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City considers budget, tax, salary changes

Butler City Council will vote on budget revisions, raising the street light tax back to last year’s rate and lowering non-union employee salaries to last year’s levels at its regular meeting Thursday.

Council discussed the changes to the budget, tax and salary ordinances at Tuesday’s forum meeting.

Councilman Michael Walter, director of accounts and finance, said he would vote against raising the street light tax because it would take a year to form a plan to replace or repair street lights, and he said the tax can be raised next year after a plan is in place.

The 2018 tax ordinance reduced the street light tax by 1 mill to 2.25 mills.

He said the $54,000 surplus in the street light fund, which must be spent this year, is enough to develop the plan.

Mindy Gall, city clerk, said the surplus is likely to increase because the city hasn’t yet received the credits on the current electric bill for using less electricity due to the installation of LED lights.

Citing a report about the condition of the street light poles, Councilman Kenny Bonus said public safety is an issue with the current lights.

“Government works at the speed of glaciers,” Walter said of creating a plan to fix the lights.

“But it doesn’t have to,” Mayor Ben Smith responded.

He said a street light plan can be developed in three months.

Councilman Jeff Smith presented a list of budget revisions that would lower projected revenue by $174,000. He said the revenue in the budget is overstated by that amount.

He said real estate tax revenue is budgeted at $1.9 million, but the amount should be $1.88 million to reflect the actual amount collected.

Revenue from the $5 residence tax is budgeted at $25,300, but the figure was $27,215 the year before, he said. His revision would set the amount at $26,000.

Revenue from earned income taxes is budgeted at $970,000, but $936,000 was collected last year, he said. His revised amount is $930,000.

Revenue from fines is budgeted at $280,000, but $98,000 was collected last year, he said. His revised amount is $191,000.

He suggested raising the cost of all parking permits by $5 to generate an additional $62,000 in revenue.

Regarding employee pay, Jeff Smith said non-union employees should not get the raises included in this year’s salary ordinance because the city is negotiating contracts with its unionized employees and pay raises haven’t been settled.

After contractual raises are settled, the city can give lump sum bonuses to non-union employees, he said.

He said he also reduced budgeted spending on engineering fees to the amount spent last year and eliminated the purchase of a new tractor for the parks department.

Bonus said he agreed with the budget revenue changes and it was a good idea to review prior budgets to set those figures.

“We should deal in the realm of reality,” Bonus said.

He said he agreed with the idea to raise the parking permit fees.

Parking manager James Chiprean said permit fees were increased three years ago and some people stop buying permits when the fees are increased.

The mayor said he agreed that revenue seemed overstated in this year’s budget based on historical data.

Bonus said revenue will be a factor in the union contract negotiations, but providing bonuses instead of raises to non-union employees might not be viewed favorably.

Ben Smith said salaries for two non-union administrative employees would not be reduced because they reflect changes in their positions.

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