Gahanna’s finance director presented the city’s second‑quarter financial results to the finance committee Aug. 25, reporting revenues and expenditures near seasonal expectations, a healthy fund balance above policy minimums, and several material encumbrances tied to capital projects.

The nut graf: Finance staff said general fund revenues are about 56% of budget at midyear and expenditures are about 38% of budget (64% when encumbrances are included), leaving an increase to fund balance through Q2. Income tax collections were roughly 10% higher than for the same period in 2024.

Key points from the presentation:
- General fund revenue: ~56% of budget at Q2; about a 12% increase year‑over‑year driven by income tax and investment income and one‑time consortium dividend receipts.
- Expenditures: ~38% of budget (about 64% when encumbrances are counted); salaries and benefits increases and some new hirings contributed to higher personnel costs that are within planned levels.
- Fund balance: Q2 added roughly $3.4 million to fund balance, leaving total fund balance near $45.5 million; about $11.6 million of that is encumbered, with roughly $24.8 million in unreserved fund balance (about 10 months of operating coverage versus the two‑month policy minimum).
- Capital: Actual capital spending through Q2 was approximately $25.5 million with roughly $45 million in purchase orders/encumbrances for multiyear projects; when encumbrances are included, capital is about 92% of planned program expenditures.
- Income tax: Withholding and net profits showed increases; staff will monitor individual income tax anomalies and follow up with RITA on non‑filers to determine whether additional revenue will be recognized in subsequent reports.
- Investments: City investments and StarOhio yields remain roughly 4%–4.25%; staff noted the Federal Reserve may reduce rates before year‑end, which could affect future investment income.

Council members asked about large encumbrances and whether the work will occur this year; staff said procurement policy requires purchase orders to be supported by quotes or bids and that encumbered funds reflect planned work expected to be performed before year end. Councilmember Weaver asked for follow‑up on whether RITA collection letters to non‑filers will produce additional revenue; staff agreed to report on that in the next quarterly report.

Less critical details: parks and recreation charges for services exceeded forecast due to strong summer programming (camps and pools), and the police justice fund received grant reimbursements permitting transfers to materials and supplies accounts.