For 2023, projected income tax revenues will end up being around $37.5 million. The 2024 budget calls for a roughly 7 percent decrease, or $35 million total in income tax collections, of which $27.1 million will be earmarked for the general fund.
“Income tax has been a great story here in Hamilton,” Jones said. “The bar graph keeps going up; it’s been going up for a number years.”
Because of the city’s practice of conservatively projecting revenues, the city plans to take in less in 2024.
Jones, however, said he “hopes to see that up around $38 million” for 2024 by the end of next year.
Nearly 78% of the income taxes are allocated to the general fund, and the rest is allocated to public safety and the city’s capital improvement and debt services.
Hamilton collected $29.8 million in income tax revenues in 2020, which was the first year of the COVID-19 pandemic, but it’s steadily increased annually since then. It was nearly a $2 million jump from 2020 to 2021, followed by a more than $3.5 million increase from 2021 to 2022, and it’s projected to be a more than $2.3 million jump from 2022 to 2023 by the time the financial books are closed for this year.
Income taxes make up not quite half of the general fund, about 46.9%, which is combined with around $600,000 in taxes from the multiple JEDD (Joint Economic Development District) fund revenues. In all, the city’s general fund will receive $27.7 million from income-related taxes. Other funds that will make up the lion’s share of the general fund includes reimbursements from levy and other funds, and the four utility funds.
Public safety will make up more than 65% of the city’s expenses, with police and fire collectively expecting to spend more than $35 million. Other public safety expenditures include the 911 dispatch and municipal court.
Overall, the general fund expenditure budget is up 6.45% over 2023.
The city has again earned the Government Finance Officers Association’s Triple Crown, which is a recognition of having received the Annual Comprehensive Financial Report (formerly the Certificate of Achievement for Excellence in Financial Reporting), the Popular Annual Financial Reporting Award, and the Distinguished Budget Presentation Award.
HAMILTON INCOME TAXES
The income tax collections, and the general fund portion, for the past four years in Hamilton. The general fund receives 77.5% of income tax collections.
2020: $29.8 million ($23.09 million for general fund)
2021: $31.65 million ($24.53 million for general fund)
2022: $35.18 million ($27.27 million for general fund)
2023: $37.5 million, projected ($29.06 million for general fund, projected)
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