Hilliard Northwest News

Second-quarter report

Delande: City could close 2013 with $1M surplus


Hilliard's revenue through the first six months of 2013 is slightly more than estimated, according to a second-quarter report from Hilliard Finance Director David Delande.

The city's expenses are slightly less than projected, resulting in an early estimation that Hilliard will finish 2013 with a general-fund surplus of about $1 million, Delande said.

Delande delivered the financial report at the Aug. 26 meeting of Hilliard City Council's Finance and Administration Committee.

If the city were to carry over $1 million, he said, it would boost its total reserve to $4.9 million. That amount is 28.9 percent of the city's annual operating cost and allows city officials to achieve the goal of maintaining a cash reserve equal to at least 25 percent of the annual operating cost.

Through June 30, the city collected total general-fund revenue of $11.5 million, or 56.6 percent of the estimated total of $20.4 million, for 2013.

Meanwhile, the city spent $8.8 million through June 30, a figure that is 43.3 percent of the estimated 2013 general-fund expenditures of $20.3 million.

Spending levels were less than 50 percent of the estimate for all of 2013 for personnel (45.9 percent), supplies (41.5 percent), services (40.1 percent), travel (21.6 percent) and utilities (43 percent).

In particular, personnel costs are down $47,850 during the first six months of 2013 compared to last year, Delande said.

"This is due to a combination of various factors, including department restructurings, position vacancies and health-insurance plan adjustments," Delande said.

Other second-quarter budget highlights were:

* As of June 30, Hilliard had collected $7.5 million in income-tax revenue, or 56.6 percent of the $13.25 million of estimated income-tax revenue for 2013.

"At June 30, you want to be at least 50 percent," Delande said.

* Hilliard hit the 50-percent mark in all but one category of general-fund revenue: interest earnings.

"There are no signs of hope ... it's just ridiculous," Delande said.

Through June 30, Hilliard collected $14,617 in interest earnings, or 23.2 percent of the estimated $63,000.

In 2007, the city had interest earnings of $862,489.

Each year, Delande said, the city has lowered its estimate, and each year, the rates decrease.

"I think CDs are making about three-tenths of 1 percent," he said.