Eviston attributed the more than 15% increase year-over-year in tax revenues to the growing tax base being generated by increased property values and the significant economic development the city is experiencing.
“The evidence is the city is growing and the value of real estate is growing,” Commissioner David Estrop said. “That’s excellent.”
Eviston’s report is timed in accordance with state statutes that require adoption of the upcoming year’s tax budget prior to July 15. The full 2024 budget — reflecting total revenue and expenses — will be finalized in the fall.
Eviston’s preliminary report offered insight into anticipated revenue combined with unencumbered cash balances that are used to set appropriation levels for the upcoming year.
Assistant Mayor Rob Rue requested the report be made available on the city’s website to provide transparency to voters.
The local income tax levy is critical to city operations, Eviston said.
“I would just like to reiterate that we are grateful to the people of Springfield for renewing the levy as it continues to support the city and the services we provide,” Eviston said.
Springfield voters renewed an income tax levy by a 2 to 1 margin in 2017 that extended a .4% hike on earned income, for a total tax of 2.4%.
Eviston pointed out the city is increasingly dependent on the people of Springfield, who have supported the special police tax levy that will account for an estimated $3,036,013, or 3% of the city’s operating budget, in 2024.
Local dollars will also account for the more than $4 million, or 4%, expenditure earmarked for neighborhood street repaving and maintenance in 2024.
Prior to the tax levy increase, the city was facing a budget crisis as the result of state cuts to local government operations throughout Ohio.
State allocations to local government continue to decline due to tax cuts being implemented by state legislators in Columbus. Appeals from Springfield and other local government entities across Ohio were unsuccessful earlier this year in moving state leaders to reinstate money previously available through the local government fund and estate tax.
Springfield formerly received an estimated $5.4 million a year from those funds, according to City Manager Bryan Heck. After cuts and reductions that began in 2010 and continue into the current fiscal year, Heck estimates the city is losing $3 million to $3.5 million annually in state funds that were previously allocated to cities and townships across Ohio.
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