By Rick Palsgrove
The city of Groveport’s finances are in good shape, but city officials are watchful of the economy and the city’s revenue stream.
“The mid-year financial forecast allows us to see where we are and how far we’ve come,” said City Finance Director Jeff Green at the Aug. 20 Groveport City Council meeting. “We want to spend as wisely as we can. Our department heads have done a good job of keeping expenses down.”
In a report to council, Groveport City Administrator Marsha Hall noted she anticipates a decrease in revenue that could result in the general fund balance, which recently has been above $2 million, falling just under $2 million for the next two years. She said this is due to a combination of Senate Bill 5, which is a tax law regarding where the origin of sales take place; and because of a new state requirement to transition from local business income tax collection to centralized collection by the state.
“We are unsure how much (revenue) reduction is attributed to the centralized collection because information from the state is sporadic at best,” wrote Hall, who added that the lack of available land for development in the city also affects future revenue.
“Pretty much every community we talk to has seen a decrease in their tax collections, including Columbus,” Green told council in regards to the state’s centralized collection of income taxes.
Hall wrote that a consistent revenue stream is important in maintaining the quality of life for the city’s residents.
“Any slow down in the economy will have to be followed closely,” wrote Hall.
She noted the city has completed approximately $23 million worth of capital projects and purchases since 2012.
Green also said there are five payments left on the Groveport Recreation Center and the facility will be paid off in 2022.
“Our 2019 budget will be leaner, but not austere,” said Green. “It’s a chance to catch our breath.”