Create an Account - Increase your productivity, customize your experience, and engage in information you care about.
HUDSON, OH (January 21, 2020) - The City of Hudson ended 2019 in a strong financial position, with the year-end General Fund balance $1.1 million better than the mid-year projections. Total income taxes increased 9.4% over 2018. The increase in revenues is due primarily to the better local economy, the City’s business attraction and expansion efforts, and fiscally responsible financial management and conservative budgeting.
At the January 21, 2020 Council meeting, City Council discussed investing the extra $1.1 million tax revenue in the 2020 accelerated roads program to eliminate the need to borrow money to increase the quality of the City’s road system.
In addition to the General Fund, other fund areas performed well in 2019. Ellsworth Meadows had a record number of 40,000 rounds played, generating $1.4 million, ending with a net annual income of $206,000.
The Velocity Broadband fund also did well last year, increasing the number of customers using the service and generating a net income of $161,000, which is over the original $87,000 estimate.
The outlook for 2020 financials is very good. In addition to not having to borrow for increased road improvements in 2020, all voted debt levies have expired and the debt is paid off. Final payment on the Hudson Library building was made in 2019.
City staff also made efforts to reduce healthcare costs by choosing a different insurer for 2020 which decreased the City’s healthcare costs by 5.1%.
As directed by Council, the City goal is to maintain a 40% carryover balance in the General Fund. Over the past few years, City Council has reinvested in the future, adding money to the budget for roads, business broadband, and Downtown Phase 2, among others. These additional investments were made with the goal of not dropping the carryover to lower than 30%, still a higher carryover than most cities in the State of Ohio. Despite the significant financial investments in the future, the balance never dipped below 30% and is climbing back up closer to the 40% goal. With the fund balance at 38%, after the additional reinvestment in our road system, the 2019 carryover is 34%.
The City also maintains a AAA financial rating, one of the highest in Ohio, which allows us to borrow money at the lowest rates possible. That rating allowed Hudson to borrow at a rate of 1.28% last year, the lowest rate of any city in Ohio.