The Village Of Ottawa Hills makes every effort to manage our finances responsibly. We are fortunate to have a knowledgeable financial team of elected officials and appointed staff members which is consistently monitoring our current situation, and we frequently update our financial forecasting. 

Years ago, Village Council adopted a financial policy that requires maintenance of a minimum cash balance of 50% of the annual operating budget. This level of fiscal prudence helps ensure stability, allowing the community to weather unforeseen challenges or economic downturns while maintaining quality services for residents. 

The Village’s reliance on local taxes for revenue makes it even more crucial for residents to stay informed and engaged in the financial discussions. With limited financial support from state and federal sources, the burden of maintaining and improving community services and infrastructure falls almost entirely on our residents. 

Sharing the overall financial situation is important and helps build trust and align goals. It can also prevent misunderstandings and ensure that everyone is aware of the resources available or any challenges that might lie ahead. Transparency often leads to better decision-making, as people can contribute more effectively when they understand the broader context. 

In 2024, the Village’s operating expenditures were approximately $5,526,000. Additionally, we spent about $2,236,000 on capital expenditures. 

1-1-24 unencumbered beginning balance: $5,297,537 

2024 total revenue: $8,188,504 

2024 total expense: $7,764,027 

12-31-24 unencumbered ending balance: $5.722,014 

As you can see, our ending balance increased about $424,000 last year. In 2024, our operating expenditures were under budget by 13%. The fact that the police and service departments had vacant positions for some of the year certainly contributed to the savings on personnel costs. Personnel costs amounted to about 57% of our operating budget in 2024 and we expect an increase in personnel expenses for 2025 because we are planning to fill those vacancies. 

The majority of our capital expenditures were related to our complete reconstruction of Riva Ridge, Secretariat, and Avatar Roads. That project was completed under budget but still cost over $1,500,000.

Income tax revenues ($4,300,345) continued to be strong, although revenues from income tax actually were a little lower (2%) than last year. That reduction is likely related to the timing of receipts due to our change to the Regional Income Tax Agency. Our local income tax is, by far, the largest single source of income for the Village, amounting to 52% of our total. 

Maintaining aging infrastructure is clearly a major priority, and in 2026, the anticipated $3 million cost for Edgevale Road reconstruction, even with a $300,000 grant and Lucas County’s contribution for the water main and service lines, will still be a heavy lift. 

In closing, while 2024 showed solid financial performance, those aging infrastructure needs and the anticipated increase in personnel costs will demand careful planning and budgeting to ensure sustainability in the coming years.