LORAIN — Lorain City Council approved the city’s 2026 budget during a special meeting Monday, passing the measure ahead of a required deadline while acknowledging a projected $2.7 million shortfall tied largely to the city’s utility fund.
The budget ordinance covers city expenses from January 1 through December 31, 2026, and was approved unanimously after being amended. Council held the special meeting under Ohio law requiring statutory cities to adopt an annual budget by a set deadline.
City officials said passing the budget was necessary to meet the deadline, even as financial concerns remain.
The shortfall is primarily connected to the city’s water pollution control fund, which officials said has been impacted by years of spending against a previously accumulated surplus. Even after adjustments, the deficit remains a concern heading into the new fiscal year.
Safety-Service Director Rey Carrion emphasized the shared responsibility surrounding the budget during discussion, stating that it is something “we all need to own,” echoing Councilwoman Mary Springowski’s earlier statements.
Councilwoman Mary Springowski described the budget as a “living document,” adding that council will meet quarterly, if not monthly, as needs arise.
City Auditor Anita Harper previously outlined a temporary approach to balance the budget by adjusting revenue estimates. That move allowed the fund to appear balanced on paper, but officials cautioned it is not a long-term solution.
Officials said they removed approximately $500,000 in planned raises and new positions and added about $600,000 in additional revenue projections based on prior years. Despite those changes, a deficit of roughly $1.6 million remained before further adjustments were made to close the gap.
Part of the financial strain may be tied to unpaid utility bills. City officials said approximately 3,400 accounts are delinquent, representing about $2.8 million owed to the city. Lorain has roughly 26,000 utility accounts within the city and about 800 outside city limits, with higher rates charged to those outside the city.
The Ohio Attorney General’s Office does not pursue collection of unpaid utility bills, and officials said the city may consider hiring a third-party agency to recover the outstanding balances.
Council members also discussed the need to control spending and evaluate staffing levels, including the possibility of eliminating or consolidating certain positions to reduce costs.
Council indicated the budget will be reviewed regularly throughout the year, with additional adjustments possible as financial conditions change.
Following passage of the budget, council entered executive session to discuss legal matters related to pending or potential litigation. No additional action was taken after returning to open session.
At this time, it is not known whether or when specific rate increases or additional budget changes will be implemented, though officials indicated those decisions could be revisited in the coming months.
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