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Administration presents draft 2026 operating budget; flags medical‑fund pressure and modest insurance increases
Summary
Administration delivered an initial draft 2026 budget showing a modest overall decrease in general‑fund outlays, reappropriations for prior commitments (including a $16M sewer loan), and proposed steps to shore up the employee medical fund. Staff recommended a 2% nonunion cost‑of‑living increase, reported modest increases in stop‑loss and third‑‑
Administration presented the first draft of the 2026 operating budget to the Finance & Personnel committee and outlined several cross‑cutting items councilors asked to monitor and clarify.
Director Stone said the draft is an initial “first crack” at the operating budget and noted several reappropriations that must appear in the 2026 document, including an approximately $16 million 30‑year zero‑interest loan for sewer improvements and previously authorized Welcome Home Ohio funds. He said the administration had made “modest” reductions in several general‑fund personnel lines compared with the prior year but that some large line items — notably court/diversion and certain external appropriations — still needed clarification.
On employee health care, Stone said the administration currently transfers an equivalent of $23,500 per employee into the medical fund from department budgets and has added a 2% income‑tax mix allocation to the medical fund to shore reserves. He recommended the council consider raising utility rates (water, sewer, trash) rather than drawing more from general income tax revenue to better match where employees are paid (many are funded from proprietary funds).
The committee also heard that the city is self‑insured for employee medical benefits and must buy stop‑loss reinsurance for catastrophic claims; the administration reported two stop‑loss bids with higher premiums this year due to several large claims and recommended renewing with the incumbent carrier. The administration proposed a 2% nonunion pay increase for 2026 and said a pay‑band study remains in progress.
Council members raised several follow‑ups: the court’s diversion budget line jumped substantially in the draft (from about $45,000 last year to roughly $236,000 in the draft), and members asked staff to follow up with the court for an explanation; members asked for clarification of lands & buildings personnel reductions and for more complete overtime estimates in police and fire personnel lines; and members requested additional comparative analysis of department personnel, debt service and year‑over‑year changes.
Why it matters: The budget sets city priorities and affects service levels, municipal fees, and employee compensation. The administration asked for time to refine numbers; several items were flagged for follow up before council consideration.
