Mayfield Heights Reports 2012 Budget Surplus
The finance director says the city will end the year in the black.
Mayfield Heights will close 2012 with an excess of revenue over spending, city Finance Director Robert Tribby told council members recently.
The original budget underestimated revenue and over estimated cost. Total revenue is currently $19.1 million.
“We have exceeded the original total year’s revenue projections by $175,000,” Tribby said.
The positive balance was due to income tax, which exceeded previous collection projections, he said.
However, the city did overestimate the estate taxes by $300,000, which will be eliminated on Jan. 1, 2013. The city collected a total of $857,175.
Mayor Gregory Costabile said he is proud of the city's achievement in light of some revenue streams disappearing.
“I am especially proud for being in the positive this year, because we pulled together despite the CAT (Commercial Activity Tax) elimination, and the estate tax is no longer eligible for 2013,” he said.
Costabile said gave credit to the city departments staff, saying all were responsible for the city operating more efficiently, despite current economic conditions.
He also credited the town's emphasis on business development for allowing the government to slim down without laying off workers, cutting programs or services, and keeping income tax at 1 percent.
Costabile said the city may lose $1.3 million in revenue next year due to the elimination of CAT, estate taxes, and cuts to the local government fund.
THe city will begin reviewing 2013's budget in the next months.