ATHENS, Ohio — Athens City Council passed its 2026 budget Monday, despite concerns about how appropriations and anticipated revenues are balanced.
In other important matters, the council passed an ordinance to allow temporary shelters as conditional uses in residential and business zones, despite one council member’s efforts to table the topic.
2026 budget passes, begrudgingly
Council members expressed concerns in passing Ordinance 120-25, next year’s $84.8 million budget.
The general fund –– which covers all city departments such as police, fire, code enforcement, the mayor’s office, auditor’s office, municipal court and others –– is projected at $20.9 million.
Council member Alan Swank, 4th Ward, asked why a revenue projection for next year, requested from the city auditor’s office, came in at $52.66 million, leaving a discrepancy of about $32 million.
With Auditor Kathy Hecht not in attendance, Treasurer Josh Thomas said, without having viewed the revenue projection,that the difference had to do with two large loans, involving water and sewer projects, that had not been included in the revenue figure.
“We’re kind of up against the wall tonight,” Swank said. “This is our last regularly scheduled meeting of the year.”
Mayor Steve Patterson said the revenue projection might not have included propriety fund revenue, like projected parking garage revenue, as well as water and sewer revenue from utility billing.
Swank said all projected revenue for the city should be provided for what council votes on next year. Next year’s carry-over budget will, based on the past five years, be around $5 million to $6 million, Swank added. Thomas concurred with that carry-over estimate.
Swank asked Thomas if he were “comfortable” that the $84 million in total budget projections would be covered by anticipated revenues.
Thomas said he was comfortable with the budget, “because if we were off [by $32 million], then alarm bells would be sounding every day in the auditor’s office. And there’s no one sounding the alarms at this point.”
Member Solveig Spjeldnes, 1st Ward, said that in her four years on city council, “My biggest frustration is this budgeting process.” Without expenditures and revenues spelled out clearly, council members are taking a risk, she said.
Patterson said treating the budget as profit-loss statements would provide more clarity.
Spjeldnes said the council had the option of passing a temporary budget, and not adopting a final budget until April 1 next year. She also said the public should be able to comment on city budget priorities through an announced public hearing.
Aaron Leatherwood, a Coventry Lane resident who said he has worked on Ohio University budgets, offered that the city “needs programmatic discussions around its major funds.” The city isn’t passing estimates; it’s passing a plan, he emphasized. He also said a budget is an authorization.
“You should be within your authorization,” Leatherwood said.
Council passed the budget on the third reading by a 6-1 vote, with council member Beth Clodfelter, At-Large, voting no. She did not state her reasons, and did not immediately respond to an emailed request for clarification.
The city is seeking a proposed earned income tax levy increase of 0.2% next May. The increase would go into effect in 2027. That would raise the rate from 1.95% to 2.15%, or about a 10% increase, and generate an additional $1.8 million for the general fund each year.
Council adopts ordinance to allow temporary shelters, as Sunset Shelter progress slows
The council passed 6-1 Ordinance 139-25, with Swank casting the lone vote against.
The ordinance amends city zoning code to allow conditionally permitted uses of temporary housing shelters in zones R-3, multifamily, and B-3, general business. The shelters are defined as structures “that are not affixed to the property and that do not contain kitchen or bathroom facilities.”
The ordinance requires that a sink and toilet must be within 200 feet for every three units. The units must be approved by the city service-safety director and the board of zoning appeals, and reapproved by the director on an annual basis.
During council communications, before third reading of the ordinance, Spjeldnes provided an update on the status of the Sunset Shelter Project on Columbus Road.
She read a letter she had just received a few hours before the council meeting from Kelly Hatas, executive director of Hocking Athens Perry Community Action.
Hatas wrote that due to two rounds of competitive bidding, both of which resulted in bids that were over budget, the Sunset Shelter project will experience a significant delay in completion. The project has already $4 million in dedicated grant funding.
The former motel is set to become a non-congregate shelter that will house up to 48 people in 27 private units with individual bathrooms, beds and kitchenettes. Preliminary remediation work wrapped up this fall.
Hatas said that some elements of the project may be “carved out” because they are project “alternates.” They include parking lot paving, a playground and solar array. HAPCAP and its project partner, the Athens County Foundation’s Project Co-Create, are trying to determine how to best move forward, such as pursuing additional funding, as well as reducing the size of the project.
“We are really disappointed that we have not been able to enter into contract for this work yet,” Hatas stated. “Anecdotally, we heard that rising costs across the board, tariffs impacting material costs, the prevailing wage requirement, and the cost of the bid bond as all contributing to the higher than anticipated/estimated bids.”
Spjeldnes said it is now highly unlikely that the Sunset Shelter will open in 2026 as originally expected. For that reason, she said, opponents of the temporary shelters ordinance — many of whom said the shelters should wait until the Sunset Shelter is up and running — no longer have a “viable discussion topic” to stand on.
Council member Jessica Thomas, At-Large, who has previously voiced her support for the ordinance, said a final vote was not only desired, but overdue.
Swank noted that allowing temporary shelters in R-3 and B-3 zones has now been discussed 11 times by council, by itself or in combination with an ordinance that allowed the Gathering Place’s Conestoga Huts pilot project.
The project was first discussed by the Athens Planning Commission, and then the city council starting June 4. Thomas called the ordinance a structured proposal with a definite need from the amount of unhoused people in and around Athens. Recent nights of below-zero temperatures re-emphasize the need for a final vote, she added.
Spjeldnes, who offered that she has “wavered” on the ordinance while being a strong proponent of the Conestoga Huts project, said the new information on the delayed status of the Sunset Shelter informed her vote to move forward on temporary shelters.
Any perception that passage of the ordinance will create “tent cities” is just wrong, Spjeldnes said.
“I am supportive of this and I hope you all will realize this is not going to change the nature of our community, at all,” she said.
Swank said it is the city’s moral and civic responsibility to help combat homelessness. But it is how the issue is to be addressed that creates divergent views, he offered. Rather than temporary shelters such as Conestoga Huts, perched in parking lots near a building, Swank said a local building with heat and water, such as ArtsWest on West State Street, could be put to use.
Swank added that a local resident, Dan Smith, suggested that each temporary homeless shelter request in the future be handled on a “one-off basis.” It would involve the council as an elected body making the decision, not an appointed board.
Clodfelter said she views the issue quite differently.
“For us as a community, I would really prefer to see us be proactive and establish guidelines, and requirements, and regulations for how any future proposals in offering temp housing shelter units would be handled,” Clodfelter said.
Thomas said each temporary shelter would essentially be handled as a one-off project approved on its own merit, based on a multitiered set of guidelines established by the city, and requiring approval from both the city Board of Zoning Appeals, initially, and the city Service-Safety director, annually.
Thomas also said she believes the ordinance has been dragged out longer than it needs to be, “and it’s freezing cold (outside).”
Public comments were once again split on the proposed ordinance.
Kent Lankas said the housing need for the homeless is urgent because of winter. He also said many people could be subject to losing their U.S. Department of Housing and Urban Development-provided housing due to impending federal cuts.
Retired judge Alan Goldsberry said the Conestoga Huts ordinance constitutes spot zoning, and could be legally challenged.
Athens Board of Zoning Appeals Chair Rob Delach said the board would carefully consider the “full spectrum” of every temporary housing proposal, including location, safety and security, and proximity of neighbors. The public would be afforded the chance to speak during a hearing. The entire process of going through the board takes about two months.
“We definitely use due diligence to make good decisions,” Delach said.
Leatherwood said the city service-safety director must have a definite standard for which to approve temporary housing projects; otherwise, such a decision would be arbitrary. The Board of Zoning Appeals, meanwhile, exists to hear appeals of zoning decisions and grant variances in cases of hardship while applying clear standards adopted by the council.
Jack Stauffer, a critic of city-sanctioned temporary housing structures, said the council was “about to pass the most reckless and irresponsible legislation in my memory, maybe ever.” The Sunset Shelter will open, eventually, he said, adding, “For whatever reason, the homeless are running from life’s relationships and life’s responsibilities.”
Ginger Schmalenberg, director of The Gathering Place, said homelessness is not about politics, but “about the human condition. It’s about humanity.”
Schmalenberg said The Gathering Place offers its clients safety and structure, along with a sense of place, the things they need most to recover from substance abuse and other challenges.
The Gathering Place is in the process of receiving funds to purchase land for shelters, Schmalenberg said. Those shelters would have workforce development components, too. Schmalenberg said that due to backlash from landlords and others in the Uptown area, she is seeking land for future projects on the outskirts of Athens. The shelters would be on bus lines, away from residential areas.
Thomas said she had put forth a litany of amendments that would have addressed the concerns of citizens including Stauffer, such as requiring a licensed health and welfare agency to oversee any temporary shelters. But her amendments did not receive the votes needed for passage.
“It doesn’t matter what, it doesn’t matter where,” Thomas said. “There are just people who are against helping people.”
Swank, who voted against amendments to the ordinance put forth by member Thomas, put forth a point of order that he had “been called out by inference.” Swank asked Law Director Lisa Eliason if tabling the ordinance had priority in voting. She said it would, but needed a second. Swank moved to table the ordinance and did not receive a second.
Three council members end terms
The council also said goodbye and approved resolutions of service recognition for three council members who did not seek re-election: Spjeldnes; council President Sam Crowl; and Jeff Risner, 2nd Ward, who served seven terms since 2012.
Spjeldnes has been chair of the Transportation Committee and been key in discussions on street projects. Spjeldnes will continue to serve on the city’s Affordable Housing Commission.
Crowl was first elected in 2018 and has served on the Environment and Sustainability Commission. He has been an advocate for reduced dependence on landfills and improving accessibility. Crowl read into the record a letter thanking numerous people whom he said make the city better through their service.
Risner has chaired the council’s Finance and Personnel Committee and been a member of the Municipal Arts Commission.
In other matters Monday, the council:
- Heard from Swank that Debbie Walker, clerk of City Council, was recognized last week during a city dinner for her 40 years of service to the city. Walker was referred to as an “unsung hero” for the city.
- Adopted on third reading Ordinance 140-25 to allow a special right-of-way use permit for a balcony at 43 S. Court St.
- Suspended the rules and adopted Ordinance 142-25, a right-of-way agreement with AEP to allow for an easement at 25 Kenny Drive. The utility easement is needed to supply electricity for a new firefighters training center.
- Suspended the rules and adopted Ordinance 143-25 to provide financial support from the city’s Transient Guest Tax to the Outdoor Recreational Council of Appalachia. At one time, the city provided $90,000 toward ORCA operations. That was more recently reduced to $1 per capita for every city resident, or just under $25,000 annually. Now, Patterson said, that amount has been reduced to an ORCA membership fee of $1,000.
Athens City Council’s next regular meeting will be 7 p.m. Monday, Jan. 5, 2026, at Athens City Hall, Council Chambers, third floor, 8 E. Washington St. Meetings are also streamed online. Regular sessions are on the first and third Mondays of the month; committee meetings are on the second and fourth Mondays.
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