Land acquisition is part of the reason the city of Dublin’s expenditures this year are exceeding revenue, according to City Manager Dana McDaniel’s Nov. 19 letter included with the city’s 2019 operating budget.
City officials are estimating this year’s operating expenditures will exceed operating revenue by about $6.23 million, according to McDaniel’s letter.
The budget shows the city is projected to have operating expenditures of $90.69 million this year. This year’s operating revenues are estimated to be $84.46 million.
Operating revenues in 2019 will be $86.79 million and operating expenditures will be $89.49 million, a difference of $2.7 million.
The $89.49 million represents expenses related to day-to-day operation of the city said Angel Mumma, Dublin’s finance director.
Council members Nov. 19 approved the 2019 operating budget, which includes $86.79 million in budgeted operating revenues and $89.48 million in operating expenditures for the coming year.
At the end of 2019, the city expects to have about $53.09 million in its general fund.
The city’s 2019 general fund operating budget includes a little less than $5.5 million for information technology, a little less than $26.4 million for finance, a little more than $15 million for public works, a little less than $8.2 million for development and a little more than $9.1 million for parks and recreation.
This year, Dublin purchased the 5555 Perimeter Drive property for $4 million. The building will be the site of City Hall in the future. Later this year, the city is slated to spend about $4.3 million to purchase about 28.84 acres of land along Eiterman Road next to Rings Farm, which the city purchased in 2016.
That latter purchase was planned to make the area more appealing to companies interested in locating in the area, according to an Oct. 4 memo to council members about the land acquisition.
While land acquisition contributed to the city’s projected operating expenditures this year, the city is expected to collect a bit more income-tax revenue than staff had originally predicted.
City officials had originally anticipated 2018 income-tax revenue would be 1.7 percent less than that of 2017, according to McDaniel’s letter. But collections through Oct. 31 actually showed a 0.1 percent increase over the same time period in 2017.
Now, the city is projecting 2018 income-tax revenue will be a little more than $86.4
million, which is 1.2 percent less than 2017 totals, Mumma said.
Part of the reason the city is preparing to collect less income tax revenue than previous years is because Nationwide Insurance continues to move employees from its Dublin location to the company’s location in Grandview Heights, according to McDaniel’s letter. There also has been a reduction in the number of employees at the Wendy’s Co., McDaniel wrote.
About 3,400 employees worked at Nationwide when the company announced it was moving to Grandview, Mumma said.
In May 2017, Wendy’s officials announced they were reducing costs in part by reducing the number of employees, including those in Dublin, Mumma said.