Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Budget topic
No spam. Unsubscribe anytime.
Beavercreek council adopts 2026 tax budget, hears warnings about state levy changes
Summary
Council accepted the 2026 tax budget to start the city’s 2026 budgeting process; finance staff warned of legislative proposals and fiscal pressures that could reduce local tax revenue and stressed the general fund’s role as a financial safety net.
The Beavercreek City Council on July 14 accepted the city’s 2026 tax budget, formally kicking off the budget season. City finance staff presented the tax budget and outlined revenue projections, levy-cycle timing and state-level legislative risks that could affect local funding.
“The purpose of the tax budget…is intended to show a need for your tax levies,” said Mister Graham, the finance presenter. He described Ohio Revised Code requirements for adopting a tax budget and explained that Greene County’s budget commission waived the filing requirement for 2026. Graham outlined the budget’s major assumptions: personnel costs tied to authorized positions and step/COLA increases, capital items coming from the five-year capital plan, the 2027 pay-year impact on payroll expenditures and a mix of flat and trend-based line items.
Graham emphasized the city’s reliance on property taxes: property taxes account for about 34% of general fund revenue and roughly 68% of overall city revenue when combined with grant funding. “If you think of the impact, the city losing 76% of its revenue, I don't know how we would ever survive it,” he said, referring to combined reliance on property taxes and grants. He also said interfund charges account for about 15% of general fund revenue and cautioned that interest income is volatile.
Council members asked detailed questions about open purchase orders, internal transfers from the general fund to other funds (such as parks), and how residents can view transfers. Graham said transfers are recorded as separate line items in financial reports but acknowledged the city’s current finance software lacks a public-facing portal; replacing it would be a multi-year investment. He said staff will continue producing quarterly financial updates and include transfer information in budget documents.
Graham briefed council on state legislative matters that could affect city finances. He cited Ohio Revised Code sections for budgeting and said several proposals in the state legislature could change local funding: requiring voter-approved tax measures to pass by 60 percent; changes to local government distributions that could produce a projected two percent decrease in state local government revenues in 2027; proposals to expand budget commission authority to reduce levies or conduct hearings when cash balances exceed thresholds; and pending bills tied to marijuana revenue collection (he referenced Senate Bill 56). He also noted potential police-pension rate increases from about 19.5% toward 24% as a fiscal risk.
Council discussion included options for a citywide letter to state legislators asking them not to override recent gubernatorial vetoes affecting local tax and funding provisions. Vice Mayor Bales circulated a draft letter and council members discussed coordinating signatures and public distribution.
After discussion, a council member moved and seconded acceptance of the 2026 tax budget; the motion carried with all present voting aye. Graham summarized the timeline: manager meetings with department heads, public presentation in November, and an appropriation request in December.
