City finance director reviews revenues, utility funds and Moody's upgrade; income tax growth cited
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Summary
Painesville's finance director briefed council on the finance department's responsibilities, anticipated income tax receipts of about $12 million for 2025, recent switch in banking to Dollar Bank to reduce fees, and a recent upgrade to the city's credit rating by Moody's.
The city finance director presented a financial overview to Painesville City Council on March 3, summarizing revenues, utility funds, audits and a recent bond rating upgrade.
The finance director said the city manages cash, utility billing and investments and assists the auditor of state with audits. He reported income tax receipts are trending upward and projected roughly $12 million for fiscal 2025 compared with about $11 million for fiscal 2024. The finance director said the city changed banking services from Chase Bank to Dollar Bank, producing fee savings and improved interest earnings he estimated at roughly $571,000 in benefit.
On utilities, he said the water fund remains in good condition, while recent sewer and electric rate increases had not been built into the current budget and would improve variances between budget and actuals as the year progresses. He said the city reads utility meters three times monthly and manages roughly 20,000 utility customers.
Notably, the director said Moody's recently upgraded the city's bond rating, citing favorable economic development and strong cash balances; he said the upgrade improves the city’s position if it seeks new debt but does not change interest payments on existing debt.
Ending: The finance director said the department will continue investment and cash management strategies and work with auditors on the fiscal 2024 audit; council members thanked staff for the update.