There, commissioners.

This is the September uh briefing.

As we do with our quarterly briefings, we also will include a briefing from water with regards to water funds, water sewer funds, and the air.

Oh, all right.

And the airport uh funds.

So I will now turn it over to Jones.

Thank you, City Manager.

Good afternoon, Mayor, Commissioners.

As the city manager mentioned, we will start with the general funds, quarter three results.

We'll start with the short statement here.

We'll walk through briefly the revenues, previous categories and revenues and expenditure before we dive deeper into the for each of those categories.

As for the solutions for quarter three, as you can see here, sources were $3.5 million lower compared to your to date budget, and nearly $300,000 higher compared to 2024 for the same period.

Sources includes the sources that we're going to talk through today, includes uh income tax, property tax base collection, local government fund, and other revenues.

And as you can see here, income tax is 3.9% or $4.9 million lower.

Deeper into the income tax in the next slide.

For property tax and other taxes, they are uh $10.7 million above 2024 amounts, and this is largely due to the millage rate change.

Um we'll also discuss that more in detail.

Um for waste collection um we are seeing a 0.6% increase.

Um, our CPI for waste collection.

Um we do an adjustment in the rate annually.

Um for 2025 rate adjustment was 2.6 percent.

Um we are seeing um just a slight increase in waste collection, and that has largely to do to do with the uh build credits.

Um we'll add deeper in base collection in a little bit too.

Um for local government fund, um we are seeing a big increase of $2.4 million year over year.

Um, and this is largely due to the U meeting the prior obligations for revenue collected uh for through the reinforcement program.

Um, and so now we have caught up and we are uh simply uh getting the reduction for the past 12 months.

Um that's why we're seeing this big increase in 2025.

Um for other revenue, um, we are seeing 21.6 percent decline.

Um, this is uh only two categories are seeing decline.

One is income tax and the other is the revenue.

Um the other revenue is uh largely due to the uh transfer that's booked.

Um last year we did five million dollars in transfer in to the general fund from the poor enforcement fund, and this year that transfer is 3.8 million dollars.

So that's why we're seeing that decline in other revenue.

For total uses, um, they are um down compared to budget by 3.4 million dollars.

Um, however, they are up 14.3 million dollars or 8.8 percent compared to 2024 amounts.

Uh personnel costs are up 6.4% or 7.2 million dollars, um, largely in personnel cost, the 7.2 million dollars is reflective of uh civilian wage growth, uh which is approximately 2.3 million dollars in uh sworn wages grew about 3.6 million dollars.

For contracts and materials and other uses, um we saw 12% growth or $4 million year over year.

Um, contracts and material largely went up due to the RDC payment, um, NATO expenses, um, as well as our payment to the Miami Conservancy District, the tax payment for the levy protection system.

Um, for the other uses, uh, which includes transfers, um, we have done most of those transfers.

Um, we uh have few transfers that are remaining to be done that will be done at the end of the year, um, which includes the 27th pay.

Um it uh also includes the employee professional development, uh, which is about 580,000, uh, which supports the employee professional development uh for the organization, um uh which is carried out by HR department, um, but it also includes 300,000 for the fire department, which funds the paramedic training program.

Um most of the transfers, as I said, um are done earlier in the year.

Um, and so they are uh completed in the beginning of the year.

Um, the other thing I want to point out in the transfer section or the investment section is the euro dollars year neighborhood.

Um, as you can see, it's up 28.7%.

Um, and this is largely due to the change in allocation from issue nine to issue six.

Um, we did uh increase resurfacing, it was previously $3.4 million, now it's uh $5.9 million dollars, and then we also added the um new housing program, which is $650,000.

So that's what we're seeing the change in your dollars your neighborhood.

Um, all in all, um, at the end, uses exceeded sources by $5.8 million dollars the end of third quarter.

All right.

For income tax, um, as I said previously, overall income tax collections were down $4.9 million dollars or 3.29%.

Um with holding collections, um, they are used to be slightly um about $800,000 compared to 2024.

Um, tax on business profits declined by 32.5% or six million dollars, which has nothing to do with the um one-time payment that we received in July of 2024.

Um, as I was saying, so business profits uh saw the biggest decline 32.5 percent, um, and that has uh to do with the one-time payment and business profits that we received in July of 2024.

Um, that is not present in 2025.

And so that's why we're seeing that large decline in business profits.

Um, for individuals, um individuals increased by 8.4% or $354,000.

Um, in addition to the uh three categories, uh, refunds also saw a slight increase year over year.

Um, it's not huge, but it's it's increased by about 1.3%.

Um, and then the other thing to note here is that uh 2024 has one additional five Friday month as opposed to 2025.

Um and so that's uh adding to the overall decline in 2025.

Um I also want to point out the correlation uh between the table and the chart.

As you can see in the chart, uh business profits as percent of percentage of total income tax collection was much higher in 2022, it was 16.4%, and in 2024, it was 14.5%.

Um and as you can see in the table, um, in 2022, um, we noted a uh big payment of in business profits in the month of April, it was $6.7 million.

And then again in 2024, uh we saw a similar thing happen, um, $6.8 million in July.

Um, if it's not for that, uh business profits is hovering between 10 to 12% of the total income tax collection.

All right, I'm going to hand it over to Jeanette, and Jeanette is going to walk us through revenue and expenditures.

Thank you very much.

We're going to start with property taxes for our first revenue category that we'll dive into.

Um, as Abby mentioned, this is up about 10.7% or $894,000.

So when we met with you in our previous uh finance and agreement, we were kind of saying that the county had been adjusting our advance payments.

We get advances until they settle up twice a year.

Um they increase the advances to align with that property revaluation.

But then right as of now, we have all of our advances and all of our settlements.

So this is truly kind of apples to apples when we compare it to 2024.

So, really the change I wanted to highlight here in the table below.

Um, as we've mentioned before, we changed for 2025 the millage split.

So previously it was four and a half bills going to the general fund and then five and a half going to the bond retardant, but in 2025, it is a five and a five split, so 50% is going to either source.

Um, and so that is truly the driver in terms of the property tax revenue going up over 10%, almost 11% in 2025.

We're really seeing that difference because of the millage split.

Property valuations are basically the same from last year because you know, next year will be the property revaluation.

We'll see the increase the bump the following year.

So just wanted to highlight this is truly because of the village split um and the distribution for general.

All right, and then next we wanted to highlight waste collection.

Um we mentioned this, but waste collection review data cost to the over year change and the I'm sure you've noticed that it's kind of down a little bit, so it's um just around 2%, around 3% currently.

And so we would expect that to be realized as well when you look at the dating revenue line.

And so you can see for Dayton customers, revenue and waste collection and police collection category has only gone up about 0.6 percent.

And so what we are seeing is a higher proportion of credits given in 2025, and so that is driving down the revenue collections for 2025.

So that's really um the difference, but you're not seeing it go up about two percent as well in line in with the DPI change.

Um, so in the other categories for Jefferson Township and Moraine, there have been minimal changes from year to year.

So those are those are very minimal, but that is the driving factor why overall for waste collection it's only going up just under a percent, not quite the two percent that we would expect based on that um CDI increase.

And then local government fund, I know we talked this on rural lot, but we want to highlight it again because the local government fund revenue did go up 2.4 million dollars over 2024.

Um, as we've talked there before, it's because of those traffic enforcement camera reductions that are made at the state level, and you can really see it in the um part to the right.

So that kind of or kind of downward uh bar chart are the reductions that we've received from our local government fund revenue, and you can see it really peaked in 2024 because we were meeting those prior year obligations because of the delays in terms of how we had to report multiple years worth of revenue, and so it has gone down in 2025.

This is more of like a normal occurrence in terms of the revenue that we've reported.

Um so there are some fewer cameras out there, you know, the 50 ones that are outside of school zones, so that is also some of the recent white slower.

But you can see we took about a six million dollar reduction in 2024, and we're at about four million dollars as of uh 2025, and so that's really why we're seeing an increase in revenue tripling.

All right, and then our other kind of top categories or other revenue is kind of highlighted.

So the other revenue category um 502, those transfers at long up about 13, I'm sorry, 13.7 percent compared to 2024, and then looking at the transfer in line, if we include that, it's down um about 21.6 percent.

And so the driving factor there is that transfer in line.

Um, Abby mentioned this, but that is the transfer in from the photo enforcement fund or prior photo enforcement fund.

It was about five million dollars to transfer in 2024 versus that 3.8 million dollars in 2025.

So that is really the driving factor why overall you're seeing that dip.

Um, some other areas that we've seen some changes, the cable franchise fee.

So you will see that is down about 32.5 percent.

So it's a couple things.

So there's a timing lag in terms of the postings that we've received for the revenue, we have fewer postings um this year compared to last year, and then one of the things we're noticing as we dig into this, the revenue overall for the cable franchise fees has kind of been trending down.

Um, typically by the end of the year, we'll see about a million dollars, at least in the past, we've seen about a million dollars for cable franchise revenue, but that has kind of been slowly eking down over these past years, especially this year.

We're noticing so you can see we're we're kind of lagging behind a little bit on the revenue, but then it's also largely due to that timing of fewer revenue distributions that we posted.

Um, and then the last thing I wanted to highlight refunds and recoveries, that one is also down um 118,000 almost 200 from 2024, and that is because in 2024 there was a revenue distribution for um civil service administration fees that have not yet occurred in 2025.

So we're seeing that difference because it's just not just based on the timing in terms of when we're realizing that payment, and that's really the driving factor compared to 2024.

Okay, switching to the expenses.

So on the personnel cost side, uh personnel costs are up 6.4% or 7.2 million dollars.

Um, and the driving factor here is largely in the wage category, both civilian and sworn.

So you can see on the civilian side, civilian wages are up about 2.3 million dollars.

This is due to there are more filled positions, but also the annual budgeted wage inflation that we account for every single year with positions.

Um has gone down a little bit, and so we noticed over time really kind of creeped down in um the weight collection division.

So they are utilizing less overtime in 2025, and that's the driving factor for that dip in overtime in the civilian side on the sworn wages side that is up about three dollars.

So some of that has to do with the contractual wage increase increases for police that happened a little bit later last year in the year.

Um, but then also the recruit classes for police and buyer, they um occurred earlier in 2025.

So you're seeing those expenses occur earlier in the year for 2025.

Um additionally, there were more police recruits who graduated that we're seeing in 2025.

So that's dropping up some of those expenses.

Um you'll notice also with the insurance line, and the other thing I want to highlight that is down 1.1 million dollars or 8.3%.

So we took a health insurance holiday in July or June of this year, sorry.

So that is the driving factor in terms of why health insurance costs are down when compared to 2024.

And then on tracks and materials.

So um material uses for other transfers in totality have gone up about 12%.

And if we exclude those other three first, um of about 15% or so, some of that driving factor is in the management public service contract line.

So that is where the regional dispatch center contract comes out.

And as Abby mentioned, it's the timing.

There are fewer payments in 2024 when compared to five, um, typically both forwardly.

So we're just seeing that lag a little bit much here.

Um that's really driving up that increase.

The miscellaneous line, that is where you'll see most of the NATO related expenses.

Um, that is driving up that 1.5 million dollar increase, almost 1.6 million dollars increase from and then payments to internal services, they are also uh so the driving factor here um their fleet charges.

So typically in our police and collection divisions, they are seeing higher fleet charges.

Um they still have higher needs for their in-service vehicles that we're seeing, and those expenses are going up.

Um, and then supplies of materials and maintenance.

We kind of looked at them together because the real driver there are kind of technology related expenses, so um purchases of computers because they're end of life for the like Windows 10 conversion, and then also just technology contracts, and increases are reflected in there as well.

So that's and then as we mentioned before, quite a bit, the utility category is going down about 164,000.

And really, what's happening there is that delay of payment to ADS based on those billing error issues.

So that should kind of that difference should kind of start to minimize once we start getting those corrected bills and paying those um electricity bills and I think I will give it back to Annie.

All right, so we'll talk through the uh big picture um for revenue and expenditures to look at the trend line over the last five years.

Um, as you can see here, income tax um is the largest source of revenue for the general fund.

Um, income tax was almost 74% of the total revenue in 2021, and in 2025, income taxes nearly 71% of the total revenue.

Um, all other revenue categories, um uh they have grown 20 almost 28 percent uh since 2021.

Um, and some of the noteworthy items include property taxes, uh starting with property taxes, which are up 2.7 million dollars or 40.9 percent.

As Jeanette mentioned, um, the property taxes are up due to the reevaluation um that occurred in 2023.

That's why we're seeing that big increase.

Um, for the uh EMS revenue category, uh, we're seeing uh almost 54% increase um over the five-year period, and this has to do with the uh Medicare rate change and the increased run volume that we have experienced over the last few years.

Um, for the uh local government fund, um we saw the decline of 55.3 percent or 3.3 million dollars.

And this again, as Jeanette mentioned, um about the oral enforcement fund revenue where we're seeing the reduction in local government fund.

Um that's the largest driver for that local government fund decline over the five-year period.

And then um the uh decline in the local local government fund um to offset that decline.

We started to deposit the uh photo enforcement revenue directly into the general fund starting in 2025, um, so that general fund is not taking that direct hit.

Um, previously, this revenue was deposited into a special project fund.

Um, and in that scenario, general fund was truly uh seeing that reduction in total revenue.

Um, and so that's why we did that switch in 2025 um to make the general fund.

And for the expenditure trend over the last slide here, concept of the rate combined have increased by 37.5 million, 31.6%.

Personnel makes up 25.5 million of that, which is largely driven by the rate inflation, as well as we mentioned the more field positions.

We're also seeing higher overtime, especially for the frontline services.

And then the 2025 MATO related staffing also added to that cost in 2025.

For contracts and material and other uses, we saw a 46.8% increase over the five year or nearly 12 million dollars.

This is largely due to the inflationary increases that we've seen over the last five years, along with we've added some new services.

To name a few, it's uh is the court security service that we added for the courts that is contracted via the Montgomery County Sheriff's Office, um, as well as we increased our security services for City Hall.

Um, and then uh as Jeanette mentioned, we we are also seeing increases in our technology cost um in the uh maintenance agreement as well as uh purchasing of technology.

Um, and again, uh NATO supplies um that are booked in the uh contracts material for 2025 is also adding to that growth.

All right, so this is our uh datum recovery plan update.

Um, this is through October 29th.

Um, there are a total of 60 projects in the Dayton Recovery Plan.

Um, nine of these projects have been completed, and four are expected to be completed in the next few weeks.

Um, as you can see here, um, the total awarded contracts are um nearly 90 million dollars.

Um, and so far we have spent 54.8 million of that.

Um, the total MBE goal um uh in the entire Dayton Recovery Plan is uh 23.1 million dollars, um, and we have achieved 22.1 million dollars, which is a 96% compliance rate.

Um, this is a really good news story.

Um the organization is working hard to ensure that we're meeting this compliance rate for the goal that is set for each of these projects.

Um diving a little bit deeper into the uh uh different categories.

Um you can also view uh the detail additional detail related to each each project that is listed in the subcategory by visiting the uh Dayton Rick that we plan dashboard.

Um the link is listed at the bottom of the page.

Um there are a total of four projects that are remaining to be awarded.

Uh, but before I talk about that, uh let me highlight real quick.

Um, as you can see here, we have spent nearly half of our total allocation, which is 102 million dollars.

Um the organization has speed up um in spending, um, which we expected that that would happen in the beginning.

It took us a little bit of time to get through the contracts and the awards, but now that those are in place for most of them, um, we are moving quickly uh through spending those dollars.

Um, in quarter three of 2025 alone, nearly 10.2 million in expenses were processed.

Um, four projects um are remaining to be awarded out of all of the 60 projects that are listed in the Dayton Recovery Plan.

Um, one is the United Home United Church Homes uh home project, which is 1.5 million dollars.

Um, the grantee uh needed to reapply for the historic tax credit, which they did in September of 2025.

Um they are away to uh year back, um, and they're uh projecting that they will uh receive that news sometime in December.

And so as soon as um they receive that information, we will move forward with uh the contract for the specific project.

Um, the other project is the pool house at Fairview, um, which is a nearly $600,000.

Um, the demolition of the pool house is pending uh the finalization of the uh splash pad design for the spray park improvement.

Um the recreation department is also working with vendor on solutions for the pool house plumbing redesign.

Um, and so there are a few moving moving pieces for this specific project.

Um, as soon as those are resolved, uh then this project will also move forward.

Um, we also have a 115,000 dollar allocated for um MBE compliance tool, which is a software we're in the process of purchasing.

This software will support the city's efforts to engage diverse businesses and um uh compliance.

And so we are in the process of doing the negotiations, and hopefully this will move forward here in the near future.

And then lastly, the fourth project is the secure housing.

You have heard about that administrative process which has started.

The piece that is in the Dayton Recovery Plan is approximately 200,000 for the technology purchase.

And that is the procurement of the third party software, which is currently in development.

All right.

Yes.

Thank you.

Safe and secure housing is the name of the project.

That is the administrative hearing process.

The administrative hearing process for housing code enforcement.

Thank you.

All right, so this is our quarterly compliance for the departments in the general fund.

As you can see here, at mid at the third quarter, the total general fund expenditures and transfers account for 75% of the total annual budget, which is where we expect to be at the end of the third quarter at about 75%.

As you can see here, most departments are performing within the expected variance with the exception of fire police in your dollars year neighborhood.

The variance for the fire and police department is largely due to the higher overtime costs that we've experienced for the first three quarters.

And again, the uh overtime related to NATO is also impacting this higher variance for police and fire both, as well as the additional overtime that is needed in the fire department to ensure that minimum staffing requirements are met on a daily basis.

For Euro Dollars year neighborhood, we're seeing this variance largely due to the front loading of the investment.

We do the uh transfers earlier in the year, um, and so that's why we're seeing the the 93.5% variance for the Euro Dollars year neighborhood.

All right, so employment for the economic play.

Um this data is as of August.

Um, because of the federal government shutdown, um the data is only recorded through August, um, and so that is all we have to report today for the employment.

Um, and as you can see here, um, employment in the Dayton region peaked in July of 2024, and then fell for the next four months relative to the pre-pandemic levels from 2019.

Um, job counts uh rebounded in December of 2024.

As you can see here, we saw that uh steep peak from November to December, um, but then it fell by 900 jobs in January.

However, since February, um, we have seen a steady growth month over month in employment, with August uh seeing a slight decline uh of 300,000 compared to the prior months.

Excuse me, not 300,000, 300 jobs compared to the prior month.

Um in comparison to the um peak uh in February 2020, um, the job counts are 5900 higher than the low point that we saw where we lost nearly 15.5% of the job base or 60,900 jobs in one month.

Um, and as I said, um this data uh even for August is preliminary and so it is subject to change.

Um for our economic indicators, um, the first chart shows the job growth in comparison to the um job growth for the state of Ohio.

Um, and as you can see here, Dayton region was mostly flat from February to May relative to month over month change.

Umployment did rebound in the months, summer months of June and July, and then retreated by 300 jobs in August.

Um the Dayton region is a tracking behind state employment growth registering at 1.5% growth since February peak of 2020, while the state of Ohio is registering at 2.1%.

So we're slightly behind the state of Ohio.

Um the next chart um shows the uh projected furloughed employees um in the uh federal government due to the federal government shutdown.

The Wright Patterson Air Force base, which is our federal, which is the largest federal employer we have in the region, employs over 30,000 employees, which includes civilians, military personnel, and contractors.

The workforce is primarily part of the US Department of Defense.

And as you can see in the chart here, the Department of Defense, part of the RBC economic risk research, approximately half of these DUD employees have been furloughed due to the US department, US government shutdowns.

So until we receive the updated data, it is really hard to tell the impact on the Dayton region from this movement that is happening in the current economy.

But we wanted to show based on the research what the impact is from the federal government shutdown.

For the GDP, nationwide GDP decline by 0.6% in the first quarter of 2025, growing to 3.8% in the second quarter.

Based on the conference board research, which is the chart in the middle, you see there, is showing the projections for the GDP for the third quarter and fourth quarter.

And as you can see here, the growth is predicted to slow in the third and fourth quarter of 2025.

Majority of the growth that we saw in the second quarter came from lower imports with acceleration in consumer spending, which was offset by reduced investments.

Uncertainty related to the increased tariffs as well as the US government shutdown are expected to slow the growth in the quarter four and quarter, quarter three and quarter four, excuse me.

It is estimated that the based on the research, economic research that we did, it is estimated that a partial government shutdown reduces GDP growth by about 0.1 to 0.2% percentage point per week.

For context, a shutdown that lasts an entire quarter, which has never happened before.

But if it were to happen, it would reduce the real GDP growth by 1.2 to 2.4 percentage point.

The last chart shows to CPI.

This time last year.

This is reflective of the wage growth, our annual wage growth, more build positions and increased overtime related to not only related to NATO, but also as I mentioned, there is increased overtime in the fire department so that we can maintain the minimum staffing levels on a daily basis.

This increase is partially offset by that health insurance holiday, which took place in June of this year.

For contracts of material and other uses, these are up 12%, largely due to what Jeanette talked about, the RDC payment, NATO, and the higher Miami Conservancy District tax payment for the flood protection system.

This was nearly $900,000 higher this year compared to last year.

And again, these increases were offset by the utility cost for IGS and AES.

At the end of September, uses exceeded sources by 5.8 million dollars due to the slight decline in income tax revenue and the continued growth that we're seeing in both personnel and contracts and material.

Because of this continued growth, ongoing wage and cost inflation underscores the need for continued prudent monitoring of the general fund, not only through 2025, but we also need to make sure that we continue to monitor this beyond 2025 to make sure that we have a balanced budget on an annual basis.

With that, um take any budget.

Okay, questions.

No, thank you.

Thank you.

Next we will have our water department for employees and their third quarter funding.

Um period final day.

Everything performed as expected for us for the third quarter, every compared to 2024 for the quarter.

Um we had our normal things with our suspended solids, our line, revenues were up, but for us overall, everything is the same as it was last year.

Okay, so starting with our sources and uses statement.

This provides a summary of how our revenues are performing against our expenditures or again.

And then we also look at over uh year over year comparisons to see if there are any variances or nuances.

Um, so starting first uh for our sources or revenues with our largest revenue category, which is City of Dayton customers.

First, we always like to look at um our budget performance, and so that's in the upper left quadrant of the chart to see how we are performing against you.

Um, and we are only 120,000 below our budget, so that um is excellent budget performance um thanks to those rate models that we've been discussing.

Um, the utility when we look at year over year experienced a 7.9% increase um from this time last year or 1.9 million dollars from city customers.

This is right in line with our rate increases, which we expected.

Our second largest revenue category is revenues from other jurisdictions, um, which were 1.6 million dollars above forecast.

Um, this is an indicative of um of a budgeting issue.

It is in fact favorable bill timing, which happens um and smooths out year over year.

Uh looking at our actual uh revenue performance year over year experienced a 9.3% increase from this time last year, also 1.9 million.

Another major uh revenue category that we'd like to highlight here is our Lyme sales, uh which increased 16.8%, driven by rate increases and higher overall sales volumes.

We'll go over details of some nuances uh in the following slides.

And then looking at our expenditures or up in total 11.5% or 5.1 when we compare to this time last year.

That's largely due to capital cash transfer timing, higher contracts and materials costs, and personnel costs increase.

So looking at one of our largest expense categories, which is personnel, year over year 6.4% higher, and that was due to filled positions and overtime.

We'll go into those details in a moment.

Uh, a second large category is contracts and materials, and year over year 6.3% higher when compared to 2024, and that's largely due to higher fleet expenses, like we saw in the general fund, sludge disposal costs, which are expected, and supplies and materials.

We did have some offsets, and so that was the delay in paying IGS and AES.

We have started processing those in this quarter.

So that offset gap will obviously reduce as we start to pay those.

And so we'll be prepared for that to report on in the next quarter.

And as we love to see in the third quarter, we did not use cash reserves.

Our sources, our revenues exceeded our uses to a tune of 2.5 million dollars.

That gap will close once we start paying those IGS.

So as we get into the details.

Okay.

So if we get into 8,000 multiple some of the city increases again, as we said, we perform better than expected.

When we're looking at our city and other distance, when we look at the city customers, you see that we're up by about 7.9%.

But that also includes that 9% rate increase that was mentioned before.

When you're looking at other customers outside of the city or other jurisdictions, which are mainly the county, this is also including uh increase in actual usage that we had there, but also we had additional billing as well.

So we did have some increased revenue or increased uses.

When we're looking at our line cells, as we talked about before, you have our producer price index that will generate whether we have a rate increase or not for 2025.

That was about 13%.

And this is something that we expect to happen every year.

But we also had some additional orders, which shows that we have some customers that are going and ordering additional line, and we'll see the impact of that when we talk about expenses when we look at our residual cost on the next slide.

Um, when we're looking at some of our other charges, those are up as well.

And this is where we've been going after some of the pre-tacts, and we're starting to collect those sooner.

And this is in the area of our source water protection program, which is where you're starting to see that increase of that 5.6%.

When we're looking at other revenues, we also have a decrease there, and this is due to some bill timing, and also we got um levels that we've got within later along with some of our administrative costs based upon how we build the water fund uses for personnel.

When we're looking over at expenditures, again, we're looking at the wages that we are talking about, the waivers that were paying some.

As you can see here, those were up by 6.3%.

Part of this increases because we're actually starting to fill positions, which is always good because for several quarters.

We talked about our end of the bill positions list and they put signs of us.

However, a part of the problem is that we're still having an increase in overtime as we're struggling to fill those 24 hour positions that you want to do that will start to turn as we continue.

We did have some decreases in insurance as well, and that we stated before these used to do that in shut.

Um, as we're looking over at our contracts and materials, um, those are up as well.

And this is due to some of our supplies.

As we're going through, you'll see that you have some flow meter upgrades over in the well field.

These upgrades are helping to make sure that the tracking of the flow coming out of the loop is more accurate.

But also, you're seeing that we're having some recursive index of our AMI meters, which is housing for aim part as we go through, if we actually read the meters out in Trotwood and Brookville, we're starting to go through and make some repairs as those meters are starting to.

If you look at our stretch disposal, our residual disposal, if you're on the water side, you also see that we have an increase there as well.

And this is tied to the increase in the amount of lime cells you have based upon our intergovernmental agreement.

You're going to see an increase in the number of residuals that we are contractually required to report.

You're also going to see a normal CPI increase as well, which is making up a part of that a little bit under 100,000 increase.

For professional services, what you have are some repairs that were performed at the fund station, which are more on the preventative side and linked to electrical, and then also well-field maintenance.

Some of this is on the plug-in or those repairs to some.

And hopefully, when you get to the fourth quarter, we'll no longer say that this is an offset.

Okay, and moving on to our sanitary pen, our sources and use of the statement again.

Um changes between the categories, uh, starting first with our revenues or sources overall up 6.9% or 2.4 million when we compare Q3 2024 to Q3 of 2025.

Again, starting with our largest revenue category, which is city customers.

We like to look at that budget performance.

And as we did on the water side, we also work very well on the sewer side in our budgeting.

We are only up $22,000, 22,400 for our budget variances.

But when we look at year over year, uh comparing this time last year, there's a 4.2% revenue increase in this category of almost 712,000.

Our second largest category for the sewer utility is revenues from other jurisdictions that same as water up above forecast of 19.7% or 2.3 million, not indicative of a budgeting issue, but we had favorable bill timing in this particular quarter.

Essentially, we had a couple extra bills that were from large metered accounts.

When we look at year over year in this category, similar to the water side, we experienced an 11.7% increase or one to 4 million.

That was impacted by rate increases as well as higher revenues in certain accounts.

And so we'll go into those details in a moment.

Another major category is other charges for services look down 1.6% or 92100 when we compare to this time last year.

That's due to lower suspended solids charges.

We'll go into those details.

It was a variance actually in the prior year.

Now we're normalizing in this year.

And that was also offset by higher BOD demand.

We've been talking about this for quite some time.

Another large category is other revenues that was up 29, 21.9% when we compare to this time last year, and that was due to revenues from our R and G project.

Had at water reclamation.

Looking at our uses or expenditures overall down 5.4% or 1.7 million, largely due to capital cash transfer timing, contracts and materials, and capital equipment purchases.

Personnel costs were actually down 1.2%.

We'll go into some details about that in a moment.

Contracts and materials also down.

Really, the driver of that is the timing of those IGS payments.

That will correct in the coming quarter.

Capital improvements down 10.5%.

That's simply due to the timing of cash transfer, is not an indicator that we're sort of changing anything about our capital programming.

That'll normalize by the end of the year.

And then cash reserves were not required in this quarter, which is excellent.

We don't expect to see that next quarter once we start making those deals.

So as we go in the end, our revenue were up about 7% for both city customers and fiscal outside customers.

But also additional uses you're seeing along with some bills that were read during this quarter.

Some sort of other revenues that are up, this is due to that RG project that we've been talking about over at water reclamation.

However, I want to caution that yes, it's up for this year, and between individual along and then costs start to equal out.

We probably won't see such a huge increase.

But for right now, we are seeing that 21% increase.

Also, some of our other charges, as we talked about the suspended solids that are decreasing in our biological oxygen demand is going up.

This is all due to our industrial customers, and these charges are based upon the impact that it has to our treatment processes we go through at the water reclamation facility.

As we look at some of the expenditures, these are actually lower for us, but when we part of this is due to the fact that we have some decreases in our wages over at water reclamation, but this is also due to some of the vacancies as we've had some turnover, and this will probably change as we go along.

But we do still have that overtime increase.

When you look at the insurance holiday, again, this is the same that we've seen for both the general fund and on the water side.

When we're looking at the utilities, again, these are down, but we hope that this will change for the fourth quarter as we as we're looking at the administrative timing.

Again, some of this is just a little bit of administrative cost.

And if we look at the whole region for flood on the wastewater side, again, we had our normal CPI increase, but we also had some weather.

So generally we need to use the fledged page from our wastewater treatment plans.

We tend to put those on farmers' builds to get that beneficial reuse.

But if you have weather seasons, we end up having to land, which comes at an increased cost for us.

So we're starting to get our equipment back quicker.

So this is actually a good thing.

But this is due to us completing a project our Broadway pump station.

So last quarter I talked about we got in some pumps and motors.

This quarter we got in a variable frequency drive, which is a part of how we operate those motors, and then that's the cost at GC of that about 160,000.

Revenue were up in quarter three, I think everybody four, and this is both on the city side, and then our jurisdictions.

This is due to some rate increases, some other revenue category, uh yes on the city side.

Um personnel was also up in the water side of the city that we're starting to do acquisitions, which is always good, but we do have some vacancies that are remaining that's driving the increase.

We expect that we'll continue to offset through to the fourth quarter, and then it includes our contracts and materials funds are also up, and this is due to the recent uh residual removal, but also some of our supplies and materials are up as well.

We did see some decrease in our bill timing, some of these decreases were in other professional services.

But all this was set by the IGS payments that we have not made, but in the fourth quarter, we're hoping that that will change again for water and sewer.

We did not have to use our cash balances through the which is what was expected.

Well, I just have one, it's uh it's about to see uh we have better fleet availability.

That's a great number.

Do you what is the the effects of that?

Is it just that people have uh vehicles available that don't have to wait?

Uh or in the future, if this continues, will we be able to reduce the fleet?

Uh can we look that far ahead yet, or is it just too early?

Yeah, we can't look that far ahead, but for us for operational efficiency, it's great to have our vehicles back in a more timely manner.

Great, it's good news.

We're good.

Next up is well that's new, Gil Turner Aviation.

Uh about third quarter our results.

Uh first of all, it's our claims are still up in the third quarter, up about three quarters.

So about almost 500,000 in plants.

So I'm sorry.

So our payments are up about three to two percent compared to um last year, still about four and two four thousand passengers for the third quarter.

So we're happy about that, but we're not sure what's going to happen on the fourth quarter.

You know, they're on shutdown.

Uh so we optimized the craft for things.

We got to get it given back on the holidays and people still showing up the work or showing up work.

A lot of airports are experiencing delays, some delays about four hours.

So uh this is really uh precedent.

We're optimistic that something's gonna change.

So um our revenues are down about 120,000 or 1.8 percent.

And this is not a surprise to us.

We um every year we raise the charges.

We actually lowered the rate for the terminal run over the terminal.

So this is why we're seeing uh a decrease in revenue.

Also, we lost a tenant here in Wisconsin.

So that's what the decrease in airline revenues.

Non-airline revenues up about 2.6 million or 18.7.

This is all parking.

We did several increases over this year to increase our revenues for parking.

So we're up about 665,000.

Also we're rental costs.

So I think I told you last quarter there was an adjustment uh given during the pandemic.

We uh there was some issue with the billing and we were able to get it settled, and so we're uh that settlement increased this year, but we're not up in total with revenue for rental car due to the settlement.

So we're up about one point million dollars or 15.2 percent.

Also concession is up about 116,000 or 13.6 percent and side of for next year because we're gonna come better.

Uh we bring in new concessions of the airport, don't uh Pisa shop.

We modeling all of the uh restaurants and concourses worth about a two million dollar risk.

Uh total sources of about 2.5 million, 2.6 percent compared to 2024, and we're 1.1 million or 4.3 than get to date budget.

Uh public uses have uh decreased by 75.3 percent compared to 2024, and about 1.1 million or 4.2 percent under the protocol cost of about 755,000 or 9.9 percent, but we remain about 103,000 and 1.2 below the capital projects or about 159,000 to timing and uh the recovery of funds, also some of the fizz that we have in the products came a little bit lower extra, so we're kind of surprised about that.

So we have to use the female uh five material and other uses of 92,000 or 0.9 percent, but about nine and ninety-seven thousand bases by little bit.

Okay, that's my year last quarter.

I might say nothing like that, but it's today or start with operating revenue trends.

I'm sorry, thank you.

Yes, okay.

Good okay, good.

Um, with an operating revenue, airline revenues got about 120,000 or more because the settle ups with the airlines that occurred in January, uh, the loss of a few tenants at the airport, like I scale mentioned in Wisconsin, uh, and because lower terminal rental rates.

Non-airline revenue is up about 2.6 million or 18.7 percent.

And that's because of the rental car revenue, the parking revenue, an increase to the CFC rate, and concession sales being higher, uh, which we'll talk about further in the next couple of slides.

So within airline revenue, you can see that terminal space rent decreased about 179,000 or 4.5 percent, and that's because of the lower rental rates that we've had this year.

The rate went from 77, I'm sorry, 78.41 cents per square foot to 77.33 percent, so about a dollar and a and some change less.

Um, and that's not necessarily a bad thing because it means we're controlling our operating cost.

Um, as our operating costs come down, we reduce our rental rates, and that's good for the airlines too because it keeps happy.

And then there's the annual settlement, which we have talked about every quarter since the beginning of the year.

Uh, just for comparison, uh, this year it was about 91,000, and last year is about 102,000.

So pretty much in the ballpark.

Um, again, this is related to us cheering up our operating costs and keeping those operating costs low.

Also, um, because we have to have audited financial statements for us to do this um analysis.

Um, the settlements are actually two years behind.

So the settlement we did this year is actually from 2023, and then landing fees are up about 59,000 or 2.2 percent, and that's because of the increase we've seen in employments and because of the large aircraft now operating at the airport, larger aircraft.

Non-airline revenue, you can see we're at about 2.6 million dollars or 18.7 percent overall.6 percent, I guess because of increased rates in HPC.

Now, when you hear we're raising our rates, you might think this is fashion.

I do want to mention that we still have very competitive rates compared to other airport size.

Um rental car revenue is up one million or 50.2 percent, and that's because uh again, the settle-ups with the rental car agencies from past years, and additionally, we had a settle up mid year this year.

And additionally, we had to settle up mid year this year.

In total, we've received about $992,000 over the minimum annual guarantee in the agreement we have with the rental car companies.

And that's from the past few years and from this year.

And we plan to continue to settle up with the rental car companies on a monthly basis going forward, just so we can stay on top of this.

Concessions are up 116,000 or 13.6%.

That's because we've been actively staffing the shops and restaurants and keeping them open longer, which leads to better sales.

And then property tax payments are up about 430,000 or 43.6%.

This is actually the property tax that we collect from our tenants.

And that's because of one particular tenant at the date right for the airport, who um in the past three years constructed a new properties are assessed every three years, and then the reassessment came with a large bill to us.

So we paid it, but we did bill it back to the tenant.

Ground leases are up 278,000 or 17.9%.

And that's because of the new tenants we have at the airport, like Sierra Nevada and Joby.

And then we also have some escalators in our contracts, which we've activated recently.

And other non-airline revenue is down about 26,000 or 1.3%, which this is kind of a mixed bag of a bunch of different things, but mainly it's due to the lower rental rates and lower interest earned on investment.

Moving over to the expense side.

Personnel costs are up about 755,000 or 9.9% year over year.

That's because of wages, fringes, and insurance.

We deserve up 597,000 or 12.3%, and it's partly due to us being more fully staffed than last year.

The timing of when we acquired the garage at the airport, and general wage inflation.

It is not because of new positions, but we are filling existing positions that have been vacant.

These roles have all been budgeted for.

Okay, moving over to contracts and materials.

Total contracts and materials are up about 92,000 point nine percent.

There's a number of reasons for that.

Umtenance is down 128,000 or 6.1%.

And that's because we acquired the garage in 2024, but we aren't getting billed in and internally for these services anymore.

Marketing is down 111,000 or 16.2%, and that's because the timing of payments to the chamber of conference.

Not enough will get caught up.

We're actually investing more resources into our marketing efforts, including a new advertising strategy, comprehensive rebranding initiative aimed at increasing visibility and basic for the airport as of 2026.

Professional services are down about 370,000 or 21.8%, and that's because we're more fully staffed, we've had to use less temporary staff to fill vacant roles.

And then there's also uh one timing of a payment to eventually that's affecting that, so that will get paid.

Okay, taxes are up 466,000 or 35.4%.

And again, we talked about this.

Um, the building belongs to the Connor Group, down to the Wright Brothers Airport.

Um, and this is just a pass-through expense to us.

Utilities are down 296,000 or 18.3%, and that's because of the issues we're having with AES, which is citywide.

Um, we're not supposed to be paying these bills until AAS gets their their issues resolved.

Um, some good news.

And last quarter, we caught up on our IG, IGS bills, which have a similar issue related to AES because they're our supplier.

So now we're just waiting on AES to get everything fixed, and then we will get caught up with them.

And then the other category is up 405,000 or 256.8 percent, and that's because of the ARPA and CRISA credits that are um flowing out to the concessionaires here.

So year-to-date employments have been have improved by about 15,000, which is a 3.2% increase.

Um, since 2021, we've seen steady growth every year on average, on average of about 4%.

The largest growth was in 2023, where employments grew by 6.3% year over year.

Looking at the airlines, American is slightly down at 1900 fewer employments than last year.

However, all the other airlines are up, including Delta, United, Allegiant, and even the charters are up.

So United has grown the most, adding 12,000 of the 15,000 additional employments.

And we do expect we expect to see that number to grow next year as they bring in larger airplanes.

So it's been a bit of a similar story last time with total sources up about two and a half million.

And we talked about increasing the CFC rate, increasing the parking rate, and increased usage as a whole.

And we will continue to do that on a monthly basis.

And then concessions have been up because we're seeing higher sales.

Then looking at uses, we talked about how personnel is up because we're more fully staffed and because of wage inflation and insurance.

We talked about contracts and materials and how they're up because of the things like increased property taxes, the pass through, then the ARPA and cursor credits pulling through.

We talked about capital project expenses are down because we just haven't needed to transfer as much operating to capital as we have in past years.

We will continue to be good stewards of our earnings as they come in.

We'll look to reinvest those earnings for growth and development.