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Moody’s Financial Service has again given Berea an Aa2 bond rating. That translates as excellent. It means the City can obtain very favorable interest rates if it decides to enter the bond market. We are a good investment.
Moody’s reported that Berea is in “a robust financial position.”
Proof is the fiscal year 2019 budget approved by City Council recently. The budget shows a projected year end balance in the general fund of more than $2.179 million. The general fund is the fund that pays for the day-to-day operations of the City. The beginning balance for the year was $2.170 million so the ending balance will be slightly higher.
Estimated revenue from income taxes shows a slight uptick from $10.43 million in 2018 to an estimated $10.48 in 2019, probably due to the new businesses moving into our City. Property tax revenue also is estimated to increase. Despite those increases, the City’s overall revenue stream has declined every year – from $63 million in 2017 to $62.5 million in 2018 to an estimated $61.7 million this year.
Even with reduced income, we have managed to keep water rates steady with no increases and we have not reduced city services. Grants and no- to low-interest loans have enabled us to complete some major construction projects as you will read in the two-page spread on upcoming and past programs in this issue of The Berean.
We continue to closely monitor expenditures. The City has no plans to borrow funds in 2019. Instead, we are asking departments to purchase equipment or make improvements using the funds allocated in their budgets.
Berea’s economy is stable. We do more with less, operating efficiently and promising to be good stewards of your tax dollars.