Grandview Heights' income tax receipts for 2012 reached a level not seen since 2008, and prospects are even better for the new year, city leaders say.
Director of Finance Bob Dvoraczky presented an update on city finances Saturday, Jan. 26, during City Council's annual planning and goal-setting retreat.
Income tax receipts totaled just under $6.4 million in 2012, an increase of about $1 million over the previous year, and the city achieved a near-balanced budget for the year, he said. Income tax receipts for the year were about $640,000 more than expected.
Withholding receipts increased by $630,000, "and what really gets my heart to flutter" is that the net profits receipts rose by $320,000, Dvoraczky said.
"I think our businesses have recovered from the recession," he said. "They are still with us and doing better and there are also new businesses now with us."
Dvoraczky said he expects the city to receive $6.7 million in income tax revenue this year, and added it's possible the final total could reach $7 million.
Whether the city sees the same kind of bump in 2013 as it did last year will depend greatly on activity at the Grandview Yard development, he said.
The income tax provided 62 percent of the city's general fund revenue in 2012 and the property tax was responsible for 17 percent, Dvoraczky said. The service contract with Marble Cliff provided 5 percent.
About three-fourths of the city's general fund budget went to salaries and benefits last year, he said. Other expense categories included transfers and advances, 8 percent; contractual services, 7 percent; general operations, 6 percent; and other non-operating costs, 5 percent.
City revenue was about $134,000 more than expenses in 2012, Dvoraczky said.
When encumbered purchase orders are included, however, the end result is a $159,000 deficit.
However, that total is much better than the $807,000 deficit that was projected at the beginning of last year, he said.
The city's unencumbered cash balance has remained at $3.1 million or $3.2 million each of the last three years, Dvoraczky said, adding he was pleased with that stability, as was the city's bond counsel.