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