City has 'decent chance' of in-the-black 2013
Voters' nod to operating levy means revenue could exceed expenditures next year
Grandview Heights City Council's finance committee heard some news at its Nov. 19 meeting that might be considered an early Christmas gift.
Director of Finance Bob Dvoraczky reported his updated projections indicate the city's revenues may exceed expenditures in 2013.
The city has "a decent chance" of having a budget surplus for 2013 "courtesy of Grandview Heights voters," who passed the city's 7.5-mill replacement levy Nov. 6, he said.
The estimates now show the city's general fund revenues will exceed expenditures by $133,234, Dvoraczky said.
If the numbers hold true, it would be the first time that has happened since 2008, he said.
Dvoraczky cautioned that "this is a living document" and additional information or unforeseen circumstances could impact the projected numbers.
"But at this point, this is what the data tells me," he said.
There is good news about the 2012 budget as well.
Dvoraczky reported that thanks to additional income tax revenue, the city's budget deficit for the year will be lower than expected.
The projection now shows city expenses will exceed revenues by $183,059 in 2012, he said. When council approved the 2012 budget last December, the deficit was anticipated to be about $807,000.
The city is expected to end the year with a cash balance of about $3.1 million -- several hundred thousands dollars more than was expected when the year began, Dvoraczky said.
"So we're very pleased with that," he said.
The finance committee met before council's regular meeting Nov. 19 to continue its review of the proposed 2013 budget, presented earlier this month by Mayor Ray DeGraw.
The draft budget proposes a $9,454,266 general fund budget for 2013 -- an increase of $41,025, or 0.44 percent, from the initial 2012 budget council passed.
Council is expected to vote on a final 2013 budget package at its meeting Monday, Dec. 3.
Dvoraczky said at that meeting, bond counsel Brian Cooper is expected to report to council on the results of the rating presentation the city made earlier this month regarding its plan to sell up to $2.8 million in bonds to pay the cost of park improvements.
In its presentation to Standard & Poor's, the city sought a credit rating in the AA category.
Cooper will report on what credit rating the city will receive and the interest rate it will have for its bonds, Dvoraczky said.
Council is expected to vote Dec. 3 on an ordinance authorizing the city to issue and sell the bonds for the park projects.