Subject: Monthly Financials – May 2026

At the end of May 2026, income tax revenue totaled approximately $5.9 million, representing 51% of budgeted revenue. While this is approximately $130k lower than the same period last year, income tax collections remain largely on target and continue to be the City's largest and most important revenue source. Property tax revenue totals $1.6 million, or 51% of budget, which is consistent with expectations, as the second-half property tax settlement is typically received in September. Overall, General Fund revenues total approximately $8.0 million, or 51% of the annual budget.

Year-to-date investment income is approximately $403k, compared with $355k at this time last year. This increase is primarily attributable to shifting compensating balances from the City's general checking account to STAR Ohio, resulting in higher investment returns.

General Fund expenditures total approximately $6.8 million, or 37% of the annual budget. Salaries and benefits account for 52% of expenditures, while transfers represent approximately 36%. Current General Fund encumbrances total $1.3 million, bringing total expenditures and encumbrances to 44% of the 2026 budget.

Refuse revenues total approximately $910k, or 46% of budgeted revenue. In January, $220,000 was transferred from the General Fund to the Refuse Operating Fund to maintain the desired fund balance. Excluding this transfer, operating revenues are approximately 44% of budget, with disposal fees charged to residents continuing to represent the primary revenue source. Year-to-date expenditures total $864k, including a $200k transfer to the Refuse Capital Fund. Current encumbrances total $205k, bringing expenditures plus encumbrances to 49% of budget. Health insurance and landfill/tipping fees account for approximately 70% of all refuse encumbrances.

The Montgomery County Solid Waste Management District has notified the City that generation fees will increase from $3.00 per ton to $3.65 per ton in 2026, followed by annual increases of 6% thereafter. An analysis of the long-term financial impact of these cost increases is being evaluated and incorporated into the City's refuse financial model to ensure operating and capital needs remain sustainable. Based on current projections, a $5 monthly refuse rate increase is anticipated for 2027.

Water revenues total approximately $982k, or 42% of projected annual revenue. Expenditures currently total $832k, or 38% of budget, with an additional $390k encumbered. Combined expenditures and encumbrances total 55% of budget. The largest encumbered categories are chemicals and softening supplies, consultant services, and utilities, which collectively represent approximately 69% of total encumbrances.

Sewer revenues have exceeded the $1 million mark and currently stand at 41% of budgeted revenue. Expenditures total approximately $1.2 million, or 40% of the $3.0 million budget. Service contracts and health insurance account for 72% of the $52k in outstanding encumbrances. Total expenditures and encumbrances equal 42% of the annual expenditure budget.