All Funds Section — SUMMARY OF FINANCIAL RESULTS -April
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When examining income tax withholding collections, inclusion of the Business Park results in a 33.51% increase compared to an increase of 34.21% in the General Fund, year to date. As abatements and revenue sharing agreements expire, Business Park revenue will shift to the General Fund. This, combined with increased construction withholding, has led to the General Fund outpacing the All Funds growth in recent years. In 2022, total income tax withholding from a few large employers in the Business Park made adjustments to employee schedules and employment practices (hybrid and/or work from home models) leading to a reduction in withholding from the previous year. This proved especially true within the Central College EOZ, where in addition to a change in employee work locations, a large employer discontinued operations and moved from the Business Park. 2023 collections in this EOZ remained consistent with the decrease in 2022. Although early, it appears this EOZ may return to previous levels of revenue as buildings are utilized more, generating increased withholding (see Chart 8) in 2024. The impact of significant growth in construction withholding and new businesses coming online is believed to balance any continued negative effect on withholding as businesses continue to adjust their operations as it relates to remote work. Final total collections in 2023 resulted in an $8.4 million or 17.5% increase over the same for 2022. 2024 income tax projections continue to be monitored and adjusted accordingly.
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Chart 8 shows the EOZ areas and provides insight into the breakdown of tax collections within the Business Park from which the City distributes between the General, Capital Improvement, Park Improvement, and Village Center Capital (new in 2024) funds.
Long Term Analysis
All funds other than the General Fund fall into four major fund types:
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Special Revenue — a fund with a specific revenue source like a grant or TIF project with restricted expenditure requirements
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Debt Service — the fund used for principal and interest payments for city borrowings
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Capital Project — a fund used to pay for capital projects or infrastructure
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Agency — a fund used for collection and distribution purposes (In/Out)
The YTD Fund Balance Detail, found in Appendix B, provides information on the financial position of these funds.
The Economic Opportunity Zones (EOZ) funds are useful in obtaining a holistic view of income tax collections. The city has revenue sharing agreements with the New Albany Community Authority, City of Columbus, New Albany-Plain Local School District, Johnstown-Monroe Local School District, and Licking Heights Local School District. Income tax collections within the EOZ are identified and shared based on the revenue sharing agreements for that area. Income taxes realized outside of the EOZs are distributed as follows:
101 General Fund 83.5%
401 Capital Improvements 12%
403 Village Center Capital Improvements 1.5%
404 Park Improvements 3%
Income tax revenues from the EOZs are distributed as follows depending upon slight variations in the revenue sharing agreements:
New Albany General Fund 20-35%
School District (s) 35%
New Albany Community Authority 0-50%
Infrastructure Fund 0-30%
City of Columbus 0-26%
All Funds Section — REVENUE
CHART 7: All Funds Total Income Tax Collections by Type
When examining income tax from an All Funds level, the results are consistent with the General Fund yet representative of the Business Park environment.
CHART 8: EOZ Revenue Sharing YTD 2024 –vs– YTD 2023
The EOZ areas provide insight into the breakdown of income tax collections within the Business Park.