Pataskala Report to Finance Committee

City of Pataskala Finance Department jcarr@ci.pataskala.oh.us jclapro@ci.pataskala.oh.us www.ci.pataskala.oh.us

CITY OF PATASKALA, OHIO

TO:

City Council, Mayor, and the City Administrator

FROM:

Jason Carr, Finance Director

DATE:

July 5, 2011

RE:

Report to Finance Committee

621 West Broad Street Suite 2B Pataskala, Ohio 43062 Telephone: 740-927-3167 Fax: 740-927-0228

SUMMARY OF ITEMS: 1.

2010 POST AUDIT The 2010 audit has been once again completed by the City’s auditors’, Julian & Grube Inc. Highlights from the 2010 audit as follows: ●

This was the second year the City prepared a Comprehensive Annual Financial Report (CAFR) and received an unqualified audit opinion, the “best” opinion an entity may receive over its financial statements.

●

There were no material weaknesses, significant deficiencies, or control deficiencies associated with internal controls (i.e. the City did not have recommendations or noncompliance citations in 2010).

●

There were no identified noncompliance citations in accordance with the Ohio Revised Code, debt covenants, agreements, or other matters which require the attention of management.

●

The total net assets of the City increased $2,430,822. Net assets of governmental activities increased $2,983,442 or 32.86%. Net assets of business-type decreased $552,620 or 9.51% over 2009.

●

The general fund had revenues of $1,936,321 in 2010. This represents an increase of $186,276 from 2009 revenues. The expenditures and other financing uses of the general fund, which totaled $1,451,394 in 2010, increased $159,383 from 2009. The net increase in fund balance for the general fund was $484,927 or 40.36%

●

The street fund had revenues of $1,070,190 in 2010, which is an increase of $379,528 from 2009 revenues. The expenditures in the street fund totaled $1,041,144 in 2010, which increased $282,955 from 2009. The net increase in fund balance was $29,046 or 4.09%

●

The water fund cash position decreased $619,497 to $801,871 while the sewer fund cash position decreased $350,157 to $1,509,107 at December 31, 2010.

City of Pataskala Finance Department Report to Council Page 2

2.

GENERAL FUND FIVE YEAR FORECAST – JANUARY 1, 2011 – DECEMBER 31, 2015 EXECUTIVE SUMMARY OF SIGNIFICANT ASSUMPTIONS AND ACCOUNTING POLICIES Based upon the projections contained within this report, we are forecasting fund balances ending in 2011 through 2015 of $1,190,963, $1,002,723, $888,849, $420,675, and $371,626, respectively. Future revenue cuts to the local government fund, reimbursements of tangible personal property and utility deregulation taxes, along with cuts to estate taxes will hinder the ability of the City to increase funds earmarked for lands and building capital improvements. The following items, which may impact the projected ending fund balances, have not been factored into the projections as they cannot be quantitatively measured at this time: ● ● ● ● ● ● ●

Future cost of living raises (or furloughs) for existing staff. Changes in the number of full-time-equivalent employees or hiring of part-time employees. Significant changes in health, dental, and vision insurance premiums. Implementation of Governor Kasich’s cost saving proposals as outlined in the State of Ohio proposed budget as it relates to pension contributions, health insurance pools, and shared services between local governments. Unexpected lands and building capital improvements necessary to maintain City operations. Amount appropriated for contingency purposes by Council. Final municipal building debt payment due in 2014.

Cash basis revenues are expected to decrease from $1,761,258 in 2010 to an estimated $1,582,033 in 2015. This decrease is based upon the cuts to local government fund revenues, tangible personal property tax revenues, and the estate tax. All other revenues received from State, County and other local sources are expected to remain flat as illustrated on page 5, with the exception of Mayor’s Court revenues which is expected to increase based on increased enforcement and collection of new fines and fees which in previous years were collected by the City of Newark and Licking County. Property taxes are expected to comprise at least 50% - 55% of future General Fund Budgets. Detailed revenue assumptions may be found on page 8 of this report. Cash basis expenditures are expected to increase from $1,430,739 in 2010 to $1,631,081 in 2015, with a high of $2,021,684 in 2014. The large increase in 2014 is primarily attributable to the City retiring the outstanding Municipal Building debt due in 2014 with all other expenditure line items increasing 3%-5% year over year. Personal services and contractual related expenditures are expected to comprise over 83% of future General Fund total expenditures

City of Pataskala Finance Department Report to Council Page 3 3.

2011 INCOME TAX PROJECTIONS Through June 30, 2011, the City of Pataskala has collected $1,713,370 in gross income tax revenues, collection fees and refunds of $55,888, for net collections of $1,657,482. Gross collections have been recorded in the Police Fund and the Street Fund of $1,285,028 and $428,342, respectively. Estimated gross income tax collections for 2011 in the Police Fund and Street Fund total $1,077,815 and $359,272, respectively. The Regional Income Tax Agency has evaluated our collections through June 22, 2011 and based on their evaluation, they estimate the City of Pataskala will collect and have available to spend, net income tax revenues $3,104,000 (gross income tax collections of $3,200,000, collection fees of $96,000) at December 31, 2011. This exceeds our 2011 total net estimate of $1,384,087. The increase in estimated collections is primarily based on two factors; 1) The ability of the Regional Income Tax Agency to utilize actual and current data as it relates to filings, payments made, and the number of individuals who have registered that live in the City; and 2) The number of employers who are outside the City which provide a “courtesy withholding� for our residents. This allows the City to receive income tax collections in a more timely manner. However, I would recommend for budget purposes the Finance Committee/City Council consider when appropriating these additional revenues for expenditure: 1) These projections are still estimates and it is recommended that this number may be overstated until a full collection year has occurred. 2) The possibility that courtesy withholdings are occurring for individuals that have a Pataskala mailing address but actually live within the Township limits. 3) Consider the variables identified by the Regional Income Tax Agency in their letter dated June 22, 2011 identifying total collections the City expects to receive. Based on these items, it is recommended for budget purposes that the City lower the collection estimate to 85% of gross collections to $2,720,000, net of fees of $81,600 for total net collections of $2,638,400 at December 31, 2011. This would then allocate net collections of $1,978,800 and $659,600 to police and street funds, respectively, at December 31, 2011. This continues to allocate the income tax in accordance with the 75%/25% as authorized by Council. These amounts have been utilized to project estimated fund balances at December 31, 2011 for the police and street funds.

4.

FUND BALANCE PROJECTIONS AT DECEMBER 31, 2011 - STREET FUND, POLICE FUND, AND WATER FUND Other than the General Fund, the Police Fund, Street Fund, Water Fund, and Sewer Fund are the other significant funds of the City. We have analyzed the Police and Street Funds based on the impact of income taxes as well as the Water Fund based on operational challenges this fund is currently experiencing. The Sewer Fund balance exceeded $1.5 million as of May 31, 2011 and therefore based on known factors does require additional analysis at this time. Projection for the State Route 310 TIF Fund is described below in Number 8. Projections for the Police, Street, and Water Fund have been attached to this report, an analysis follows:

City of Pataskala Finance Department Report to Council Page 4 4.

FUND BALANCE PROJECTIONS AT DECEMBER 31, 2011 - STREET FUND, POLICE FUND, AND WATER FUND (Continued) Police Fund Analysis Revenues: Gross income tax collections are expected to be $2,040,000, collection fees and refunds of $61,620, for net collections $1,978,800. This exceeds the City’s original budget by $935,985. Revenues are projected to be $2,063,930 at December 31, 2011. Expenditures: Expenditures are expected to be $1,520,421 of which $1,169,912, or 78%, represents salaries and benefits for 18.5 officers. Other expenditure line items which currently exceed original budgeted estimates are Fuel of $64,462 (exceeds budget by $14,462), R.I.T.A. Collection Fees of $61,200 (exceeds budget by $26,200). Finally, based on the hiring of the additional officers the Police Department does not intend on purchasing new vehicles in 2011 and expects multiple officers to use the same vehicles. However, the Vehicle Maintenance and Repair line item is expected to increase significantly to $53,070 based on continued maintenance and repair of existing vehicles. Fund Balance: Fund balance is expected to increase $543,509 to $1,684,479 at December 31, 2011. Administration Recommendation: The Police Fund should create a contingency/rainy day fund of $740,000, or approximately 20% of the projected 2011 total estimated revenues. Assuming total operating expenditures increase 8% from 2011 projected expenditures of $1,520,421 to $1,642,055; this would require approximately 62% of projected 2011 income tax collections of $2,638,400 to fund 2012 operations. However, final percentages allocating the income tax should not be authorized until the 2012 budget process begins. The Police Department should consider having a performance audit conducted by the Auditor of State of Ohio regarding operational efficiencies which may be obtained. Finally, for 2012 budget purposes the salary of the Police Chief should be re-allocated from the General Fund to the Police Fund and the Administration is currently working on a vehicle replacement program policy to present to the Finance Committee and Council. The additional carryover funds should be utilized to implement this program once approved. Street Fund Analysis Revenues: Gross income tax collections are expected to be $680,000, collection fees and refunds of $20,400, for net collections of $659,600. This exceeds the City’s original budget by $318,328. Revenues and expenditures are projected to be $1,297,916 and $1,099,367 at December 31, 2011, respectively. Gasoline taxes and motor vehicle registration fees are expected to be $602,573 which exceeds the budgeted total of $550,000. Expenditures: Expenditures are expected to be $1,099,367 of which $508,669, or 46%, represents salaries and benefits for 7 full time employees and seasonal employees. Other expenditure line items which currently exceed original budgeted estimates are Natural Gas of $11,562 (exceeds budget by $3,562), R.I.T.A. Collection Fees of $20,400 (exceeds budget by $2,400), Street Light Repairs of $16,406 (exceeds budget by $3,906), Street Signs of $9,312 (exceeds budget by $3,312) and Phones of $6,550 (exceeds budget by $1,550). Fund Balance: Fund balance is expected to increase $198,548 to $729,668 at December 31, 2011.

City of Pataskala Finance Department Report to Council Page 5 4.

FUND BALANCE PROJECTIONS AT DECEMBER 31, 2011 - STREET FUND, POLICE FUND, AND WATER FUND (Continued) Administration Recommendation: The Street Fund should create a contingency/rainy day fund of $405,000, or approximately 20% of 2011 total estimated revenues. Assuming total operating expenditures increase 8% from 2011 projected expenditures of $1,099,367 to $1,187,316, this would require approximately 45% of projected 2011 income tax net collections to fund 2012 operations. This does not consider other revenue sources received in the Street Fund nor does it consider large capital equipment purchases needed in the department, such as new trucks or improvements to facilities. Current revenue sources received by the City that may be used for street construction, maintenance and repair include:

–

Street Fund – 2011 Budget of $1,841,520. • Money utilized for salaries and benefits (35% of total budget), Contractual Services such as engineering and utilities (9% of total budget), Materials and Supplies such as salt, fuel, patching materials, street light repairs, and equipment repairs (21% of total budget) capital outlay (Kennedy and Hollow Road/McIntosh Road Bridge (26% of total budget) and Contingency (9% of total budget). Money may be only used for street construction, maintenance and repair. • Revenue sources are Gasoline Taxes, Motor Vehicle Registration Fees, Income Tax Collections (Allocation of .25%), McIntosh Road Bridge Grant, Interest, and Miscellaneous Revenues. – State Highway Fund – 2011 Budget of $137,278. • Money may only be spent on State Routes within the City, such as State Route 310 and Broad Street. Significant budget items are the purchase of salt and traffic light repair. • Revenue sources are Gasoline Taxes, Motor Vehicle Registration Fees, Interest, and Miscellaneous Revenues. – Permissive License Tax Fund – 2011 Budget of $788,595. • Money may only be spent on improvements to Streets, Bridges and Infrastructure. Salaries and benefits may not be paid from this Fund. The 2011 budget is comprised of Contractual Services for Engineering Fees (11% of total budget), Mink Street Grant Reserve (13% of total budget), Capital Outlay projects such as McIntosh Road Bridge, Summit Road South Reconstruction, S.R. 310 Culvert Repairs, and Mink Street Reconstruction Design (64% of total budget) and Debt Service (12% of total budget). • Revenue sources are license taxes received from the State of Ohio and $5 license tax collected by the Licking County Auditor and distributed

City of Pataskala Finance Department Report to Council Page 6 4.

FUND BALANCE PROJECTIONS AT DECEMBER 31, 2011 - STREET FUND, POLICE FUND, AND WATER FUND (Continued) Water Fund Analysis Revenues: Charges for services revenues related to water collections are expected to be $983,320, which is $111,852 below original budgeted estimates of $1,095,172. This difference is primarily attributable to the multi-tier rate not being implemented until March 2011 instead of January 1, 2011 as originally estimated. Expenditures: Expenditures are expected to be $1,376,399 of which $328,136 represents salaries and benefits for full time employees and seasonal employees. Other expenditure line items which currently exceed original budgeted estimates are Chemicals of $19,416 (exceeds budget by $9,416), System Maintenance of $46,589 (exceeds budget by $26,589), and Utilities of $144,319 (exceeds budget by $19,319). This also assumes the City will not transfer the remaining $205,499 to the Water Capital Improvement Fund for planned capital outlay identified in the Pataskala Capital Improvement Plan. Fund Balance: Fund balance is expected to decrease $393,049 to $237,194 at December 31, 2011. Administration Recommendation: Although the Water Fund will experience full collections for 2012 under the multi-tier rate, for the remainder of 2011 the City will need to defer capital outlay related improvements and continue to analyze operations to identify areas where inefficiencies may be eliminated. A significant challenge related to increasing the water fund balance derives from the amount of debt service outstanding. Related to the 2011 budget, debt service totals $517,500 which is more than half of the total estimated revenue of $983,320 to be collected in 2011. The largest portion of this debt is related to the construction of the Water Treatment Plant in 2007.

5.

SUMMIT ROAD NORTH CONSTRUCTION ANALYSIS The Administration has determined that Summit Road North is rated in very poor condition. The City has been provided two scenarios to address repair this road with construction anticipated to begin late 2011: 1. Repair/rebuild Summit Road North from Broad Street to the northern City line Estimated cost: $2,106,327 plus engineering fees of $431,000. Total Financed is $2,685,000 with a deferred principal payment until December 2012 or $2,720,000 with a deferred principal payment until June 2013. 2. Repair/rebuild Summit Road North from Broad Street to a point about 2,500 feet north of Havens Corners Road (would cover the worst sections) - Estimated cost: $1,398,327 plus engineering fees of $287,400. Total Financed $1,795,000 with a deferred principal payment until December 2012 or $1,820,000 with a deferred principal payment until June 2013. The City would finance through the issuance of bonds as the most recent Aa3 debt rating is more cost beneficial than pursuing the State Infrastructure Bank Loan at 3.0% while financing engineering fees through Park National Bank through a 5 year balloon loan at 4.5%. The all inclusive interest cost for issuing these bonds would be 2.85% over the 10 year period.

City of Pataskala Finance Department Report to Council Page 7 5.

SUMMIT ROAD NORTH CONSTRUCTION ANALYSIS The City faces the following challenges with financing this project which is indicative of the challenges faced when trying to find ways to address the City’s deteriorating infrastructure: 1. Attached to this report is a summary of principal and interest payments associated with financing the above scenarios. Based on the annual debt payment, the first debt payment will be deferred until either 2012 or 2013 as these options were presented. Interest will be capitalized and added to the overall cost for future repayment. 2. Future non-utility infrastructure improvements will need to be financed through the issuance of debt. Collateral to repay such debt will be the City’s income tax, which is currently allocated to the Police and Street Funds. The City should create a debt service fund to repay any outstanding debt service with revenues allocated to this fund to repay debt service. As the City issues more non-utility infrastructure debt, more income tax will be allocated to this debt service fund which will decrease available funds for police and street operations. 3. Based on income tax estimates provided by the Regional Income Tax Agency, the City expects to collect approximately $2.6 million dollars in net income tax dollars in 2011. Based on the annual debt service payments for the Summit Road North Construction Project, the amount of income taxes necessary to cover annual debt service payments would be as follows assuming flat collections between 2011 and 2012:

Par Amount 1st P & I Payment

(Option #1) Finance $2,685,000 $2,685,000 $308,140*

(Option #2) Finance $2,720,000 $2,720,000 $350,220**

(Option #3) Finance $1,795,000 $1,795,000 $222,660***

(Option #4) Finance $1,820,000 $1,820,000 $235,239****

12%

13%

8%

9%

$3,038,342.50

$3,113,942.50

$2,031,672.50

$2,084,809.38

10 Years

10 Years

10 Years

10 Years

% of 2012 Income Tax Collections to be used for Debt Service

Total Debt Service Term *-

Deferred interest would total $14,070 and would require allocating a portion of income tax collections in 2011.

**-

Deferred interest would total $45,330 and would require allocating a portion of income tax collections in 2011 and 2012.

***-

Deferred interest would total $9,415 and would require allocating a portion of income tax collections in 2011.

****-

Deferred interest would total $30,358.13 and would require allocating a portion of income tax collections in 2011 and 2012.

City of Pataskala Finance Department Report to Council Page 8 6.

2011 FINANCIAL PLAN The Administration is cognizant that the income tax was passed was solely to be utilized for police and street services. As we move forward, the income tax will be the primary collateral for any capital related debt to improve the City’s infrastructure. Furthermore, the City cannot incur millions of dollars of debt to replace all failing infrastructure in 1-2 years, but must begin allocating income tax dollars specifically for capital improvements, or infrastructure improvements, which may include streets, culverts, bridges, etc. Therefore, it is recommended the Finance Committee/City Council strongly consider revising the current allocation of income taxes, which is set to expire December 31, 2011, so the Administration may begin planning for significant infrastructure improvements in 2012 and possibly 2011. Pertaining to Summit Road North, if this project is delayed until 2012 the risks include higher interest rates to finance the project or higher construction costs. However, the nature of the service to be performed, reconstruction of the road, will not change. Deferring the cost will provide the City time to plan for 2012 infrastructure projects and set-aside possible funds for this project, thus financing less total cost. The Administration must also begin planning, identifying, and setting aside matching funds of approximately $550,000 for paving of Broad Street which is expected to begin in 2014 along with other items identified in the Capital Improvement Plan prepared by the City Administrator. In order to determine what percentages, or amounts, should be allocated for police and street services the City must identify, to the best of management’s ability, amounts specifically needed for operations while still maintaining “contingency/rainy day” funds for the Police Fund and Street Fund. Administration Recommendations (No Specific Order): 1) Allocation of Income Taxes - Through the budget process, the Administration should be provided the flexibility to determine what percentage of income tax collections is necessary to fund police operations, street operations, capital improvements, and pay for infrastructure related debt service. The Ordinance authorizing the allocation of income taxes would then be based upon the necessary revenues to fund operations when considering carryover fund balance while preserving set-aside “contingency/rainy day” funds. 2) Creation of Debt Service and Capital Improvement Funds – These funds would be allocated a percentage of income taxes after determining what amount the Police and Street funds need for operations. Creating these funds would provide the following positives to the City: Debt Service Fund – Rating agencies (Moody’s, S&P) consider this an important accountability measure as it provides an external user that the City is properly accounting for its debt and has the means to repay its obligations. The City currently has approximately $100,000 in street and bridge related debt which is paid from the Permissive License Tax Fund. Re-allocating this debt to a Debt Service Fund would provide more resources available for paving and other projects within the Permissive License Tax Fund, noting this fund receives approximately $220,000 yearly revenue. As additional infrastructure debt is issued, additional income taxes would be allocated for principal and interest payments. This fund will only account for non-utility debt service.

City of Pataskala Finance Department Report to Council Page 9 6.

2011 FINANCIAL PLAN Capital Improvement Fund – Creating this fund, which will be funded by income taxes after considering the necessary percentages needed for police operations, street operations, and debt service, will provide the Administration the ability to begin accumulating resources for capital improvement/infrastructure related items. Furthermore, external users (i.e. general public, Rating Agencies) will see the amount of funds available for Capital Improvements and provide additional transparency as it relates to capital improvement efforts. Finally, grant agencies (Ohio Public Works Commission, Ohio Department of Transportation) will be able to identify quickly that the City has a “matching grant” fund, if necessary. 3) Analyze Police and Street Operations – In order to allocate a percentage of the income tax to the possible Debt Service Fund and Capital Improvement Fund, the Administration will need to determine the “fixed costs” to operate these departments, which excludes capital outlay related items. As was noted by the City’s Bond Rating from Moody’s, it is imperative that we sustain “contingency/rainy day” amounts within the police and street funds, targeted at 20% of 2011 total estimated revenues and would be a component of “fixed costs”. Furthermore, based on projected carryover balances of $1,648,479 and $729,668 for the police and street funds, respectively, the option to reduce the required share of income taxes for 2012 may exist. However as indicated on a prior page, a consideration must be given to possible capital outlay items for these departments, which include new equipment, police vehicles, or heavy duty trucks. 4) Incorporate Street Ranking System Compiled by Engineer– As discussed at the Street Committee meeting, a database or ranking system, combined with estimates of future costs to maintain existing roads after improvements are made, will be beneficial in identifying roads which should be repaired combined with the possible issuance of debt service.

7.

DEBT RATIOS/PROFILE Moody’s defines debt burden as the financial leverage a community has by calculating the amount of debt outstanding compared to the entity’s full taxable valuation. The more leveraged, the more difficult it is to service existing or incur new debt obligations. Moody’s also analyzes the composition of the overall debt profile to assess a municipality’s exposure to interest rates, liquidity, and any variable rate debt. The nature of debt issued is prevalent when assessing difficulties in repaying obligations, for example, is more than 50% of the debt due at the end of the amortization term. Debt service payments represent a required expense noting several formulas to measure debt service flexibility. For example, a common measure is debt service as a percentage of operating expenditures and frequently ranges from 5 to 15%. Dedicated revenues to repay debt service are also a significant factor when determining financial flexibility. Moody’s recent report assigning Pataskala an Aa3 rating cited the City’s debt position as manageable and stable, which included a well below average 38.4% rate of principal retirement. This is considered well below average of 50% as the rate of principal repayment does not specifically match the intended useful life of projects constructed with debt service. This well below average is also driven by the amortization rate of outstanding debt exceeding 10 years.

City of Pataskala Finance Department Report to Council Page 10 8.

STATE ROUTE 310 TIF FUND After remitting the overpayment of $560,235.81 back to the Licking County Auditor’s Office, the City will have collected $477,057.91 which is considered current fund balance. We expect to receive another payment of $52,000 in 2011 increasing fund balance to $529,057.91 at December 31, 2011. Based on the businesses that currently comprise this TIF area and the effective date of December 26, 2006, the City currently has 6 years remaining after December 31, 2011. Assuming there are no new businesses in this TIF area in the next 6 years or other changes, the City should receive $104,000 per year over 6 years for a total of $624,000. Total revenues collected over this period, for all existing properties which have filed the required permit/DTE tax form, would equal $1,153,057.91. The City has not appropriated these funds for 2011 for expenditure and also does not account for changes in the Ohio Department of Taxation ruling to make the TIF “prospective” rather than “retroactive”. Finally, it is the intent of the Administration to use these funds as matching funds/collateral for widening and making improvements to State Route 310.

CITY OF PATASKALA LICKING COUNTY, OHIO FINANCIAL FORECAST FOR THE PERIOD OF JANUARY 1, 2011 – DECEMBER 31, 2015

PREPARED BY THE FINANCE DEPARTMENT

CITY OF PATASKALA LICKING COUNTY

TABLE OF CONTENTS TITLE

PAGE

Summary and Purpose of the Forecast

1

Financial Forecast

3

General Fund Revenue Comparisons - Graph

5

2011 General Fund Revenue and Expenditure Comparison – Graph

6

General Fund Revenues vs. Expenditures and Ending Cash Balances – Graph

7

Revenue Assumptions

8

Expenditure Assumptions

13

Analysis of Expenditures and Appropriations – Total General Fund

19

Analysis of Expenditures and Appropriations – General Fund Departments

20

City of Pataskala Finance Department jcarr@ci.pataskala.oh.us jclapro@ci.pataskala.oh.us www.ci.pataskala.oh.us

CITY OF PATASKALA, OHIO

621 West Broad Street Suite 2B Pataskala, Ohio 43062 Telephone: 740-927-3167 Fax: 740-927-0228

City Council, Mayor and City Administrator City of Pataskala 621 West Broad Street Pataskala, Ohio 43062 The Finance Department has prepared the accompanying forecasted statement of revenues, expenditures, and changes in fund balances for the General Fund of the City of Pataskala, Licking County (the City) for the period January 1, 2011 – December 31, 2015. The purpose of this report is to provide a reasonable estimate of the City’s revenues, expenditures, and fund balances and not to provide absolute assurance of the amounts projected. The City may expend money from the City’s General Fund, or main operating fund, so long as it meets a proper public purpose and complies with the budget constraints adopted by City Council. This fund is also the benchmark to determine fiscal watch or emergency status pursuant to Ohio Revised Code Sections 118.02-.03. Finally, this fund may be used to supplement the operations of other City funds (i.e. Street Fund, Police Fund, etc.) pursuant to a budget shortfall or projected operating deficit. Members of Council, the Mayor, Administration, and City employees should utilize the information provided within the accompanying report as a management tool and should realize there will be differences between the forecasted and actual results because events and circumstances frequently do not occur as expected, and those differences may be material. Any material changes after review of this report should be considered. EXECUTIVE SUMMARY OF SIGNIFICANT ASSUMPTIONS AND ACCOUNTING POLICIES Based upon the projections contained within this report, we are forecasting fund balances ending in 2011 through 2015 of $1,190,963, $1,002,723, $888,849, $420,675, and $371,626, respectively. Future revenue cuts to the local government fund, reimbursements of tangible personal property and utility deregulation taxes, along with cuts to estate taxes will hinder the ability of the City to increase funds earmarked for lands and building capital improvements. The following items, which may impact the projected ending fund balances, have not been factored into the projections as they cannot be quantitatively measured at this time: ● ● ● ● ● ● ●

Future cost of living raises (or furloughs) for existing staff. Changes in the number of full-time-equivalent employees or hiring of part-time employees. Significant changes in health, dental, and vision insurance premiums. Implementation of Governor Kasich’s cost saving proposals as outlined in the State of Ohio proposed budget as it relates to pension contributions, health insurance pools, and shared services between local governments. Unexpected lands and building capital improvements necessary to maintain City operations. Amount appropriated for contingency purposes by Council. Final municipal building debt payment due in 2014.

Page 7 provides in illustration of projected fund and contingency balances for the period January 1, 2011 – December 31, 2015.

1

City of Pataskala Financial Forecast Page 2 Cash basis revenues are expected to decrease from $1,761,258 in 2010 to an estimated $1,582,033 in 2015. This decrease is based upon the cuts to local government fund revenues, tangible personal property tax revenues, and the estate tax. All other revenues received from State, County and other local sources are expected to remain flat as illustrated on page 5, with the exception of Mayor’s Court revenues which is expected to increase based on increased enforcement and collection of new fines and fees which in previous years were collected by the City of Newark and Licking County. Property taxes are expected to comprise at least 50% - 55% of future General Fund Budgets. Detailed revenue assumptions may be found on page 8 of this report. Cash basis expenditures are expected to increase from $1,430,739 in 2010 to $1,631,081 in 2015, with a high of $2,021,684 in 2014. The large increase in 2014 is primarily attributable to the City retiring the outstanding Municipal Building debt due in 2014 with all other expenditure line items increasing 3%-5% year over year. Personal services and contractual related expenditures are expected to comprise over 83% of future General Fund total expenditures. See page 7 for projected revenues and expenditures. Detailed expenditure assumptions may be found on page 13. Please review the accompanying revenue and expenditure assumptions in conjunction with the forecast provided. The Administration looks forward to any questions you may have.

Jason Carr Jason Carr, CPA Finance Director

2

CITY OF PATASKALA GENERAL FUND FINANCIAL FORECAST

PERMANENT BUDGET 2011 BEGINNING BALANCE $ 1,241,076

UPDATED BUDGET 2011 $ 1,241,076

PROJECTED 2012 $ 1,190,963

PROJECTED 2013 $ 1,002,723

PROJECTED 2014 $ 888,849

PROJECTED 2015 $ 420,675

$

785,608 122,671 78,155 25,000 12,000 220,176 60,000 2,167 173,700 96,090 1,575,567

$

801,320 115,260 58,621 25,000 12,360 160,000 61,800 2,232 176,700 98,000 1,511,293

$

817,347 117,565 49,080 12,731 160,000 63,654 2,299 179,700 98,000 1,500,376

$

833,693 119,917 78,155 13,113 160,000 65,564 2,368 182,700 98,000 1,553,509

$

TOTAL REVENUES $

972,575 132,416 87,235 20,000 14,000 105,000 60,000 3,100 160,000 87,192 1,641,518

EXPENDITURES Police $ Lands & Buildings Planning & Zoning,Planning Commission,& BZA Mayor, Clerk, Court Security, Administrator, Service Director Legislative Public Health Parks and Recreation Finance Department Street Lights Legal Liability Insurance Other Debt Service TOTAL EXPENDITURES $

109,227 571,533 267,273 266,636 81,558 60,486 2,649 128,329 50,000 207,704 26,720 951,008 159,471 2,882,594

$

$

$

126,444 275,000 269,180 243,845 81,100 65,245 2,649 117,360 44,479 206,781 28,618 109,566 451,417 2,021,684

$

$

120,423 227,007 256,362 232,233 78,738 63,345 2,649 111,771 43,184 196,935 27,255 104,348 150,000 1,614,249

$

$

114,688 367,655 244,154 221,175 76,444 61,500 2,649 106,449 41,926 187,557 25,957 99,379 150,000 1,699,533

$

$

109,227 384,000 232,528 210,642 74,218 60,486 2,649 101,380 40,705 178,625 24,721 47,028 159,471 1,625,680

$

132,766 275,000 282,639 256,037 83,533 67,203 2,649 123,228 45,814 217,120 30,049 115,044 1,631,081

ENDING BALANCE $

0

$

1,190,963

$

1,002,723

$

888,849

$

420,675

$

371,626

REVENUES General Property Tax General Personal Property Tax Homestead and Rollback Local Government Fund Estate Tax Beer and Liquor Permits Mayor's Court Zoning Permits Interest Miscellaneous Rent

$

$

$

$

3

$

$

850,367 122,315 82,175 13,506 160,000 67,531 2,439 185,700 98,000 1,582,033

CITY OF PATASKALA GENERAL FUND FINANCIAL FORECAST ACTUAL 2001 BEGINNING BALANCE $ 249,523 REVENUES General Property Tax $ General Personal Property Tax Homestead and Rollback Local Government Fund Estate Tax Beer and Liquor Permits Mayor's Court Zoning Permits Interest Miscellaneous Advances In Rent TOTAL REVENUES $

452,760 28,025 57,714 102,246 156,488 9,135 96,970 90,388 54,370 84,097 1,132,193

EXPENDITURES Police $ Lands & Buildings P& Z,& BZA Mayor, Clerk, Administrator, Service Dir. Legislative Public Health Parks and Recreation Finance Department Street Lights Legal Liability Insurance Other Debt Service Advance Out TOTAL EXPENDITURES $

233,095 119,477 123,099 107,212 24,761 26,960 69,973 27,955 41,184 81,395 68,878 923,989

ENDING BALANCE $

457,727

ACTUAL 2002 $ 457,727

ACTUAL 2003 $ 659,967

ACTUAL 2004 $ 661,027

ACTUAL 2005 $ 609,686

ACTUAL 2006 $ 361,500

ACTUAL 2007 $ 556,666

ACTUAL 2008 $ 712,376

ACTUAL 2009 $ 534,918

ACTUAL 2010 $ 910,557

TOTALS FROM 2001 THROUGH 2010 $ 4,803,389

AVERAGE FOR 2001 THROUGH 2010 $ 480,339

$

$

$

$

$

$

$

$

$

$

$

$

$

499,410 25,805 66,755 97,395 77,653 10,898 72,734 311,927 29,986 76,045 1,268,608

$

253,675 138,287 162,713 109,523 38,798 28,646 34,207 58,436 28,681 100,866 16,909 95,627 1,066,368

$

659,967

$

$

589,575 31,317 78,948 96,215 156,274 9,971 49,031 180,465 26,953 138,620 1,357,369

$

264,355 120,075 207,002 115,026 40,139 29,488 15,750 108,983 40,000 160,272 123,882 131,337 1,356,309

$

661,027

$

$

638,495 29,000 88,479 96,924 75,302 9,786 28,865 167,722 27,835 93,357 1,255,765

$

176,343 236,221 196,187 128,175 42,737 44,546 105,472 45,481 167,791 120,645 43,508 1,307,106

$

609,686

$

$

695,823 28,870 91,770 89,000 31,672 10,069 12,211 145,684 58,774 134,036 1,297,909

$

207,647 283,692 224,075 103,025 46,972 47,693 109,195 44,505 155,639 122,680 200,972 1,546,095

$

361,500

4

$

$

803,645 36,521 90,175 97,824 88,714 11,106 65,234 112,301 108,891 141,580 94,747 1,650,738

$

96,410 268,488 247,691 119,042 64,415 57,000 140,145 41,110 198,971 132,987 89,313 1,455,572

$

556,666

$

$

811,944 24,572 113,578 96,892 147,154 10,103 112,581 87,400 114,274 106,817 102,879 1,728,194

$

165,115 206,178 232,299 144,871 63,774 57,500 125,461 41,756 191,784 119,963 72,889 150,894 1,572,484

$

712,376

$

$

823,973 10,168 135,852 95,477 27,172 8,955 114,006 71,116 38,676 193,452 10,000 108,744 1,637,591

$

104,778 251,329 267,122 164,451 72,430 57,500 118,713 39,910 196,819 26,987 62,733 442,277 10,000 1,815,049

$

534,918

$

$

845,823 1,874 151,660 81,933 53,689 9,218 130,807 67,517 11,624 185,324 112,750 1,652,219

$

105,480 164,027 235,491 160,664 68,751 57,500 112,778 47,615 204,614 20,747 56,032 42,881 1,276,580

$

910,557

$

$

855,842 1,099 155,461 82,194 155,562 10,670 134,591 64,965 4,223 174,439 122,212 1,761,258

$

97,530 200,229 235,323 180,523 70,535 59,300 1,646 119,356 48,675 197,980 24,208 45,434 150,000 1,430,739

$

1,241,076

$

$

6,161,448 216,152 874,931 853,906 814,118 89,241 682,439 1,234,520 471,383 1,153,328 10,000 419,120 12,561,466

$

$

616,145 21,615 87,493 85,391 81,412 8,924 68,244 123,452 47,138 115,333 1,000 41,912 1,256,147

$

1,606,898 1,787,774 1,895,679 1,151,989 462,777 406,833 49,957 949,156 357,013 1,417,940 766,195 821,289 636,052 10,000 12,319,552

$

160,690 178,777 189,568 115,199 46,278 40,683 4,996 94,916 35,701 141,794 76,620 82,129 63,605 1,000 1,231,955

$

5,045,303

$

504,530

CITY OF PATASKALA FINANCIAL FORECAST JANUARY 1, 2011-DECEMBER 31, 2015

GENERAL FUND REVENUE COMPARISON Property Taxes State & County Other Local TOTAL

2006 $840,166 $287,819 $522,753 $1,650,738

2007 $836,516 $367,727 $523,951 $1,728,194

2008 $834,141 $267,456 $535,994 $1,637,591

2009 $847,697 $296,500 $508,022 $1,652,219

2010 $856,941 $393,217 $511,100 $1,761,258

Est. 2011 $785,608 $225,826 $564,133 $1,575,567

Est. 2012 $801,320 $198,881 $511,092 $1,511,293

Est. 2013 $817,347 $166,645 $516,384 $1,500,376

Est. 2014 $833,693 $198,072 $521,744 $1,553,509

Est. 2015 $850,367 $204,490 $527,176 $1,582,033

Taxes Vs. State & County Vs. Other Local Revenues

GENERAL FUND REVENUE HISTORY 2006 - 2015

Property Taxes

Other Local

State & County

$2,000,000

$3,600,000 $3,300,000

$1,800,000

$3,000,000 $1,600,000

$2,700,000

$1,400,000

$2,400,000 $2,100,000

$1,200,000

REVENUES

$1,800,000 $1,000,000

$1,500,000

$800,000

$1,200,000 $900,000

$600,000

$600,000 $400,000

$300,000 $0

$200,000

2006

2007

2008

2009

2010

Est. 2011 Est. 2012 Est. 2013 Est. 2014 Est. 2015 $0 2006

Property Taxes

State & County

Other Local

2007

2008

2009

2010 Year

YEAR

5

Est. 2011

Est. 2012

Est. 2013

Est. 2014

Est. 2015

CITY OF PATASKALA FINANCIAL FORECAST JANUARY 1, 2011-DECEMBER 31, 2015

GENERAL FUND REVENUES AT DECEMBER 31, 2010 Taxes Intergovernmental Licenses and Permits Fines and Forefeitures Investment Income Rental Other

2010 $856,941 $393,217 $75,635 $134,591 $4,223 $122,212 $174,439

48.66 22.33 4.29 7.64 0.24 6.94 9.90

$1,761,258 GENERAL FUND REVENUES AT DECEMBER 31, 2010

Taxes 49%

Intergovernmental 22%

Other 10%

Rental 7%

Licenses and Permits 4% Fines and Forefeitures 8%

Investment Income 0%

GENERAL FUND EXPENDITURES AT DECEMBER 31, 2010 Personal Services Contractual Materials and Supplies Capital Outlay Debt

2010 $745,598 $274 658 $274,658 $162,926 $97,556 $150,000

52.11 19 20 19.20 11.39 6.82 10.48

$1,430,738

GENERAL FUND EXPENDITURES AT DECEMBER 31, 2010 Debt 11%

Capital Outlay 7%

Materials and Supplies 11%

Personal Services 52%

Contractual 19%

6

CITY OF PATASKALA FINANCIAL FORECAST JANUARY 1, 2011-DECEMBER 31, 2015

GENERAL FUND REVENUES VS. EXPENDITURES 2006 THROUGH 2015 2007 2008 2006 Revenue $1,650,738 $1,728,194 $1,637,591 Expenditures $1,455,572 $1,572,484 $1,815,049

2009 $1,652,219 $1,276,580

2010 $1,761,258 $1,430,739

Est. 2011 $1,575,567 $1,625,680

Est. 2012 $1,511,293 $1,699,533

Est. 2013 $1,500,376 $1,614,249

Est. 2014 $1,553,509 $2,021,684

Est. 2015 $1,582,033 $1,631,081

REVENUES VS. EXPENDITURES 2006-2015 $3,000,000 $2,800,000 $2,600,000 $2,400,000 $2,200,000 $2,000,000 $1,800,000 $1,600,000

Revenue Expenditures

$1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2006

2007

2008

2009

2010

Est. 2011

Est. 2012

Est. 2013

Est. 2014

Est. 2015

ENDING BALANCE ANALYSIS 2006-2015 2006 $556,666 $110,700

Cash Contingency

2007 $712,376 $303,090

2008 $534,918 $315,000

2009 $910,557 $360,679

2010 $1,241,076 $486,542

Est. 2011 $1,190,963 $545,534

Est. 2012 $1,002,723 $424,883

Est. 2013 $888,849 $403,562

Est. 2014 $420,675 $404,337

Est. 2015 $371,626 $326,216

ENDING CASH BALANCES 2006-2015

$1,400,000

$1,400,000

$1,300,000

$1,300,000

$1,200,000

$1,200,000

$1,100,000

$1,100,000

$1,000,000

$1,000,000

$900,000

$900,000

$800,000

$800,000

$700,000

$700,000

Cash

$600,000

$600,000

Contingency

$500,000

$500,000

$400,000

$400,000

$300,000

$300,000

$200,000

$200,000

$100,000

$100,000

$0

$0 2006

2007

2008

2009

2010

Est. 2011

Est. 2012

7

Est. 2013

Est. 2014

Est. 2015

CITY OF PATASKALA FINANCIAL FORECAST FOR THE PERIOD JANUARY 1, 2011 – DECEMBER 31, 2015 FORECAST REVENUE ASSUMPTIONS REVENUE LINE ITEM Real Estate Taxes

EXPECTATIONS Property taxes include amounts levied against all real and public utility property located in the City. Real and public utility property tax revenue received during 2011 represents collections of 2010 taxes. These revenues are based upon tax rates assigned to assessed valuations. Generally the higher assessed valuation will equate to higher collection of tax revenues. Projected 2011 Revenues: The Licking County Auditor has certified the City will receive $972,575 in real estate taxes in 2010. Based on actual collections received year-to-date, we expect to receive $785,608 in actual collections. 2012 -2015 Assumptions: We would expect real estate taxes to remain flat with a moderate 2% increase in 2012 through 2015. This is based on the current economic conditions both nationally and locally.

Personal Property Taxes

The tangible personal property was phased out in 2009 and future years based on the passage of the Commercial Activity Tax. Projected 2011 Revenues: We expect to receive $0 in personal property taxes during 2011 and thereafter.

Rollback and Homestead

State law allows for certain reductions in the form of rollbacks and homestead exemptions for real estate taxes. The State of Ohio will reimburse the City for all revenues lost due to these exemptions. In addition, a two and one-half percent rollback is granted on residential property taxes and tax relief is provided to qualified elderly and disabled homeowners based on their income. This line item also accounts for tangible personal property tax reimbursements and utility deregulation tax reimbursements which were implemented with the passage of House Bill No. 66 which eliminated personal property taxes and enacted the Commercial Activity Tax. Based on the state budget beginning July 1, 2011, these payments will be phased out with the City receiving its final payment in 2011. Previously, collections were expected through 2018.

8

REVENUE LINE ITEM Rollback and Homestead

EXPECTATIONS Projected 2011 Revenues: The Licking County Auditor has certified the City will receive $116,390 in rollback and homestead payments. The final property tax and utility deregulation tax reimbursements expected to be received equal $6,281 which provides for a reasonable estimate of actual collections. Total estimated to be received is $122,671. 2012 -2015 Assumptions: We expect this line item to increase relative to the fluctuations in estimated real estate collections to be received. This line item is expected to receive rollback and homestead payments totaling $113,000 while further expecting real estate collections to remain flat with modest increases, revenues are expected to increase 2% each year.

Local Government

Local government revenue is a share of six State-imposed taxes that is distributed to local governments. Beginning with distributions in the second half of 2005, the General Assembly froze distributions to local governments after reducing those distributions by about 20 percent. A freeze was placed on the Local Government Fund and although the freeze was lifted, growth is expected minimal based on current economic conditions. Governor Kasich’s proposed budget effective July 1, 2011 provided cuts to the Local Government Fund which would reduce distributions by 50% over the next two year budget cycle, with a 25% reduction in fiscal year 2012 and 25% reduction in 2013. At this time it is anticipated that local government funding would return to 2010 levels in fiscal year 2014, or the second half of calendar year 2014. Furthermore, governments which had an income tax in place prior to the freeze placed on local government funds were eligible to receive distributions from the State Local Government Fund. However, based on the City not having an income tax in place the City will not receive distributions from the State Local Government Fund unless legislative changes are made. Projected 2011 Revenues: Based on proposed reductions, the City is expected to receive $78,155 for 2011. 2012 -2015 Assumptions: We expect to receive $58,621, $49,080, $78,155 and $82,175 for this period which includes projections for local government fund reductions.

9

REVENUE LINE ITEM Estate Tax

EXPECTATIONS Estate tax is collected by the County and distributed generally in two installments. These revenues are contingent upon the death of individuals with large estates and meet estate tax income criteria. Senate Bill 90 is legislation seeking the repeal of the estate tax for the estates of individuals. Recent legislation has amended the effective date from January 1, 2011 to January 1, 2013. Projected 2011 Revenues: Estate taxes received by the City have fluctuated since 2001 which is primarily attributed to changes in estate tax laws as well as the number of estates subject to such tax. The City is expected to receive $25,000 in 2011 based on actual collections and notifications received. 2012 -2015 Assumptions: Based upon the unpredictability associated with these revenues we are assuming the City will receive approximately $25,000 in 2012 and then no future revenues beginning in 2013 based on Senate Bill 90.

Beer & Liquor Permits

These permits are required to be paid by all new and existing businesses which sell alcohol within City limits. The City has been experiencing a slight increase in restaurants and businesses in which such permits must be paid. These increases may provide possible future revenues. Projected 2011 Revenues: The City has estimated it will receive $12,000 based on past history and new businesses coming to the City. 2012 -2015 Assumptions: We would expect these revenues to increase approximately 3% per year from estimated 2011 updated budgeted amounts.

Mayor’s Court

Mayor’s Court revenues are derived from the number of citations issued by the City’s police force and the subsequent collections of fines and fees. Based on administration policy changes, the City began collecting fines and court costs that were submitted to Licking County Municipal Court or collected by the City of Newark. Furthermore, new programs were established which included Alcohol/Indigent Support Fund, Court Security, and Diversion Program which are new revenue sources not collected in previous years as other governmental entities collected these fines.

10

REVENUE LINE ITEM Mayor’s Court (Continued)

EXPECTATIONS Projected 2011 Revenues: The City estimates it will receive $220,176 from Mayor’s Court Fines and Court Costs which is attributable to increased enforcement and also the collection of revenues that were previously collected and retained by the Licking County Municipal Court. In addition, estimates also include hiring of additional police officers which is expected late 2011. These additional officers may create additional ticket revenues. 2012 -2015 Assumptions: We would expect estimated revenues for future years to approximate $160,000 which is less than expected 2011 collections.

Zoning Permits

These revenues are contingent upon several external factors and may fluctuate significantly from expectations. External factors to consider include the sale of new and existing homes, the possibility of new industry to the City, and the amount of disposable income available which may be invested home improvements. Projected 2011 Revenues: Based on the factors described above, we would expect zoning permits to remain flat or decrease based on the current housing market and economic environment. However, the hiring of a part-time code enforcement officer may increase revenues associated with enforcement related fines. We expect to receive $60,000 for 2011 which is in-line with 2011 estimates. 2012 -2015 Assumptions: We are projecting permit revenues to increase 3% beginning 2011 and thereafter.

Interest

Based on declining interest rates, available fund balances within the General Fund to invest, the nature of the City’s investments which are tied to fluctuating interest rates interest income is projected to decrease overall. The City has maintained a very conservative investment approach and the current investments are inherent to the available investment options available. Projected 2011 Revenues: The City estimated it would receive $3,100 in interest within its permanent budget, but based on interest rates and available fund balance to invest, we expect to receive less money than originally estimated. We expect to receive $2,167 for 2011. 2012 -2015 Assumptions: We are projecting interest revenues, not rates, will increase 3% from 2011 estimates based on the assumption that interest rates will slowly increase from the overall low current federal funds rate.

11

REVENUE LINE ITEM Miscellaneous

EXPECTATIONS The City has historically received various reimbursements, refunds, and small dollar transactions which are recorded within this line item. This line item includes Time Warner Cable Franchise Fees, Insight Franchise Fees, and AT&T Franchise Fees which are approximately $151,200 and cell phone tower lease revenues of $20,000. The City also collects approximately $2,500 in miscellaneous revenues through reimbursements, public records requests, and various other small dollar items. Projected 2011 Revenues: Based on the above, we expect to receive approximately $173,700 in 2011. 2012 -2015 Assumptions: We are projecting revenues to be consistent with the amounts within the 2011 budget and expect an increase of $3,000 per year.

Rent

Rental space is available within the City Municipal Building which is comprised of for-profit and non-profit organizations. The City’s occupancy rates have been high since the City purchased the building in 2006. Projected 2011 Revenues: Contingent upon the City maintaining high occupancy rates with minimal turnover, the City projects to receive approximately $96,090 in 2011, which includes uncertainty regarding the vacant space in the Municipal Building once rented by Hospice Inc. 2012 -2015 Assumptions: We are expecting to receive an estimated $98,000 beginning in 2012 and thereafter. Although lease agreements will be expiring over the next few years we do expect this to significantly impact the City as the majority of rented space relates to the Central Ohio Technical College. Furthermore, the expansion of the Central Ohio Technical College into the western edge of Licking County is not expected to impact rental revenues in the Municipal Building. These estimates also include the expectation that the Hospice Inc. space will be vacant over this period, although the City is aggressively seeking to rent this vacant space.

12

CITY OF PATASKALA FINANCIAL FORECAST FOR THE PERIOD JANUARY 1, 2011 – DECEMBER 31, 2015 FORECAST EXPENDITURE ASSUMPTIONS The City has historically adopted a balanced budget whereas the prior year carry-over fund balance plus the total amount of revenues certified by the County Auditor equals appropriations approved by Council, thus a balanced budget. Although the City has appropriated all available funds, we have performed an analysis to determine an average of actual expenditures by department in relation to the total appropriations adopted by Council. For the period of January 1, 2001 – December 31, 2010, the City has expended an average of 72% of the total available appropriations within the General Fund (See page 19 for this analysis of the total General Fund as well as General Fund departments). Based on the trend analysis by departments, we have multiplied 2011 appropriations adopted by Council by the applicable department’s historical spending percentages in relation to the total appropriations available plus any other known costs. Our expenditure assumptions were based on this analysis and also expected costs associated with salaries, benefits and relative inflation. EXPENDITURE LINE ITEM Police

EXPECTATIONS Starting in 2000 law enforcement expenditures paid from the General Fund have decreased significantly based upon costs being allocated to the Police Fund with 2006 being the first year that the only law enforcement costs paid from the General Fund were the Police Chief’s salary and benefits. The current budget anticipates that the Police Chief’s salary and benefits will be paid from the General Fund. Projected 2011 Expenditures: The police department appropriations include the Police Chief’s salary and benefits which total $109,227. We expect 2011 Police expenditures to be this amount for 2011. 2012-2015 Assumptions: For assuming Council will continue benefits from the General Fund. year which would include step insurance benefit costs.

13

purposes of this forecast, we are to fund the Police Chief’s salary and We expect costs to increase 5% each increases and also changes in health

EXPENDITURE LINE ITEM Lands & Buildings

EXPECTATIONS This account line item in the General Fund is generally used for upkeep to the City’s buildings and grounds. Historically, this line item has had expenditures significantly less than appropriated amounts, with an average of 59% since 2001. Projected 2011 Expenditures: Included within the 2011 budget are the following projects: City Building ($100,000), Town Hall/Police Station ($125,000), Other City Facilities ($20,000), Mink Street Garage Improvements ($98,000), Energy Efficiency Grant Match ($70,000) Facility Reserve Repairs ($88,533), Court/Council Security ($15,000) and miscellaneous land and building improvements ($55,000). These capital improvement projects total $571,533. The remaining 2011 lands and building budget includes utilities, and miscellaneous building supplies which total $284,155. Based on historical analysis, we estimate total projected expenditures to be $384,000. 2012-2015 Assumptions: Based on the City Administrator’s updated capital improvements plan and considering non-capital improvement costs related to City operations, future costs are $367,655, $227,007, $275,000, and $275,000, respectively.

Planning & Zoning, Planning Commission, & Board of Zoning Appeals

Expenditures have historically increased since 2001 based on the development and growth of the City and the need for adequate resources to properly address the City’s growth issues. These costs have increased from $123,099 in 2001 to $235,323 in 2010. Based on an analysis of past spending practices, this department has historically spends 87% of its available budget noting that 86% of its 2011 budget is dedicated to salaries and benefits. Projected 2011 Expenditures: Based on historically 87% of this departments appropriations being liquidated, we project 2011 actual expenditures to be $232,528 which would include costs associated with the hiring of a part-time code enforcement employee.

14

EXPENDITURE LINE ITEM

EXPECTATIONS

Planning & Zoning, Planning Commission, & Board of Zoning Appeals

2012-2015 Assumptions: Based upon increased growth within the City, this department’s costs will probably increased based upon zoning needs and issues. Based upon a significant portion of this department’s budget dedicated to salaries and benefits, we would expect an overall increase of 5% per year which would include cost of living increases, benefits, and materials and supplies.

Mayor, Mayor Court Clerk, Court Security, City Administrator, Service Director

This line item includes the costs associated with the salaries and benefits of the Mayor, the Mayor Court Clerk, Court Security and a portion of the City Administrator and Service Director salaries. This line item also includes operational costs for the Mayor’s Court and capital outlay costs budgeted for the Mayor, Administrator, and Service Director. Since 2001 these departments have expended an averaged 81% of budgeted appropriations. Projected 2011 Expenditures: Salaries and benefits budgeted for the Mayor, Mayor Court Clerk, Court Security, Administrator, and Service Director total $139,529. We expect remaining 2011 appropriations will be expended totaling $71,383. Total estimated expenditures total $210,642. 2011-2014 Assumptions: Expenditures are expected to increase 5% through 2012 which would include cost of living increases, benefits and also materials and supplies.

Legislative

This expenditure line item consists of costs associated with Council and the Clerk of Council’s salary. Historically, 91% of budgeted appropriations have been expended and this is expected to remain consistent with future years. Projected 2011 Expenditures: Salaries and benefits budgeted for Legislative total $65,758. We expect remaining 2011 appropriations will be expended totaling $8,460. Total estimated expenditures total $74,218. 2011-2014 Assumptions: This line item is expected to increase approximately 3% per year which includes salary and benefit costs for the Council Clerk and materials and supply costs.

15

EXPENDITURE LINE ITEM Public Health

EXPECTATIONS The City has a contract with the Licking County District Board of Health for services of which payment is made yearly. Projected 2011 Expenditures: The actual amount to be paid to the Licking County District Board of Health based on the current contract is $61,500 for 2011. 2012-2015 Assumptions: Costs are expected to increase 3% each year based on past history and the assumptions provided by the Licking County District Board of Health for future years.

Parks and Recreation

Compensation for the Parks and Recreation Association Board Members will be paid from the City’s General Fund. This also includes the City’s share of retirement contributions. Projected 2011 Expenditures: Contingent upon Board Members attending every scheduled meeting, costs are estimated to be $2,649 for related salary and benefits. 2012-2015 Assumptions: We would expect compensation to remain consistent with 2011 unless Council would authorize changes in compensation amounts related to Boards.

Finance Department

Costs associated with this department relate to salaries and benefits of the Finance Director (salary/retirement) and Finance Manager (salaries, retirement, and insurance). Additional fixed costs allocated to this department include compiling the City’s financial statements, state auditor fees, and other contractual costs (i.e. BWC training certification fees, Industrial Appraisal, etc.). Projected 2011 Expenditures: Salaries and benefits budgeted for this department total $95,979 and total estimated expenditures are $101,380. 2012-2015 Assumptions: This line item is expected to increase approximately 5% per year beginning in 2011 primarily attributed to salaries and benefits and also increases in contractual service costs.

Street Lights

This line item is associated with costs to operate street lights throughout the City. Expenditures are paid to American Electric Power. Projected 2011 Expenditures: We project 2011 costs to be approximately $40,705 which is based upon costs incurred through May 2011 annualized through December 2011. 2012-2015 Assumptions: Costs are expected to increase 3% per year based on inflation and also historical trends.

16

EXPENDITURE LINE ITEM Legal

EXPECTATIONS Costs include general legal services as well as magistrate costs for the City’s Mayor’s Court. This line item has expended approximately 86% of budgeted appropriations since 2001. The City hired a law director during 2009 and this is expected to continue into future years. The City will continue to use an outside legal firm for certain litigation matters as well as bond counsel. Projected 2011 Expenditures: Salaries and benefits budgeted for Legislative total $143,704. We expect remaining 2011 appropriations will be expended totaling $34,921. Total estimated expenditures total $178,625. 2012-2015 Assumptions: This line item is expected to increase approximately 5% per year beginning in 2011 primarily attributed to salaries and benefits and also increases in contractual service costs.

Liability Insurance

The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During 2011, the City contracted with Ohio Government Risk Management Plan for property, boiler and machinery, inland marine, crime insurance, general liability insurance, and fleet insurance. Projected 2011 Expenditures: The City has renewed its liability insurance for 2011 and expects additional costs associated with renewal of individual liability bonds for the administration. Actual expenditures for 2011 assigned to the General Fund will be $24,721. 2012-2015 Assumptions: We expect liability insurance for 2012 and future years to increase 5% thereafter pending no large significant claims.

Other

This line item includes activity for the Cemetery, Personnel Board, Charter Review wages, County Auditor Fees, Audit Fees, General Office, and Contingency and Transfers Out to the Park Fund and Sesquicentennial Fund. The total 2011 budgeted appropriations are $951,008 which includes $545,534 budgeted specifically for Contingency. Remaining line items include costs for salaries and benefits, materials and supplies, and contractual services. Since 2001 (excluding Contingency) these line items have expended approximately 85% of budgeted expenditures. Expenditures from the Contingency line item require specific Council approval prior to the expenditure occurring. We are assuming that any expenditure from the Contingency line item would be extraordinary in nature, for example, the early extinguishment of debt or a catastrophe.

17

EXPENDITURE LINE ITEM Other

EXPECTATIONS Projected 2011 Expenditures: We do not expect Council to utilize contingency funds during 2011. We estimate non-Contingency related expenditures to be $47,028 or 82% of remaining non-contingency appropriations of $57,351. 2012-2015 Assumptions: We expect non-Contingency related costs to increase 5% per year which would include salaries and benefits, contractual costs, and materials and supplies. Based on the City’s Purchasing and Procedures Manual, Section VII, the City shall strive to appropriate to the Contingency line item 10%25% of total General Fund appropriations. Consistent with 2011 and for the purposes of this forecast, we shall set-aside 25% of Contingency related dollars in the General Fund in 2011-2013 and 20% for 2014-2015. Therefore, we estimate these amounts to be $424,833, $403,562, $404,337, and $326,216, respectively, for the period January 1, 2012 –December 31, 2015. Total non-contingency costs (including an estimated $50,000 expended by Council each year) is $99,379, $104,348, $109,566, and $115,044, respectively, for the period January 1, 2012 –December 31, 2015.

Debt Service

Beginning in 2007, the City made its first principal and interest payments associated with the purchase of the Municipal Building in December 2006. Rent from the leased space would be earmarked for debt service. As a cost saving measure in December 2009 the City elected to retire the outstanding Bond Anticipation Note totaling $860,000 and secure a loan through Park National Bank. This is a fiveyear loan that allows the City to retire the loan earlier than the established amortization schedule (prepayment option). Projected 2011 Expenditures: The City has budgeted $150,000 to be used toward debt service. 2012-2015 Assumptions: Council’s intent is that rent earned from leased space would pay for debt service. The current estimates of future rental income are $98,000 per year, and the City will contribute additional funds to retire this debt obligation. We are estimating future debt service expenditures to be $150,000 per year with final retirement of these notes in 2014 of $451,417.

18

CITY OF PATASKALA LICKING COUNTY FINANCIAL FORECAST ANALYSIS OF EXPENDITURES AND APPROPRIATIONS - TOTAL GENERAL FUND

YEAR 2001

General

2002

General

2003

$

ACTUAL EXPENDITURES

75%

1,486,426

1,066,368

72%

General

1,793,746

1,356,309

76%

2004

General

1,871,362

1,307,106

70%

2005

General

1,872,162

1,546,096

83%

2006

General

1,815,343

1,455,572

80%

2007

General

2,186,553

1,572,482

72%

2008

General

2,323,178

1,815,049

78%

2009

General

2,090,093

1,276,580

61%

2010

General

2,493,733

1,430,739

57%

13,750,290

72%

$

1,231,067

19,163,663

$

% EXPENDED

923,989

TOTAL GENERAL FUND

CONCLUSION:

TOTAL APPROPRIATIONS

FUND

$

Based on the information provided above the City has expended 72% of amounts budgeted for the General Fund since 2001.

19

CITY OF PATASKALA LICKING COUNTY ANALYSIS OF EXPENDITURES AND APPROPRIATIONS - GENERAL FUND DEPARTMENTS

YEARS 2010-2001

TOTAL APPROPRIATIONS 1,792,557

ACTUAL EXPENDITURES $ 1,704,428

Street Lights

450,071

405,688

90%

Health Board

466,673

466,133

100%

Parks & Rec

77,087

51,603

67%

2,453,613

2,131,002

87%

10,799

6,662

62%

Mayor, Mayor Clerk & Court Security

745,714

677,590

91%

Administrator & Service Director

936,323

658,189

70%

Service Director

246,883

224,102

91%

Personnel Board

13,275

5,406

41%

Council & Clerk

587,333

533,312

91%

Finance Dir & Mgr

1,154,249

906,319

79%

Lands & Buildings

3,387,575

1,984,332

59%

County Auditor Fees

197,300

159,099

81%

State Auditor Fees

114,336

97,835

86%

1,887,492

1,615,921

86%

BWC/Gates

131,400

116,070

88%

Liability

956,741

718,265

75%

General Office

176,266

162,360

92%

2,538,532

327,715

13%

5,444

2,206

41%

Advances Out

10,000

10,000

100%

Debt Service

824,000

786,053

95%

13,750,290

72%

FUND Police

$

Planning & Zoning Cemetery

Legal

Contingency Charter Review

Total 2010-2001

$

19,163,663

20

$

% EXPENDED 95%

CITY OF PATASKALA LICKING COUNTY EXPENDITURES AND APPROPRIATIONS - GENERAL FUND DEPARTMENTS

YEAR 2010

TOTAL APPROPRIATIONS $ 97,450

ACTUAL EXPENDITURES $ 97,530

% EXPENDED 100%

Street Lights

50,000

48,675

97%

Health Board

59,300

59,300

100%

261,284

235,323

90%

86,996

74,358

85%

131,453

106,165

81%

Personnel Board

1,930

753

39%

Council & Clerk

76,222

70,535

93%

124,245

119,356

96%

Parks and Recreation

3,463

1,646

48%

Charter Review

5,444

2,206

41%

659,160

200,229

30%

25,000

19,352

77%

7,656

7,656

100%

212,132

197,980

93%

Liability

25,600

24,208

95%

General Office

20,600

15,467

75%

Contingency

495,798

-

0%

Debt Service

150,000

150,000

100%

1,430,739

57%

FUNCTION Police

Planning & Zoning Mayor, Mayor Clerk & Court Security Administrator & Service Director

Finance Dir & Mgr

Lands & Buildings County Auditor Fees State Auditor Fees Legal

Total 2010

$

2,493,733

21

$

CITY OF PATASKALA LICKING COUNTY EXPENDITURES AND APPROPRIATIONS - GENERAL FUND DEPARTMENTS

YEAR 2009

TOTAL APPROPRIATIONS $ 107,553

ACTUAL EXPENDITURES $ 105,480

% EXPENDED 98%

Street Lights

48,071

47,615

99%

Health Board

57,500

57,500

100%

249,402

235,491

94%

30

30

100%

92,687

68,339

74%

133,266

92,325

69%

Personnel Board

1,850

761

41%

Council & Clerk

77,883

68,751

88%

Finance Dir & Mgr

127,597

112,778

88%

Lands & Buildings

387,075

164,027

42%

25,000

16,751

67%

4,000

4,002

100%

257,500

204,614

79%

BWC/Gates

25,000

19,653

79%

Liability

65,000

20,747

32%

General Office

20,000

14,835

74%

Contingency

360,679

-

0%

Debt Service

50,000

42,881

86%

1,276,580

61%

FUNCTION Police

Planning & Zoning Cemetery Mayor & Mayor Clerk Administrator & Service Director

County Auditor Fees State Auditor Fees Legal

Total 2009

$

2,090,093

22

$

CITY OF PATASKALA LICKING COUNTY EXPENDITURES AND APPROPRIATIONS - GENERAL FUND DEPARTMENTS

TOTAL APPROPRIATIONS $ 108,100

ACTUAL EXPENDITURES $ 104,778

% EXPENDED 97%

Street Lights

50,000

39,910

80%

Health Board

57,500

57,500

100%

292,634

267,122

91%

3,863

2,286

59%

Mayor & Mayor Clerk

86,182

80,254

93%

Administrator & Service Director

88,561

83,794

95%

Service Director

-

-

0%

Personnel Board

1,850

402

22%

Council & Clerk

85,797

72,430

84%

Finance Dir & Mgr

129,575

118,716

92%

Lands & Buildings

429,398

251,331

59%

27,500

20,174

73%

4,000

3,951

99%

229,000

196,819

86%

25,000

24,279

97%

104,700

26,987

26%

General Office

24,000

12,039

50%

Contingency

98,518

-

0%

Advance Out

10,000

10,000

100%

Debt Service

467,000

442,277

95%

1,815,049

78%

YEAR

FUNCTION 2008

Police

Planning & Zoning Cemetery

County Auditor Fees State Auditor Fees Legal BWC/Gates Liability

Total 2008

$

2,323,178

23

$

CITY OF PATASKALA LICKING COUNTY EXPENDITURES AND APPROPRIATIONS - GENERAL FUND DEPARTMENTS

TOTAL APPROPRIATIONS $ 168,333

ACTUAL EXPENDITURES $ 165,115

% EXPENDED 98%

Street Lights

50,000

41,756

84%

Health Board

57,500

57,500

100%

262,851

232,299

88%

3,792

2,915

77%

79,720

72,304

91%

145,612

76,237

52%

Service Director

36,400

27,236

75%

Personnel Board

1,732

660

38%

Council & Clerk

70,070

63,774

91%

Finance Dir & Mgr

124,801

110,461

89%

Lands & Buildings

309,077

202,506

66%

County Auditor Fees

25,000

22,852

91%

State Auditor Fees

15,000

15,000

100%

226,500

191,785

85%

21,400

20,438

96%

108,675

99,525

92%

20,000

19,225

96%

Contingency

303,090

-

0%

Debt Service

157,000

150,894

96%

1,572,482

72%

YEAR

FUNCTION 2007

Police

Planning & Zoning Cemetery Mayor & Mayor Clerk Administrator & Service Director

Legal BWC/Gates Liability General Office

Total 2007

$

2,186,553

24

$

CITY OF PATASKALA LICKING COUNTY ANALYSIS OF EXPENDITURES AND APPROPRIATIONS - GENERAL FUND DEPARTMENTS

TOTAL APPROPRIATIONS $ 97,296

ACTUAL EXPENDITURES $ 96,410

% EXPENDED 99%

Street Lights

52,000

41,110

79%

Health Board

57,500

57,000

99%

272,133

247,691

91%

2,972

1,431

48%

74,050

68,966

93%

106,522

50,076

47%

36,585

35,721

98%

Personnel Board

1,728

719

42%

Council & Clerk

68,140

64,415

95%

Finance Dir & Mgr

138,190

104,414

76%

Lands & Buildings

365,930

268,488

73%

County Auditor Fees

23,000

22,731

99%

State Auditor Fees

13,000

13,000

100%

218,100

198,971

91%

20,000

17,077

85%

123,000

115,910

94%

26,666

22,909

86%

110,700

28,533

26%

1,455,572

80%

YEAR

FUNCTION 2006

Police

Planning & Zoning Cemetery Mayor & Mayor Clerk Administrator & Service Director Service Dir

Legal BWC/Gates Liability General Office Contingency Total 2006

$

1,815,343

25

$

CITY OF PATASKALA LICKING COUNTY ANALYSIS OF EXPENDITURES AND APPROPRIATIONS - GENERAL FUND DEPARTMENTS

TOTAL APPROPRIATIONS 233,200

ACTUAL EXPENDITURES $ 207,647

% EXPENDED 89%

Street Lights

50,000

44,505

89%

Health Board

47,693

47,693

100%

262,540

224,075

85%

71

-

0%

66,751

62,315

93%

40,710

54%

35,500

35,352

100%

Personnel Board

1,730

810

47%

Council & Clerk

49,625

46,972

95%

Finance Dir & Mgr

145,085

91,769

63%

Lands & Buildings

357,365

283,692

79%

County Auditor Fees

17,000

7,367

43%

State Auditor Fees

12,480

10,059

81%

185,500

155,639

84%

20,000

19,511

98%

115,000

103,169

90%

20,000

18,434

92%

177,122

146,376

83%

1,546,095

83%

YEAR

FUNCTION 2005

Police

$

Planning & Zoning Cemetery Mayor & Mayor Clerk Administrator & Service Director

75500

Service Dir

Legal BWC/Gates Liability General Office Contingency Total 2005

$

1,872,162

26

$

CITY OF PATASKALA LICKING COUNTY ANALYSIS OF EXPENDITURES AND APPROPRIATIONS - GENERAL FUND DEPARTMENTS

TOTAL APPROPRIATIONS $ 237,301

ACTUAL EXPENDITURES $ 176,343

% EXPENDED 74%

Street Lights

50,000

45,481

91%

Health Board

44,546

44,546

100%

214,114

196,187

92%

71

-

0%

Mayor & Mayor Clerk

65,289

61,213

94%

Administrator & Service Director

79,826

66,962

84%

Service Dir

35,000

32,705

93%

Personnel Board

305

244

80%

Council & Clerk

46,232

42,737

92%

Finance Dir & Mgr

112,536

80,924

72%

Lands & Buildings

321,570

236,221

73%

County Auditor Fees

15,000

14,408

96%

State Auditor Fees

15,000

10,140

68%

171,060

167,791

98%

20,000

15,112

76%

110,000

105,533

96%

20,000

10,559

53%

313,512

-

0%

1,307,106

70%

YEAR

FUNCTION 2004

Police

Planning & Zoning Cemetery

Legal BWC/Gates Liability General Office Contingency Total 2004

$

1,871,362

27

$

CITY OF PATASKALA LICKING COUNTY ANALYSIS OF EXPENDITURES AND APPROPRIATIONS - GENERAL FUND DEPARTMENTS

TOTAL APPROPRIATIONS $ 276,800

ACTUAL EXPENDITURES $ 264,354

% EXPENDED 96%

Street Lights

40,000

40,000

100%

Health Board

29,488

29,488

100%

Parks & Rec

15,793

15,750

100%

243,320

207,002

85%

72,039

69,906

97%

45,120

82%

33,943

32,029

94%

Personnel Board

750

350

47%

Council & Clerk

43,309

40,139

93%

Finance Dir & Mgr

117,770

81,310

69%

Lands & Buildings

205,000

120,074

59%

County Auditor Fees

15,000

11,173

74%

State Auditor Fees

17,000

16,500

97%

Legal

165,900

160,272

97%

Liability

130,000

123,882

95%

-

12,860

100%

332,436

86,100

26%

1,356,309

76%

YEAR

FUNCTION 2003

Police

Planning & Zoning Mayor & Mayor Clerk Administrator & Service Director

55198

Service Dir

General Office Contingency Total 2003

$

1,793,746

28

$

CITY OF PATASKALA LICKING COUNTY ANALYSIS OF EXPENDITURES AND APPROPRIATIONS - GENERAL FUND DEPARTMENTS

TOTAL APPROPRIATIONS $ 254,524

ACTUAL EXPENDITURES $ 253,676

% EXPENDED 100%

Street Lights

30,000

28,681

96%

Health Board

28,646

28,646

100%

Parks & Rec

50,000

34,207

68%

206,335

162,713

79%

Mayor & Mayor Clerk

74,500

66,900

90%

Administrator & Service Director

47,885

42,623

89%

Service Dir

34,955

31,317

90%

Personnel Board

400

400

100%

Council & Clerk

41,000

38,798

95%

Finance Dir & Mgr

73,500

44,642

61%

Lands & Buildings

204,500

138,287

68%

13,800

13,794

100%

8,200

-

0%

122,500

100,866

82%

85,000

16,909

20%

210,681

63,909

30%

1,066,368

72%

YEAR

FUNCTION 2002

Police

Planning & Zoning

County Auditor Fees State Auditor Fees Legal Liability Contingency Total 2002

$

1,486,426

29

$

CITY OF PATASKALA LICKING COUNTY ANALYSIS OF EXPENDITURES AND APPROPRIATIONS - GENERAL FUND DEPARTMENTS

TOTAL APPROPRIATIONS $ 212,000

ACTUAL EXPENDITURES $ 233,095

% EXPENDED 110%

Street Lights

30,000

27,955

93%

Health Board

27,000

26,960

100%

189,000

123,099

65%

Mayor & Mayor Clerk

47,500

53,035

112%

Administrator & Service Director

72,500

54,177

75%

Service Dir

34,500

29,742

86%

Personnel Board

1,000

307

31%

Council & Clerk

29,055

24,761

85%

Finance Dir & Mgr

60,950

41,949

69%

Lands & Buildings

148,500

119,477

80%

County Auditor Fees

11,000

10,497

95%

State Auditor Fees

18,000

17,527

97%

Legal

99,300

41,184

41%

Liability

89,766

81,395

91%

General Office

25,000

36,032

144%

135,996

2,797

2%

923,989

75%

YEAR

FUNCTION 2001

Police

Planning & Zoning

Contingency Total 2001

$

1,231,067

30

$

CITY OF PATASKALA LICKING COUNTY POLICE FUND PROJECTIONS - DECEMBER 31, 2011 YTD Ended May 2011

Projected at 12/31/2011

2011 Budget

YTD % Received/Expended

Revenues: Real Estate Taxes Personal Property Taxes Rollback & Homestead Income Taxes Mayor's Court Fines Miscellaneous

$0 0 3,430 1,002,927 0 9,191

$0 0 3,430 2,040,000 5,500 15,000

$0 0 0 1,077,815 5,500 10,000

0.00% 0.00% 100.00% 189.27% 100.00% 150.00%

Total Revenues

1,015,548

2,063,930

1,093,315

188.78%

Expenses Salaries & Wages Retirement & Insurance Contractual Services Supplies Lab, Legal Fees & Examinations Evidence Storage Officer Tuition Task Force Phones, Pagers, Internet Travel & Investigation County Auditor/Audit Fees Fuel Publications/Membership Uniforms & Related Equip. Vehicle Maintenance & Repairs Capital Improvements/Purchases Miscellaneous Liability Insurance Payroll Processing Fees Electric Columbia Gas ADT Security Police Car Lease RITA Collection Fees Contingency Total Expenditures

277,653 158,960 3,249 7,360 973 550 1,570 0 9,199 573 0 26,859 85 4,705 8,845 1,424 2,047 18,383 1,505 2,456 3,855 225 0 31,182 0 561,658

770,408 399,504 7,798 17,664 4,335 1,320 6,000 0 22,078 6,375 4,584 64,462 204 19,292 53,070 30,000 10,000 18,383 3,612 7,368 11,565 1,200 0 61,200 0 1,520,421

774,904 417,661 10,000 32,800 23,400 2,000 6,000 0 30,700 14,000 6,000 50,000 2,500 31,900 93,000 40,000 27,700 22,000 4,500 10,000 10,000 1,400 0 35,000 552,820 2,198,285

99.42% 95.65% 77.98% 53.85% 18.53% 66.00% 100.00% 0.00% 71.91% 45.54% 0.00% 128.92% 8.16% 60.48% 57.06% 75.00% 36.10% 83.56% 80.27% 73.68% 115.65% 85.71% 0.00% 174.86% 0.00% 69.16%

Excess of Revenues Over(Under) Expenditures

453,890

543,509

Fund Balance at 12/31/10

1,104,970

Fund Balance at 05/31/11 & 05/31/10

1,558,860

(1,104,970)

0

1,104,970

1,104,970

0

1,648,479

0

0.00%

CITY OF PATASKALA LICKING COUNTY STREET FUND PROJECTIONS - DECEMBER 31, 2011

YTD Ended May 2011 Revenues: Income Taxes Rollback & Homestead Gas Tax Motor Vehicle Registration Grants Interest Miscellaneous

Projected at 12/31/2011

2011 Budget

YTD % Received/Expended

$334,390 1,715 204,889 46,183 0 372 10,642

$680,000 1,715 491,734 110,839 0 628 13,000

$359,272 0 420,000 130,000 0 628 500

189.27% 100.00% 117.08% 85.26% 0.00% 100.00% 2600.00%

Total Revenues

598,191

1,297,916

910,400

142.57%

Expenses Salaries & Wages Retirement & Insurance Contractual Services Utility - Electric Utility - Gas Uniforms & Related Equip. Permits & Registrations Supplies Engineering Fees Phones Vehicle Fuel & Oil Vehicle Repairs Street Repair/Drainage Maint. Miscellaneous Street Signs Gravel/Salt Tree/Roof Maintenance Capital Improvements Liability Insurance Street Light Repairs RITA Collection Fees Contingency Auditor Fees

121,521 71,922 0 1,126 3,854 1,835 3,010 8,950 15,770 2,729 12,116 23,409 8,762 2,711 3,880 35,326 175 0 8,485 6,836 10,018 0 0

333,056 175,613 0 3,378 11,562 4,404 3,010 21,480 117,000 6,550 29,078 35,000 21,029 6,506 9,312 46,000 420 228,500 8,485 16,406 20,400 0 2,178

341,894 194,738 3,500 7,000 8,000 5,000 4,400 27,100 117,000 5,200 35,000 42,500 177,000 13,800 6,000 46,000 15,000 228,500 10,000 12,500 18,000 121,388 2,000

97.41% 90.18% 0.00% 48.26% 144.53% 88.08% 68.41% 79.26% 100.00% 125.95% 83.08% 82.35% 11.88% 47.15% 155.20% 100.00% 2.80% 100.00% 84.85% 131.25% 113.33% 0.00% 108.90%

Total Expenditures

342,435

1,099,367

1,441,520

76.26%

255,756

198,548

(531,120)

0

Fund Balance at 12/31/10 & 12/31/09

531,120

531,120

531,120

0

Fund Balance at 05/31/11 & 05/31/10

786,876

729,668

0

0

Excess of Revenues Over(Under) Expenditures

CITY OF PATASKALA LICKING COUNTY WATER FUND PROJECTIONS - DECEMBER 31, 2011

YTD Ended May 2011 Revenues: Charges for Services Miscellaneous

Projected at 12/31/2011

2011 Budget

YTD % Received/Expended

$417,166 0

983,320 0

$1,095,172 5,000

89.79% 0.00%

Total Revenues

417,166

983,320

1,100,172

89.38%

Expenses Salaries & Wages Retirement & Insurance Contractual Services Rent Cell Phones Utility Location Engineering Fees Legal Smart Billing Audit Fees Miscellaneous Fuel/Oil Office Supplies Vehicle Repairs Chemical Lab Supplies Salt System Maintenance Certifications Utilities Water Refunds Transfers Out - Debt Transfers Out - Capital Outlay Contingency

80,138 47,681 0 0 796 132 7,679 0 3,848 0 33,389 4,423 738 721 8,090 3,807 27,016 19,412 35 60,133 143 0 110,542 0

213,701 114,434 500 5,000 1,910 317 18,430 0 9,235 2,750 80,134 10,615 1,771 1,730 19,416 9,137 64,838 46,589 2,500 144,319 1,000 517,500 110,542 0

241,436 123,279 1,000 5,000 4,000 1,000 25,000 0 12,000 2,750 91,738 10,000 1,000 5,000 10,000 11,000 85,000 20,000 2,500 125,000 1,500 517,500 316,041 118,671

88.51% 92.83% 50.00% 100.00% 47.76% 31.68% 73.72% 0.00% 76.96% 100.00% 87.35% 106.15% 177.12% 34.61% 194.16% 83.06% 76.28% 232.94% 100.00% 115.46% 66.67% 100.00% 34.98% 0.00%

Total Expenditures

408,723

1,376,369

1,730,415

79.54%

Excess of Revenues Over(Under) Expenditures

8,443

(393,049)

(630,243)

0

Fund Balance at 12/31/10 & 12/31/09

630,243

630,243

630,243

0

Fund Balance at 05/31/11 & 05/31/10

638,686

237,194

0

0