Mason Matters April / May 2011
Inside This Issue:
2 From the City Manager 3 Mason Community Center Outlook 3 Ready to File your Taxes? 4 Around Mason 4 More Changes Coming to City Website
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City Tightens Its Belt
ike its residents, the City of Mason continues to feel the impact of the economic recession. The following is a brief summary of the city’s General Fund at the end of 2010.
General Fund Revenue
General Fund Expenditures/2011 Budget
In response to the declining revenue, the City of Mason has taken action to reduce and control costs while minimizing the impact of contractual commitments and rising costs on services. Since 2008, annual operating expenditures were reduced by $2.1 million
Capital Expenditures
Historically, additional revenue and onetime sources of funds have been used for debt reduction and capital improvements (road projects, building improvements and maintenance, major equipment purchases, etc.) Since the gap between revenue and the cost to provide services has narrowed, fewer dollars are available for debt reduction and capital improvements. As a result, capital expenditures budgeted in 2010 focused on infrastructure maintenance and replacing existing equipment that is too costly to maintain. In 2011, the largest project is the U.S. 42 Improvement Project. The $7.5 million cost of construction will be paid using $6.5 million in grants and $1 million to be financed and paid through city funds designated for state and federal highways.
Debt and Fund Balance
Debt supported by the General Fund declined $2.2 million in 2010 from $50.7 million to $48.5 million. 2011 continues the plan to reduce the outstanding debt supported by the General Fund to $46.2 million. The City of Mason maintains an operating reserve in the General Fund for emergencies and unexpected needs. It is a recommended practice to maintain a reserve of at least 25% of expenditures. At the end of 2010, the City of Mason’s General Fund had a balance equal to about 39% of the General Fund’s expenditures.
Outlook
The City of Mason has continued to maintain an Aaa credit rating from Moody’s
Investor Service for its general obligation debt. This is the highest credit rating available. The city continues to benefit from its location and economic role in the Cincinnati area, a diverse income tax base, and manageable debt burden. This exceptional credit rating reflects the city’s healthy financial operations characterized by strong reserves and prudent fiscal management. City of Mason General Fund (in millions)
$35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0
2008 Actual
2009 Actual
2010 Actual
2011 Budget
$31.1
$27.1
$25.5
$24.5
$25.6
$23.7
$23.5
$24.2
Revenue
Expenditures
Soliciting In the City of Mason
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he arrival of spring brings about an increase in the number of calls the police department receives about solicitors, more commonly known as door-to-door sales people. The City of Mason regulates solicitors under city ordinance 707. Following are some of the more important parts of the ordinance that residents should be aware of when they are contacted by a solicitor. Who does the ordinance apply to? It applies, with some exceptions, to “…any person … who sells, offers for sale, or solicits orders for future delivery of goods … or attempts to arrange an appointment for a future estimate or sales call.”
Mason Matters
The General Fund is the city’s largest fund and the one that pays for most city services. (Some services have separate funds, such as fire, sewer, and stormwater.) Income taxes are the greatest source of revenue in the General Fund. Other sources include property taxes, intergovernmental revenue, and fees for services. Since 2008, annual General Fund revenue has declined $5.6 million (18%). This decline was a result of the national recession combined with the phase-in of the income tax full credit. About 75% of all revenue for the General Fund is from income taxes. Of that, 81% is from businesses and from employee withholding. The remainder is paid directly by residents. Despite recent declines, however, income tax revenue has stabilized. State-supported revenue for the General Fund (part of intergovernmental revenue) is not certain as Ohio addresses its own budget deficit. At risk could be as much as $2 million of the revenue collected in 2010, which represents 8% of General Fund Revenue. The good news is that even though the City of Mason has lost a substantial amount of revenue and expects to see some additional declines, these declines may be absorbed through sound financial management.
(8%). Major areas of reduction include keeping positions vacant as staffing declines, eliminating most overtime, eliminating or reducing services that are not widely used, coordinating services among departments and other governments, and finding the lowest cost between contracting out services versus using city personnel. This approach has reduced the General Fund budget and has allowed the city to balance the 2011 budget.
—see SOLICITING on pg. 2 www.imaginemason.org
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