Kettering council adopts 2026 budget with $1 million operating margin; one member votes no

Kettering City Council adopted the 2026 budget package at its Dec. 9 meeting after City Manager Matthew Greon presented an overview of next years finances and a five-year forecast.

Greon told council the citys general fund available balance is projected at about $56.4 million at year end and that the proposed 2026 budget reflects "an approximately $1 million operating margin," with roughly $14.6 million budgeted for capital improvements and an estimated $6.88 million to be drawn from the general fund to support capital projects in 2026. He said income tax revenues remain the largest revenue source and warned the city will need a combination of expenditure reductions and revenue strategies to sustain capital needs over the coming five-year horizon.

"Our forecasting provides a high level assessment of revenues, expenditures, and fund balance trends," Greon said during the presentation, noting department operating budgets were held to a 0% increase except for unavoidable inflationary costs.

Councilmember Scott said he could not support the revenue projections and stated, "I would vote no at present." The rest of the council voted to adopt the budget. The package includes personnel and pay changes previously considered in ordinances and resolutions earlier in the meeting.

The budget document allocates major capital investments to traffic signal improvements, the Marshall Road project (noted as more than half grant-funded), pedestrian and bicycle facilities on Research Boulevard, and other street, sidewalk and curb repairs. Greon also flagged an 11% health insurance premium increase that produces more than $700,000 in additional costs and emphasized the need to review staffing, fleet size and process efficiencies.

Next steps: the budget takes effect for fiscal year 2026 as adopted; city staff will implement the capital projects and return with any required supplemental appropriations or contract approvals.