Celina shows $4.27M surplus

CELINA - The city's books have been closed on 2019 and the numbers once again show the government on sound financial ground with a revenue surplus.

City auditor Betty Strawn this week offered a year-end summary of the city's general fund, which pays for the day-to-day operations. One highlight is the unencumbered balance or carryover of $4.27 million compared with $4.06 million at the end of 2018.

Strawn had initially projected a year-end unencumbered general fund balance of $1.98 million. But stronger revenue collections and lower expenses boosted the unencumbered balance.

Along with the robust general fund carryover, the city saw $2.17 million revenue tied to the 0.5% income tax for police, fire and streets.

Officials in recent years have strived to maintain a minimum general fund reserve of $2 million to ensure a good credit rating and for emergencies. The rest they have fed into police, fire, streets, park and economic development accounts.

Strawn's summary shows the city's general fund took in total revenue of $8.64 million, 17.4% above forecasts and $298,228 more than in 2018, compared with total expenditures of $8.46 million, which came in 10.8% under budget.

Numerous revenue sources making up the general fund also came in above estimates in 2019.

The 1% municipal income tax - the general fund's biggest revenue source - brought in $4.39 million, 22% more than had been predicted for 2019. The collection also marked an uptick of $106,805 from 2018, according to Strawn's summary.

Compared with earlier predictions, real estate tax collections finished 3.4% higher at $289,436; local government funding from the state, 11.2% higher at $238,401; and fees for services (fire contracts, solid waste, cable franchise fee, city ambulance and municipal court salary reimbursements), 10.1% higher at $785,887.78.

The "other sources" account (interest on investments and miscellany) totaled $1.96 million, exceeding initial forecasts by 24.6% and generating an additional $193,742 from the previous year.

Interest earned on general fund investments in 2020 was $509,806.

"The changes we made to our investment planning a few years ago have really paid off," councilman Mike Sovinski said.

City councilors in 2015 entered into an agreement with Meeder Investment Management to assist the city with investments in federal government securities such as bonds and notes. The company works only with public money.

"Because the council decided to redo the investment policy, it broadened our ability to invest that money into longer than a one-year term. So we're able to put it in government investments, and we do that with the Meeder company," Strawn said.

"We've been in really a good position to have the cash that we've had in order to invest it with Meeder, which has made a difference even with the lower interest rates," mayor Jeff Hazel added. "We've been very pleased, and I think it's great for the community that we have that additional source."