Currently, the city of Hamilton’s main sources of revenue come from:
- Real estate taxes, where $2.26 million has been budgeted for 2015, same as 2014. These numbers have stayed fairly steady since 2012, according to the data provided.
- EMS life squad insurance, budgeted at $1.57 million for 2015, down from $1.699 million in 2012.
- Income tax, which is the largest source of revenue for Hamilton, city officials agree. 2015 numbers project $17,655,000 for 2015, up from $17.3 million in 2014. This is where Assistant Finance Director David Jones and Deputy City Manager Tim Werdmann say they would have the best chance of generating more revenue.
“We’ve had some success in recruiting new businesses and workers, but we keep getting hit,” Werdmann said. “House Bill 5 (which would impose more uniformity for the levying and collection of municipal income taxes, and passed the Ohio Senate on Tuesday) will potentially be a hit for us, and if that happens, the successes we’ve had in the past two to three years may be negated.” The bill could cost the city in excess of $350,000 in lost income tax revenue per year beginning in 2016, according to city data.
Hamilton receives small amounts of revenue from a variety of sources, including issuing birth certificates, collecting motel taxes, and miscellaneous donations. But Hamilton’s focus has to be on increasing income tax revenue, Werdmann said.
The city has had success with generating more income tax, growing from $16.87 million in 2012 thanks to businesses businesses such as iMFLUXInc. moving into Hamilton in 2013, and manufacturer ThyssenKrupp Bilstein announcing its third expansion since 2011 this past July.
Several revenue sources are in danger of drying up, or will be eliminated altogether in 2015.
- Hamilton received $147,584 in parks and recreation revenues in 2012, $195,111 in 2013, and $113,650 for the 2014 adopted budget. When the city transfers responsibility of its city parks over to a nonprofit parks conservancy district in 2015, its revenues will drop to $0.
- Hamilton has seen a significant drop in building permits over the past few years, making that source unreliable. "When I came to the city, there were more subdivisions being built, so more permits being issued," Werdmann said. "That has slowed down considerably."
- The construction of Liberty Center has city officials concerned about Bridgewater Falls-generated income. Currently, the city receives income taxes due to two Joint Economic Development District agreements with Fairfield Twp., to the tune of $490,000, on track with 2012 through 2014. But "with the construction of Liberty Center, we have a real concern that it's going to take a hit," Werdmann said.
The city has floated the idea of a merchant surcharge fee for customers who pay their city bills with a credit card. This would apply to individuals trying to rent parks and recreational space, paying for public works services, or other city services.
But, Jones said, he could only see this making a significant impact for the utilities budget, as people are more likely to pay their utility bills with a credit card than other services.
“I don’t think a lot of people pay their income tax with a credit card,” Werdmann added. City employees will examine what a possible credit card surcharge would look like before any decision is made.
Unless other revenue sources are identified, the city will have to look at large spending cuts to balance the budget book in coming years. But city officials say they have made drastic cuts already — 85 full-time positions have been eliminated since 2009, and more than $7.5 million in 2009 constant dollars have been cut from the general fund expenditures in the past five years.
The city has worked hard to do more with less, Werdmann said, and they’re hoping that soon, something will give.
“We’re trying every trick we have up our sleeve, and it’s keeping us afloat,” he said.
About the Author