City Commission

223'3 CITY COMMISSION _ XEGULAR MEETING JULY 30 2025 Barrett Brothers T1505087LD CITY COMMISSION MEETING On Wednesday, July 30, 2025, at 6:00 p.m., the Dayton City Commission met in regular session in the Commission Chambers of City Hall. CALL TO ORDER Mayor Mims called the meeting to order. INVOCATION Commissioner Shaw led the invocation. PLEDGE OF ALLEGIANCE Mayor Mims led the public in the Pledge of Allegiance. ROLL CALL Roll call was taken, and Mayor Mims and Commissioners Shaw, Fairchild, and Turner- Sloss were present. The Clerk of the Commission, Ms. Regina Blackshear, and City Manager, Shelley Dickstein, were also present. Commissioner Shaw made a motion to excuse Commissioner Joseph from the Commission Meeting. Commissioner Fairchild seconded this motion. The motion was unanimously approved. COMMUNICATIONS AND PETITIONS There are none. PRESENTATION AND SPECIAL AWARDS Monthly Demolition Update Mr. James McDaniel provided the monthly demolition update for June, stepping in for Mr. Gondol and accompanied by Ken Jackson. He reported continued progress under the city’s recovery plan, noting a total of 1,168 planned demolitions. So far, there have been 188 demolitions in 2023, 208 in 2024, and 141 for 2025. Of the 2025 demolitions, 34 were funded by ARPA, 9 by the general fund, and 98 through ODOD. In June alone, 41 ODOD-funded demolitions were completed. Additionally, 10 fire piles were removed while only one new one was added, and one emergency demolition took place. Mr. McDaniel also shared that 52 structures have been added to the 2025 nuisance list to date, with six added in June, four of which were fire damaged. While no title reports, asbestos surveys, or munition clearances were completed in June, a significant number are expected for July. Several properties are in the demolition pipeline, including 715 North Gettysburg, 784 Goodlow, 28 Crown, 1905 Arlene, and 5149 Hoover. During the update, Commissioner Turner-Sloss asked for clarification on the location of the emergency demolition site and about the status of structures tied to a re-awarded 2024 demolition contract. Mr. McDaniel noted he would follow up with those details. He also confirmed that the city has completed its work under ODOD funding and is now moving forward with demolitions funded through ARPA, CDBG, and other sources. Commissioner Fairchild expressed appreciation for the visible progress, particularly the net reduction in fire-damaged structures. They also commended the demolition teams for maintaining momentum despite frequent rain, which Mr. McDaniel said caused minimal delays.  2234 CITY COMMISSION _ REcuLAR MEETING suty 30 2025 Barrett Brothers T1505087LD PROVAL OF MINUTES Commissioner Fairchild made a motion to approve the minutes from the June 23, 2025, meeting. Commissioner Shaw seconded the motion. The previous meeting minutes were unanimously approved. ADDITIONS OR DELETIONS TO THE CALENDAR Ms. Blackshear, the Clerk of Commission, requested the addition of legislation related to a public hearing, contingent on the desire of the commission. There were no other additions or deletions mentioned. DISCUSSION OF CALENDAR ITEMS Items No. B3_ & C4 City Manager Ms. Dickstein highlighted two key items. The first, Item B3, is a construction contract award for CDBG asphalt resurfacing. This rebid project will provide paving for 14 streets and more than 60 alleys throughout the city, with completion anticipated in the fall. The second, Item C4, involves a legal settlement with CenterPoint Energy resulting from the city's intervention in a settlement case. As part of the agreement, CenterPoint will establish a $3.75 million fund over five years to support energy initiatives in disadvantaged communities, which the city can apply for. Additionally, $625,000 will be allocated over five years for utility bill payment assistance, and a fee waiver program will be implemented for customers who qualify for the HEAP or PIP assistance programs. Ms. Dickstein noted that these community benefits are the result of successful staff negotiations with CenterPoint. CITIZENS' COMMENTS ON CALENDAR ITEMS There were no citizens registered to speak. COMMISSIONER COMMENTS ON CALENDAR ITEMS Commissioner Turner-Sloss thanked City Manager Ms. Dickstein for the additional context and emphasized a few key points. She highlighted that the asphalt resurfacing schedule mentioned in Item B3 has recently been released by the Public Works Department and is now publicly available, allowing residents to see which streets are slated for repaving through 2027. She also acknowledged Item C4, the legal settlement with CenterPoint Energy, and praised the efforts of both the Law Department and the Office of Sustainability. Additionally, she noted that this settlement is in addition to a recent legal settlement with AES, which was presented on a previous calendar. Ms. Dickstein confirmed this, clarifying that the AES item had appeared on the calendar within the last week or two. Commissioner Turner-Sloss concluded by expressing appreciation for the collaborative work involved in securing these community benefits. A. Purchase Orders, Agreements, and Contracts: (All contracts are valid until delivery is complete or through December 31% of the current year.) 1. Purchase Orders: PUBLIC WORKS Al. Best Equipment Company, Inc. (parts, supplies, and related items as needed through 12/31/25) $60,000.00  oe 2235 CITY COMMISSION _ REcuzar MEETING suty 30 2025 Barrett Brothers T!1505087LD PUBLIC WORKS A2. Carroll Wuertz Tire Company (tires, tubes, and related services as needed through 12/31/25) $300,000.00 A3. Duncan Oil Company (unleaded gasoline, diesel fuel, and related items as needed through 12/31/28) $2,100,000.00 A4. Crown Personnel Service, Inc. (temporary staffing services as needed through 12/31/25) $120,000.00 WATER Bl. PVS Technologies, Inc. (bulk ferric chloride solution as needed through 12/31/25) $400,000.00 -Departments of Public Works and Water. $2,980,000.00 Service Agreements 2. Lambiante LLC — Service Agreement — to provide data architecture services in support of the City of Dayton’s ERP modernization project — Department of Information Technology. $600,000.00 (Thru 07/16/28) B. Construction Contract: 3. John R. Jurgensen Co. — Award of Contract — 2025 CBDG Asphalt Resurfacing Re-Bid (25% HUD Section 3 Participation Worker Labor Hours and 5% Targeted Worker Labor Hours Participation Goal/25% HUD Section 3 Participation Worker Labor Hours and 5% Targeted Worker Labor Hours Participation Achieved) (Federal CDBG Funds) Department of Public Works/Civil Engineering. $2,774,601.25 (Thru 09/26/27) E. Other — Contributions, Etc.: 4. CenterPoint Energy Inc.— Legal Settlement — 2025 CenterPoint Ohio settlement approval for Case No. 24-0832-GA-AIR — City Manager’s Office/Sustainability. N/A 5. Sandoz — Legal Settlement — opioid settlement — Department of Law/Civil. $300,000.00 APPROVAL OF CITY MANAGER’S REPORTS Commissioner Shaw made the motion to approve the City Manager’s Reports. Commissioner Fairchild seconded the motion. The City Manager’s Reports were unanimously approved. LEGISLATION Ordinance — First Reading No. 32155-25- Amending Revised Code of Ordinance Sections 52.01, 52.03, 52.04, 52.05, 52.08, 52.10, 52.11, 52.13, 52.14, Pertaining to the Regulation of the Use of Public and Private Sewers and Drains, and the Discharge of Water and Wastes into the Public Sewer System.  2236 CITY COMMISSION _ recutar MEETING suty 30 2025 Barrett Brothers T1505087LD Resolutions — Second Reading No. 6877-25 - Honorarily Naming Gettysburg Park As “Joshua Dunbar Park” For a Two- Year Period. A roll call vote was taken, resulting in a 4-0 vote. Voting in the affirmative were Mayor Mims, Commissioners Shaw, Fairchild, and Turner-Sloss. The Resolution was adopted. Resolution — Second Reading No. 6878-25- Approving the Downtown Dayton Special Improvement District Petition and Plan for Services to be Provided by the Downtown Dayton Special Improvement District. A roll call vote was taken, resulting in a 4-0 vote. Voting in the affirmative were Mayor Mims, Commissioners Shaw, Fairchild, and Turner-Sloss. The Resolution was adopted. PUBLIC HEARING Mayor Mims formally opened the public hearing related to the citizens' initiative and petition concerning the establishment of a public hospital. Planning Division Presentation Ms. Hanauer of the Planning Division presented an overview of proposed zoning code text amendments during a public hearing. She explained that these updates, developed over nearly a year by the planning staff and zoning administrator, are part of the city’s regular process to refine the zoning code. The amendments fall into three categories: improving the administration of the code, updating it in response to changes in state and local regulations, and aligning with national planning best practices. In the first category, Ms. Hanauer highlighted changes to aid administration, such as clarifying definitions, expanding permissions for multi-family dwellings in mature single- family districts, aligning the treatment of congregate and protective care facilities, clarifying accessory dwelling unit (ADU) regulations in historic districts, and updating density and height standards. The amendments also revise the section on fees, penalties, and enforcement to better support code administration. In terms of updates reflecting regulatory changes, Ms. Hanauer noted adjustments to align with new state marijuana laws, updated telecommunication tower standards to match surrounding communities, and the addition of clear language for food trucks and graffiti within the code. To reflect planning best practices, the proposed changes include updated bike and electric vehicle parking standards, reduced vehicle parking minimums, a new “minor record plan” process for small-scale lot adjustments, added commercial design standards for suburban districts to enhance pedestrian safety, and the removal of indoor self-storage as a permitted use in downtown and mixed-use districts. Ms. Hanauer provided examples such as eliminating density maximums in certain districts to encourage housing development and streamlining permitting for small projects to improve customer service. She emphasized that these changes are meant to make  2237 CITY COMMISSION _ recuiar MEETING jury 30 2025 Barrett Brothers T1505087LD zoning more efficient, modern, and development-friendly. She concluded by outlining the public process, which included work sessions, a joint meeting with land use boards, and a unanimous recommendation for approval from the City Plan Board. She invited questions from the commission, noting that this was the first reading of the ordinance. CITIZENS’ COMMENTS ON PUBLIC HEARING There were no citizens registered to speak. CITY COMMISSION COMMENTS ON PUBLIC HEARING Commissioner Turner-Sloss Commissioner Turner-Sloss thanked Ms. Hanauer and the planning team for their extensive work on the zoning text amendments and community engagement efforts, including public sessions and lunch-and-learns. She raised a specific question regarding graffiti removal, acknowledging it as a community concern, and asked whether the amendments provided any opportunity for designated public art spaces or a process for differentiating between graffiti and permitted artwork. Ms. Hanauer welcomed the question and deferred to Zoning Administrator Ms. French for clarification. Ms. French explained that under the proposed amendments, graffiti is defined as any unauthorized marking not permitted by the property owner or approved by the city through a permit process. In contrast, murals, public art projects with submitted designs and formal permits, are considered legal. The zoning code distinguishes between the two, and the amendments clarify the enforcement process for unauthorized graffiti while maintaining space for legal public art through the city’s existing mural program. Commissioner Turner-Sloss then asked whether these changes had been shared with the public. Ms. Hanauer responded that an FAQ page had been created on the city’s website, where the draft amendments and recordings of public meetings were posted. The team had also been responding to public inquiries via email and phone. Finally, Commissioner Turner-Sloss asked for more details on changes to fees and enforcement mechanisms, particularly in the context of moving from criminal to civil enforcement on the housing code side. Ms. French explained that the zoning code already includes both civil and criminal options, but that current fines, $50 per day, capped at $500, are often too low to be effective, especially for commercial properties. The amendments propose increasing the maximum fine to $1,000 per day, matching the structure used in the Source Water Protection District. While that maximum would be reserved for the most serious violations, more typical fines, such as $100 per day, would apply in ordinary cases, especially for small businesses. Additionally, a formal policy document will be published to provide clear, consistent guidance on how fines are applied, ensuring transparency and fairness without locking detailed enforcement procedures into the ordinance itself. Closing the Public Hearing Mayor Mims closed the public hearing by asking the commissioners if they were ready to move forward. After receiving confirmation, he directed Ms. Blackshear to proceed. Ms. Blackshear then introduced the legislation for zoning case PLN2024-00417, identifying it as Ordinance No. 32154-25, which would receive a first reading only. She announced that the ordinance involves repealing, amending, and enacting various sections of the zoning code and concluded the legislative portion of the meeting.  2238 CITY COMMISSION _ recuzar MEETING suty 30 2025 Barrett Brothers T1505087LD CITIZENS’ COMMENTS There were seven citizens registered to speak. 1. Ms. Rae Elsen, 109 Maple Avenue- spoke as a member of the Dayton Tenant Union, highlighting the urgent need to fully fund the Access to Counsel program. 2. Mr. David Woods, 3230 Lakeview Ave- spoke about alleged mistreatment and assault of his father at Kettering Medical Center, highlighting unresponsiveness from hospital staff and concerns of racial discrimination. 3. Ms. Arlie Forte, 729 West Grand Avenue- spoke about living without heat during winter 2023-24 and struggling with high utility bills and an unresponsive landlord. She urged the city to fully fund the housing trust fund to provide essential repairs, legal help, and protections to keep vulnerable residents safe and warm. 4. Ms. Destiny Brown, 1119 West Second Street- spoke about recent housing efforts but stressed the urgent need to fund a housing trust fund with tenant protections and legal counsel. 5. Mr. Larry Hayden, 4028 Indian Run Drive- spoke on the urgent need for funding the housing trust fund. He highlighted ongoing tenant health hazards like mold and pests, stressing that education alone isn’t enough without legal support and home repairs. 6. Mr. Darrel Lee, 1903 East Third Street- spoke about his life experiences and how he has been going to parenting classes to become a better father, and wants custody of his children. 7. Ms. Flora Hurston, 2914 Salem Avenue- spoke on concerns about her liquor license renewal objection. She asked the Commission to improve the process for business owners and highlighted her community involvement. COMMENTS BY THE CITY MANAGER City Manager Ms. Dickstein summarized the city’s ongoing investments in affordable housing and rehab programs aimed at stabilizing neighborhoods, noting over $20 million spent recently. She highlighted efforts to hold landlords accountable, acknowledging the city’s limited authority over private rentals and the challenge of ensuring safe housing. She discussed a pilot program in development to better enforce landlord responsibilities without supporting bad actors. Ms. Dickstein emphasized the importance of eviction prevention and noted over half of residents rent their homes. She promised a comprehensive briefing package soon to update the commission on progress and next steps, aiming for broad, multi-front solutions without a single “silver bullet.” She also mentioned coordinating a response to concerns raised by the Dayton Tenant Union. COMMENTS BY THE CITY COMMISSION Commissioner Turner-Sloss Commissioner Turner-Sloss thanked Jen Hanauer and the planning staff for their work on zoning text amendments, especially efforts to shift housing violations from criminal to civil and increase associated fees. She recognized the Housing Department’s efforts on blight removal and fire safety. She thanked Rae Elsen for advocating for funding the access to counsel pilot program and said she’d follow up with city leadership on its progress. Commissioner Turner-Sloss highlighted the Housing Policy Steering Committee’s work on key issues like the housing trust fund, historic preservation, and tenant protections. She requested a review of her previously introduced housing trust fund legislation to see how it could advance alongside current efforts. She praised the Dayton Tenant Union’s advocacy, noting the strong voter support for the income tax renewal that helps fund housing initiatives. She also thanked Arlie Forte, Destiny Brown,  2239 CITY COMMISSION _REcuLaR MEETING suty 30 2025 Barrett Brothers T1505087LD Larry Hayden, Darrelle Lee, and Flora Hursten for their testimony and offered to follow up with Ms. Hursten about her liquor license concerns. Finally, she shared community event updates, including the upcoming Stewart Patterson Park cleanup, Taste of Old North Dayton, National Night Out, and back-to-school events. Commissioner Fairchild Commissioner Fairchild thanked everyone for their comments and congratulated Destiny Brown on joining the Dayton Tenant Union and on the birth of her son. He asked about the status of options regarding a liquor license withdrawal and was informed that information would be provided before Monday. He highlighted upcoming National Night Out events across several neighborhoods and encouraged community participation, noting a change in event order to ensure better food availability. He also mentioned “Felons for the Future” as an upcoming event, but did not have further details. Commissioner Shaw Commissioner Shaw shared that the youth department is hosting a free girls’ basketball program called "Her Time to Play" at the Lohrey Recreation Center this fall. The program is for girls ages 7 to 17, focusing on skill-building, confidence, and teamwork, running from September 17 to October 24 on Tuesdays and Thursdays from 6 to 8 p.m. She encouraged interested participants or coaches to contact the City of Dayton Recreation Department for more information. Mayor Mims Mayor Mims highlighted two key community initiatives: the Clothes That Work event that provides job seekers with appropriate attire and offers resume building and updates, with registration required at the Dayton Metro Library by August 13th; and a festival at the North Branch Library on August 2nd featuring food, games, music, school supplies, and community resource partners. He encouraged residents to take advantage of these opportunities and closed the meeting. He concluded the meeting with his signature message: “Love and peace for all and hatred for none.” ADJOURNMENT There being no further business, the meeting was adjourned at 7:10 p.m. CITY COMMISSION MEETING On Wednesday, July 23, 2025, the Dayton City Commission met in a work session in the PRC. CALL TO ORDER Abbie Patel-Jones, the Director of Management and Budget began the work session. This is the midyear briefing, which includes a status update on the organization's financial health over the past six months, economic forecasts from experts, and updates on enterprise functions such as the airport and water department. MANAGEMENT AND BUDGET UPDATE During the midyear financial update, staff reported that overall revenues are trending higher than in 2024, with an increase of $7.9 million or 7.5%. However, revenues are still slightly under budget by about $1.25 million, or 1%. Income tax, which accounts for over 70% of the City’s total revenue, remains flat compared to 2024 and is just under budget by approximately $456,000. Despite this, income tax performance is actually favorable  2240 CITY COMMISSION _ recuiar MEETING _ suty 30 2025 Barrett Brothers T1505087LD when accounting for the fact that 2025 had fewer five-Friday months, which typically generate an additional $1.1-$1.5 million per month. Other revenue categories also showed strong performance, with a 225.5% increase largely driven by the final transfer from the Polar Fund, which occurred in June this year rather than July, as it did in 2024. That fund has now been fully depleted. Fines and forfeits rose by 52.2% ($1.4 million) due to revenue reclassification, and EMS billing increased by 13.5% ($500,000), largely due to a Medicaid transport rate hike from $149 to $259, the effects of which are being realized in 2025 due to billing lags. On the expenditure side, total spending is $2.8 million under budget, though still $7.9 million higher than the same period last year. Personnel costs are $3.6 million under budget but $4.3 million (or 5.8%) higher than in 2024 due to annual wage growth, the timing of police and fire recruit classes, police contractual wage adjustments, and NATO-related costs. Contract, materials, and other operating expenses increased by $600,000, largely due to NATO event supply needs, though this was partially offset by lower transfers. Most investments were funded early in the year to allow for adequate procurement time. One notable investment area is the "Your Dollars, Your Neighborhood" program, which saw a 31.4% increase tied to the renewal of Issue 6 growing from $8.3 million to $10.9 million. Within income tax categories, withholding declined by 0.9% ($670,000), while taxes on business profits including corporate and partnership income increased by 7.4% ($620,300). Individual payments also rose by 2.5%, adding a modest increase of just over $100,000. Jeanette Ghand began by discussing property taxes, which have increased by 11.9% (approximately $578,600). This rise isn't due to new property valuations in 2025, but rather because the County revaluation conducted in 2023 began to affect revenue in 2024. In 2025, the County adjusted its advance payments to better align with those updated property values, resulting in a 16.5% increase in advances compared to last year. When asked by the Mayor to explain the benefit of rising property values, Ms. Ghand clarified that while property taxes didn’t increase, higher valuations generate more revenue without raising tax rates, helping the City keep up with rising expenses. She also noted that revenue from the hotel lodging tax will soon be phased out due to the transfer of the convention center to the Convention Facilities Authority. Next, she explained the 52.2% ($1.4 million) increase in fines and forfeits revenue, which is mainly due to code enforcement revenues now being deposited directly into the general fund instead of a separate fund. However, this category is slightly under budget because only five months of revenue had posted as of June. Other revenue increased by 225.5% largely due to the final $3.7 million transfer from the code enforcement fund. This transfer occurred in June 2025, compared to July in 2024, making direct comparisons slightly uneven. She also mentioned a decline in cable franchise fees, which appeared larger in 2024 because of a delayed posting from 2023. Refunds and recoveries are up 57.8% ($113,000), driven by reimbursements for Dayton Fire Department’s involvement in Kentucky flood relief and rebates from City procurement card purchases. Ms. Ghand concluded by highlighting five-year trends. While income tax remains the largest revenue source, it now makes up 71.2% of general fund revenue, slightly lower than in previous years due to the large transfer from the enforcement fund. Income tax collections are nearly flat year-over-year but have grown by 10.3% since 2021, largely due to post-pandemic stimulus. Other revenue sources are up 31.2% since 2021, with property taxes up 46.4% due to revaluation, EMS fees up 16.5% due to higher call volume and Medicaid rate increases, and the local government fund down nearly $2.5 million from 2021 despite $1.4 million received this year.  ae 2241 CITY COMMISSION REGULAR MEETING JULY 30 2025 Barrett Brothers T1505087LD Abbie resumed the presentation with an overview of personnel expenditure trends. Total personnel costs rose by 5.8% ($4.3 million) compared to 2024, driven largely by a 7.2% increase in civilian wages due to wage inflation and the early start of the police recruit class. Sworn wages rose by 9.1% ($2.1 million), primarily due to a new police labor contract enacted at the end of 2024 and the early start of the fire recruit class. Sworn overtime increased by 18.1% ($635,300), largely due to staffing requirements for the NATO event. On the other hand, health insurance costs declined by $1.3 million because of a planned "health insurance holiday" in June 2025, which didn’t occur in 2024. Contract and material costs (excluding transfers) increased by 5.9% ($1.4 million). However, when factoring in other uses, the increase was moderated by the absence of $812,000 in one-time transfers that had occurred in 2024 for technology projects such as security cameras and navigation systems. The largest increase in spending was within the miscellaneous category, attributed to NATO-related contractual agreements and supplies. Management and public service contracts declined by 27.6% ($1 million), largely due to the timing of payments to the Regional Building Council. Tax expenditures were up nearly $1 million due to increased real estate assessments from the Miami Conservancy District for both ongoing maintenance and new capital improvements. Higher supply costs were linked to end-of-life computer replacements, and utility costs also rose slightly, mostly due to street lighting maintenance, though some of that was offset by lower electric bills caused by ongoing AES billing issues. Looking at five-year trends from 2021 to 2025, combined personnel and contract/material costs have increased by $26.2 million, or 34.1%. Personnel costs alone rose by $17 million (27.5%) due to wage inflation, added positions, healthcare expenses, and overtime. Contract and material expenses rose even more sharply, up 60.8% ($9.3 million), as spending rebounded from COVID-era reductions. This shift has changed the City’s spending mix: in 2021, personnel costs made up 80.2% of total spending; by 2025, that number dropped to 76.3%, with more dollars now flowing to contracts and services, including new efforts like the core security contract with the Montgomery County Sheriff's Office. Abbie also presented an update on the City’s Recovery Plan. Of the 60 total projects in the plan, nearly $90 million in contracts have been awarded so far, with $44.6 million spent to date. Minority Business Enterprise (MBE) participation is at 96%, with $21.5 million achieved out of a $22.5 million goal. Three projects have yet to reach the contract award stage, all within the "Improving Neighborhoods" category, including a housing initiative still awaiting historic tax credit approval, an MBE compliance tool currently in procurement, and the Safe and Secure Housing program, which has begun but includes future operating costs funded outside the recovery plan. Lastly, she reviewed the City’s “revenue circuit breaker,” which uses standard deviation modeling to identify revenue categories falling significantly below historical averages. The analysis flagged three categories as underperforming: base collections (due to delayed billing), intergovernmental revenue (pending NATO reimbursements), and fines and forfeits (due to receiving only five months of photo enforcement revenue instead of six). All are expected to return to normal once timing issues resolve. Abbie noted this pattern isn’t unusual, only in 2021 and 2022 did all revenue categories pass the circuit breaker test, while most years see two or three categories fall short. Abbie continued with an overview of departmental budget variances, noting that total general fund expenditures were at 52.2% of the annual budget at midyear. Most 2242 CITY COMMISSION ®®S0248 MEETING JULY 30 2025 Barrett Brothers T1505087LD departments are performing within expected thresholds, except for Fire, Police, IT, Issue 6, and Income Tax. The variance for Fire and Police is primarily due to elevated overtime costs tied to NATO event staffing. IT's variance stems from timing, much of its 2025 budget (46%) is allocated to contracts and materials, particularly one-time payments for technology subscriptions and maintenance made early in the year. Issue 6 and Income Tax show high variances due to the front-loaded nature of investment funding, which occurs early in the year. Looking ahead, the 2025 year-end projection anticipates slightly under-budget revenues that still exceed 2024 levels. Income tax remains steady, buoyed by gains from business profits and individual payments, despite fewer five-Friday months this year. The revised revenue forecast is slightly higher than originally projected, thanks to the anticipated NATO reimbursement from the state, though this has increased corresponding expenditures. Spending is expected to remain elevated in the second half of the year due to continued safety staffing challenges, but the City still expects to end the year under budget, with a projected use of $1.5 to $2.5 million in cash reserves, slightly above the initially planned $1.2 million. Given inflation, rising personnel costs, and economic uncertainty, the City will continue close budget monitoring into future years. Abbie then reviewed local economic indicators, highlighting that Dayton’s job base has fully recovered from the pandemic-era losses and now exceeds pre-pandemic employment by 3,700 jobs, reaching a new peak of 396,300. National job openings stood at 4.6%, with Ohio at 4.7%, while Midwest CPI increased 3% over the past year driven by food prices and offset slightly by lower gasoline costs. Core CPI (excluding food and energy) rose 3.3%. Real GDP declined 0.5% in QI 2025, with 15 out of 22 industries contracting due to higher imports, slower consumer and government spending, and only partial offset by increased investment. Unemployment also rose year-over-year: Dayton’s rate climbed from 5.9% to 6.4%, Montgomery County from 4.9% to 5.4%, and Ohio as a whole saw a similar increase. In closing, Abbie summarized the key takeaways: income tax remains stable, and the $7.9 million increase in revenue since 2024 is attributed to gains in the local government fund, new deposits from photo enforcement, and the final transfer from special projects into the general fund. Personnel costs rose by $4.3 million (5.8%) year-over-year due to wage increases and NATO staffing, but remained under budget. Contracts, materials, and other uses rose by 2.5% (nearly $600,000), again largely related to NATO. Overall, uses exceeded sources by $8.3 million due to flat income tax revenue, increased costs, and early capital investments. Continued monitoring will be essential as spending pressures, particularly in personnel and materials, persist into future years. AVIATION UPDATE Gil Turner, Director of Aviation and the Division Manager, Anna Stamper, began the second-quarter update by reporting a 2.7% increase in enplanements over the same period last year, totaling 323,000 passengers through June. While this growth is modest, it reflects a continued upward trend. Pre-pandemic enplanements in June 2019 were 441,000, meaning current levels are approximately 75% of that peak. Airline revenues were slightly down by $108,000 (2.4%) compared to 2024, primarily due to the annual "settle-up" payments to airlines, which occur when the airport's operating costs come in lower than expected, allowing the airport to refund airlines a portion of fees. Terminal rent declined by $44,000 (1.6%) due to lower rates per square foot, while landing fees increased by the same percentage, due to the use of larger aircraft, including a transition from 50- to 70-seat planes and a planned 737 route to Chicago. Despite the dip in airline  2243 CITY COMMISSION recutar MEETING suty 3, 5705-5 Z2ULZ9 COD REPRO 333-4043 revenue, non-airline revenue grew significantly, up $1.3 million (12.9%) driven by increased parking revenue ($536,000) from higher usage and rates, as well as a $678,000 jump in rental car revenue, largely due to a one-time settlement related to pandemic-era MAG waivers. Concessions increased by $93,000 (16.7%) as food and retail sales improved with increased terminal activity. Other gains included a $215,000 increase in property tax revenue (with one parcel alone up $28,000), and a $193,000 boost in ground leases due to tenants like Sierra Nevada and Joby. One category: “other non-airline revenue” declined by $452,000 (24.8%) due to a corrected reporting error on fuel flowage fees from the prior year. This involved Premier, a new fixed-base operator that took over for Stevens Aviation. On the expenditure side, personnel costs increased by $496,000 (9.6%) year-over-year. Wages accounted for $465,000 of this increase (up 14.4%) due to new responsibilities, such as operating the parking garage, improved staffing, and general wage growth. Overtime costs declined by $63,000 (20.3%) due to reduced reliance on overtime thanks to better staffing. Insurance costs remained mostly flat, offset by a health insurance holiday, and fringe benefits rose by $83,000 (10%) in line with wage growth. Contract and material costs decreased by $137,000 (1.9%). This included a $28,000 drop in management contracts (caused by a payment delay due to a vendor name change), a $220,000 reduction in marketing (from delayed payments to the Chamber of Commerce), and a $27,000 decline in professional services (due to decreased need for temp workers). Tax expenses, however, increased by $233,000 (34.7%), again tied to the property tax reassessment. Utility costs dropped by $216,000 (18.1%) due to billing issues with AES and IGS; the airport has been advised not to pay until the discrepancies are resolved. Other contract and material expenses increased by $375,000, most of which is attributed to economic development services tied to ARPA and CHRISA funding flowing through the accounting system. Looking at the big picture, total sources increased by $1.2 million (7.1%) over 2024, while total uses rose by $1.3 million (8%). Despite the spending increase, the department remains $735,000 (4%) below its year-to-date budget. A noted $1.4 million increase in capital project expenses related to an early-year transfer will skew results for the remainder of the year. As of the end of Q2, the airport was showing a manageable year- to-date deficit of $118,000, largely explainable by the capital expense timing. Director Turner noted that United Airlines is expected to become Dayton's second-largest carrier by next quarter, overtaking Delta as it introduces larger aircraft and new service to Chicago on a 737. Legacy carriers overall are performing well, and while American Airlines saw a temporary dip due to government travel instability, recent meetings indicate travel demand is stabilizing. The department is exploring new revenue strategies, especially targeting general aviation aircraft, and will continue implementing cost-saving measures while monitoring trends to ensure financial health through the second half of the year. Commissioner Turner-Sloss expressed her appreciation and congratulations to the Aviation Department, noting that they are performing well. She thanked Director Turner and acknowledged the efforts of the entire staff. WATER UPDATE Water Director Keshia Kinney reported that the Water Department’s second-quarter performance in 2025 is tracking as expected, with revenues and expenditures largely aligning with projections. City water revenue was up 9% (approximately $1.3 million) over forecast, and revenues from other jurisdictions were up 12.3% ($1.5 million), driven 2244 CITY COMMISSION pecutar MEETING suty 30 2025 COD REPRO 333-4043 by increased usage in Montgomery County service areas and billing adjustments for several large accounts. Lime sales rose 20% ($300,000), reflecting a 13% rate increase tied to production cost indexing. While “other revenues” were down by 13.9%, Kinney explained this was a positive indicator, primarily resulting from fewer shut-offs and delays in certain billings, which are expected to catch up in future quarters. On the expenditure side, personnel costs were up slightly due to partial progress in filling positions, particularly within 24-hour operations. While staffing improved, vacancies remain and contributed to increased overtime costs. Insurance expenses were offset by a planned health insurance holiday. Contracts and materials spending declined by 0.1%, partly due to ongoing billing issues with IGS. Those reductions were offset by higher sludge disposal costs (due to a 5% CPI-based increase) and one-time capital expenses, including completion of a long-awaited generator installation at Ottawa Yard and facility security upgrades like fencing and card readers. On the sewer side, revenues also performed slightly above expectations. City revenue increased by about $32,000, and revenue from other jurisdictions rose $1.5 million, driven by a combination of rate increases and higher usage. Compared to the same period in 2024, sewer revenue is up $700,000 (6.5%), while outside jurisdiction revenue increased by 9.3% ($1.4 million). A renewable natural gas (RNG) project contributed to the revenue gains, along with better billing timing. However, suspended solids revenue was down due to fewer customer treatment upsets, although one case of elevated biological oxygen demand (BOD) did generate additional charges for an industrial user. On the expense side, sewer fund personnel costs were lower due to vacancies, though this also led to increased overtime to cover 24-hour staffing needs. Insurance and contract costs were also down, mostly due to timing issues with IGS billing and the deferral of a one-time liner project. Sludge costs were up, consistent with CPI-driven increases. The department also completed a capital improvement project at the west pump station involving pump and motor replacements. In summary, both the water and sewer funds are performing slightly above 2024 levels and are trending in line with projections. New revenue streams, such as increased lime sales and renewable natural gas are bolstering fund performance. While the water side has seen higher personnel costs due to active recruitment, ongoing vacancies continue to drive overtime needs on both sides. Contract and materials expenses are down overall, but largely due to temporary billing delays. Importantly, neither fund has had to utilize its cash reserve through the second quarter, which aligns with the department’s financial goals for the fiscal year. Commissioner Fairchild asked whether the reduction in water shut-offs was due to a change in policy or if residents were simply doing better financially. Deputy City Manager LaShea Lofton responded that the improvement is largely the result of a multi- year effort to make bill payment more accessible. She explained that the City’s transition to a new billing vendor allowed residents to pay their water bills in cash at neighborhood locations like CVS. In addition, enhancements to the online system have made it easier for residents to access and manage accounts, including setting up payment plans online. These improvements in accessibility have significantly contributed to the reduction in shut-offs.  2245 CITY COMMISSION _ REGULAR MEETING guLy 30 2025 COD REPRO 333-4043 ADJOURNMENT The work session was concluded. Attest: Roa nou Rowlishoan | Clerk(f Commission