City Finances: First Quarter Update (looking strong)
When assessing the City’s financial condition, it is best to be sober-minded and prudent. There’s too much at stake to be otherwise. It’s the job of the City to safeguard public funds, to think long-term, to invest and spend wisely, and to be ever-vigilant about potential hazards, those known and unknown.
With these cautionary words in mind, I believe we can nonetheless say that the City’s first quarter financial report,* presented to City Council on Monday, indicates continued robust performance as we move into the post-pandemic economy. Bear in mind that these positive numbers reflect current business and infrastructure only, and that significant, additional revenue streams will be coming online during the next few years, from the High North mall redevelopment project, the Olive headquarters at the Anthem Bldg., the Gateway project at the old Holiday Inn site, the Northeast Gateway, etc. Given our underlying structural strengths, momentum for future growth, and these positive current performance numbers, I believe it is fair to say that the state of Worthington’s finances is strong in the spring of 2022. Be assured that City Staff and Council will continue to work diligently with private businesses to ensure it remains so.
Here’s the highlights at 3/31/22:
- Income tax revenue for the first quarter is up 10% from last year’s record performance, and 10% over budget.
- General Fund Cash Balance was $20.8 million at 3/31/22 (up from $19.5 at 1/1/22); the Unencumbered Balance was $16.5 million (54% of prior year expenditures).
One issue of note: the impact on Worthington of new rules for withholding income taxes, based on physical location of workplace with the allowance for proportional filing (“work at home” rules), is being carefully watched. We should have a good sense by mid-year of the impact of these new rules, but overall March filings of income tax were up 10.8%, an encouraging early sign. End of second quarter results will provide a broader picture for us. Stay tuned.
- The 3.31.22 financial report can be found here, pages 14-19: