Written by Mayor Bill Collins issued a stark communication to city leadership yesterday, outlining what he described as an incredibly “trying week” for the City of Marion.
The email details two major developing stories: an immediate payroll disruption and a massive projected financial deficit for 2026 that has triggered emergency cuts.
Here is the breakdown of the situation:
1. The Payroll Blunder
The City’s “go live” date for the new ADP payroll system hit a major snag today. Due to a “miscommunication/lack of communication” with Fahey Bank, city funds were not transferred to ADP yesterday as required.
The administration, the bank, and ADP are scrambling to ensure employees are paid by the end of the day.
Auditor Miranda is reportedly keeping employees updated on the status of their paychecks.
2. The Financial Cliff: A $4.9 Million Deficit
While the payroll glitch is immediate, the email reveals a far more dangerous long-term problem. Following the presentation of the Draft 2026 Budget last Monday, the numbers have come back grim.
The Numbers Provided by the Mayor:
Proposed 2026 General Fund Budget: $19,843,747
Projected 2026 Revenue: $15,547,375
The Deficit: -$4,984,374
Mayor Collins stated bluntly: “We realize that the City has been deficit spending for far too many years and we simply cannot afford to continue that trend.”
3. Mandatory Cuts Ordered Immediately
In response to these numbers, the Mayor held a mandatory meeting with all department heads today with the following directives:
10% Across-the-Board Reduction: Every department must cut 10% from the budget they submitted on Nov 17.
Deadline: These revised budgets are due to the Budget Director by 12:00 PM on Wednesday, Nov 26.
Further Eliminations: The Mayor noted that 10% alone does not close the gap. He and the Budget Director will be reviewing General Fund lines to eliminate anything “not absolutely essential to city government.”
4. Economic Development Director Position Cut
The first major casualty of this crisis has been confirmed. Mayor Collins stated: “I had decided after Monday’s meeting to remove the Economic Development Director Position from the budget, due to our ongoing crisis it simply cannot happen.”
5. State Auditor Involvement
The situation is escalating to the state level. The Mayor indicated that an email is expected this coming Monday regarding the Ohio Auditor of State’s Analysis on the City’s Financial Status.
The reduced budgets and cut proposals will be presented to the Finance Committee for review on December 1.