Finance 101

Strong tax base and conservative approach equals fiscal stability

TTHE CITy OF DuBLIN’S sustained economic vitality is the result of quality development, strategic planning and continued efforts to retain, expand, attract and create businesses in the city. Dublin strives to partner with its corporate community to help maintain a robust business climate. Not only is a strong, healthy business community vital to our local economy, it also helps fund the quality services that Dublin provides.

The city’s major revenue sources include taxes collected, service payments, charges for services and federal, state and local grants. Of these, the largest source of revenue is income tax, which totaled $71.6 million in 2011. This figure represented 66.5 percent of the revenue stream. Fortunately for Dublin, the city’s income tax revenues continue to grow despite tough economic times. The city experienced a decline for the first time in 2009, but rebounded in 2010.

Property taxes made up 3 percent, or $3.5 million, of 2011’s revenue. Dublin also generates funds from a 6 percent tax on overnight stays through the hotel/ motel tax. In 2011, this fund accounted for $1.7 million, or 1.5 percent, of the city’s revenue. This revenue is invested back into the community through designated projects and special events like the Dublin Irish Festival that enhance visitor appeal and encourage overnight stays. The Dublin Convention & Visitors Bureau and Dublin Arts Council each receive 25 percent of the annual revenue generated by the hotel/motel tax.

The 2012 Operating Budget reflects the key priorities of City Council for the continued provision of high-quality services to the citizens and corporate residents of the city. At the same time, it reflects the fiscal responsibility that the City of Dublin demands and that our stakeholders deserve.

Dublin’s Capital Improvements Program (CIP) is a five-year outlook for anticipated capital projects that is reviewed and updated annually. These projects are primarily related to improvements in transportation, parks, utilities and facilities. The 2012-2016 CIP represents $129.3 million in poten- tial investment in capital improvement projects in Dublin in the next five years, including $35.1 million in projects this year.

CIP projects expected to get underway this year include the design of the extension of Tuttle Crossing Boulevard from Wilcox Road to Avery Road; the widening of Emerald Parkway from Rings Road to Tuttle Crossing Boulevard in partnership with the City of Columbus; and the installation of a roundabout at the intersection of Cosgray Road and Shier Rings Road.

The city’s strong tax base and conservative budget philosophy have resulted in operating revenues exceeding operating expenditures for many years. This has allowed the city to increase capital programming and take advantage of opportunities as they arise. Proactive measures implemented throughout the past few years –including evaluating alternative approaches for service delivery, closely evaluating the merits of personnel vacancies and continuing to monitor expenses – have allowed the city’s financial position to remain strong during challenging economic times.

The city’s practice is to maintain a year-end balance equal to or greater than 50 percent of the General Fund expenditures. This enables Dublin to react at the speed of business and reprioritize projects as necessary. The level of the General Fund reserve is looked upon extremely favorably by the rating agencies and has been highlighted by both Moody’s Investors Service, Inc. and Fitch Ratings as a rationale for the city’s Aaa/ AAA bond rating, the highest rating available from both agencies.

As we continue through 2012 and beyond, we remain committed to serving the residents by providing high-quality services while continually evaluating the ways we deliver city services in an effort to improve efficiency and effectiveness.

Angel Mumma joined the City of Dublin as Deputy City Manager/Director of Finance in October. She previously served as Director of Finance for the City of Gahanna, where she was an employee for 14 years.

In Dublin, her primary responsibility is the formulation and execution of strategic financial policy serving to ensure the longterm success of the city. She provides leadership, direction and guidance to a staff of financial professionals and technical/ administrative support personnel engaged in budget administration, capital improvements programming, debt administration, investment management, tax increment financing, cost of service analyses, income tax collection and administration, accounting and auditing, payroll, fixed asset management, procurement, and accounts payable/ receivable.

Major projects she is charged with include tax increment financing/economic development agreements, the Capital Improvements Program, annual operating budget, annual financial audit, comprehensive annual financial report (CAFR), income tax collection and the cost of services project.

Mumma received a Master of Business Administration degree from Ashland University and a Bachelor of Science degree in Business Administration from The Ohio State University.

She serves as an at-large board member for the Municipal Finance Officers Association of Ohio and as a member of the Government Finance Officers Association and the Ohio Government Finance Officers Association. Mumma also was recognized by Columbus Business First as the 2011 Public Service Chief Financial Officer of the Year.