Sandusky's budget sets new high mark

SANDUSKY — For the third straight year, Sandusky officials backed a record-setting budget. During a recent public meeting, city commissioners provided their seal of approval for Sandusky's $30.7 million everyday operating budget. Some also call this the general fund. It's an account funding the most important services Sandusky offers — think police, fire, parks, recreation, road maintenance, trees, parks as well as salaries for employees to carry out their civic duties among others — to residents, community members, tourists and others. This figure represents the highest amount in Sandusky's general fund history, topping the previous marks set in 2023, $29.3 million, and 2022, $25 million. Officials emphasized how the booming budget provides enough flexibility to aggressively, yet efficiently, carry out public services Sandusky provides through this fund. Sandusky does manage other budgets for items like utilities and capital, or large-scale, projects. Officials continue to work on those accounts in preparation of approving them or 2024. The four financial takeaways John Orzech, the city manager, and Michelle Reeder, the city's finance director, presented this budget to commissioners. They highlighted four major takeaways. 1. Why the increase? Beyond inflation, all employees received a wage increase this year — ranging between 2% and 3% more compared to 2023 — and health insurance premiums also went up. 2. What's the surplus? The city expects to close out its 2023 books and end with a $6.1 million cash balance. "We target to have a cash balance equal to 15% to 20% of our annual expenditures," Orzech said. At $6.1 million, this would equate to being just about 20% of Sandusky's $30.7 million general fund. "This cash balance helps the city maintain operations and provides stability during difficult times," Orzech said. "Our credit rating is also affected by the amount of cash reserves. This cash reserve provides necessary reserve funds in times of need." 3. How many people work there? "The city is budgeting for 255 full-time employees for 2024, down from 257 in 2023," Orzech said. "Personnel and wages account for 51% of the general fund budget." 4. What's a cause for concern? Despite the strong revenue levels, "We will keep an eye on income tax revenue, which has seemed to flatten," Orzech said. "The budget projections are conservative numbers," he added. "As we progress through the year, we will monitor our expenditures closely to ensure that we are working within our revenues," he said. The year "2023 was the first full year with the increases in the admissions and parking tax, so we don't have much history yet on what those numbers will be. The best projection of those revenues was made at this time but will need year after year data to feel more comfortable with budgeting those figures." Orzech referenced two taxes directly impacting Cedar Point guests: an 8% admissions tax for those buying tickets to the entertainment venue and an additional 8% parking tax for those parking cars on park property. Reeder noted these two revenue sources translate to $9.3 million in general fund income, equating to roughly 30% of all revenue Sandusky collected in 2023. Admissions tax accounts for about $8.9 million while parking tax generates $425,000. Furthermore, the largest funding source — city income taxes — totals $12.9 million in 2024. Regarding admissions taxes, it's the amount someone entering Cedar Point or another Sandusky-based, for-profit venue spends on a ticket. Sales from Cedar Point, however, contribute roughly 99% of Sandusky's admissions tax account.