Minutes - Finance Committee

200 South Hamilton Road

Gahanna, Ohio 43230

City of Gahanna

Meeting Minutes

Finance Committee

Stephen A. Renner, Chair

Merisa K. Bowers

Jamille Jones

Nancy R. McGregor

Kaylee Padova

Michael Schnetzer

Trenton I. Weaver

Jeremy A. VanMeter, Clerk of Council

Monday, June 1, 2026

City Hall, Council Chambers

Immediately following the regular City Council and Committee of the Whole meetings

beginning at 7:00 PM

CALL TO ORDER:

Councilmember Stephen A. Renner, Chair, called the meeting to order

at 8:13 p.m. The agenda was published on May 29, 2026. All members

were present at the meeting. There were no additions or corrections to

the agenda.

DISCUSSIONS:

1. Our Gahanna Strategic Plan Update

2026-0122

Our Gahanna Strategic Plan Quarterly Update (2026 Q1) 2026.06.01

Miranda Vollmer, Senior Director of Administrative Services, provided

an update on implementation of the City's Strategic Plan and reported on

first-quarter progress. She explained that the current year served as an

alignment year focused on establishing a strong foundation for

implementation. She stated that the City had worked with Planning NEXT

to develop tracking software solutions, identify Strategic Plan champions

and team roles, establish reporting timelines and structures, and

integrate the Strategic Plan into existing processes, forms, and

templates. Senior Director Vollmer reviewed the Strategic Plan reporting

timeline and explained that staff intended to align Strategic Plan

reporting with the quarterly finance reports. She noted that the

implementation plan called for a retreat during the first quarter, if

necessary, to review and update the plan. Beginning in 2027, the City

anticipated providing annual Strategic Plan reports.

Senior Director Vollmer referenced the Strategic Plan implementation

graphic and explained how the Strategic Plan, Capital Improvement Plan,

and annual budget process aligned throughout the year. She emphasized

that the current period represented the appropriate time to identify

Strategic Plan goals and objectives for inclusion in the 2027 budget

because budget appropriations occur before the start of the fiscal year.

Senior Director Vollmer reported that first-quarter implementation efforts

included drafting implementation matrices, identifying collaborations for

each objective, assigning champions for each Strategic Plan goal,

engaging Planning NEXT to review integration into internal processes

and forms, and beginning to track projects that support the plan's goals

and objectives. She also reported that staff had begun evaluating project

management software to support tracking of Strategic Plan initiatives,

departmental projects, and capital projects. She noted that Kelsey

Bartholomew, management analyst from the Department of

Administrative Services, had led stakeholder needs assessments,

analyzed software requirements, and researched potential products. She

stated that staff would continue to provide updates as the project

advanced.

Senior Director Vollmer reported that staff had completed efforts to

identify departmental champions responsible for tracking implementation

and had connected the Strategic Plan to the Charter Review

Commission process through a presentation by Planning NEXT. She

also noted that more than 76 active projects supported various Strategic

Plan objectives. Senior Director Vollmer highlighted implementation of

the City's mission statement, "Serving the Community with Pride and

Purpose." She explained that the mission statement served to guide

employees in carrying out the community's vision. She described

displays installed at the new Civic Center that prominently featured the

mission statement and tagline in areas visible to both employees and

residents. She also reported that the Human Resources Department had

rebranded its employee newsletter using a Hive theme and had

incorporated the mission statement into daily employee communications

and practices.

Looking ahead, Senior Director Vollmer stated that Planning NEXT

would facilitate departmental workshops during June. She announced

that Planning NEXT and City Council would conduct a Strategic Plan

workshop on July 20 at 6:00 p.m. She explained that the workshop would

provide Councilmembers an opportunity to identify Strategic Plan

priorities and objectives for consideration during the upcoming budget

process. She stated that Planning NEXT would help align feedback from

all workshops to support budget development. Senior Director Vollmer

further explained that future budget documents would incorporate the

Strategic Plan differently than in prior years. She noted that department

narratives would follow a standardized format and directly connect

departmental activities to Strategic Plan goals. She added that staff

intended to select and implement a project management software

solution later in the year.

Councilmember Bowers asked whether Council could complete any

preparatory work before the July 20 workshop. Senior Director Vollmer

responded that Planning NEXT would provide instructions to Council in

advance of the meeting. She encouraged Councilmembers to review the

Strategic Plan, beginning with the community vision, followed by the

mission statement and value statements, before reviewing the goals and

objectives.

Vice President Jones asked whether staff would distribute the

presentation slides. Senior Director Vollmer confirmed that staff would

provide the slides.

Chair Renner thanked Senior Director Vollmer for the update and

emphasized the importance of preparing for the upcoming Strategic Plan

workshop and budget process. He encouraged Councilmembers to

come prepared for an engaged discussion in July and to review both the

Strategic Plan and the Capital Improvement Plan in advance of the

workshop.

2. FY 2026 Quarter 1 Financial Report

2026-0121

FY 2026 Quarter 1 Financial Report to Council

Joann Bury, Director of Finance, presented the first-quarter financial

report, which included a review of the General Fund, special revenue

funds, and the Capital Improvement Fund. She also discussed Capital

Improvement Program activity, income tax trends, investment

performance, and overall financial conditions.

General Fund

Director Bury reported that General Fund revenue had reached

approximately 22 percent of the annual budget, which fell below

expectations for the first quarter. She explained that property tax

distributions, which previously occurred during the first quarter, now

appeared to occur during the second quarter. She also noted that policy

changes among some larger employers, including transitions from

remote work to in-office work, had reduced municipal income tax

collections. Comparing current revenues to the prior year, Director Bury

reported an approximately 8 percent decrease. She attributed part of that

decline to current income tax trends and noted that the prior year

included two significant one-time revenue sources: a COHCC dividend

distribution and a refund of real estate taxes. She explained that those

revenues were nonrecurring and contributed to the year-over-year

decrease. Director Bury also highlighted growth in permit-related

revenues. She stated that permit revenues exceeded expectations and

showed a 94 percent increase compared to the target level of 25

percent. She said that trend indicated continued capital investment

activity within the City.

Councilmember Bowers asked whether Director Bury expected the

decline in income tax revenue to continue in future quarters. Director Bury

responded that she could not yet determine whether the trend would

persist. She explained that the City continued to experience growth while

also seeing policy changes related to remote and in-office work

arrangements. She stated that staff would continue monitoring both

factors to determine which trend would have the greater impact on

revenues. Director Bury added that continued monitoring would help

determine whether future budget adjustments might become necessary.

Director Bury reported that approximately 19 percent of the General Fund

budget had been expended in the first quarter, while expenses and

encumbrances combined totaled approximately 50 percent of the

budgeted expenses. Comparing expenditures to the prior year, Director

Bury reported an increase of approximately 5 percent. She attributed

much of the increase to salaries and benefits, which reflected planned

compensation adjustments and the addition of facility maintenance staff

in preparation for the opening of the Civic Center. She also noted

increases in materials and supplies, which resulted from utility cost

increases and additional resources needed for the Civic Center

transition. Director Bury stated that contract services expenditures

increased primarily because the City paid the Central Ohio Health Care

Consortium assessment during the first quarter of 2026. She also

reminded Council that the City continued to use bond proceeds to fund

Civic Center costs before utilizing General Fund cash resources for

those expenditures.

Addressing the overall impact on fund balance, Director Bury reported

that the City used approximately $805,000 during the quarter, resulting in

an ending fund balance of approximately $44 million. She stated that

approximately $14.8 million remained reserved for encumbrances,

including encumbrances associated with cash payments for the Civic

Center. Director Bury also reported that the City's emergency reserve

increased from approximately $9.1 million to $10 million, representing an

increase of approximately $900,000. She stated that the unreserved

ending fund balance totaled approximately $19.1 million, which remained

equivalent to approximately six months of operating expenses and

exceeded the City's policy minimum of two months of operating

expenses.

Special Revenue Funds

Director Bury reviewed the Special Revenue Funds and compared

first-quarter performance to the 2026 budget. She reported that revenue

trends generally mirrored those of the General Fund, with income tax

revenues tracking below expectations due to policy changes and other

factors affecting collections. She noted that Parks and Recreation

charges for services continued to perform well. On the expenditure side,

Director Bury stated that Public Safety expenditures were approximately

26 percent of budget, which aligned with expectations. She reported that

Parks and Recreation expenditures totaled approximately 12 percent of

budget and explained that the department's busiest season begins

during the second quarter. Director Bury also reported that Public

Service continued to experience challenges related to employee turnover

and vacancies in key positions. She stated that the department had now

filled those positions and had begun making progress on ongoing

projects.

Director Bury then compared Special Revenue Fund activity to the same

period in 2025. She reminded Council that annual income tax allocations

among the Special Revenue Funds vary based on each fund's planned

expenditures, which contributed to year-over-year revenue changes.

Director Bury highlighted a 45 percent increase in Parks and Recreation

charges for services. She attributed the increase to higher pool

membership and camp registration activity compared to 2025. On the

expenditure side, Director Bury reported a 9 percent decrease in Public

Safety expenditures. She explained that the decrease reflected changes

in how the mental health liaison position had been accounted for, noting

that the service had moved between staffing and contract services

classifications as the City evaluated the most appropriate structure for

the program. Director Bury also reported a 14 percent increase in Parks

and Recreation expenditures, which she attributed to seasonal staffing

needs. In Public Service, she noted an increase in contract services

expenditures and explained that several projects that had previously

remained on hold had begun moving forward.

Capital Projects

Director Bury reviewed the Capital Improvement Fund. She reported that

revenue followed trends similar to the other funds and stated that

expenditures totaled approximately 24 percent of budget. She noted that

expenditures and encumbrances together represented approximately 96

percent of the budget. Director Bury explained that the decrease in

expenditures reflected the wind-down of Civic Center construction as

bond proceeds continued to be spent and the project neared completion.

Director Bury then reviewed capital project information. She stated that,

as of the end of the first quarter, the City had spent approximately $9.3

million on capital projects and had approximately $22 million

encumbered. She provided a slide that presented the same information

broken down by funding source and project type or category.

Income Tax

Director Bury reviewed first-quarter income tax collections and reported

that withholding tax revenues had not achieved the approximately 4

percent increase anticipated in the budget. She explained that while the

City continued to experience growth, other factors had offset those gains.

Director Bury stated that individual income tax collections followed

expected trends because tax filing activity typically increases during the

first and second quarters of the year. She also reported that net profit tax

collections had returned to more typical levels after the unusually high

collections experienced during the previous year. She explained that net

profit tax revenues often fluctuate because businesses operate under

different circumstances.

Director Bury further reported that the City had processed several

significant refunds related to tax years 2024 and 2025 as businesses

reviewed estimates, filed amended returns, and received refunds for

prior overpayments. She stated that both the normalization of net profit

collections and the issuance of refunds had contributed to reduced net

profit tax revenues. Director Bury stated that staff would continue

monitoring income tax collections throughout the second quarter to

evaluate revenue trends and determine whether any future budget

adjustments might become necessary.

President Weaver asked whether Director Bury had received a report

regarding delinquent tax filings following a collection campaign

conducted by the Regional Income Tax Agency (RITA). Director Bury

responded that she had received information and recalled that the

campaign had generated approximately $700,000 to $800,000 in

delinquent collections. President Weaver then asked whether RITA had

estimated the amount of delinquent taxes that remained outstanding.

Director Bury stated that the primary objective of the campaign was

taxpayer compliance and education. She explained that, in some cases,

staff waived penalties based on individual circumstances and concerns

regarding public awareness of filing obligations. She added that

accounts with no response advanced to additional collection steps.

Director Bury offered to request updated information from RITA

regarding any remaining uncollected obligations, the number of

nonresponsive accounts, and the final amount collected through the

campaign. She stated that she would provide that information to Council

by email. President Weaver thanked Director Bury and stated that the

information would be helpful.

Investments

Director Bury reviewed the City's investment performance and reported

that investment income had reached approximately 27 percent of budget,

which aligned with expectations. She stated that current economic

conditions did not suggest near-term reductions in interest rates. She

attributed continued inflationary pressure to supply and energy concerns

related to instability in the Middle East, as well as the effects of tariffs that

businesses had increasingly passed along to consumers. As a result,

she anticipated that the cost of doing business would remain elevated

and that interest rates would likely remain unchanged in the near future.

Director Bury also noted that discussions regarding tax reform continued

at both the citizen and state legislative levels. She stated that the initial

phase of those efforts had focused primarily on schools and that staff

would continue monitoring developments. She reiterated that the City

continued to experience growth but would also continue monitoring policy

changes that could affect revenue trends.

Questions

Councilmember Bowers asked about a facilities expenditure line item

that appeared significantly different from other figures presented in the

report. Director Bury explained that the amount shown for the first quarter

represented actual expenditures, while approximately $6.4 million

remained encumbered and had not yet been spent. Councilmember

Bowers clarified that she had initially interpreted the figures as a

budget-to-actual comparison.

Councilmember Schnetzer asked whether a sustained slowdown in

revenue growth would require budget adjustments during 2026 or

whether the City would instead adjust future planning assumptions for

2027 and beyond. Director Bury responded that she did not anticipate

changes to appropriations during 2026. She explained that staff would

instead evaluate whether revenue estimates remained aligned with

actual collections. She noted that the City and its auditors closely

monitored revenue forecasts to ensure that estimates remained realistic.

Director Bury stated that minor variances would not warrant adjustments,

but staff would reassess revenue projections if a more significant

downward trend emerged. She explained that such adjustments would

focus on aligning projected resources with actual revenue expectations

rather than reducing current appropriations. Director Bury added that any

sustained changes in revenue trends would likely affect the City's

five-year financial forecast.

ADJOURNMENT:

With no further business before the Finance Committee, the Chair

adjourned the meeting at 8:41 p.m.