Findlay council sets 20% income-tax allocation for capital after debate

Findlay City Council voted Tuesday to allocate 20 percent of the city's income-tax revenue to capital improvements for the 2026 budget process, following an hour-plus discussion of reserves, enterprise fund balances and revenue uncertainty.

The decision came after members debated an alternative proposal to set 22 percent for capital. That motion failed 3-5 before the council approved the 20-80 split by a 6-2 vote.

The vote matters because the council's allocation determines how much of the city's general income-tax receipts are available for capital projects such as streets, water and sewer infrastructure and equipment. City Auditor (name not provided) told the committee that capital allocation must be set before the auditor can complete revenue-side budget calculations for 2026 and 2027.

The City Auditor framed the budget discussion with a series of fiscal readings: the city's general fund receipts, the volatility of business net-profits tax, and enterprise-fund cash balances. He noted several funds with large cash balances relative to their operating budgets and…