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Fitch affirms Brook Park's AA- (negative); city reports income-tax growth and expands e-filing and AI auditing
Summary
Finance Director Robert McGahn said Fitch affirmed the city's AA- (double-A negative) rating while reporting $24.2 million in 2025 income-tax revenue. Tax Administrator Thornburg described expanded e-filing, a paid-preparer partnership (IN*SOURCE) and a new AI-driven audit workflow to flag return errors for staff review.
Brook Park officials on Feb. 3 told council that Fitch Ratings affirmed the city's issuer default rating at double-A negative following a review of 2024 financials, and that preliminary 2025 income-tax collections rose above $24.2 million.
Finance Director Robert McGahn said Fitch applied a temporary negative model deviation but affirmed the city’s rating, noting the review reflects 2024 financials and that the city’s improved revenue profile could support rating stability in coming years. “Although I am disappointed at the decision to maintain our credit rating, the methodology is sound,” McGahn said, summarizing Fitch’s analysis.
Tax Administrator Thornburg reported that e-filing increased in 2025 (from 561 to 733 returns via Tax Connect) and that the city expanded paid-preparer e-filing through IN*SOURCE (over 1,700 returns filed via that channel). Thornburg said the city is piloting AI-assisted auditing within the InSource workflow: when a paid preparer files through the partner system, AI flags potential errors and places those returns in a pending status for staff review.
Thornburg also reported the city sent 468 cases to Berea Municipal Court in 2025 under expanded collection efforts, and that the partnership with Keith Weiner & Associates brought $49,712.58 in collections (commissions paid $12,275.56).
Why it matters: The Fitch action and the revenue increase provide context for the city’s fiscal health; expanded e-filing and AI-assisted review are intended to improve compliance and processing efficiency but raise questions about oversight and data security that officials said will be handled within encrypted systems.
Next steps: Finance and tax staff will continue to track collection outcomes and develop procedures for AI-flagged returns; councilors asked for clarification on whether AI operates inside a closed, encrypted system (Thornburg confirmed it does).
