Talking About Troy's Piggy Bank

Vol. III, No. 174 - The 2023 Comprehensive Annual Financial Report shows big surpluses in city accounts

We Are Feeding our Neighbors here at Civic Capacity

Throughout November, this publication is giving our readers an opportunity where our readers can support local food pantries. Every dollar received from our “Buy Me a Coffee” Page will be given to New Path Food Pantries.

We started November with a modest goal to raise $750. So far our campaign, our community has raised $2,435! Our new goal for November is to raise $2,500. Do you want to be part of this effort, along with nearly 60 other donors to help support our efforts? Thank you to Diana for her donation of $50 yesterday! You can by making a donation here:

This past Wednesday, many City Council members came together with the administration in the basement of City Hall to talk about the city’s spending plan for 2026. Under the watchful eyes of cameras, the city administration painted a less than rosy outlook, especially as we look farther out. Huge captial projects, rising personnel costs, along with discussions about rolling back property taxes and potential property assessments for downtown properties are making the city’s financial future cloudy.

You can watch the meeting here.

One piece of information that was that City attempts to keep at a minimum, six months of reserves in the city’s general fund. In other words, if the city didn’t collect one thin dime from taxpayers, there would still be enough capital on hand to cover expenses.

So, where exactly do these cash reserves stand today? Well, the budget is not a great tool to help answer that question; it’s a forward looking document. Rather, the city’s Comprehenisve Annual Financial Review is a much better document. These reports are forwarded to, and later certified, by the State Auditor. The report for 2024 has not yet been released by the State Auditor, but we do have the 2023 report that can be reviewed.

In the 2023 report, the City of Troy finished the year in strong financial shape. The numbers tell an impressive story. General Fund revenues reached $40.1 million while expenses came in at just $25.5 million. Even when you look at Captial Improvements, that particular fund had shed roughly $2.5 million, starting the year with $14.1 million and ending with $11.7 million.

That left the city’s general fund with $14.6 million more than it spent, bringing the total fund balance to $68.4 million by the end of the year. Most people would look at those numbers and think Troy is doing great. And they would be right, to a point.​

But here’s where things get interesting. The Government Finance Officers Association, which sets guidelines for how cities should manage their money, recommends that local governments keep reserves equal to about two months of operating expenses. Many cities use this is as a minimum and try to keep anywhere from three to four months on hand.

Why? That’s basically a safety net in case something unexpected happens. Two months gives cities time to adjust if revenues suddenly drop or an emergency pops up. It’s the financial equivalent of keeping some extra food in your pantry.​

And these safety nets held by local government have been a bit of a hot topic. Ealier this year, there was an attempt by some members of the General Assembly to cap the amount of these reserve funds to 30%, or roughly four months of operating. It makes one think that if the General Assembly knew who much the City of Troy was carrying over each year, they would have a thing or two to say.

For Troy, two months of operating expenses equals about sixty days worth of spending, which comes out to roughly $4.2 million. Four months would be double that amont to $8.4 million. And no one doubts that the city should have some amount set aside just to be safe. The issue is that at the end of 2023, Troy has way more than that. In fact, Troy’s current fund balance of $68.4 million represents nearly 979 days of operating capital. That’s almost three years worth of spending sitting in reserve. To put it simply, Troy has more than sixteen times what the experts say is necessary.​

That’s a lot of money just sitting there. While it’s smart to be prepared, there’s such a thing as being too cautious. When a city holds onto too much money in reserves, that cash isn’t working for the community. It’s not fixing streets. It’s not upgrading parks. It’s not improving public safety services or creating new programs that residents might need.

Troy’s situation becomes even more striking when you consider the city’s investment fund, which holds over $107.1 million. Add that to the General Fund balance and Troy has more than $175 million in liquid assets. Granted, that $107.1 million has certain safeguards around it so those dollars aren’t spent. But, these two pots of money together provide an enormous cushion for the city. With such substantial investments already available, does Troy really need to keep nearly $70 million more in the General Fund?

Think about what that extra money could do. The difference between what Troy has in reserve and what experts recommend is about $64 million. That’s real money that could make real improvements. New equipment for first responders. Better technology for city services. Infrastructure repairs that have been pushed off. Economic development initiatives that could bring new jobs and growth. All of these things matter to residents, and all of them cost money. And if the city doesn’t want to spend that money, that’s fine. Then maybe it’s time for a larger conversation of reducing tax rates that are paid by the city’s residents.

Some people might argue that having large reserves shows fiscal responsibility. They’re not wrong. It’s definitely better to have too much saved than too little. But good financial management isn’t just about saving every dollar. It’s also about using public resources wisely to serve the public.

When reserves grow this large, it raises questions. Is the six month reserve standard too much? Is a four month reserve standard more appropriate? More practical questions are: Is the city charging residents more in taxes and fees than it needs to? Could tax rates be lowered if the city doesn’t need to collect so much revenue? Are there community needs that aren’t being met because funds are being hoarded rather than invested? These are questions that deserve discussion.

Cities need reserves for genuine emergencies. Natural disasters, economic downturns, unexpected lawsuits—these things happen, and smart planning means being ready. But Troy’s reserves go far beyond emergency planning. They represent years of accumulated surpluses that have grown well past the point of prudent caution.

The purpose of local government is to serve residents by providing quality services and maintaining infrastructure. Money sitting in a fund balance doesn’t accomplish those goals. It just accumulates. With both a massive General Fund balance and a robust investment fund, Troy has plenty of financial security. Perhaps it’s time for city leaders to have an honest conversation about whether these reserve levels truly serve the community’s best interests, or whether some of that money could be put to better use making Troy an even better place to live.

Participate in our November Community Survey!

So, throughout November, you can participate in our survey to give your thoughts and feelings on the direction of your hometown!

You can access the survey here:

Thanks for your time and your participation! It is greatly appreciated!

A New Handbook to grow Civic Capacity!

Recently, we created a new digital handbook, “The Citizen’s Guide to Public Records”. This handbook is designed to help residents have a better understanding of public meetings and meeting records. It’s filled with templates, ideas and other information that will open a new world of public affairs.

Also, if you have ideas for future handbooks, please let us know at pinnaclestrategiesltd@gmail.com.

Want to Learn More About Troy’s Businesses?

Our publication has recently released our September 2025 Economic Abstract, the most comprehensive and up-to-date report on the businesses and industries in the City of Troy. For those that want to understand our community’s business and industries, this is a must-have report.

Thank you to our New Media Partners!

Recently, many of our stories has been showing up on the local news website, www.mymiamicounty.com. We are grateful for the good folks for sharing our work with their audience and we would encourage our readers to check them out at their website!

Our publication would also like to recognize the good work being done at www.piquanewsnow.com. Piqua News Now is a new web-based news and information site for the Miami County area, with a specific focus on Piqua!

In addition, the good folks at Piqua News Now have started a new, 24-hour streaming YouTube channel. This channel is awesome with continuous weather updates and more importantly, it provides a 24-hour audio feed from county wide dispatch. Check it out here!

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