Delaware Finance Committee Meeting – November 3, 2025

The Finance Committee of the City of Delaware, Ohio, met on November 3, 2025, at 3:12 PM in City Hall Council Chambers. Chair Kent Shafer presided, with Mayor Riggle present and Councilman Hoffman absent. The meeting adjourned at 4:41 PM. Key agenda items included approval of prior minutes, reviews of financial management and uniform policies, a comprehensive budget introduction and overview, and departmental budget presentations for the City Manager's Office, Finance, Management/Budget/Procurement, and Legal.

Consent Calendar

• Approval of Motion Summary: The committee unanimously approved the motion summary from the August 28, 2025, Finance Committee meeting, as recorded and transcribed. (Motion by Mayor Riggle, seconded by Chair Shafer.)

Discussion Items

• Review of Financial Management Policies: Alycia Ballone, Management, Budget & Procurement Director, presented proposed changes to the Financial Management Policies, including:

  • Adding a definition of a balanced budget to meet GFOA award criteria.
  • Creating a roadmap for budget restraint during economic uncertainty or revenue declines, including a budget gauge to be attached to the formal policy.
  • Stating that temporary levies should not fund operations.
  • Adding a condition to the workers' compensation fund to account for presumptive claims (two such claims in 2025, with maximum exposure of $300,000 each, totaling a potential $600,000 liability).
  • Removing provisions related to the recreation improvement income tax, as sufficient funds are now available.
  • Setting a target fund balance for the fire and EMS fund at 20–25% of operating expenses, on par with utility funds.
  • Requiring multiple funding sources (e.g., TIFs, NCAs, impact fees) for any general obligation debt.
  • Mandating an annual fee schedule review and creation of a master fee schedule to proactively adjust fees rather than making large changes later.
  • Aligning purchasing policies with the adopted uniform guidance.

• Review of Uniform Policy: Ms. Ballone explained that the federal Uniform Guidance (2 CFR Part 200) requires written procedures for allowable costs, internal controls, time and effort documentation, procurement, and cash management. The city is in the process of finalizing a draft policy. The committee voted to move the policy to City Council for consideration once finalized.

• Budget Introduction and Overview: City Manager Paul Brake and Finance Director Alycia Ballone presented the 2026 budget, emphasizing alignment with the strategic plan adopted in May 2025. Highlights included:

  • Strengthening fiscal sustainability: Adoption of a comprehensive taxation policy; exploration of expanded NCAs; ongoing review of fees and impact fees; transfer of $250,000 to economic development reserves (up from $75,000) for site pad-ready preparations.

  • Economic growth: Addressing housing needs through CRAs and low-income tax credits for the “missing middle”; attracting employers with available land.

  • Regional impact: Collaboration with ODOT, MORPC, and Delaware County; deadline for airport RFQ proposals on November 7, 2025.

  • Connectivity and vibrancy: South Sandusky corridor study with OSU (completion expected Q2 2027); trail investments via parks impact fees; parking program modernization with $50,000 for pay stations and a proposed dedicated parking professional.

  • General Fund Summary: Total revenues exceed expenditures by a significant margin, partly due to capacity constraints at city buildings and pending union contracts. Revenue is projected to increase 8.4% over the 2025 budget, but only 0.3% over actual 2025 revenues, primarily due to a $1.5 million advance to the self-insurance fund that was recognized as revenue in 2025. Income tax collections continue to grow; property taxes rise modestly; license and permit revenues and engineering fees are trending down.

  • Expenditure Highlights: Health insurance costs are rising at 7.7% (below the national average of 9.5%). The city is moving to a stop-loss consortium to reduce volatility in self-funded insurance. Workers' compensation fund balance may necessitate a return to near 2% contributions (budgeted at 1%). Professional services increased due to recruitments and legal counsel. Maintenance items previously in the capital improvement plan have been moved to the operating budget. Four labor contracts remain outstanding. The city is conducting a space needs study.

  • Legislation to Watch: House Bill 503 (municipal income tax credit) could significantly impact revenue; proposed increases in employer contributions to police and fire pension funds (from 19% to 24%); multiple property tax reform bills that could affect TIF-financed infrastructure and school funding.

• Finance, Management/Budget/Procurement, Legal Budget Presentations:

  • Finance Director Retirement: Rob Alger will retire in January 2026. The committee discussed merging the Finance and Management/Budget/Procurement departments. Proposed changes include adding a Procurement Administrator, a Financial Specialist I, and reclassifying a Financial Specialist II to III, while eliminating a part-time income tax position and shifting a part-time utility billing role to collections. Net headcount increase of 2.5 FTE. The committee expressed concern about workload but accepted the recommendation.
  • Tax Department Efficiency: Lory Johnson, Income Tax Administrator, highlighted cost-saving measures: switching from paper letters to postcards for annual reminders (cost savings), eliminating the declaration penalty to reduce taxpayer frustration and focus on non-filers, implementing text reminders for estimated tax payments (saving $8,500 annually in postage), and reinstating civil court charges for delinquent filings.
  • Utility Billing Improvements: Robin, representing the utility billing team, reported that enhanced past-due notifications via email reduced October shutoff lists from 1,300 to 200 out of 47,000 accounts. Proactive outreach before collections and accelerated final billings have lowered collections agency fees.
  • Procurement: Kaci Goebbel, Purchasing Analyst, reported that cooperative purchasing and state bid contracts saved the city over $2.3 million in 2025. Centralizing procurement under a future Procurement Administrator will improve transparency and vendor outreach.
  • Internal Controls: Mike Day, Budget & Management Analyst, described a pilot internal controls program in his department. Using business process narratives and risk scoring (1–5 scale for likelihood and impact), the team identified 49 risks and is developing mitigations for those scoring 15 or higher. The program may be expanded citywide.
  • Development Financing: Sarah Young, Development Financing Coordinator, tracks TIF payments and impact fees to ensure accurate revenue forecasting and avoid over-budgeting or unnecessary borrowing.
  • City Manager's Office Budget: Paul Brake noted continuity and added a summer intern from MORPC. The legal budget is being managed with outside counsel (Frost Brown Todd) on a flat-fee basis; the city attorney search is underway, with applications due November 3, 2025. A hybrid model is anticipated due to specialized legal needs. Two law clerks have passed the bar, strengthening the in-house team.

Key Outcomes

• Financial Management Policy: Unanimously moved to City Council for consideration.
• Uniform Policy: Unanimously moved to City Council for consideration once finalized.
• Budget Overview: The budget introduction was received; detailed departmental hearings will continue at future committee meetings. The committee noted that department heads will not present during regular council sessions, as this is the committee's role.
• Personnel Restructuring: The proposed merger of Finance and Management/Budget/Procurement departments, along with the new positions, will be included in the budget for council consideration.
• Next Steps: The committee will review additional departmental budgets in upcoming meetings; a schedule of hearings will be distributed.