Hilliard finances: Income-tax revenue up, other sources down
Municipal income-tax revenue for Hilliard increased 8 percent in 2012 compared to the previous year, but other revenue sources decreased, according to city officials.
Hilliard collected almost $19.1 million in income-tax revenue in 2012 and $17.67 million in 2011, Finance Director Dave Delande said.
The 2012 collection was $660,375 more than what the city had estimated.
However, revenue lagged in other areas.
"Interest earnings were less than half of what was estimated," Delande said.
Delande said he and Michelle Kelly-Underwood, his predecessor as finance director who retired last year, were mindful of a spiraling decrease in interest earnings.
However, he said, the amount has yet to bottom out and has consistently been less than estimated since 2007, when the city's interest earnings were $862,489.
In 2008, interesting earnings for the city decreased to $352,368 and have decreased every year.
Last year, the city's interest earnings were $56,637.
Delande said the long-term interest earnings outlook remains unchanged.
"It is unlikely we will see 2007 earnings return," Delande said.
The city collected $1.18 million in property-tax revenue, 97.3 percent of the estimated amount, in 2012.
Hilliard also absorbed a significant reduction in revenue from the state's Local Government Fund, reductions Gov. John Kasich promised in Ohio's biennial budget.
Hilliard received $573,278 in local government funds in 2012, 30 percent less than the $819,976 it received in 2011.
Estate-tax revenue also decreased to $140,380 in 2012 from $563,407 in 2011. Estate-tax collections ended Jan. 1 because the state legislature recently repealed the tax.
Hilliard's total general-fund revenue for 2012 was almost $20.1 million.
On the expenses side of the ledger, all 2012 operations funds were less than the original budgets, Delande said.
Hilliard's general-fund expenditures were $18.3 million in 2012, approximately 93 percent of the city's $19.6 million in estimated expenses for the year.
The city carried over a surplus of $1.4 million in 2012, increasing its cash balance to $4.9 million and moving the city closer to its goal of maintaining a cash reserve equal to 25 percent of its general-fund revenue.