ARDMORE, Okla. (KTEN) — Ardmore officials are taking a conservative approach when it comes to the planning process for the city's 2024-25 fiscal year budget, considering the impending shutdown of Michelin's tire production facility by the end of next year.

Michelin is Carter County's biggest employer.

"We don't think we'll see the full effect of what that will impact us financially until the next six to twelve months," said City Manager Kevin Boatright.

Ardmore's 2023-24 budget was set at just over $119 million. Boatright has already requested that department directors play it safe with their proposals for the next fiscal budget, which will take effect on July 1.

"This year, we've asked them basically to try to stay status quo... just to keep everything flat," Boatright said.

"I've been here long enough that I've seen some downturns in the economy, and so we've had to tighten our belts up before," added Public Utilities director Shawn Guerin. "This is no different."

City officials have yet to determine what the next budget will look like, but losses are expected after Michelin shuts down, because it is a major customer of water and electric utilities.

"Revenues that we receive from Michelin in over a 12-month period... we see about $400,000 basically off their water bill," Guerin explained.

"We get franchise fees from OG&E from the use of electricity — and of course, Michelin uses a lot of electricity — so there will be some loss of revenue there as well," Boatright said.

The city manager added that losses from the city's sales tax revenue will be seen over time.