Medina council debates shifting income‑tax allocation to cover raises and capital needs

Council held an extended discussion of income‑tax allocations and carryforward balances. Staff reported cumulative carryforwards around $17.6 million and current collections near $21 million. Council noted that recent union negotiations changed the usual budgeting assumption (2% across‑the‑board) and increased projected personnel costs.

Finance staff estimated that a 2% pay‑increase assumption across the city would add roughly $1,890,000 in cumulative cost over three years. “Over the term of a 3 year contract, if we were to do this citywide ... the cumulative increase of just that 2% would have an impact on the budget of about $1,890,000 additional,” the finance representative said.

Councilmember (speaker 2) proposed modest reallocation of the existing income‑tax percentages: reduce the police allocation from 40% to 38% and shift the freed 2% into the general fund and the general‑purpose capital (301) account to cover raises and an upcoming feasibility study for city facilities. The police chief cautioned that while the department’s cash balance is healthy, historic cuts (chief cited reductions in 2023 and 2022) and future allocations should be watched closely; the chief urged using the 301 capital account for building renovations rather than charging the police operating fund.

Staff also discussed options including bonding (bond anticipation notes) to preserve flexibility and noted monthly income‑tax trend reporting. Council did not take a final vote on reallocation but directed staff to provide further detail and carryforward/account analyses at a subsequent meeting.

Next steps: staff to produce more detailed account‑level impact analysis and options for reallocating percentages or financing capital needs; council will revisit proposals in upcoming meetings.