Elyria finance director outlines conservative 2026 tax budget; committee authorizes submission to county

Finance Director Pawlowski presented the proposed 2026 tax budget to the Elyria City Council's strategic planning committee at a June 30 meeting, saying the document contains conservative estimates of beginning cash, revenue and expenditures and must be submitted to the Lorain County Budget Commission to begin the 2026 appropriation process.

Pawlowski told the committee the budget is built on estimates, noting the general fund will get an extra payroll bump next year because 2026 is a 27-pay year. "So that automatically is going to bump up the general fund by 1 point 3,000,000," Pawlowski said, and later stated the city is starting next year with $13,200,000 in beginning cash for the general fund. He added that estimated expenditures are $42,000,001.69 and, "if all this holds true, we would only have carry over about 5,300,000.0 in the general fund in the 2027." (Finance Director Pawlowski)

Pawlowski flagged two main concerns: the general fund and the employees' health insurance fund. He said the insurance fund has been "treading water," that contribution increases took effect in May, and cautioned that continued increases in claims could put the fund "in trouble." In response to council questions, he estimated the employee health plan has averaged "probably somewhere between, probably 750 to 800,000 a month" in payouts this year and confirmed the city and employees had increased contributions effective May 1.

Committee members asked follow-ups about property tax revaluation, the state budget and other revenue items. Pawlowski said the recent revaluation increased property tax revenue (excluding the Elyria Public Library pass-through) by about $1,400,000 this year and confirmed that a state proposal to eliminate unvoted inside millage (House Bill 335) did not make it out of committee. On the question of marijuana host city revenue, Pawlowski said the proposal was removed from the state budget and any discussion has been pushed to November.

The committee voted to forward a committee report to council authorizing the finance director to establish the 2026 tax budget and to submit it to the Lorain County Budget Commission; the report was advanced under suspension of rules and declared an emergency for committee purposes. Committee members noted the full council would take the formal vote at the next council meeting.

Next steps: upon council approval next week, Pawlowski will submit the tax budget to the Lorain County Budget Commission; the tax budget will be amended during 2026 as actual beginning cash and county estimates are finalized.