Population: 19,207

Map: Google Maps

Date Fiscal Emergency Declared: 10/06/2016

Brief Summary:

The City of Norwood was declared in fiscal emergency due to deficit general fund balances ($38,000 as of December 2015 and $260,000 as of June 2016). Norwood had previously been in fiscal watch from October 2004 until October 2016. In the early 1980s, Norwood was also in fiscal emergency, being declared in May 1980 and terminated in October 1982.

Action Steps Taken:

• In addition to budget deficits, Norwood also had unpaid bills, some dating back years. Reconciliation, still underway, has taken much work by the Auditor of State's office. Unreconciled account amounts have been reduced and are continuing to be reviewed due to voided checks and deposits to wrong accounts.
• The city’s initial financial recovery plan, approved in July 2017, anticipated continued savings in health care expenses which has proven to not be the case for 2018.
• At the end of 2017, the city’s ending balance in the general fund was -$1.13 million on general fund expenditures of $23.5 million.

Outlook:

Historically, Norwood revenues from a 2% city income tax and property tax collections have been stable. Operating expenditures continue to need restraint, particularly in the largest spending area of public safety or consider increasing revenue to support the current spending levels. Successfully achieving the projected five-year forecast will require fiscal discipline and resolve over time on the part of the administration and city council.

Resources:

• View state support for the City of Norwood:  Ohio's Interactive Budget - City of Norwood
• Ohio Auditor Links:  City of Norwood Placed in Fiscal Emergency
• Additional Links: n/a