Piqua's 2024 Financial Report Shows Mixed Results
Vol. III, No. 263 - City's Comprehensive Annual Financial Report is Released by Ohio Auditor of State
Yesterday, the Ohio Auditor of State released the The City of Piqua’s 2024 Annual Comprehensive Financial Report on it’s website; you can access the report here. Overall, the report describes a city that is fundamentally stable, but clearly under pressure on its tax‑supported side. Generally, the picture that emerges is of a local government that has strong utility enterprises, significant investments in capital assets, and a solid General Fund cushion, yet must navigate rising public safety costs, the loss of one‑time federal aid, and growing long‑term obligations.
At the broadest level, the city’s total net position—the difference between what it owns and what it owes—stood at $154,284,322 at December 31, 2024. Of this, $109,583,191 was tied up in capital assets such as land, buildings, streets, utilities, equipment, and right‑to‑use leased assets, net of related debt. Another $22,958,133 was legally or externally restricted for specific purposes, leaving an unrestricted balance of $21,742,998 as the city’s true financial “shock absorber” across all activities.
The report emphasizes a crucial structural distinction between governmental activities and business‑type activities. Governmental activities—general government, public safety, streets and maintenance, parks and recreation, and community development—held net position of $65,144,229 at year‑end. Business‑type activities—electric, water, wastewater, refuse, stormwater, and golf—held $89,140,093. In 2024, governmental programs incurred $26,967,770 in expenses but generated only $4,658,271 in program‑specific revenues (charges for services and grants), leaving $22,309,499 to be covered by general revenues like income and property taxes. By contrast, business‑type activities recorded $50,386,581 in expenses and $50,648,046 in program revenues, meaning the utilities and other fee‑supported services essentially paid their own way and modestly strengthened their position.
Within the governmental funds, the combined fund balance at year‑end 2024 was $30,527,281, with three funds doing most of the heavy lifting: the General Fund, the newly separated Safety Fund, and the Street Maintenance Fund. The General Fund, which finances city administration and parks and serves as the primary flexible resource, ended 2024 with a fund balance of $14,094,682, including $11,318,245 classified as unassigned and available for general use. The Safety Fund—now standing on its own as the home for police and fire activities—ended with $2,804,069. The Street Maintenance Fund, supported by a dedicated share of income tax and state shared revenues, held $9,089,000, reflecting its role as a core capital and operating platform for the city’s street system.
A useful way to gauge the strength of these balances is to translate them into “days of operating reserve.” Using 2024 actual expenditures, the General Fund’s $14.1 million balance would cover roughly 2.9 years, or about 1,050 days, of its $4,884,284 in annual spending if no new revenues came in. That is a very strong cushion by typical municipal benchmarks. The Safety Fund’s $2.8 million balance, by contrast, would cover about 0.24 years—roughly 90 days—of its $11,678,199 in annual public safety expenditures. This suggests that while the General Fund can absorb shocks and support other funds when needed, the standalone Safety Fund is operating with a much thinner margin.
The revenue story inside these funds shows both reliance and vulnerability. Overall, governmental funds brought in $25,657,464 in 2024. Municipal income tax delivered $15,026,400 to the governmental funds, with the General Fund receiving 0.51% of the 2.0% percent city rate, the Safety Fund 0.96%, and the Street Maintenance Fund 0.28%, with the remainder going to other dedicated uses. Property taxes yielded $1,593,051 to these funds, reflecting modest assessed valuation growth following a 2023 countywide update. The General Fund also benefited from $800,531 in state shared revenues, $451,577 in investment earnings, and $295,616 in rents, among other sources.
The Safety Fund’s revenues were dominated by income taxes, user fees and contracts for services, and fines, with additional support from grants and donations. Street Maintenance drew heavily on income tax and state shared revenues and also captured investment income as balances grew.
On the spending side, public safety is the dominant cost driver for Piqua’s governmental activities. City‑wide, public safety expenses totaled $12,281,635 in 2024, accounting for about 45% of governmental program costs. After recognizing $1,784,270 in charges, grants, and contributions, the net cost of public safety that had to be covered by general revenues was $10,497,365. Safety Fund expenditures alone were $11,678,199, with $9,448,018 of that amount tied to salaries and employee benefits, underscoring how labor‑intensive police and fire operations are.
In the General Fund, $4,884,284 in expenditures paid for administration, parks and recreation, Fort Piqua Plaza, community planning, and smaller capital outlays. Even after the Safety Fund was split off, the city continued to rely on the General Fund to support overall governmental operations and, critically, to transfer $2,020,000 into the Safety Fund to help close its operating gap.
Capital investment and debt policy are central to understanding the city’s strategy. Total capital assets stood at $197,570,710 at the end of 2024, including significant infrastructure such as streets, utilities, and public facilities. The 2024 report highlights that major elements of the Lock 9 Riverfront Park project were completed during the year, contributing to a $3,267,098 increase in net investment in capital assets on the governmental side.
On the economic development front, the city continues to advance the Scott Drive redevelopment project. Non‑tax revenue bonds issued in 2023 for land acquisition were paid down aggressively in 2024, from $2,365,000 to $670,000, and a $2,150,000 Port Authority loan was issued to complete the project. On the business‑type side, total loans were reduced by $3.6 million, leaving $87.1 million outstanding, while the city’s overall legal debt margin remained a healthy $42,898,335.
Layered onto this operating and capital picture are significant long‑term obligations for pensions, other post‑employment benefits (OPEB), and compensated absences. The city identifies the net pension liability, reported under GASB 68, as its largest single liability. It also carries a net OPEB liability for retiree health and an expanded liability for compensated absences under GASB 101, which was implemented in 2024 and reduced reported unrestricted net position for governmental activities. Many of the drivers of these balances—statewide contribution caps, benefit formulas, and investment results—are outside local control, but they will continue to shape Piqua’s budget choices, particularly in public safety and general government.
Viewed through the lens of the 2024 Consolidated Annual Financial Report, Piqua appears financially sound but finely balanced. Its enterprise utilities are covering their costs and gradually deleveraging. Its General Fund holds an unusually deep reserve that could support both operations and strategic investments. At the same time, the Safety Fund’s thinner cushion, the heavy net cost of public safety, the reliance on income tax, and the weight of long‑term obligations all point to the need for careful, ongoing management if the city is to sustain core services and capital ambitions without eroding its hard‑earned reserves.
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