In his budget message to Springboro City Council, City Manager Chris Pozzuto said most of the projected increase will be in income tax revenue.
“Income tax is still the most vital source of revenue for the general fund, accounting for about 81% of all revenue,” he said.
City income tax revenue is estimated at $9.97 million next year, while all other 2022 general fund revenues combined are estimated at $2.31 million.
The remaining city revenues include 7% coming from property taxes, 6% miscellaneous sources, 3% from building permits, and 2% each from state taxes and fines and forfeitures.
The anticipated general fund expenditures next year will total $16.3 million, which will be an increase of more than $1.86 million over this year. The increase in expenditures is due to a one-time need for transfers to other funds, Pozzuto said, to cover the costs for various capital projects.
Those projects include partnering with the Ohio Department of Transportation and the city of Franklin for the joint safety and beautification project at the the Interstate 75/Ohio 73 interchange, as well as the paying off debt for the Ohio 73/741 intersection project and increasing street paving.
The city budget also includes a 2.5% cost of living raise for employees and the possibility of up to a 1.5% merit increase in 2022, as determined by the city manager.
Counting the general fund, capital improvement fund, business funds and other utility funds, Springboro officials are projecting overall city revenues at nearly $64.4 million next year, and expenditures at about $67.3 million, a deficit of $2.93 million.
Pozzuto said the city has more than sufficient carryover funds to cover the deficit.
“The projected fund balance for the general fund will be $8 million, which will be carried over into 2022,” he said. “Again, we always budget high and never spend what we budget (each year).”
Some other key funds will see changes in the 2022 budget. Street Fund expenditures will go up $55,000 over last year as the city concentrates on core services and maintaining existing infrastructure. Water fund spending will rise by $103,840 due to general increases in prices for supplies and capital costs.
Sewer fund expenditures will decrease by $406,160 due to a larger transfer to the sewer capital fund in 2021 to pay off sewer debt early in June 2022. That will save $663,750 in future interest payments.
Pozzuto said economic development will continue to be a top priority to increase the base of the general fund. He said the development of the Austin interchange, The Ascent, continued development of Wright Station, Village Park, and the large 80-acre parcels at Ohio 73 and Clearcreek-Franklin Road are seen as future revenue sources for Springboro.
City officials said the 2022 budget will continue to focus on providing high quality services to residents and businesses in the most economic and efficient manner possible.
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