2018 Annual Report


The finance department is responsible for preparing and maintaining the operating and capital budgets, cash management and investments, purchasing, payroll, and income tax collections.  The finance department consists of two offices, income tax, and accounting. 

In 2018, Montgomery’s operating budget totaled $21.4 million.  In addition to the operating budget, the City’s finance department administers a capital budget, with a four-year cash forecast. 

In 2018, the finance department continued its participation in the City’s performance measurement process.  This effort involves the tracking and collection of performance measurement data, which will ultimately be used by the department and the City to benchmark against finance departments in other municipalities. 

Revenues and Expenditures

The charts titled “Where the Money Comes From” and “Where the Money Goes” provides a snapshot of how resources are collected and programmed for expenditures. In 2018, the finance department was responsible for the collection of approximately $9.5 million in income tax revenues and $6.2 million in property tax revenues.  Also, the department is responsible for managing an investment portfolio of more than $22.4 million.

As with most municipalities, public safety, property protection, and emergency services are the most important governmental functions.  General government and public works, including solid waste and recycling, account for over 29 percent of the remaining expenditures.

The finance department prepares quarterly and annual reports, including the Comprehensive Annual Financial Report (CAFR).  In 2018, for the twenty-third consecutive year, the City was awarded the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for the City’s 2017 CAFR.  Moody’s Investor Services continues to recognize the City’s creditworthiness by assigning an Aaa credit rating to our debt.  Montgomery is one of only ten communities in the State of Ohio to be rated in this category.


Where the Money Comes From:


Where the Money Goes:


Income Tax Revenue

 As depicted in the graph, income tax collections rose dramatically in 2008 from 2007, as a result of construction activity with one of the City’s major employers; however, in 2009, income tax revenues decreased 10 percent from the amount collected in 2008.  Income tax revenues have been increasing each year since the 2009 economic downturn; with 2017 revenues exceeding collections from 2008 by 22.5 percent. 

For purposes of balancing operations with capital investments and related debt service, income tax revenues are distributed into two funds according to the following allocation:  80 percent to the General Fund and 20 percent to the Capital Improvement Fund.


Total Revenues and Expenditures 

The line chart titled “Total Revenues and Expenditures including General Fund 2008-2018″ provides a historical perspective of the City’s ability to program and budget services, capital improvements and related debt service within the resources provided through the annual budget process.



Sound Financial Policies

To maintain a healthy fiscal environment, the City Council has adopted an array of financial policies:

Investment Policy

The graph titled “Investment Income” reflects revenues which range from $1,350,943 in 2007 to $359,569 in 2018.  City Council adopted a conservative investment policy which applies to cash management and investment activities of the City of Montgomery.  The policy is reviewed periodically, and City Council adopts updates.  The primary objective of the City’s investment activities is the preservation of capital and liquidity, maximizing investment income, and conforming to State laws governing the investment of public funds.





Fund Balance Policy

The fund balance is an essential measure of the City’s overall financial health.  City Council adopted a policy requiring maintenance of a six to twelve-month reserve of operating expenditures for both the General Fund and Fire/EMS Levy fund, a minimum cash balance of $1,000,000 in the Capital Improvement Fund, a targeted fund reserve for Arts & Amenities is established at $376,237, and one year reserve of debt service payments in the General Bond Retirement Fund.





On December 31, 2018, the City had $18,766,012 of bonded debt; of this amount $18,766,012 is special obligation debt and $348,867 is special assessment debt.   

In May of 2013, the City issued $13,265,000 of special obligation bonds to finance public improvements which consisted of constructing a roadway and public garage at the commercial/residential development known as the Vintage Club.  Payments secure the repayment of the bonds in place of taxes generated within the tax increment financing district which encompasses the entire Vintage Club development.  The development includes high-end housing development, two medical office buildings consisting of 100,000 square feet occupied by the Christ Hospital Health Network and plans for future commercial development in the undeveloped parcels in both the north and south sections.

In 2018, the city issued $5,695,000 of special obligation bonds for infrastructure improvements at the Vintage Club housing development.

The chart below depicts the total outstanding debt for the City over the last ten years.