tax office hours (April 14–15) to help residents file, and she said a refuse-and-recycling fee review is forthcoming. She also said the auditor’s office won state awards for financial reporting and that the state auditor will be requesting records for the upcoming audit.
On miscellaneous revenues, Sputnay reported the city received a $334,000 adult-use cannabis tax payment attributable to 2025 and said the council will decide how to allocate those funds; staff have created a separate line to track those receipts.
The presentation closed with council questions about recent water and sewer projects and a suggestion from one member to consider funding additional police and fire positions from carryforward funds; staff said committees would be assigned to explore those options. The full 2025 budget review is posted on the auditor’s page of the city website.
