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Indian Hill CFO warns of structural deficit, urges options to raise revenue or cut spending
Summary
Chief Financial Officer Mick Davis told the Indian Hill Board that expenditures are outpacing revenues in a five‑year forecast, leaving the district to choose between raising revenue (levies) or reducing expenditures to avoid reserve depletion.
Mick Davis, chief financial officer for Indian Hill Exempted Village, told the board the district faces a structural imbalance in its five‑year forecast and that expenditures are exceeding revenues.
"We do see that our expenditures are exceeding our revenues," Davis said, describing a trajectory in which ongoing spending outpaces current revenue projections. He told trustees the district currently assumes no new operating revenue in the forecast and will need to consider alternatives to stop the decline in reserves.
Davis outlined two broad options: increase revenue or reduce expenditures. He identified upcoming fiscal milestones that will influence choices, including the expiration of the district's current operating levy at the end of the calendar year and the final payment on a 2016 bond refunding on Dec. 1, 2027, which will change the district's millage picture.
Board members pressed Davis on the forecast assumptions and the timing of property‑value growth, noting that visible increases on residents' tax bills do not always match revenue growth to the district. One board member said the district's average expenditure growth is "about 3.3% a year," while revenue growth was described in the meeting as roughly 2% under current rules.
Davis presented projected days of cash on hand that decline across the forecast period and said the board will need to consider revenue options (including potential levies) and expenditure adjustments such as staffing alignments and program changes to restore fiscal stability. He recommended ongoing monitoring of state tax reform and legislative developments that could change the district's outlook.
