The City of Troy’s Annual Comprehensive Financial Report covers the year ending December 31, 2025. It is a long document, but its central message is fairly clear: Troy has substantial resources, is investing heavily in public infrastructure, and must remain careful about both its formal budget process and the health of its income-tax base.
You can read the report here:
Troy ended 2025 in a strong financial position. The city added to its overall financial resources, continued work on public infrastructure and received a clean audit opinion from the Ohio Auditor of State. But the report also points to one important warning sign: business income-tax collections fell sharply during the year.
The Big Picture
Think of the city’s “net position” as the value of what Troy owns and controls, minus what it owes. This includes cash, investments, streets, buildings, water and sewer systems, equipment, and other assets. It also includes debts and long-term obligations.
At the end of 2025, Troy reported total net position of $312.6 million. That was an increase of $21.3 million from the year before. About $201.6 million of that total is tied up in long-lasting public assets such as roads, buildings, water lines, sewer lines, and equipment. Those assets matter, but they are not cash that can simply be spent on next year’s police, fire, or street-maintenance budget.
Troy also reported $134.1 million in pooled cash and investments. That is a large number, but it should not be read as one big pile of extra money. Much of it is set aside for specific purposes, including capital projects, debt payments, public safety, streets, parks, utility work, and other legal commitments.
Still, the report shows a city with meaningful reserves and a strong ability to pay for planned work.
Where The Money Came From
For city government services such as police, fire, parks, streets, planning, and administration, the largest source of ongoing revenue remains Troy’s 1.75% municipal income tax.
Total income-tax collections were $26.7 million in 2025, slightly below the $27.8 million collected in 2024. Income taxes made up about 71 percent of the city’s general revenues for governmental activities. That means Troy’s financial health is closely tied to jobs, wages, and business activity in the city.
There is an important detail beneath that overall number. Income-tax collections increased from 2024 in both individual accounts and employer withholding accounts. In simple terms, the city collected more tax connected to residents and workers’ wages. But tax collections from business accounts fell by nearly 26 percent from 2024 to 2025.
That is worth watching. A one-year decrease does not automatically mean Troy’s business economy is weakening. Business tax payments can move up or down for many reasons, including company profits, tax filings, refunds, business losses, or the timing of payments.
Still, a decline of that size should lead City Council, staff, and residents to ask better questions. Was the decrease driven by a small number of large businesses? Are there state-level policy changes that may have impacted lower revenues to the community? Was it caused by a one-time refund or adjustment? Or does it point to a broader change in local business profitability?
The city also received $2.75 million in property taxes, nearly $5 million in investment earnings, and state or federal grants and entitlements. Investment earnings were especially notable. Higher interest rates and Troy’s large investment balance produced $5.8 million in investment income across the city’s governmental and utility operations.
Grant dollars helped pay for major work as well. Capital grants and contributions totaled $15.4 million, with much of the support going toward the dam removal project just east of downtown.
Where The City Spent Dollars
Troy spent about $37.7 million on governmental activities in 2025. The largest share went to public safety, which includes police and fire services. Public safety costs were $15.6 million, or about 42 cents out of every dollar spent on core governmental services.
General government cost $7.8 million, transportation and street repair cost $6.7 million, and leisure-time activities cost about $3.1 million. The city spent another $1.9 million on basic utility services and $1.7 million on community development.
Transportation and street-repair costs rose sharply from 2024. That is not necessarily bad news. It reflects a larger level of work on infrastructure, supported in part by capital grants. The report shows Troy added roughly $14.8 million in governmental infrastructure during the year.
Across all city functions, Troy had $223.6 million invested in capital assets at year-end. That includes roads, bridges, water and sewer infrastructure, land, public buildings, vehicles, equipment, and projects still under construction.
Utilities and long-term costs
As enterprise funds, Troy’s water, sewer, stormwater, Hobart Arena, pool, parking, and Miami Shores operations are accounted for separately from tax-supported services. These operations are generally expected to be supported by user fees.
The report shows that business-type operations increased their total net position by $1.5 million. However, the group of utility and enterprise operations had an operating loss of $2.8 million before considering non-operating revenue, grants, and transfers. Water had a small operating gain, while sewer and stormwater reported operating losses.
That does not mean the systems are failing. Utility systems require ongoing maintenance, depreciation, and major capital improvements. But residents and City Council should keep watching whether rates, operating costs, and capital needs stay in balance over time.
Troy reported $21.1 million in outstanding bonds and Ohio Water Development Authority loans at the end of 2025, up from $19.1 million a year earlier. The increase was largely connected to utility borrowing. Debt can be an appropriate method for financing long-life assets, such as water and sewer improvements, because future users also benefit from the work. The key question is whether Troy continues to match borrowing with clear plans for repayment and asset maintenance.
A Concern: The Audit Finding
The Ohio Auditor of State gave Troy an unmodified opinion on its 2025 financial statements. In plain language, auditors concluded the statements fairly presented the city’s financial position in all important respects. The audit found no material weaknesses in financial-reporting controls and no significant deficiencies.
However, auditors did report one noncompliance finding. Troy’s 2025 appropriations in the Capital Improvement Fund exceeded the amount certified as available by the county budget commission by $4.29 million. The finding did not say the city spent money it did not have. Instead, it said the city’s formal appropriations exceeded the legal amount authorized through the state budget process.
In the report, the city said it would improve spreadsheet formulas and more closely monitor reports to prevent future errors. That response is appropriate, but the issue deserves follow-through. Strong cash balances do not remove the need for accurate budgeting, timely amendments, and clear Council oversight.
Troy’s 2025 report offers a mostly positive picture: a city with resources, major investments underway, and sound audited financial statements. But the decline in business income-tax collections and the budget finding are reminders that financial strength must be watched, managed, and explained in public.
Announcing our September Community Survey!
Every other month, this publication takes time to ask our readers how they feel about the happenings in their hometown! What are the challenges? What are the opportunities? Is your hometown headed in the right direction? Our survey is the easiest way for you to express your thoughts. Next month, this publication will report out on the results.
Thanks for your time and your participation! It is greatly appreciated!
This is what it looks like when residents stay informed. If you find value in this work, share it with a neighbor, a colleague, or anyone who cares about this community. Paid subscriptions keep it going — $5 a month.
Civic Capacity runs on one thing: readers who believe local journalism matters. If you want to support this work without a subscription, you can now make a one-time contribution through Buy Me a Coffee — or in my case, Buy Me an Iced Tea. Click the button below. Every contribution goes directly into the work you read here every day.