If Hamilton wants to improve its finances, it will need to reinvest in its infrastructure to grow jobs and improve its revenues, City Manager Joshua Smith said during a presentation of the city’s proposed 2013 General Fund budget.

The city is projecting revenues of $39.7 million and projected expenditures of $41.5 million, leaving a projected deficit of about $5.6 million.

“We have a lot of empty buildings and that leaves the perception that Hamilton is a dying town,” Smith said.

Companies are concerned about the city’s image along the East High Street corridor and the lack of amenities such as hotels, restaurants, easy access to Interstate 75, and other activities, Smith said. This, he said, is why many choose to relocate to West Chester and Liberty townships.

“The main reason businesses leave town is because the city has not reinvested in itself,” Smith said. “We have not done a good job of this for the past 30 years. We have closed swimming pools, not maintained our parks and our streets are crumbling.”

This was the reason Western States Machine Company moved to Fairfield, even though Hamilton offered a more generous incentive package to stay, he said.

About 40,000 cars pass through the city along High Street each day, making the East High Gateway a top priority that will enhance traffic flow, add turn lanes and make other aesthetic improvements, he said.

Improving the city’s infrastructure and amenities, Smith said, were the key issues also raised by a group of corporate presidents and CEOs on the City Manager’s Blue Ribbon Committee for Economic Vitality.

The most important buildings to find new uses for are the former Ohio Casualty complex and the former Elder-Beerman department store, Smith said. Other key projects under way include the South Hamilton Crossing and the RiversEdge developments.

In the proposed budget, the deficit will be cut by $2.3 million in staffing reductions of the fire department that include eliminating 18 firefighter positions. Other personnel cuts will be in the city’s parking and golf divisions as well as two executive secretary positions. Savings would also come through increasing the workweek of firefighters and a reduction in overtime. The remainder of the deficit will be covered by the city’s reserve fund.

Smith has also proposed temporary closing the Shuler Avenue fire station in East Hamilton after May 5, 2013, and reopening the station to house the city’s fourth medic unit on Jan. 1, 2014.

During Tuesday’s budget presentation at Downtown Miami Hamilton, several people clapped in support of resident Dan Hancock’s suggestion that city officials place a tax issue on the ballot to keep the current fire department levels. He added, if officials want to revitalize the city, why would they reduce the number of firefighters?

Most of the city’s departments have had their budgets cut, Smith said.

“Most of the departments take what they have and do the best they can,” he said. “In a perfect world, I wouldn’t cut anything.”

Former Fire Chief Joe Schutte suggested keeping the Shuler Avenue fire station open with a medic unit during the proposed seven-month closure of that station because of the large elderly population in East Hamilton.

Dave Belew, former president of Beckett Paper Co., told Smith and council members they were on “the right track” to improve the city’s image and making good decisions.

“I thought it was good to have the opportunity to talk face to face and get your questions answered,” resident Jim Mueller said after Tuesday’s presentation. “That’s why they put out a proposed budget — to get comments.”

“When a city has only so much money, you do what you have to do and make the best decisions within your available resources,” he said. “I prefer this rather than a 5 percent across the board cut.”

The proposed 2013 budget received a public hearing and first reading at Wednesday’s City Council meeting. Final approval of the 2013 budget is expected at council’s Dec. 26 meeting.