Resident warns Kettering could deplete reserves in 10-year forecast, urges action before 2026 budget

Sterling Abernathy, who identified himself during the public-comment period, told the Kettering City Council that the city’s 2025 long-range financial forecast shows the general fund balance declining by $50 million over a 10-year period and falling to fewer than 30 days of reserves.

“Spending exceeds revenues and spending grows faster than revenues,” Abernathy said, summarizing the forecast presented to council in September. He told the council the 10-year forecast averages an annual shortfall of about $5 million and warned that, without corrective action, the city may need to consider tax and fee increases — including a higher income tax rate, taxing retirement income, eliminating certain resident tax credits, or adding storm-water fees or street levies.

Abernathy criticized a pattern of repeated forecasts showing similar results over the past three years and questioned whether planned projects and new spending (including facility estimates and donations) had been fully accounted for in the forecast.

“The 2026 budget, which you approve in two weeks, budgets $9.4 million more spending than revenues,” Abernathy said, urging council to limit new spending and to pursue revenue-growth strategies rather than immediately raising taxes.

City Manager Grayson and council members responded that the concerns will be addressed at the upcoming budget workshop scheduled for Dec. 2 and invited continued engagement on fiscal priorities. No formal action was taken during the meeting; council members said the budget workshop will be the venue for detailed discussion and possible policy direction.