Findlay auditor flags 19% drop in income tax receipts, says city deficit‑spent in 2024; council to review FY2026 revenue estimates

City officials told Findlay City Council on June 17 that year‑to‑date income tax receipts are down significantly and that the city’s finances will need close monitoring as council considers multiple large ordinances.

City Auditor Stashek told council the most recent monthly report shows income tax collections down "over 19%" compared with the prior reporting period. Stashek said he reviewed prior months and earlier in the year the decline was under 10% but that the trend has deteriorated. He also stated, by the budgeting metrics he uses, the city "deficit spent in 2024." Stashek urged the council to treat environmental and remediation liabilities with caution because the city lacks environmental liability insurance and sizable remediation costs were cited in an engineering letter.

The mayor responded that staff are monitoring income tax revenue and that the income tax administrator reduced the year‑end projection by about $400,000; the mayor noted the administrator may also reduce projected refunds, which would offset the revenue change. The mayor said non‑linear revenue timing (strong months followed by weaker months) and other revenue sources such as interest earnings are being watched.

Stashek also asked the council to accept a letter announcing that the council will receive the estimated revenues for fiscal year 2026 at its July 15 meeting; that step is required under Ohio budget law so the city can meet county filing deadlines. The auditor asked that council accept the revenue estimates at the July 15 meeting so the report can be filed with the county auditor by July 19 and that a public hearing be scheduled with notice published at least 10 days before the hearing.

Council members asked follow‑up questions about whether the city deficit‑spent in 2024; the auditor reaffirmed it did under best‑practice budgeting metrics. The mayor reiterated that last year’s one‑time appropriations (including flood mitigation and other large items) contributed to the change in fund balance and that departments are being asked to manage expenses. Another finance summary presented in the packet showed the general fund rainy‑day reserve is below $2 million as a formula‑driven statutory adjustment reflecting lower prior year revenue.

Council and staff did not adopt new budget policy at the meeting but acknowledged the need to keep reviewing projections and possible re‑appropriations in light of capital needs and proposed projects discussed elsewhere on the agenda.