Finance report shows February shortfall; law director flags uncertainty on recreational-marijuana revenue and building department updates announced

The Elyria finance director reported that in February city expenditures exceeded revenues by $36,440.63, with revenues of $2,942,349.46 and expenditures of $2,978,790.09. The finance director said the general fund cash balance has dropped $1,230,751.21 over the first two months of 2025. Income-tax receipts were reported about 5% higher through February compared with the prior period, and the director said the city should receive its first of two property-tax distributions in March.

Finance and council members clarified how the property-tax receipts are distributed: the collections are split among four funds (the general fund, general bond-retirement fund, police pension and fire pension funds) and each distribution is roughly $1.5 million split between those funds. The finance office noted it could not recall the exact millage split on the floor; council members and the finance director agreed to confirm details in committee.

Law Director Derek Deery said amendments to the codified ordinances regarding adult-use marijuana will go to the planning commission in April. He and the finance director cautioned that the state General Assembly is considering changes to the revenue formula for host communities, and that Elyria had not yet received local revenue from recreational marijuana under the current state budget; any future distributions will depend on state action. Deery also reported the city filed a notice and motion seeking appointment of a receiver in a common pleas matter alleging benchmarks in an earlier property agreement were not met; he said he expects more information in coming weeks.

City Building Official Farkas updated council on demolition and enforcement activity: demolition is moving forward for 330 West River Road (vehicle damage), work continues on 327 West River Road (condemnation status) and 115 Tannery and 130 Cedar Street are in the process of enforcement or warrant steps. He said 317 Fuller is proceeding toward approval after coordination with property owners, and that the department promoted a maintenance inspector to residential building inspector and is in round-two interviews for property-maintenance inspectors.

Councilmembers thanked the building department for progress on long-running cases. No new fiscal appropriations or details about property parcels tied to resolutions were read into the meeting record during these reports; any follow-up actions were scheduled through committee meetings in mid-March.