Lorain 2026 budget looks to balance union negotiations, revenue projections

LORAIN – Lorain's 2026 budget will be a balancing act. While a lengthy discussion at a Finance and Claims Committee meeting Monday focused on potential raises to the city's flat sewer charge to save from a fund deficit, Council members also discussed ongoing union negotiations, the city's fire levy and seasonal park costs. The city's general fund, which sees the bulk of its expenses and income tax revenue, is projected to remain in the black through the end of the year, thanks in part to a $3 million carryover from 2025. The city's estimated general fund revenue is about $42.8 million, with its expenses anticipated at about $43.9 million. It expects to have about $1.9 million in the bank come Dec. 31. The vast majority of the general fund comes from income taxes, with the Treasurer's Office estimating it will collect just shy of $28 million this year. It will lose tax revenue due to anticipated reductions in force at Lorain Schools. The district, one of the largest employers in the city, plans to cut 167 positions to help fill a more than $17 million budget shortfall. Those cuts will go into effect in the middle of the tax year, costing Lorain about $125,000 in 2026, and a full $250,500 in 2027. Of that, about $200,000 flows into the general fund, Auditor Anita Harper said. The city budget will be able to absorb those reductions if, and when, they happen, she said. While the school district is looking to its union contracts for RIF procedures, the city is in the middle of contract negotiations with members of United Steelworkers Local 6621 and its fire, police and dispatchers unions. The deals brokered between those bargaining units will affect wages for the city's managerial and non-bargaining staff as well. Mayor Jack Bradley said negotiations are in the beginning stages, and that the city administration has explained to union leadership the city's financial situation and hoped prior contracts' generosity of raises and longevity payments would be considered during the bargaining process. In 2021, Council approved contracts with all its employees to provide longevity bonuses starting at their third year with the city. Those bonuses increase by 1 percent each year, capping out at 20 years. Springowski called for an economic development team to help bring investment into the city to change its financial trajectory. Fire levy The city's fire levy, a 1.7-mill, five-year property tax that raises about $1.4 million each year for the Lorain Fire Department, is back on the ballot this spring. During Monday's committee meeting, the mayor discussed briefly what could happen if voters defeat that renewal: The city would lose firefighters. The city needs 72 firefighters to be able to fully staff its ladder truck and four fire stations. If the city were to lose the four to six firefighters paid from the levy, it could put those operations in jeopardy, he said. Harper noted since the levy was first passed in 2016, the city has built two new fire stations, purchased new ladder and pumper trucks and used funds for additional firefighters. "The fire department has been a very good steward of what they've received," she said. Fire Chief Chris Radman said if the levy does not pass in May, the department would look to run it again in November. Seasonal employment Not included in the budget submitted to Council were seasonal employment costs for the city's parks and street departments. Due to a clerical error, seasonal positions to help staff the city's ballfields, summer camp, pool admissions and concession and park maintenance were not included in the budget submitted to Council for Monday's committee meeting. Those costs would be about $100,000 total to maintain services and upkeep in the city's parks — including being able to have league tournaments at the city's ball fields and allow for park rentals, which combined bring in nearly $200,000 in revenue. Councilwoman Mary Springowski, D-at Large, said the issue was a "no-brainer" to add back into the budget given the money they bring in and the public support they have. Contact Carissa Woytach at (440) 329-7245 or cwoytach@chroniclet.com.