Digging into Troy's Comprehensive Annual Financial Report for 2024
Vol. III, No. 213 - An inside look at Troy's 2024 finances and what it means for future parks and recreation improvements
On December 30th, the Ohio Auditor of State released the City of Troy’s Comprehensive Annual Financial Report and this report gives interesting insights into the city’s financial condition. Of course, the last time this publication talked in-depth about the city’s financial condition, it was dismissed as “creative fiction”, which is puzzling, considering that all the facts and figures that were presented came from City Hall itself.
You can read the report below:
But, given the fact this publication will more than likely be the only source that informs the public that this report actually exists, let alone actually dive into it, this publication doesn’t mind if this gets dismissed as “creative fiction” or not by City Hall, because the fact remains: the numbers and figures that are reported here come from the city’s own report.
At the end of 2023, the city’s general fund balance was about $68.5 million. One year later, that balance had risen to roughly $83.6 million, an increase of more than $15 million in just twelve months; over $1 million a month. This kind of growth shows that the city is taking in far more than it is spending in its main operating fund, at least for now.
According to the City Budget presentation presentation made last November, as the city started 2025 with $83.6 million in the general fund and expected to spend $61.5 million in the same year, the city could have covered their general fund and captial fund obligations simply from their reserve. In other words, when the city began the year, it had about 16 months of cash on hand to meet it’s obligations.
The city’s investment fund tells a similar story. At the end of 2023, the city held about $107.1 million in investments. By the end of 2024, that total had climbed to approximately $123.9 million. The money is spread across a mix of safe, conservative choices like Federal Home Loan Bank, Fannie Mae, Freddie Mac, and U.S. Treasury bills, along with STAR Ohio, certificates of deposit, and money market funds. The percentages shifted a bit from 2023 to 2024, with a small move away from federal agency bonds and toward STAR Ohio and negotiable certificates of deposit, but the overall strategy remains cautious and focused on preserving principal while earning steady interest.
City income tax is the workhorse that keeps these balances growing. In 2021, Troy’s income tax brought in about $22.2 million. That amount rose to roughly $25.4 million in 2022, then to about $26.8 million in 2023, and approximately $27.8 million in 2024. The largest part of this growth comes from withholding on wages paid by employers in the city. Withholding rose from about $18.9 million in 2023 to roughly $20.2 million in 2024, suggesting more jobs, higher pay, or both in the local economy. That steady upward trend matters because income tax is the city’s single largest revenue source, and it supports everything from police and fire to street repair and park maintenance.
From 2021 to 2024, the annualized growth rate in the city’s income tax was approximately 6.3%, a healthy figure for sure. As the city enters 2026, City Hall is anticipating that the income tax collections will only rise 0.4%, that will be lowest annual increase in income tax revenue since 2020, when income taxes actually declined by approximately 3.4%.
These strong revenues show up not only in cash balances but also in the city’s overall financial position. On the government‑wide statements, the net position of the governmental activities increased from about $156.7 million at the end of 2023 to roughly $178.2 million at the end of 2024, even after adjusting beginning balances for new accounting rules. Business‑type activities such as water, sewer, and stormwater also saw net position climb from about $96.0 million to $113.1 million over the same period. Put simply, Troy’s assets and long‑term strength are growing faster than its obligations.
Against that backdrop, the policy makers are considering the idea of borrowing up to $15 million for parks and recreation. The financial data from this report helps make the decisions on how to pay for these improvements clearer. While the city has an agressive list of capital improvements, it also has tens of millions in unrestricted and committed general fund balance, plus a sizable pool of investments that are not tied to one specific project. On paper, Troy absolutely has the financial capacity to pay cash for $15 million in park upgrades out of its reserves without putting basic services at risk.
But having the capacity and using it are two different questions. If the city pays the full $15 million in cash, it reduces investment balances that are now throwing off significant interest income. It also trims a cushion that now helps the city weather economic downturns, state funding changes, or big one‑time needs like major infrastructure failures. In other words, writing a check today would save future interest on debt, but it would also give up some flexibility and some ongoing investment earnings.
Taking on new debt, by contrast, spreads the cost of park and recreation projects over many years. Families who move to Troy five or ten years from now would help pay for the parks they enjoy, rather than today’s taxpayers carrying the full load. The city also has legal room to borrow: the 2024 report shows a total legal debt margin of about $80.4 million, and an unvoted, or “council‑only,” debt margin of roughly $39.9 million, meaning that amount of additional general obligation debt could be issued without a public vote under Ohio law.
With strong income tax growth, large reserves, and this unused borrowing capacity, Troy appears well‑positioned to handle a reasonable amount of new debt without strain. Interest rates and the exact repayment schedule will matter, but the city’s numbers suggest that annual debt payments on $15 million would be manageable as part of its overall budget.
The most responsible path likely lies in the middle. Troy can and should use some of its strong reserves to pay cash for parts of the parks plan that are shorter‑lived or that can be phased in over time. At the same time, issuing a well‑sized bond or note issue for the full $15 million, or a portion of it, would protect the city’s healthy fund balances and investment pool, keep options open for future needs, and align the cost of these projects with the long life of the assets being built.
But the fundamental issue at play isn’t whether the City should borrow the funds or not; given the city’s current financial strength, it is not a question of whether Troy can afford these improvements; it is a question of choosing a mix of cash and debt that keeps the city both vibrant and resilient for the long run. In other words, the city has plenty of options to make the improvements improvements and policy makers will weigh the pros and cons of those options.
The fundamental issue the community needs to look at comes from the Comprehenisve Master Parks and Recreation Plan itself.
What the report found was that the City of Troy has consistently punched below it’s weight class. The consultant’s analysis showed that for a city of our size, the community has consistently underfunded staff, maintenance and operations to maintain our parks system.
When the community is sitting on an general fund balance of over $83 million a bigger question arises. Did the City of Troy end up with a such a large kitty due to financial management or by simply not spending money on needed investments in the community?
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