By Jessica Dillon
The Martinsville City Council approved the first reading of its proposed fiscal year 2026-27 budget on a split vote, with debate centering on a proposed property tax increase and employee health insurance costs.
The budget passed on first reading, with Council Member Aaron Rawls and Mayor LC Jones voting against it. Consideration of the first reading was postponed at the council’s previous meeting after Rawls requested more time to review the proposal.
Rawls said his concerns about providing additional funding to local schools or outside agencies “doesn’t mean you don’t value those things. It doesn’t mean they don’t do great work.”
Rawls also expressed concern about future employee health insurance costs.
“You have another 15 percent coming next year,” he said.
He said the city also needs to set aside additional money in its capital fund for equipment replacement.
Rawls proposed reducing the school budget by 15 percent and cutting funding for outside agencies to avoid increasing employee health insurance costs and raising taxes.
“I do think we should look for some consolidation in the schools,” Council Member Julian Mei said, adding that he did not want any teachers to lose their jobs. Mei said he supports merging the city’s two elementary schools.
Vice Mayor Kathy Lawson said employees will not see an increase in their share of health insurance costs during the coming year because the city remains under its current insurance contract.
“That will not occur,” Lawson said.
She said the city is locked into its health insurance plan for another year and noted that health insurance costs are known to increase. Covering those increases without passing them on to employees would require using fund balance, she said.
Jones also voted against the budget.
“It has cost us more trying to prove facts that were not there and it put us in this situation,” Jones said.
He said the work performed by outside agencies cannot easily be measured in dollars and that he understands the proposed tax increase. However, “I’m still stuck on a hard no” on the overall spending plan.
The council also approved a resolution supporting the Lester Family YMCA’s application for a Community Development Block Grant planning grant.
“This grant, and overall the new YMCA, is being done for all the community,” YMCA Executive Director Brad Kinkema said. “This is a federal grant that goes to the state that is allocated.”
Kinkema said the grant would support planning for the YMCA’s early learning center.
“It allows parents to enter the workforce or stay in the workforce,” he said.
The grant application is intended to demonstrate the need for services benefiting lowand moderate-income households. The first public hearing on the application was held June 8, and a second is scheduled for 6 p.m. June 22.
Council members also approved on second reading an ordinance rezoning about 13 acres along Chatham Heights Road and Bob Gregory Street from Commercial Corridor and Neighborhood Residential to Residential Transitional.
In other business, council appointed members to several boards and commissions, and recognized the Fayette Area Historical Initiative (FAHI) with a proclamation recognizing Juneteenth and the city’s refuse and wastewater departments received a proclamation recognizing National Sanitation Worker Month.
