Finance director: Strongsville income-tax collections near last year’s levels after mixed results in Q1

Finance Director Eric Dean told Strongsville City Council’s finance committee on May 4 that year-to-date income tax collections through April 30 totaled $21,506,692, an increase of about $448,000 over the same period last year. "We've collected 21,506,692 for the year," Dean said, and highlighted that withholding is the largest single source of receipts.

Dean described the city's collections in three categories: withholding (about $14,000,000 of the $21M YTD), individual resident payments, and the 2% net-profit tax paid by businesses. He said withholding was up roughly $513,000 (about 3.5%) year-to-date and that individual resident payments had risen by roughly 9.5%, while net-profit tax receipts were down about $510,000 (about 15%), calling net-profit the most volatile of the three revenue streams.

Council members asked whether work-from-home shifts since COVID affect where tax is paid. Dean said employer reporting and allocation can contribute to apparent increases in resident payments and that residents can seek adjustments if withholding is reported to an incorrect jurisdiction. He added that staff monitor net-profit numbers for trends that could indicate business disruptions in local employment centers.

On other revenues, Dean reported building-permit activity "on schedule" and said rec-center fees cover about 60% of that facility's operating costs; he cited the rec-center budget at $5,600,000 for 2025. For property tax the city is at roughly 54% of the estimated revenue, and Dean said TIF receipts total about $1,300,000, currently used mainly for two debt-service lines (approximately $340,000 and $580,000 annually) and some street-repair obligations.

On expenses, Dean said salary-and-wage costs are running higher than last year (about $12,000,000, up roughly $518,000) and that healthcare costs are trending toward the budgeted amount; the city carries reinsurance that kicks in on very large claims and staff monitor weekly claims to manage budget impacts. He noted several capital items that may require action, including an $820,000 water-line/hydrant project whose bids exceeded estimates and may need a budget amendment, a $1,100,000 concrete road repair project approved in ordinance 26-31, a $25,000 sidewalk-study line that needs adjustment, and early expenditures on Fire Station No. 5 (about $730,000 spent so far).

Dean recommended the council receive a midyear update after June 30 to re-check trends and projections. Council President Gordon Short and others agreed a follow-up would be helpful; no formal action was taken at the finance committee other than to schedule another review.

The finance committee portion of the meeting adjourned at 7:22 p.m., and council moved into the regular meeting.