Subject:  Monthly Financials – January 2026

For the month of January, income tax receipts came in at 1.27M or 11% of budget. This is in-line with prior year's collections of 1.26M. With the bigger spring collection months still to come, the City is off to a good start in its largest revenue category. Property taxes will come in during the March-April timeframe. Total general fund revenues are 1.4 million, or 9% of the budgeted amount.

Year-to-date interest revenues came to 64K as compared to 56K this time last year. This increase is due to shifting compensating balances from the City’s general checking account to STAR Ohio, resulting in higher returns.

General fund expenditures are $3.4M or about 18% of the yearly budget. Salaries and benefits comprise 31% of general fund expenditures, while transfers make up about 62%. $321K, 465K, and 965K were transferred from the general fund to streets, parks and recreation (previously leisure services), and capital equipment respectively, which were necessary to maintain desired fund balances. January transfers are generally higher as compared to subsequent months due to the start of the fiscal year purchase order process which encumbers funds that will be spent in future months. Current general fund encumbrances are $1.8M, bringing the expenditures plus encumbrances to 28% of the 2026 budget.

Refuse receipts are on target, with 347K received or 18%. 220K was a transfer from the General Fund to maintain the desired fund balance. Backing out transfers, revenue is at 8%, tracking for January. The largest portion of refuse revenue comes from disposal fees charged to City residents; dumpster fees and mulch sales will contribute to refuse revenue overall, later in the spring months. The City has spent $265K on refuse, with another $307K encumbered. Expenditures plus encumbrances sit at 26% of budget. Health Insurance and Landfill and Tipping fees make up 85% of all refuse encumbrances. The Montgomery County Solid Waste Management District has informed the City that generation fees will increase from $3.00 per ton to $6.65 per ton in 2026, followed by an annual increase of 6% thereafter. This increase in operating costs is being evaluated and built into our revenue/cost model to ensure operational and capital needs are sustainable in future years; a $5 monthly increase recommendation in 2027 is likely.

Water has collected $160K, or 7% of the year’s projected total revenue; the three revenue sources contribute to this figure are sales of water, interest, and meter sales. The 2026 water rate increase will be reflected in February collections as the January revenue is based on 2025 rates, while meter sales will start to pick up after the winter months. With expenses sitting at 155K or 6% of budget and $525K encumbered, YTD expenditures plus encumbrances are at 25% of plan. The largest encumbered budget lines are Utilities and Chemicals/Softening Supplies, which make up 45% of total encumbrances.

Sewer revenue has generated $179K in revenues or 7% of the budgeted total. As with water, the 8% increase in consumption rates for 2026 will not be reflected in revenue figures until February. Sewer has approx. 437K in expenditures out of a $3.1M budget, primarily attributed to 4th quarter expenses for Dayton and County Sewer charges paid in 2026. 2025