Introduction | Economic Development Insight | Business Survey
Economic Development InsightIntroduction | Financial Considerations | History of Economic Development | Master Plan | Commercial Districts | Mixed-Use Development | Market AnalysisFinancial Considerations- Financial Policies- Funding Sources - Annual/Ongoing Expenditures - Income Tax Comparison to Other Communities - Franklin County, Ohio Real Property Tax Rates (pdf file) - Looking to the Future Looking To The FutureCareful management and one-time revenue windfalls in recent years have allowed average revenues to exceed average expenditures, building up the general fund balance to a projected $15 million as of December 31, 2004. However, the City anticipates the fund balance will drop significantly over the next five years.This will result from two significant factors: 1. The City has committed $2.25 million for 2004–2006 from the general fund to support its Capital Improvements Program. Additionally, $2.4 million has been earmarked to support the Hastings Pool renovation, and $500,000 annually in 2004–2006 to support the Economic Development Fund. 2. Revenue growth projections are relatively small. Because the City is nearly fully developed, there is virtually no property tax base growth, with the exception of reappraisals and updates in millage requests. Charges for services only grow when usage increases or fees are raised. The Estate Tax is unreliable due to its nature and potential changes being discussed by the Ohio General Assembly. Therefore, the City budgets a flat $2.1 million per year for ongoing services instead of the average of $4.3 million collected over the last four years. Any amount collected over budget estimates is dedicated to capital improvements. Income tax revenue is the only major revenue source in which growth is projected. The City will face financial challenges in the next five years as it continues to try to find funding sources for renovating its aging infrastructure and maintaining the level of services. Building upon the income tax base is important because it is one of the few ways for the City to experience revenue growth without burdening its residents. Income taxes allow the City to include non-residents and businesses in sharing in the cost of the general services with residents who generate income within the City. Matt Shad Deputy City Manager-Economic Development City Manager's Office City of Upper Arlington 3600 Tremont Road Upper Arlington, Ohio 43221 Phone: 614-583-5046 www.ua-ohio.net |
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