Tipp City came out of 2016 in better financial shape than anticipated in yearly budget projections, John Green, city finance director, told the City Council on Feb. 21.

While a $43,000 operating deficit was projected in the city general fund, the fund ended the year with a $720,475 gain.

General fund income was $6,943,740 compared to $6,023,266 in expenses.

The income tax brought in $3,22,812, a 3.76 percent increase over 2015, and 1.1 percent over the budget. The local government fund income came in $13,571 less than anticipated at $273,929 due to the state cut in allocations to local governments during the year.

Council President Joe Gibson asked if the local government fund would eventually increase to larger amounts seen in past years. Green and City Manager Tim Eggleston said that would not occur with continued changes and decreases in return of dollars by the state to local governments.

Expense wise, Green said the city spent $851,000 less than budgeted due, in part, to the new human resources position not being filled during 2016, less overtime in the police department, $83,000 in savings in park department funds and $300,000 council has set aside for economic development incentives, for use when needed.

In the utility funds, Green said the city spent more on purchase of power due to a warmer summer and increased demand. More revenue was generated in both the water and sewer funds than anticipated, also due to a drier summer.

Debt wise, the city paid down $1.4 million in debt and is on schedule to have all non-utility related debt paid off by the end of 2020, Green said.

“We ended up quite a bit better than I anticipated,” he said of overall finances.

In other business Feb. 21, the council approved a motion to waive $8,611 in utility connection fees for the new Tipp City Senior Citizens Center to be built off North Hyatt Street. Council also is considering paying utilities for the facility.

Council also approved a resolution strongly opposing the governor’s budget proposal for 2017-18. The opposition is based on a proposal to centralize collection of municipal income taxes, a move that the council said would “cause a substantial loss of revenue needed” by municipalities.

In other business:

-   Council approved an amendment to 2017 appropriations to reflect the pay increase OK’d by council for the clerk of council position from $150 a week to $163.46 per week.

-   Council heard a first reading on a proposal to allow public impound lots in the LI light industrial zoning district. The request is to allow a lot for the police department at the former city power plant site on First Street.

-   Councilman Matt Owen was not at the meeting.