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City Finances at Summer’s Close: “A very strong financial profile”

Written by David Robinson on . Posted in City Budget, City Services, Local Business

A couple of quick notes follow regarding City finances. The upshot is that both short term performance and long-term outlook remain strong.*

At summer’s end, 8.31.21, year to date (YTD) income tax collections are $2.2 million (15%) above budgeted projections (≈ $17.1 million vs. $14.9 million).  This equates to $3.6 million (20%) above 2020 YTD performance.

Increased revenue, combined with lower expenses (mostly covid-related reduced personnel costs, in Parks and Recreation, for example), have produced an increase in our General Fund cash balance to $20.2 million (compared to $18.4 million at 1/1/21).

 

Regarding our long-term financial outlook, the City received (in July) a AAA bond rating from Standard & Poors (AAA is the highest rating a municipality can receive).  S&P assessed our city’s financial strength and credit-worthiness as part of a recent bond issuance to fund capital improvements.

Here’s a highlight from the report: “Worthington’s credit quality is supported by its robust economic profile, with comparatively high incomes and wealth levels, diverse employment base, inclusion within the Columbus metro area, and proximity to Ohio State University. A growing tax base and adherence to comprehensive financial management practices have contributed to a very strong financial profile, including consistent operating performance, very strong reserves, and a manageable debt and retirement liability position [emphasis added].”  The full report can be read here: https://worthington.org/DocumentCenter/View/7950/Worthington-AAA-Rating-Report-FINAL-7-6-2021

* The 8.31.21 financial report can be found here, pages 29-34: https://www.worthington.org/ArchiveCenter/ViewFile/Item/3891

 

David Robinson

David Robinson lives in Worthington with his wife, Lorraine, and their three children—one who attends Kilbourne Middle School, one who attends Phoenix Middle School, and one who is a graduate of the Linworth High School Program and Otterbein University. David is President and co-owner of Marcy Adhesives, Inc., a local manufacturing company. David has served on Worthington City Council since January, 2018, and is deeply committed to 1) advancing resident-centered policies, 2) supporting responsible development that enhances our unique historic character, 3) endorsing environmentally sustainable practices for both residents and city operations, 4) promoting the safety and well-being of all residents, and 5) preserving the walkable, tree-filled, distinctive, friendly nature of our neighborhoods.