02.20.23 MEETING MINUTES - Laserfiche WebLink

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Minutes of the Regular Meeting of Council Monday, February 20, 2023 pg. 2 the funds for the budget. (Copy attached to these Minutes) If Council has any questions as I go through them, please feel free to ask. For the General Fund, we started out the year at $41.9 million. That's $842,000 higher than the beginning balance at 2022. To get that to that number, we had an operating deficit last year of $2.8 million. We received approval from the Department of Taxation to move $2,650,000 from the Civic Center Fund back to the General Fund to cover the loss of revenue. Our TIF monies which used to go into our Debt Fund are going into the General Fund because the Debt Fund is fully funded. That is $1,020,000. A combination of those three items resulted in an increase of $842,000 for the year. Looking at 2023, the revenue budget is $13.7 million. I budgeted $9 million for income taxes. For 2022, we got $9 million in income taxes for the year. That was net of about $2 million in refunds. We still have 2021 refunds that are flowing through but not near what they were last year. We still have the issue out there of the 2020 refunds which is being decided by the courts. I believe the Supreme Court is supposed to start hearing arguments for or against that starting March I". They are expected to make a decision sometime in late summer. Last year, we also had a high amount of net profit taxes. It was up by about $650,000 compared to last year. It was up over $1 million compared to two years ago. The net profit is something that is hard to forecast because we have no idea what the profit of the company is going to be. For the time being, because of those three items, I decided to be very conservative in putting the budget together for 2023. Also in that $13.7 million we have $927,000 for TIFS, $625,000 for grants. The grants will come into the General Fund and then will get transferred out. Those are grants for some of the road projects we are working on this year. There's also a $250,000 ARPA grant from the County for improvements to the Civic Center. Also in that number is $750,000 for interest income. I just wanted to share this because I just found it fascinating. In January of last year, we had $31 million in our Star Ohio account. The interest rate we were getting on that money was 1/101h of 1%. Our interest income was $2,800. This year, we are earning 4.6% on that money and our interest income for January of this year was $125,000. The same amount of money was $2,800 interest last year and $125,000 this year with the Federal change in the interest rates. That is something. I was conservative in the budget and put $750,000 not knowing what the Feds will do during the year, but it looks like our interest income will come in much higher than that. On the expenditure number, our budget is $18.9 million. Of that amount, $1,675,000 is transfers. $675,000 of those grants I mentioned previously that are in the revenue number are going to be transferred out. $250,000 will go to the Civic Center Fund. The balance will go to the Street Construction Maintenance and Repair Fund. The other $1 million, based upon the capital projects budget we have for this year, there's not enough money in the other funds to cover the total cost of those projects so we are getting into a situation where we need to either borrow funds or transfer money out of the General Fund. I don't think it's worth going out to the market for $1 million so that will come out of the General Fund to cover it, if needed.