Ludlow Mayor Sarah Thompson has issued the following statement so citizens can understand the budget that gets its final hearing and vote on Monday:
The Ludlow City Council adopted the Fiscal Year 2026–2027 budget after making approximately $680,000 in additional reductions to the budget I proposed.
These reductions came on top of changes made during Wednesday night’s meeting, when Council directed approximately $360,000 in additional funding to the Fire Department at Council’s request, while simultaneously removing $150,000 that had been budgeted for the Hollingsworth Field athletic lighting project. Collectively, these actions significantly changed the priorities reflected in the final budget.
As Mayor, I respect Council’s authority to amend and adopt the City’s budget. I also have a responsibility to be transparent with our residents about the impact of those decisions and the
circumstances surrounding them.
Background and Context
When I accepted the appointment as Mayor, I inherited significant organizational and financial challenges. One of my first responsibilities was correcting a budget that required immediate
attention because projected revenues exceeded realistic expectations by approximately $600,000, and several expenditures had not been fully captured. My responsibility was to ensure the City’s financial position was accurately reflected and that our budget was based on realistic assumptions.
I expected to work collaboratively with the City Administrator. Instead, I experienced repeated instances where information was not consistently shared with me, meetings with outside organizations occurred without my knowledge, decisions were made that I believed fell within the Mayor’s executive responsibilities, and requests I made were ignored or replaced with a different course of action. When I insisted that we follow our ordinances, Kentucky law, and the proper separation between the legislative and executive functions of City government, I was accused of micromanaging.
In the weeks leading up to his resignation, the City Administrator was absent from City Hall for an extended period and was no longer managing the City’s day-to-day operations. During that time, I worked directly with department heads to ensure City services continued without interruption and that projects continued moving forward.
When the City Administrator resigned, he sent an email to every member of Council and every City employee criticizing my leadership, accusing me of micromanaging, claiming employees were
leaving because of me, asserting that the City’s budget was “off the rails,” and encouraging Council to “stand up as a team” and “say and do something.”
After his departure, several employees shared with me that they had previously been told I intended to terminate everyone when I became Mayor. Others told me they felt the work environment had become tense and stressful and that they often felt as though they were walking on eggshells. Those conversations occurred only after his departure and helped me better understand the environment I inherited.
From my perspective, I observed an immediate change in the relationship between Council and my administration following that email. Recommendations that had previously been discussed collaboratively became increasingly adversarial, and I believe many of the statements contained in that email were accepted before I had the opportunity to demonstrate my leadership through my actions. Time has allowed those claims to be measured against actual results. The budget did not go “off the rails.” It was corrected, refined, and presented with realistic revenue projections and documented assumptions. The former Treasurer who was referenced during those discussions later returned to work with my administration as a budget consultant while the City operated without a City Administrator. Together, we strengthened the City’s financial planning and developed what I believe was a fiscally responsible budget.
I believe the approximately $680,000 in reductions adopted by Council cannot be viewed in isolation. Those reductions came after Council had already directed approximately $360,000 in additional funding to the Fire Department at Council’s request while simultaneously removing $150,000 that had been budgeted for the Hollingsworth Field athletic lighting project. In my view, these decisions reflect the broader challenges my administration has faced over the past several months.
Budget Amendments
• Approximately $360,000 added to the Fire Department budget, at Council’s request.
• $150,000 removed from the Hollingsworth Field athletic lighting project.
• Approximately $680,000 in additional reductions.
• $150,000 reduction in Repairs and Maintenance, including $50,000 for the Community Center deck replacement and ADA automatic door openers.
• $72,000 reduction in Business District Improvements.
• $63,500 reduction in Capital Outlay.
• $58,500 reduction eliminating Train Viewing Area parking improvements.
• $45,000 reduction eliminating replacement of the City Building roof.
• Approximately $54,000 reduction in Public Works operational funding.
• Approximately $39,000 reduction in Police Department funding, primarily Axon technology.
• $53,000 reduction to Community Events.
• Elimination of one administrative position.
• $40,000 reduction in Other Contracted Services.
Closing statement
These reductions affect far more than individual budget line items. They delay critical maintenance projects, postpone capital improvements, reduce investment in our business district, limit professional support for City operations, and reduce the City’s administrative capacity at a time when staff resources are already stretched.
Residents deserve to understand that budgets are more than numbers on a spreadsheet; they reflect priorities. The decisions made over the past two meetings shifted hundreds of thousands of dollars away from infrastructure, maintenance, economic development, administrative support, technology, and community investment.
Public participation
This is not the end of the discussion. The proposed Fiscal Year 2026–2027 budget will return for its second and final reading on Monday, June 29. I encourage residents to attend, make their voices heard, and respectfully contact City Council members before the final vote.
Sarah Thompson is mayor of Ludlow, having been appointed to the position when the former mayor resigned. She is a candidate for the position and is on the ballot in November.