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.
Review of Financial Management Policies: Alycia Ballone, Management, Budget & Procurement Director, presented proposed changes to the Financial Management Policies, including:
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:
And we will call to order the Delaware City Finance Committee meeting for November 3rd, 2025. Roll call, please. Mr. Hoffman is absent. Mayor Virgil? Yeah. Chair Schaefer. Item two is approval of the motion summary. Question to approve. Second. Item three is public comment. Right. All right. We will move on. I don't think we've got anything by email, do we? No, sir. Okay. We'll move on to items of discussion. And just before we start, I just wanted to say great job preparing this packet for informative. It looks like we're gonna get even more into that. So I'll look forward to hearing it. So first is review of financial management policies. Thank you, Chair Schaefer. Um, so I wanted to start with a review of the financial management policies. This is normally a first step in the budget process. And this year we had that taxation policy and had several changes as a result of that. Um I don't know. Would it be possible to pull up the financial management policies on the screen? It's in the package. It's also, yeah. It's in the packet as well. Um while she's doing that, I'll start walking through them. So the first one is we get a slight ding every year as we're preparing the GFOA budget for award because nowhere in our financial policies do we define a balanced budget. So the first change is really just adding what the definition of a balanced budget is. Um the second major change is kind of giving a roadmap on what to do should we have economic uncertainty or revenue declines. And um I I apologize because I neglected to attach the budget gauge, but the budget gauge will be attached to the formal policy, and this just kind of gives you a map of hey, you know, enter budget restraint. It's just a process that we can pull out if we need it or something changes significantly. Um and then the third bullet point under the operating budget policies is that temporary levies should not be used to fund operations. Um if we can go to the next one, so this is under reserve policies. Um keep going down. There you go. So this bullet point is in regards to the workers' compensation fund. Um I've added a section here that adds an additional condition to the workers' compensation fund. So there are these items called presumptive claims. Normally with workers' comp claims, it is on the burden, it is the burden of the worker to prove that their injury was a result of the city. There's a provision in the ORC that says certain types of injuries, illnesses, whatever. That shifts the burden to, you know, the um it is a result of your job unless you can prove otherwise. Our maximum exposure for a workers' comp claim is 300,000. We have not had a presumptive claim in the time that Whitney has been with HR. This year we have two.