The Worthington City Council received a comprehensive presentation on November 3rd examining the fiscal impacts of various land use types on the city's budget. Carson Bise, President of TischlerBise, presented findings from a study that analyzed how different types of residential and commercial development affect city revenues and expenses.
Why This Study Matters
City Manager Robyn Stewart explained that this analysis was commissioned alongside the Worthington Together comprehensive plan update process. The goal is to help city leaders understand which types of development generate more revenue than they cost to serve, and which require subsidies from other revenue sources.
"We're not suggesting that every piece of land in the city should be a net fiscal positive to the city. What we're really saying is that we recognize there's varying benefits and varying components to vibrant communities," Stewart noted. "We look at that not just from a fiscal analysis for the city, but from other dynamics that we want to create in our community. But we need to understand what the impacts are for the mix as a whole."
Bise emphasized that Worthington is among a small group of communities—less than 10% nationally—that incorporates fiscal sustainability analysis into their land use planning process. In the Columbus region, only Worthington, New Albany, and Dublin have undertaken similar analyses.
Ohio's Unique Revenue Structure
A key finding of the study relates to Ohio's unique revenue structure. Unlike most states where property tax is the primary revenue source for cities, Worthington and other Ohio municipalities rely heavily on income tax collected at the place of employment.
"If you live in Worthington but you work in Dublin, Dublin is getting the majority of your income tax," Vice explained. This means that income tax represents about 70% of Worthington's general fund revenue, with the figure reaching as high as 95% for some non-residential development prototypes.
By contrast, Worthington receives less than 4% of the property tax generated from residential units, with the majority going to the school district, county, and other governmental entities.
Stay connected to what's happening in Worthington, Ohio.
Residential Development: The Bottom Line
The analysis found that all five types of residential development studied generate net deficits for the city under current conditions:
- Single-family detached homes: -$3,214 per unit annually
- Single-family attached (townhomes): -$3,049 per unit
- Multifamily low density: -$2,331 per unit
- Multifamily high density: -$2,166 per unit
- Multifamily mixed-use: -$2,104 per unit
Bise emphasized this finding should not be interpreted as a reason to avoid residential development. "It doesn't matter what state you're in, you're going to have land uses that generate deficits and surpluses purely because of the revenue structure," he said.
The Work-From-Home Factor
An interesting scenario examined in the study looked at the growing trend of remote work. If residential developments capture 100% of household income tax (meaning residents work from home for Worthington-based employers), three of the five residential prototypes would actually generate surpluses:
- Single-family detached would shift from a -$3,214 deficit to a positive surplus
- Other residential types would see dramatically reduced deficits or become fiscally neutral
The city saw unprecedented growth in income tax from 2021 to 2023, with a 23% increase. While this growth is partly attributed to a strong economic base, the work-from-home trend is also playing a role.
Commercial and Industrial: Revenue Generators
As expected given the income tax structure, office and industrial developments generate surpluses:
- Class A office buildings generate the highest surpluses
- Light industrial and other industrial uses also generate positive fiscal impacts
- Retail developments, however, generate deficits due to lower-wage employment and higher public safety and transportation costs
Bise noted that in states like Arizona where point-of-sale sales tax is the primary revenue source, these results would be completely reversed, with retail generating the largest surpluses.
Stay connected to what's happening in Worthington, Ohio.
Mixed-Use: The Sweet Spot
When analyzed on a per-acre basis considering density, mixed-use developments emerged as particularly attractive. While they may not generate as much surplus as pure Class A office space, they offer a balanced approach that addresses multiple community needs.
"The fact that the city of Worthington is thinking about this is awesome," Bise said, noting that mixed-use projects provide both fiscal benefits and quality-of-life amenities. The analysis looked at regional examples including Bridge Park in Dublin, Grandview Yard, and The Pointe at Polaris to develop prototypes for Worthington.
Council Questions and Public Comment
Council members engaged in detailed questioning about the methodology and assumptions behind the analysis. One councilmember requested additional information about units per acre for low-density and high-density multifamily developments, which Bise agreed to provide.
Resident Ron Sears also spoke, emphasizing that the report's findings essentially point to one conclusion: "Jobs in Worthington that pay well." He encouraged the city to consider mixed-use scenarios that include income-generating employment alongside residential units.
Councilmember Hermann summarized the key takeaway: "Because we want this quality of life, we have to figure out what type of a mix would be best that we could basically survive on in the foreseeable future."
Next Steps
The fiscal impact analysis will inform both the Worthington Together comprehensive plan process and future land use decisions. The city plans to share this information with the comprehensive plan community committee and will use it to evaluate development proposals and zoning code changes.
Bise emphasized that the analysis is not intended to encourage "fiscal zoning" where only the most profitable land uses are approved. Instead, it provides one important data point among many—including environmental concerns, housing affordability, jobs-housing balance, and quality of life—that should inform land use decisions.
The complete report is available on the city's website for residents who want to review the detailed findings and methodology.