Ludlow council members are close to passing this fiscal year’s budget.
At a city council meeting Thursday, the current version of the proposed budget passed the first reading. If it passes a second reading at the next council meeting July 23, it will be adopted from then on. Ludlow will continue to operate under last year’s budget until then.
The current version of the proposed budget, if passed, increases spending for the city’s public works, fire department, and public parks over last year’s budget.
“Economic development continues to be a high priority of my administration,” said Mayor Sarah Thompson about the proposal.
But this wasn’t Thompson’s first budget — she had previously proposed a different city budget that allocated more money for these departments. It also allocated more money for 15 more city events and a new city red bike program. But the expenses surpassed revenue by about $350,000.
“After listening to council's concerns and completing an additional review of the budget, I've made several revisions in an effort to reach common ground while continuing to preserve the investments I believe are important to our residents,” Thompson said.
However, the new budget allocates money to road repair and maintenance projects without relying on the general fund. It also funds three new, full-time EMT positions in the fire department for a full year, rather than just the six months the original budget proposal had set aside.
Why is the budget delayed?
At a first reading of the original proposed budget for fiscal year 2026-2027, council members disagreed with Thompson on how she had allocated the money across different departments.
Councilmember Meagan Guthrie told WVXU that while the original budget was legally balanced, it was not structurally balanced — and was against the operational deficit.
She said at the meeting she’s not against using General Fund Reserves, or city savings; but only to balance the budget.
“For the sake of making sure that those reserves are not appropriated as an available funding source, I’m wondering if we can have the fund balance line say exactly what we need to zero us out,” Guthrie said.
While the council is closer to an agreement, Thompson said the lack of city administrator has not made it easy to draft this budget.
In a Kentucky city-council form of government, the responsibility for drafting a city budget falls to the mayor and their administration — which includes a city administrator. But Ludlow has been without a city administrator since early March, and the new budget does not include a salary for one. Thompson said that would have to wait until the budget can be amended.
“It didn’t appear that I would get the city administrator that I had wanted,” she said after Guthrie inquired about budgeting for the position. “Until we are able to find a city administrator through a process that we’ll redevelop — we’ll look at January as a starting date for a city administrator.”
City council members agreed to move forward with the second reading of the proposed city budget. If it passes the second reading, it will be put into effect.
Guthrie said she appreciated Thompson for compromising on the council’s requests. Another councilmember, David Ziegler, also said he might not agree with everything in the current budget, but it was time to vote the new budget into effect.
“The mayor has worked really hard on this. And she does not have a city administrator,” Ziegler said. “I think it’s time to start listening to what our community wants and what our residents want.”
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