Mid-Year Review Warns Findlay Must Address Emerging Financial Risks Before They Become Long-Term Problems
BY CAREY MORGAN
FINDLAY - Although the city of Findlay remains financially stable today, City Auditor Jim Staschiak’s 2026 Mid-Year Review presents a clear message: several cautionary indicators suggest the city should begin addressing underlying financial and economic trends before they develop into larger fiscal challenges.
The July 22 presentation from Staschiak repeatedly emphasized that good financial management is not simply balancing today’s budget, but preparing for tomorrow’s obligations. Unlike a traditional budget update focused on current revenues and expenditures, the presentation evaluates the city’s financial health through long-term trends, economic conditions, infrastructure needs, and the Ohio Auditor of State’s financial health indicators. Throughout the report, the central theme is that Findlay has time to act—but not unlimited time.
One of the most significant portions of the presentation examines the Ohio Auditor of State’s Financial Health Indicators. While Findlay continues to score positively in many categories, the report identifies several indicators that have shifted into cautionary or critical territory. Among the concerns highlighted are revenues failing to consistently keep pace with expenditures, periods of deficit spending where expenses exceed revenues, and declining unrestricted net assets. Additionally, the city faces declining unassigned fund balances, declining income tax revenue growth, and declining property tax revenue in the preliminary 2025 review. The report also raises questions surrounding the long-term condition of city capital assets. Rather than suggesting an immediate financial crisis, the presentation argues these trends deserve attention while the city still maintains healthy reserves.
Perhaps the most frequently discussed concern is slowing income tax growth, which is showing signs of weakness. The report states that city income tax collections were approximately $700,000 below budget projections through June 30, 2026. Even more concerning, business income tax receipts were down more than 35%, while employer withholding—the city’s largest and most dependable source of revenue—showed only modest growth. Since withholding represents roughly three-quarters of all income tax revenue and over three-quarters of General Fund revenue, the report argues sustained payroll growth is essential for long-term financial stability.
Historical charts included in the presentation also point to longer-term economic challenges. According to Ohio Department of Job and Family Services data presented in the report, Hancock County employment has declined from approximately 38,200 workers in June 2020 to about 35,100 in June 2026—a loss of roughly 3,100 jobs, or 8.1%. Other charts show employment growth and labor force participation gradually trending downward over several decades. The implication is straightforward: without stronger payroll growth, future city revenues could remain under pressure.
The presentation also challenges the city’s current approach to economic development, questioning its overall strategy. Rather than relying heavily on project-specific tax incentives, the report argues Findlay should first examine whether broader issues—such as workforce availability, infrastructure, or other competitive factors—are limiting investment. Because Findlay already levies a relatively low 1% municipal income tax, the presentation describes that tax rate itself as an ongoing citywide incentive available to every employer and resident. It recommends that every proposed tax credit be evaluated to demonstrate both that the investment would not occur without the incentive and that the public benefit exceeds the public cost. The report further argues that manufacturing deserves particular attention because it generates stronger employment multipliers and broader economic activity than many other sectors.
Another major caution raised throughout the report involves infrastructure maintenance, which may be falling behind. The presentation argues that capital maintenance obligations should be fully calculated and presented to City Council each year, including anticipated costs for streets, sidewalks, buildings, water, sewer, and stormwater systems. Using Ohio’s recommendation that approximately 6.6% of pavement should receive maintenance annually, the report suggests Findlay should revisit whether its current paving program is sufficient to prevent more expensive reconstruction costs in future years. Furthermore, the presentation notes uncertainty surrounding the long-term condition of fixed assets, water infrastructure, sewer systems, and stormwater facilities.
Several operational performance measures also raise questions within the report. Among the operational trends identified, overtime spending has increased over several years. Water loss exceeds the EPA national average, prompting the report to recommend lowering the city’s acceptable target. Meanwhile, airport Jet A fuel sales—identified as an important revenue source—continue to decline. Additionally, the city’s revolving loan fund for small businesses is described as underutilized, and personnel, benefit, and pension costs continue to rise. Individually, none of these issues necessarily threaten the city’s finances, but collectively they contribute to what the report describes as a mixed financial outlook.
The presentation also connects economic development to housing affordability, noting that affordable housing is inherently tied to wages. According to the report, an individual would need to earn approximately $31.73 per hour, or roughly $66,000 annually, to afford a basic rental home in Findlay. Average local wages, however, remain significantly lower. Rather than advocating for cheaper housing, the presentation concludes that communities become more prosperous by increasing residents’ earning potential through higher-paying jobs.
Rather than proposing immediate spending cuts, the report concludes with specific recommendations designed to strengthen the city’s long-term financial position. To achieve this, the report urges the city to improve its financial health indicators and increase payroll withholding growth through stronger employment and wages. It recommends developing a long-term strategy identifying the types of businesses Findlay should actively recruit, and reviewing grants through the Finance Committee before applications are submitted. Finally, the guidelines advise the city to expand contingency planning, correct current deficit spending trends, and integrate financial planning, capital investment, and strategic economic development into a single, unified long-term plan.
The overall tone of the Mid-Year Review is ultimately one of caution rather than alarm. The report repeatedly acknowledges that Findlay maintains healthy reserves and manageable debt. However, it argues that those strengths should not lead to complacency. Instead, the presentation encourages City Council to view slowing revenue growth, employment declines, infrastructure maintenance, and rising long-term costs as early warning signs. The message throughout the review is that addressing these issues while the city’s finances remain relatively strong will be far less costly than waiting until they become fiscal emergencies.
