Findlay considers another budget with deficit spending

FINDLAY — Mayor Christina Muryn remained bullish Tuesday on Findlay's cash position as she opened four hours of hearings on the city's 2026 operating budget, despite continued warnings from the auditor that the budget has a "structural imbalance." "My job is to monitor the budget for items that threaten our ability to provide core services at our 1% income tax rate," said Auditor Jim Staschiak, citing slowing revenue growth and economic risks. For 2026, the city projects $36.2 million in revenue against $42.1 million in expenses, leaving a $5.9 million shortfall. Another $5.5 million deficit is forecast for 2027. About 16 department heads presented spending requests and goals for 2026, with most council members, both current and incoming, in attendance. The final budget will be adopted in January. The city's entire budget is expected to be posted to the city's website, www.findlayohio.gov, on the auditor's page. The $130 million spending plan represents the total budget across all funds, including water and sewer operations, airport, parking, capital improvements, and restricted accounts such as flood mitigation. By contrast, the proposed $41.2 million operating budget refers only to the General Fund, which covers day-to-day services like police, fire, streets, and administration. While the overall budget includes money earmarked for specific purposes, the General Fund is where council has the most discretion. Findlay has a history of adopting deficit budgets each year and then working to manage its way back to a balanced budget. "We try to give our team a little bit of flexibility in their departmental operating budgets… so they can manage their operations and provide the level of service our community expects," said Muryn. "We don't want to get into a use it or lose it mentality. That kills the culture of paying attention to expenses and can make people spend things that are not needed." General Fund expenses have grown 8.1% annually since 2020, compared to 3.5% for revenues, according to Staschiak. The city's carryover cash balance dropped from $30.5 million in 2024 to a projected $21.5 million for 2026, even after departments returned about $2.3 million in unused appropriations. He has called the drop "significant." Staschiak is predicting a $3.4 million operating deficit for 2025. The minimum reserve cash balance is set at about $10.5 million. Muryn described the spend-down of the city's cash carryovers as intentional. "We still are in a really strong cash position," Muryn said, pointing to historical charts that show unappropriated cash balances well above the city's minimum reserve target. That cushion, she said, is the result of disciplined spending during the pandemic and two years of robust revenue collections. Muryn said it has allowed Findlay to pay cash for big-ticket items like a $1.6 million fire truck, pay more than $4 million for the design of the proposed Downtown Recreation Area and set aside $4.66 million for flood mitigation, all without borrowing. She has also cited the city's $1.9 million Rainy Day Fund. About 60 percent of the general fund goes to police and fire, she said, with the remainder covering general government, parks and recreation, and municipal court operations. Debt service in the operating budget is also minimal. Asks from public safety Public safety dominated much of the discussion at Tuesday's hearings. Police Chief James Mathias and Fire Chief Josh Eberly outlined their 2026 budget requests. Each emphasized the challenge of maintaining essential services amid rising costs and evolving demands. Mathias presented a $14.2 million budget request, the largest among city departments, driven primarily by personnel and overtime expenses. That's an increase of 6 percent or $760,729 over the 2025 budget request Staffing shortages continued to plague the department throughout 2025, forcing detectives back to patrol and pushing overtime costs higher, he said. "Throughout most of '25, we operated below the authorized staffing levels of 69 for patrol and 12 for dispatch," Mathias said. He said recruitment has improved since wage adjustments, and the department hopes to restore full staffing next year. Technology remains a major cost driver, with ongoing contracts for body cameras, fleet cameras, and Axon software, as well as a new AI tool, Trulio, to analyze footage for accountability and training. Mathias also flagged mental health initiatives as a priority after a year marked by two officer-involved shootings and an officer death. "Our goal is to maintain authorized staffing, reduce overtime expenses and ensure consistent public safety services," he said. Fire Chief Josh Eberle said that while his 2026 operating budget is nearly flat — just a 0.3% increase — call volume continues to climb, up 4.3% this year. The department plans to hire ahead of retirements to avoid gaps in coverage and will place a new fire engine, equipped with an aerial device, into service at Station 3 by March. Eberle highlighted a cultural shift toward firefighter health, citing cancer screenings negotiated into the union contract and investments in decontamination equipment. "Having just one working smoke alarm in your home reduces your chances of being hurt or killed in a house fire by more than 50%," he noted, pointing to the department's smoke alarm installation program as another life-saving initiative. He said grants remain a lifeline for the department. Since 2016, Findlay has secured $767,000 in federal funds for firefighter training and equipment, and Eberly pledged to keep pursuing outside dollars aggressively.