The city’s projected general fund balance will more likely fall between $11 million and $13 million, Chief Financial Officer Jim Brigham said Wednesday during a press conference at City Hall.
He is recommending using some of that money to build a $5 million reserve fund for capital improvements to start next fiscal year.
“(That money could) be used for capital issues, unknowns that come up in the future, whether they be disasters or improvements the city wants to make,” Brigham said.
Responding to questions from The Dispatch, Brigham clarified the $17.9 million general fund balance projection he previously provided the newspaper did not factor in two outside accounts – parks and landfill – that operate at “large negative balances.”
A treasurer’s report Brigham supplied The Dispatch in July projected almost $17.9 million in the ending balance for the general fund when the fiscal year ends Sept. 30. Listed below that number in the three-page document are a slew of other balances from outside funds – some negative, some positive – that bring the city’s grand funding total to a projected $36 million. Those outside funds include things like state and federal grants and 2% restaurant tax collections, among others.
Parks and landfill, listed as outside funds on the document actually count against the net general fund balance, Brigham explained Wednesday. Their combined negative balance of almost $4.8 million ($4.3 million of which comes from parks) brings the general fund projection down to $13.1 million.
City financial statements through July show the general fund balance at more than $11.6 million, including a little more than $1 million already in a reserve fund for capital improvements.
If the current trends hold, Brigham indicated that number will likely grow through the last two months of the fiscal year. So far in FY 2024, the city’s revenue has outpaced expenses by $1.3 million surplus, almost triple the surplus it budgeted.
“I’m encouraging people to be as cost conscious as possible as we go forward,” Brigham said. “… I would hope that expenditures would continue to be well under revenue.”
Whatever the actual ending general fund balance, Brigham suggests moving $4 million more into the capital reserve. That would boost the reserve to $5 million total, while keeping some cushion in its operating balance.
A strong capital fund should mitigate the city’s need to borrow for capital projects, Brigham said. For example, before cities and counties started receiving use tax in 2020 from internet sales to improve roads and bridges, Columbus routinely issued long-term bonds for road paving work.
“When you have a 20-year bond on a 10-year asset that you’re buying, you end up paying for something a lot longer than its usefulness to the city,” he said.
Vice Mayor Joseph Mickens led Wednesday’s press conference in place of Mayor Keith Gaskin, who is on a leave of absence due to health concerns. He said he supports Brigham’s capital fund recommendation.
“I trust Mr. Brigham,” he said. “… I’m OK with that.”
Zack Plair is the managing editor for The Dispatch.
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