Budget committee recommends 2026 operating and capital budgets to full council

The City Council Budget Committee voted to recommend both the 2026 operating budget and the 2026 capital budget to the full council after a daylong review of department requests, reserve policy and capital priorities.

Director Miller, who presented the financial details, recommended returning to a reserve target described as “28% of expenditures or 105 days of expenditures,” noting that 105 days equates to roughly $7.3 million and that the 2025 reserve stands at about $7.2 million. Miller said the reserve and conservative income‑tax assumptions leave the city able to absorb short-term downturns without immediate cuts. “We’re using the slightly less conservative threshold of 28% of expenditures or 105 days of expenditures,” Miller said.

Committee members pressed staff on recession risk and pending property‑tax reform bills. Miller said the city currently receives about $2 million in property taxes for operations and that complete elimination of property tax would be catastrophic for many governments, but he called that scenario unlikely and said the administration would continue to monitor revenue projections and could adjust hiring or defer capital if needed.

The committee reviewed program- and facility-level items in the operating budget. Miller listed recent community-grant recipients and recommended continued funding; he also reviewed municipal pool finances, noting that membership and admissions typically cover pool operating costs while bond debt service is supported by hotel tax and inside millage. On solar generation, Miller said the city expects net metering to be available soon and will report back once metering data begin to appear: “we should be able to get the net metering.”

On the capital side, Miller outlined the capital fund revenue picture (5% of income tax, EMS fees and transfers) and the planned 2026 purchases: two police cruisers, a parks truck, a facilities pickup and other replacement equipment. He told the committee the Erland Tennis Court project will likely cost about $700,000, up from an earlier $400,000 estimate, in part because of soil‑stabilization needs; staff said the city will revisit the existing informal cost‑sharing agreement with the school before committing to additional expense.

Committee members asked whether planned street repaving work should be coordinated with potential lead‑service‑line replacement; staff said state/federal rules are not final and that the city will invite a Columbus representative to brief the council during the upcoming capital retreat.

The committee recorded two voice votes. Speaker 1 moved to recommend the operating budget to the full council and Speaker 3 seconded; the committee approved the recommendation by voice vote. Later, Speaker 3 moved and Speaker 1 seconded the recommendation of the capital budget; that motion also passed by voice vote. No roll‑call tallies were taken in committee.

The committee adjourned after approving both recommendations; both items advance to the full council for final consideration.