City of Oakwood, Ohio

Management’s Discussion and Analysis

For The Year Ended December 31, 2024

(Unaudited)

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Analysis of Program Expenses Governmental Activites
Total Expense by Percentage of Total Total Program Net Expense of Percentage of Function
Finances with
Program Expenses: Function/Program Program Expenses Revenue Function General Revenues
General Government 3,928,744 22.50% (838,620) 3,090,124 78.65%
Public Safety 7,487,977 42.89% (373,454) 7,114,523 95.01%
Community Development 1,296,116 7.42% (1,237,136) 58,980 4.55%
Leisure Time 1,850,569 10.60% (578,054) 1,272,515 68.76%
Transportation and Street Repair 2,695,206 15.44% (724,653) 1,970,553 73.11%
Public Health and Welfare 201,344 1.15% (43,933) 157,411 78.18%
Net Position ‐ End of Year $17,459,956 100% ($3,795,850) $13,664,106 78.26%

As indicated by the table above, the City is spending more than half of its resources (42.89%) on the security of person and property (public safety) and community environment activities. The operation of the public safety department is 42.89% of total program expenses, revenues generated by the public safety department cover only 4.99% of functional expenses. This means that general revenues collected by the City, principally income and property taxes, must cover the remaining 95.01% of expenses reported by the public safety department. Refuse collection fees are the most significant program revenue source that helps offset the expenses reported for the community environment functions.

General government functions, principally legislative, administration and judicial activities, comprise 22.50% of the total governmental expenses. Most of the program revenue generated by this function is associated with court fees and fines, as well as other charges for services and operating grants. Charges for services and fees associated with the leisure department accounted for 31.24% of the leisure time activities functional expenses. Expenses associated with street resurfacing, street maintenance, snow removal and operation of the public works department are all included within the transportation function. General revenues comprise 81.50% of the total governmental revenues collected by the City during 2024. Principal components of general revenues; including income taxes (71.83%) and property taxes (12.59%), are used to furnish the quality of life and services to citizens and businesses to which they have become accustomed.

Business‐Type Activities

The City’s business‐type activities include the Water, Sanitary Sewer and Stormwater operations.

Water – The water department at the City of Oakwood is responsible for the production, treatment and delivery of quality water to businesses and citizens within the boundaries of the City. Various functions within the water department include administration, water production, water distribution and maintaining and upgrading the infrastructure used to produce, treat and distribute the water. The water department in 2024 experienced an operating income of $425,056, compared to loss of $261,651 in 2023. Operating results for the water fund can vary greatly depending in large part on the amount of irrigation water used throughout the city during the summer months, which is a function of the amount of rainfall during any given year. At December 31, 2024 the unrestricted net position represented 96.71% of the operating expenses reported for 2024.

Sanitary Sewer – The City’s sanitary sewer department is responsible for the collection and disposal of sanitary wastewater generated throughout the City. The City does not treat sanitary wastewater within our City and must rely on the City of Dayton and Montgomery County for this service. The cost for this sanitary wastewater treatment service represents about 67% of our sanitary sewer costs. Various functions within the sanitary sewer department include administration, disposal, and maintaining and

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