What Your City's Finances Actually Says About Its Priorities
Vol. III, No. 282 - Every year, Ohio cities file a Comprehensive Annual Financial Report with the State Auditor. It's time to analyze the data
Each year, local governments across Ohio submit a report to the Ohio Auditor of State documenting their fiscal condition. For cities, that report is called a Comprehensive Annual Financial Report — a CAFR. The Government Accounting Standards Board (GASB) sets the rules for how that financial data is presented, which means every city’s report follows the same structure and standards.
These reports are a treasure trove. Debt, investments, assets, infrastructure, revenue, expenses — it’s all in there, audited and on the record.
What these reports don’t provide is analysis. The numbers are presented, but what they mean — and what they mean relative to other communities — is left for someone else to figure out. That’s where Civic Capacity comes in.
This publication took the step of taking standard CAFR data from multiple communities and compare them side by side. And what came out was a picture of how each city’s fiscal house stacks up against its peers.
Taking the data a step further by converting those figures to a per-capita basis — the data that is created actually means something to a resident. Not $54 million in total revenue, but $2,067 per person. Not $30 million in program expenses, but $1,160 per resident.
That’s the analytical lens this publication is using. And what it reveals is worth paying attention to.
The Three Numbers That Matter
This publication took a look at five cities, three of which are solely located here in Miami County: Troy, Tipp City and Piqua. This publication also looked at Huber Heights, a city with a large footprint here in Miami County. Finally, this publication looked at Sidney, a smaller city in Shelby County, but has some similar characteristics to the communities here; histories, challenges, demographics to name a few. And while there may be similarities, there are some strking differences in how they raise money, how much they have to work with, and what they actually spend on the people who live there.
This publication looked at a number of figures from these reports, but this newsletter will drive down on three numbers from each city’s most recent CAFR — the audited financial report every Ohio municipality files with the Ohio Auditor of State. Those three numbers are:
Income taxes collected per resident
Total governmental revenue per resident
Government program expenses per resident
These aren’t abstract accounting figures. They’re the operating heartbeat of a city — where the money comes from, how much there is, and what it costs to run the place.
Here’s what was discovered.
The Numbers
Troy, Piqua, Tipp City, and Sidney figures reflect fiscal year ending 2024. Huber Heights reflects fiscal year ending 2023, as their 2024 CAFR had not yet been posted to the Ohio Auditor of State’s website at the time of publication. This piece will be updated when the 2024 report becomes available. All data sourced from the Ohio Auditor of State’s website.
Income Taxes: The Engine — and the Vulnerability
Every city in this group runs primarily on income taxes. That’s not unusual in Ohio — it’s the structural reality of how municipal finance works here. But the degree of dependence varies, and the exposure is real.
Troy collects $1,055 per resident in income taxes. Sidney is close behind at $951. Piqua, at $700, collects the least of any city in this group — and that gap has consequences that show up elsewhere in the budget.
It’s important to understand how Ohio’s income tax system actually works. In Ohio, income tax is collected largely where one works — not necessarily where one lives. If you’re a township resident or live in a neighboring community, you pay income taxes in the city where your employer is located. A credit system exists to ensure residents don’t pay the full rate in both places, but the fundamental dynamic is this: cities collect income taxes on wages earned within their borders, regardless of where workers go home at night.
What that creates is a powerful incentive for communities to attract jobs — not necessarily for their own residents, but for anyone willing to commute in. More jobs inside city limits means more taxable wages, which means more revenue. It’s a system that rewards economic development activity, and it explains why income tax figures vary so dramatically between a job-rich community and one still building its employment base.
What income tax dependence means practically: if a major employer leaves, if remote work pulls taxable wages out of the city, or if a recession cuts into payrolls, every one of these cities feels it immediately. There is no cushion built into the revenue model. That’s worth understanding before your city makes long-term spending commitments.
Revenue: Troy Is in a Different Category
Troy generates $2,067 per resident in total governmental revenue. That’s not just the most in this group — it’s 26% more than the next closest city and nearly 68% more than Piqua.
That gap reflects more than just income tax collections. It includes property taxes, fees, grants, intergovernmental transfers, and other sources. The broader the revenue base, the more stable and flexible a city’s finances tend to be.
Tipp City and Sidney come in nearly identical at $1,623 and $1,621 respectively — a remarkable similarity given their different sizes and histories. Huber Heights and Piqua trail the group, which matters when you look at what each city is expected to deliver.
Expenses: Troy Spends the Least — and That’s the Interesting Part
Troy collects the most revenue per resident by a significant margin. But it also spends the least on government programs per resident — $1,160, compared to $1,531 in Tipp City and $1,545 in Sidney (though Huber Heights spends $1,070 per resident). The result is a per-capita margin of $907 — meaning Troy takes in nearly $1,000 more per resident than it spends on services. And these figures don’t take into consideration enterprise type fund operations — water, sewer, stormwater and electric generation and distribution costs aren’t included.
At a city of 26,305 people, that’s roughly $23.8 million in annual governmental revenue above program expenses. Troy’s investment portfolio sits at over $100 million — the largest of any city in this group by a wide margin.
To be clear: this is not evidence of mismanagement. Quite the opposite. Troy is, by almost every measure, the fiscally strongest city in this peer group. Reserves matter. Investments fund future infrastructure. Conservative budgeting protects against revenue downturns.
But strength on a balance sheet and value to residents aren’t always the same thing.
The question worth asking isn’t whether Troy is well-managed — it clearly is. The question is: well-managed for whom, and toward what end?
Are Troy residents getting $1,160 worth of city government when they’re collectively funding $2,067 worth? What would it look like if Troy invested closer to what peer cities spend per resident — and what would that buy?
Those aren’t accusations. They’re the questions an informed resident should be able to ask — and that elected officials should be able to answer.
Piqua: The One City Spending More Than It Takes In
On the other end of the spectrum, Piqua is the only city in this cohort where government program expenses exceed governmental revenue per capita — by $54 per resident.
That gap may seem small. But it sits on top of a total debt load of $87.1 million — the second highest in this group in raw dollars, and $4,198 per resident, the highest of any city here by a significant margin. When a city is already carrying substantial debt and running a deficit between what it collects and what it spends, the margin for error narrows quickly.
Piqua residents deserve a clear-eyed conversation about what that trajectory looks like over the next five to ten years.
What This Means for You
Local government finance isn’t complicated — it just isn’t explained. The stories these numbers are telling are hidden in charts and figures in reports that are rarely cracked open or downloaded. This effort was about taking these numbers in our communities and helping make sense of those numbers.
And, these three numbers are a starting point, not the whole picture. In the coming weeks, we’ll dig into debt, investments, and net position for each of these cities. We’ll also look at what these numbers mean for the services residents actually experience.
Because at the end of the day, a city’s budget is a statement of its priorities. And residents who understand those priorities are better equipped to shape them.
Announcing our March Community Survey!
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