Finance director Bob Dvoraczky presented a five-year financial projection for the city at Grandview Heights City Council's annual working retreat Jan. 28. The update was less gloomy than his forecast at the 2011 meeting.

Finance director Bob Dvoraczky presented a five-year financial projection for the city at Grandview Heights City Council's annual working retreat Jan. 28. The update was less gloomy than his forecast at the 2011 meeting.

While the city is still projected to have higher expenditures than revenues each year from 2012 through 2015, the "worrisome" outlook regarding future year-end cash balances has improved, Dvoraczky said.

And 2011 turned out better than budgeted, with the city in essence breaking even for the year, he said.

The city's 2011 budget showed receipts expected to total about $8.6 million and anticipated expenses of slightly more than $9.5 million, which led to expectations of a $898,779 shortfall.

But the actual numbers for the year show the city's receipts were $50,362 more than expenses in 2011, Dvoraczky said.

In addition, actual expenses were less than budgeted in many areas "because we made a conscious decision to hold the budget down," he said.

The city is now projected to maintain a positive year-end cash balance through the next five years, Dvoraczky said.

In his report at last year's retreat, Dvoraczky projected the city's year-end cash balance would show a deficit of $257,430 in 2015 and $369,449 in 2016.

In the revised forecast he presented Saturday, the city is projected to maintain a positive year-end cash balance of $756,383 in 2015 and $977,275 in 2016.

In 2016, city revenues are expected to exceed projected expenditures by more than $200,000.

The city can expect to see more income tax revenue in the coming years than he projected one year ago because of additional jobs moving into Grandview, Dvoraczky said. Income tax receipts are now expected to grow by 4 percent in 2013-14 and 6 percent in 2015-16, he said.

The hotel tax collected from the Hyatt Place at Grandview Yard is also projected to bring in $45,000 each year.

The projections are based on a good-faith estimate, Dvoraczky said, and use the best data currently available.

The revenue assumptions use the 2011 fee Marble Cliff paid the city for municipal services as a placeholder, he said.

A new contact is being negotiated.

The projection regarding the local government fund from the state also uses the amount for the first six months of 2013 as a placeholder for the following few years since "we don't know what will come in the next (biennial state) budget," Dvoraczky said.

The local government fund in the state budget has already been slashed, he said.

Grandview received $593,513 in 2008 and $514,786 in 2011, Dvoraczky said. The total is projected to fall to $356,281 in 2012.

There is also uncertainty about how much property tax, payroll income tax and construction job revenue will be coming from the Grandview Yard project over the next several years, he said.