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, May 12, 2025

City Hall, Council Chambers

Immediately following Committee of the Whole at 7:00 PM on May 12, 2025

CALL TO ORDER:

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

8:48 p.m. The agenda was published on May 9, 2025. All members were

present for the meeting. There were no additions or corrections to the agenda.

DISCUSSIONS:

1. FY 2025 Quarter 1 Financial Report

2025-0101

FY 2025 Quarter 1 Financial Report to Council 5.12.2025

Joann Bury, Director of Finance, began her presentation, noting the agenda

would follow the typical format utilized by staff in the past. Director Bury

shared the report would cover the General Fund and all special funds with a

summary of the Capital Improvement Plan, income tax trends through the end

of the quarter, and investments, concluding with Q1 results.

General Fund

First, Director Bury reported on the General Fund revenue, expenditures, and

fund balance. Director Bury explained that revenue is tracking at 25% of the

budgeted annual revenue, aligning with expectations. Director Bury noted that

property tax collections, typically received in March, were delayed slightly and

will post in April of 2025, similar to 2024. “Other Revenue” category saw a

large increase due to a dividend distribution from the Central Ohio Health

Consortium (COHCC) and a real estate tax refund related to the 825 Tech

Center property.

Next, Director Bury reported on expenditures, explaining they are slightly

below 25% of budgeted expenses, but tracking as anticipated. Director Bury

described the year-over-year increase of 26% driven by several factors,

including the capital outlay for the 825 Tech Center, expected salary and

benefits increases from wage adjustments and new positions, and fewer staff

vacancies compared to Q1 2024, resulting in higher staffing costs.

Director Bury reviewed Gahanna’s fund balance. Director Bury explained no

interfund transfers transpired at that time, elaborating those will occur after

real estate tax revenues are posted in the Second Quarter (Q2). Director

Bury shared $894,000 were added to the fund balance, which now totals

approximately $43 million, including: $14.7 million encumbered, $9.1 million

reserved for emergencies (including a $650,000 increase), and an

unreserved fund balance of $19.2 million, or roughly 7 months of operational

coverage.

President Bowers asked Director Bury whether the presentation would

include aggregated financial reporting only or also provide more detailed

information by department. Director Bury responded that the presentation

would focus on aggregated data, noting that more detailed departmental

information was provided to the Council to offer context for the overall

financial status. President Bowers then followed up with a question

referencing an inquiry she made after the 2024 year-end finance report. At

that time, staff reported that the Public Service Department spent significantly

below its allocated budget. Considering that, President Bowers inquired about

the Public Service Department’s budget status for the First Quarter. Director

Bury explained that she was currently addressing the General Fund but

anticipated that the question would be answered during her following

discussion of the special funds. She clarified that the Public Service Fund

includes the Engineering Department, which reported lower-than-expected

expenditures. Director Bury added that the fund was performing a little better

and that she would provide more details shortly. President Bowers

acknowledged and thanked Director Bury for the clarification, and Director

Bury then continued with her presentation.

Special Revenue Funds

Director Bury presented an overview of Special Revenue Fund performance

for the first quarter of 2025, comparing revenue and expenditures to the

approved 2025 budget.

Revenue Overview:

Overall, special fund revenues are tracking as expected, reaching

approximately 25% of the budgeted totals.

Income tax allocations reflect planned adjustments based on

anticipated annual spending, resulting in shifts in available funds for

each department.

Expenditure Review:

Public Safety: Expenditures are tracking appropriately, aligning with

budget expectations. Personnel costs reflect a 7% increase over the

prior year, driven by known salary and benefit adjustments as well as

the addition of a fourth School Resource Officer (SRO) in early 2024.

Contracted services costs have also increased significantly, reflecting

the addition of a mental health liaison in late 2024, contributing to a

year-to-date fund balance increase of $256,000 and an unreserved

fund balance of $466,000.

Parks and Recreation: Revenue is performing as expected, with

income tax allocations slightly higher than prior periods. Charges for

services, including camp registrations and pool memberships, have

increased by 12% compared to the first quarter of 2024. Expenditures

reflect the addition of staff positions and related salary increases,

consistent with budget forecasts.

Public Service: While personnel costs remain lower than budgeted

due to ongoing vacancies, the department is ramping up project work,

including code updates and the thoroughfare plan. Contracted

services costs have increased to $33,000 in Q1 2025, nearly 500%

compared to Q1 2024. The unreserved fund balance stands at

approximately $1.8 million.

Capital Improvement Plan (CIP)

Director Bury reviewed the Capital Improvement Plan (CIP), stating the

revenue is tracking as expected. Director Bury communicated that there was

currently no grant revenue in 2025, contrasting that with Q1 2024 which

included a grant for Cherry Bottom stabilization. She elaborated that 19% of

budgeted expenses are spent, mostly on carryover from 2024 projects.

Director Bury shared there were no transfers in Q1 and debt service transfers

expected in Q2. Director Bury explained that the fund balance decreased by

$8.9 million to $57.8 million, including $38.4 million reserved for projects and

$19.3 million unreserved.

Income Tax Trends

Director Bury reviewed Income Tax trends, describing an overall increase of

11% compared to Q1 2024. Director Bury described withholding taxes as

stable and on trend, elaborating that individual and net profit filings were

higher than usual. Director Bury explained that individual earnings spiked,

possibly due to a few high-income filers, which staff are monitoring. She

summarized that net profits are up across most businesses, possibly

reflecting organic growth or expiration of previously carried-forward losses.

Investments

Director Bury reviewed investment statuses, first describing that 98.5% of

City of Gahanna funds were in money markets, State Treasury Asset

Reserve (STAR) Ohio, or government bonds. Director Bury noted investment

income is 22% of projected total, tracking appropriately. She noted a slight 3%

decrease from the prior quarter due to late Fourth Quarter (Q4) 2024

reductions. Meanwhile, the Federal Reserve did not announce any 2025 rate

changes as of Q1.

Conclusion

Director Bury concluded her report providing a summary to the Council on

Gahanna’s financial status, including the projected outlook. Director Bury

explained that inflation decreased from 2.9% to 2.4%, demonstrating a

positive trend. Director Bury maintained that the fiscal outlook is cautious due

to external factors, which include: pending federal policy changes (such as

tariffs, Medicare funding adjustments), the loss of certain federal grants and

upcoming State of Ohio Biennial Budget (targeted for July 1, 2025, approval).

Director Bury explained that all of these factors could potentially impact

revenue or service delivery costs; however, the current impact is uncertain.

Director Bury advised a continued focus on Our Gahanna Strategic Planning

to guide City of Gahanna priorities over the next five years. Director Bury

ended her report on a positive note, conveying an anticipation for continued

economic growth in Gahanna, pending external developments.

Questions

Councilmember Michael Schnetzer inquired if Director Bury anticipated any

impacts or noted potential concerns or derailments from state or federal

policies in 2025 or 2026. Director Bury expressed uncertainty about how

state-level decisions, such as increased business costs from tariffs, potential

changes to Medicare, and ongoing discussions around school funding and

property tax reform, might impact local government funding. She noted that

while these issues could shift budget priorities at the state level, it is unclear if

or when such changes will trickle down to local governments. As a result,

potential impacts in 2025 remain unpredictable in both scope and timing. Mr.

Schnetzer confirmed with Director Bury that any such items that come up will

be brought before the Council in these quarterly Finance Committee

meetings. Director Bury elaborated, affirming staff is monitoring the situation,

including Ohio Municipal League (OML) as it develops and will respond

appropriately. Councilmember Schnetzer thanked Director Bury, noting his

shared sensitivity with her concerns regarding possible Medicare changes,

describing them as typically the second most significant expenditure for state

governments, a major shared budget item for state and federal governments.

2. Finance Department Update

Director Bury provided a brief update on the Finance Department, describing

her team, which includes herself, a finance manager, a payroll analyst, two

finance analysts, and a management analyst. She reviewed the department’s

core responsibilities and summarized key operational data. In 2024, the

department processed 26 payroll cycles totaling 8,051 checks, or about 309

per cycle. On the accounts payable side, they paid 10,556 invoices, averaging

203 per week. They handled 1,688 credit card transactions, approximately

141 per month, and processed 6,468 purchase orders, or about 25 per day.

Accounts receivable included 36,352 individual receipt transactions,

averaging 140 per day. She noted that the department also manages banking

and investment functions, including reconciling the City of Gahanna’s three

bank accounts, working with the investment advisor, reconciling and

liquidating investments as needed for cash flow, and managing the City’s debt

portfolio, which includes six bond issuances and two Ohio Public Works

Commission (OPWC) loans. Additional responsibilities include preparing

budget books, quarterly and ad hoc financial reports, maintaining internal