Sandusky finance staff say 2026 revenues are down; board meets in executive session on preliminary audit

At a Sandusky Boards & Commissions meeting, finance staff told members the city’s 2026 revenue is running below 2025 levels and laid out collection steps—including a delinquent non‑filer letter campaign and a possible subpoena step through Rita—to pursue late tax filings. The board later entered executive session to receive a preliminary audit from Ray and Associates.

The presenter, Michelle, said the city budgeted nearly $2 million less for 2026 than it did for 2025, which provides some flexibility as staff monitor revenues. “Revenue this year in 2026 compared to 2025 is down,” she said, adding that income tax receipts through May — and continuing into June — show a downward trend and that staff are watching collections closely.

Michelle described a two‑step compliance approach with Rita. First, Rita will send non‑filer letters at no cost; if returns remain unresolved staff may opt into a subpoena program that the presenter said carries a fee of about $3 per subpoena. Michelle said the city previously used subpoenas in 2024 and saw a positive return on investment when the process was used.

On the Rita true‑up, Michelle said the annual reconciliation produced a refund that was returned to the city and recorded on the income tax line; the transcript records this refund as “$255,” and the presenter characterized it as a small savings. The meeting record contains some garbled numeric phrasing around refund amounts; the presenter’s broader point was that the Rita true‑up yielded a modest return to the city’s income‑tax receipts.

Other figures Michelle cited included a reported $5.2 million in income tax revenue year‑to‑date, a general fund total revenue figure of about $10.3 million for 2026, and total general fund expenditures of just over $12.1 million. She said wages and fringe benefits account for roughly $5.47 million of expenses. Transfers year‑to‑date were described as just under $2.5 million, down from about $3.2 million last year, which staff said gives the city timing flexibility on making transfers as revenues arrive.

Michelle also reported 247 full‑time employees citywide, with police and fire staffing at about 51 and 52 full‑time positions respectively.

After questions from members — who noted past adjustments made during the COVID era and asked about administrative support line items — the board moved to go into executive session "pursuant to OC 121.22 for audit conference" to hear a preliminary audit from Ray and Associates. The motion was seconded and approved by roll call.

When the board reconvened, a member and an audience attendee identified as 'President' offered congratulations to the finance department, and the meeting concluded with a motion to adjourn that carried by voice vote.

The financial report presented several items staff said they will continue to monitor: income tax timing and collections, the outcome of the non‑filer outreach through Rita (and any subsequent subpoenas), the size and timing of transfers, and the general fund cash balance. The board took no formal action on the financial report beyond the usual discussion and the separate executive‑session action on the audit.