Michelle Reeder, the city’s finance director, presented the first public hearing on the proposed 2026 budget on Jan. 12.

Reeder said the general fund revenue estimate for 2026 is $33,718,110 and the proposed general fund expenditures total $33,707,413. The combined all-funds budget is projected at $121,830,000. She highlighted primary revenue streams: income tax revenue ($13.7M), admissions tax (about $9.5M), departmental revenue ($3.5M), property taxes ($2.1M) and lodging tax ($2.1M). Reeder said wage increases are included in the proposal: a 3% general wage increase for administration, police and AFSCME employees and 5% for fire personnel consistent with collective bargaining agreements.

Reeder reviewed significant capital items: the Cleveland Road Safety Project (budgeted in the street fund), the RAISE grant pathway project from Cedar Point Causeway to the landing, and the recent City Hall purchase ($3.5M) charged to 2025 capital expenditures. She said a five-year capital plan will return for more detail in February.

Commissioner White asked about the health insurance fund and whether future costs can be projected. Reeder said projections are difficult; the city covers more than 640 lives and spent about $5.3M on health insurance in 2025. White also asked whether the payroll stabilization fund is sufficient given upcoming retirements; Reeder said the payroll stabilization cash balance at the end of 2025 was $950,000 and that the 2026 budgeted transfer to that fund is $200,000. She noted 29 employees have at least 25 years of service and 30 employees are over age 60, which informs planning for potential payouts.

The budget presentation is the first public hearing; Reeder said the ordinance could be returned for second reading and possible passage at the Jan. 26 meeting.