City Council reviews 2026 budget projections focusing on property tax reliance

The Beavercreek City Council convened on July 14, 2025, to discuss the city's financial outlook and budgetary considerations for the upcoming fiscal year. The meeting focused on the tax budget, capital asset planning, and the implications of various funding sources.

The discussion began with an overview of capital asset items derived from the five-year capital plan, including vehicle and computer replacement schedules. Personnel costs were highlighted, noting that they are based on currently authorized positions and may include step or cost-of-living adjustments (COLA) as per existing contracts. A significant point raised was the upcoming 27th pay period in 2026, which will increase payroll expenditures within the tax budget.

The council reviewed projected beginning and ending balances for various funds, emphasizing the importance of maintaining a 20% carryover balance in the parks fund, which is currently below this threshold. The general fund was noted for its substantial balance, which provides flexibility to address unforeseen expenses, such as major repairs for city departments.

Revenues for the general fund are projected to increase by 1% compared to the previous year, with property taxes constituting 34% of this revenue. The council discussed the reliance on property taxes, which account for 68% of total revenue across various funds, and the potential impact of legislative changes that could threaten this funding source.

The meeting also touched on the implications of proposed changes to property tax regulations, including a requirement for a 60% voter approval for new tax measures, which could complicate future funding efforts. The council expressed concern over the potential for reduced state funding in 2027 and the authority of budget commissions to adjust tax rates, which could disrupt established funding cycles.

In conclusion, the council's discussions underscored the critical role of property taxes in the city's financial health and the need for careful planning to navigate upcoming challenges. The next steps include further meetings with department heads and public discussions leading up to the final budget approval in December.