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Lincoln Heights finance committee accepts 2025 annual report, approves February 2026 finance report
Summary
Finance Director Key presented the 2025 annual financial report and the February 2026 monthly report; council accepted both after questions about income tax assumptions, grant timing and bank reconciliation. Key reported $2.65 million in deposits and $674,105 in outstanding debt.
Finance Director Key presented the Village of Lincoln Heights's 2025 annual financial report and the February 2026 monthly finance packet and the finance committee moved to accept both documents.
Key summarized the annual report by fund type, saying the village uses fund accounting through UAN and maintains four fund types: the general fund, special revenue funds (notably street construction, police and fire levies), capital project funds and fiduciary funds. "You'll see combined reports, comparison reports, and reconciliation reports," Key said, adding that footnotes explain accounting policies and definitions.
Key provided key figures from the annual report: the general fund was budgeted for $2.2 million in receipts and realized about $2.128 million (a variance of roughly $72,000, mostly due to lower-than-expected income-tax receipts); special revenues were short by about $31,000 of expectations; and capital-project receipts were approximately $893,000 for 2025, below budget because many capital projects are grant-funded and reimbursed on a timing basis. He identified outstanding debt of $674,105 in street loans through the Ohio Public Works Commission and listed an end-of-year carrying amount for deposits and investments of roughly $2.65 million (demand deposits ~$1.5 million and STAR Ohio ~$1.065 million), plus a mayor's court clearing account of $1,562.
During the monthly report, Key reported the village operating account began Feb. 1 with $1,520,706.71 and ended February with $2,145,889.77. He said February revenue totaled about $328,000 versus $107,000 in February 2025, driven primarily by an early real-estate settlement advance and unusually large net-profit collections in January that were received in February. "We passed legislation in December to draw our funds early," Key said, explaining that the village takes an advance on expected first-half settlement proceeds to cover the first quarter's cash needs; the remainder of the first-half settlement typically arrives in April or May.
Council members questioned Key on assumptions and timing. On income-tax growth, Key said he had budgeted a 2% growth assumption based on expected local job and wage growth and acknowledged that reporting timing from RITA can affect month-to-month variance. He also reiterated that construction and grant projects frequently show up as expenditures one month and reimbursements a later month.
Key reviewed internal-control items raised in prior audits: credit-card transactions are now included in the packet for council oversight, and bank reconciliations should show matching adjusted UAN and bank balances; Key asked members to question any outstanding adjustments.
After discussion the committee moved and seconded to accept the 2025 annual report and the February 2026 monthly finance report; both motions carried on verbal voice votes.
The committee will revisit specific line-item questions by email or at a future finance meeting if members request additional breakdowns, including average monthly expenditures for certain contracts and detailed appropriation-level questions.
