Resident Services

Resident Services / Finances

City Finances

Managing the finances of a City is a complex and detailed matter. In recent years, Upper Arlington has reaped the benefits of sound financial management and long-term planning, most notably realized in 2003, when the City's financial rating from Moody's Investor's Service was upgraded to Aa1.

Cognizant of several financial challenges our City continues to face as it works to provide a high level of services within a finite set of resources, City Council has put several financial financial policies in place that achieve just that:
- City Council adopts balanced annual operating budgets. This has consistently enabled the City to conduct operations without relying on reserves, and has helped strengthen the reserve fund during years when revenues exceeded projections.
- The City maintains conservative Estate Tax projections as part of the budgeting process, with unanticipated revenues dedicated to supporting capital projects such as road improvements.
- The creation of a Debt Policy has provided a set of criteria to help determine when to fund special projects using existing reserves or by seeking loans.

Over the course of several years, these policies have resulted in a sound financial picture, enabling the City to undertake long-range planning and to address significant projects outside the norm of day-to-day operations.

One significant example is the City's Capital Improvements Policy (CIP). Several years ago, UA voters supported a $10 million bond issue that would enable the City to develop a five-year CIP addressing infrastructure improvements, with $2 million dedicated each year. As a result of the City's solid financial planning, the CIP was extended to seven years with $5 million dedicated per year, without the need to go back to voters for additional support.

Upper Arlington is wise to continue on its path of conservative revenue projections and efforts to seek alternate revenue sources. Three main components of the City's revenue stream continue to be at risk:
- Changes in Estate Tax law have already decreased the resulting revenues reaching the City, with the possibility it could be eliminated completely.
- The Local Governement Fund, approximately 10 percent of the City's revenue, has been reduced and discussions continue at the State level regarding the possible elimination of this fund.
- The City's income tax make up a significant portion of revenues, yet we are reliant on a small number of larger employers as a result of the limited amount of land dedicated to commercial use.

Maintaining the financial wherewithal to be able to seize economic development opportunities is key to maximizing the City's long-term income tax revenue potential. Many of the economic development incentive tools available to communities require short-term financial investment to support such projects.

With strong leadership from City Council and the professionalism of our Finance Department, the City is in a strong position to continue providing top-notch services to its residents while taking the necessary steps to plan ahead for our future.

Budget
Every two years, the City Council approves a biennial budget to fund the operations and capital purchases of the City, as proposed by the City Manager. In addition, City Council approves capital infrastructure projects on an annual basis. For details of the City's budget, contact the Finance Department at 583-5280.

Annual Financial Statements
The City prepares a Comprehensive Annual Financial Report (CAFR) in accordance with generally-accepted accounting standards. These statements are audited annually to assure fiscal responsibility and compliance with state and national laws and regulations. The City of Upper Arlington has received the Certificate of Achievement for Excellence in Financial Reporting, issued by the Government Finance Officers Association, for the past 19 years.

Finance Department
City of Upper Arlington
3600 Tremont Road
Upper Arlington, OH 43221
Phone: 614-583-5280
Fax: 614-457-1944
www.ua-ohio.net