City’s financial position remains positive

2026 budget includes employee wage increases

Tipp City’s budget for 2026 includes 5 percent employee wage increases and a 3.90 percent increase in spending over this year.

Overall, the city’s financial position remains positive, said City Manager Eric Mack.

"Staff remains focused on controlling costs and evaluating equipment needs carefully. We are maximizing every dollar, investing strategically to keep Tipp City vibrant and reducing short term obligations to strengthen the city’s long-term outlook,” Mack said.

The 2026 budget was approved unanimously recently by the City Council. It includes a $13,865,937 general fund allocation, $29,002,172 electric fund (the city runs its own electric system), and a $2,083,460 self-insurance health fund. The general fund’s revenue is projected to increase 4.78 percent from this year, or $622,028. The total appropriations were $66,181,226.

Council members met in late September for a detailed look at the proposed budget allocations.

In a budget letter to council, Mack explained the 2026 budget is different from previous years with a lower beginning balance.

"Prior to the city’s purchase of property to foster economic development, the general fund operated with an annual surplus of 18 years (net of short-term advances). In 2024, the city spent down $3 million of the accumulated cash to acquire the ‘Plaza Properties,’” he wrote. “In 2025, the city spent down an additional $2.2 of accumulated cash to acquire the 60-acre ‘Long Property.’ The expenditure of these resources brought the city’s cash balance down to the minimum fund balance reserve as set by council.” This is 25 percent of operating expenditures.

The city expects recovery of both property purchase prices; the Long property short term and the Plaza Properties longer term, Mack said.

The city’s payroll and related benefits make up approximately 78.95 percent of the general fund’s budget. The 5 percent increase for all employees (union and nonunion) is part of the plan to bring wages in line with comparably surveyed communities in the Dayton/Cincinnati areas.

A 1 percent increase in health premiums is also expected. The city, Mack said, has changed from a two- to a four-tier insurance plan from single/family to single, employee and spouse, employee and child(ren) and family. This change, he said, should save money with a number of employees leaving traditional family plans for one of the mid plans.

While reviewing the budget, council heard a presentation from city Finance Director John Green on the Family Aquatic Center. “Overall, the family aquatic center had a good year.  Revenues were up a little.  Expenditures were up a little more. We did need to subsidize the operations from the General Fund by $50,000, but we will have a small carryover balance (plus or minus $15,000) to start next year,” Green said.