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Found this on Cincinnati.com ---------------------------------------------------
Each year, elected officials approve spending billions of tax dollars to run our local governments, and by this time each year, they know about how much things should cost.
And this time around, it’s going to cost more.
Appropriations by the region’s 15 largest governments – representing nearly 1 million people – total $2.49 billion, an increase of almost $128 million over last year, despite another year of declining revenues from the state.
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But local officials say they either have no choice but to spend more, bound in some cases by union contracts, or are betting on a healthier economy – declining unemployment, a more robust real estate market – to support spending more.
Often, comparing budgets isn’t an apples-to-apples exercise. Each community has a unique assortment of funds and offers its own variety of services.
Some see value in providing water, electricity or gas, so they spend more but also pull in more revenue through utilities fees.
Some of the funding others receive, and that is included in their budgets as part of their spending, isn’t their money at all; it is bound for entities like schools, and the city or township is merely the conduit.
Township governments are bound by different rules and reporting guidelines.
Further complicating matters are specific budgeting items, like state and federal grants, that communities often include in their budgets but don’t always get, or joint economic development and tax-increment financing districts.
These numbers aren’t final. Typically, governments try to spend less than they budget. Sometimes, government employees spend more than they originally asked for and generally must ask for approval from elected officials.
Here’s what they told us you can expect.
MASON Appropriations: $74,047,299 Population: 30,712 Spending per capita: $2,411.02 The city has given itself room to spend about $2 million more this year, but will work to contain costs and address uneven strain on some of its services and departments after a years-long hiring freeze. To do so, it plans to create a new strategy for staffing this year, budgeting for key positions and considering cross-department jobs to meet the city’s highest priorities, City Manager Eric Hansen wrote in the Annual Appropriations Ordinance for 2013. Mason expects to collect 5 percent more in income tax this year with the improving economy. While many communities levy extra taxes for parks, Mason maintains its 300 acres of parks from its general fund; it also operates a golf course and massive Community Center.
DEERFIELD TWP. Appropriations: $60,706,249 Population: 36,059 Spending per capita: $1,683.53 Spending will be relatively flat this year over last, Administrator Bill Becker says. Residents should expect to be asked for additional funds for police in August, increasing the tax rate from 2.5 mills to 4. A large chunk of the budget – $14.9 million – goes toward TIF districts, which inflates the budget slightly. The township expects to spend around $9 million of that in 2013, according to township officials.
SPRINGFIELD TWP. Appropriations: $21,121,045 Population: 36,319 Spending per capita: $581.54 Springfield Township plans little change in its spending this year. It will get there mainly by not filling vacant positions and dropping some full-time police positions to part-time. The township will have to rely on reserve funds (surplus and savings from earlier years) due to state cuts unless new revenue can be collected or deep cuts are made to services, said Administrator Mike Hinnenkamp. The township is studying options to share services (and costs) with neighboring communities, including whether contracting its fire and police services may create new revenue or whether cross-training police and firefighters could save money in the long run.
GREEN TWP. Appropriations: $41,121,125 Population: 58,370 Spending per capita: $474.56* The township transfers almost $13.4 million directly to schools, so money available to the township is more like $27.7 million. Spending will look a lot like it did last year, said Administrator Kevin Celarek, but will decrease slightly over 2012. Cuts include not filling one vacant firefighter and two vacant police officer positions. Residents can expect to be asked to renew a safety service levy for police and fire in November, and township officials expect a boost in revenue next year with the creation of a joint economic district around the new Mercy Hospital site. *Because it represented so much of the budget, this figure is calculated without the $13.4 million for schools.
DELHI TWP. Appropriations: $17,449,904 Population: 29,510 Spending per capita: $591.32 Delhi is facing financial trouble in a number of funds. It will ask voters in May for more money to pay for police and fire services, and parks. Employees are on salary freezes, and the township increased its park fees and created park shelter fees this year. Right now it faces a $756,000 deficit in its general fund. “We are trying to cut everywhere,” says Administrator Pete Landrum. Delhi’s general fund has relied heavily on state spending, which is why it is on course to lose about 70 percent of general fund revenues from 2011 to 2014 – almost entirely from state cuts, Landrum said.
CINCINNATI Appropriations: $1,471,000,000 Population: 296,943 Spending per capita: $6,541.66 Cincinnati has nearly five times as many residents as Hamilton, the second-largest community in Southwest Ohio, and is the region’s economic center, supporting almost 228,000 jobs – part of the reason it spends far more than any other community. The city also supports a convention center, health services and recreation centers. Day-to-day operations this year will cost an estimated $959.8 million. Budgeting is even more complicated this year as the city transitions to a new budget schedule. Its fiscal year will now run from July 1 to June 30, instead of Jan. 1 to Dec. 31. For comparison reasons, the City Manager’s Office created a recommended 2013 budget with the figure above, but just released a “stub budget” detailing spending for the first six months of 2013 and totaling $546.2 million. Cincinnati has budgeted to spend more this year than in 2012, and has taken the approach to “grow into a structurally balanced budget and invest in our future,” as City Manager Milton Dohoney Jr. wrote in his recommended budget document. Right now the city faces a $35 million deficit it hoped to plug mostly by an upfront payment after leasing its parking operations, but a judge last week said the lease is subject to referendum by the voters. Now the city is looking at a “Plan B,” which includes laying off more than 300 employees.
COLERAIN TWP. Appropriations: $31,535,878 Population: 58,499 Spending per capita: $539.08 Colerain has cobbled together a plan to keep its Community Center and parks operating, transferring $2.1 million ($1 million more than last year) from its general fund, accepting a $128,000 grant from Hamilton County, collecting new parks fees and raising rates on hall rentals. Its actual spending is closer to $29.4 million because the $2.1 million transfer is counted twice in the appropriations budget. Cuts this year also include layoffs of 10 part-time workers in parks, public works and the Community Center and cuts to senior programming. Colerain began collecting new revenue from a police impound lot this year, but a police levy will possibly appear on the November ballot and long-term decisions must be made about road improvements, parks and the community center, said Administrator James Rowan.
ANDERSON TWP. Appropriations: $34,294,549 Population: 43,446 Spending per capita: $789.36 Anderson Township has budgeted a smidgen more – $5,264 – than in 2012, mainly because of contractually obligated raises for its public works employees, firefighters and Hamilton County sheriff’s deputies, said Fiscal Officer Ken Dietz. To balance its budget, Anderson will spend some of its reserve funds and hold off on building a new maintenance facility for the Public Works Department. No tax levies are expected this year.
UNION TWP. Appropriations: $25,943,059 Population: 46,416 Spending per capita: $558.92 Economic development projects in recent years, including Jungle Jim’s International Market at Eastgate, have increased the tax base, but budgets are still tight for Clermont County’s largest government, resulting in more than 20 unfilled vacancies in police, fire and emergency communications since 2009, about 15 percent of staff, Administrator Ken Geis said. The township plans to spend a little less this year, reducing its budget by about $800,000.
MIAMI TWP. Appropriations: $47,321,103 Population: 40,848 Spending per capita: $1,158.47 Miami Township has capped its spending nearly $770,000 higher than in 2012 but plans to cut back on capital improvements, keep vacant positions vacant and tap into reserve funds to meet its budgeting challenges. There are no planned levies, but the township is re-evaluating its staffing, said Administrator Larry Fronk. Miami Township operates several TIF and RID districts, accounting for almost $5 million of its appropriations.
WEST CHESTER TWP. Appropriations: $135,977,821 Population: 60,958 Spending per capita: $918.67* Appropriations for Ohio’s largest township can be deceiving. Last year the township spent closer to $56 million and plans to cut day-to-day operational costs by 1.4 percent. Appropriations are almost 21/2 times that for two reasons, says spokeswoman Barb Wilson. One is because of the large TIF districts created to finance construction, like the Union Centre Boulevard interchange off Interstate 75. But TIFs grossly inflate the township’s appropriation budget because the money for construction can be spent over several years. The second reason, said Wilson, is because the figure includes $40 million in carryover savings from last year. West Chester is 36 square miles and supports about 50,000 jobs. *Because surplus and TIFs inflated appropriations so much, this calculation is based on spending last year.
MIDDLETOWN Appropriations: $137,873,413 Population: 45,994 Spending per capita: $2,997.64 The city plans to spend more than it did in 2012, doling out an additional $8.5 million for infrastructure improvements and revitalization projects, including demolition of abandoned and unsafe buildings, made possible in part with a $2.5 million Ohio Moving Forward state grant. The city expects to dip into its reserve fund by roughly $8 million this year, ending 2013 with almost $29 million in reserves. Middletown operates a municipal court and provides water and sewer treatment for residents, costing more to manage. It also operates an airport.
LIBERTY TWP. Appropriations: $19,828,557 Population: 37,259 Spending per capita: $532.18 The township expects spending to fall slightly this year, about $331,000 less than 2012. About $11.7 million is spent on roads, public safety, zoning and cemeteries, while the remaining $8.1 million will pay off debt and finance specialized business and residential tax districts. The township is “in maintenance mode,” with no plans for big cuts or additional spending and no new tax levies in 2013, according to Development Director and spokeswoman Caroline McKinney.
HAMILTON Appropriations: $306,629,578 Population: 62,477 Spending per capita: $4,907.88 The city spends much more than many local governments because it is one of a few cities in Ohio that provides gas and electricity as well as water, waste removal and other utilities. The city runs a municipal court and health department. Leaders reduced spending by $45 million this year over last, but expect a $3.3-million deficit at the end of 2013. The city will reduce costs by laying off 18 firefighters. The city plans to invest in infrastructure through participation in Butler County’s land bank initiative, according to Hamilton’s Finance Department.
HAMILTON Appropriations: $63,173,879 Population: 42,510 Spending per capita: $1,486.09 Last fall, voters agreed to spend a greater percentage of city income taxes toward day-to-day operations, like police and fire services, and less on new construction and infrastructure. The city continues to lower its personnel costs by not replacing employees who quit or retire. Fairfield plans to spend nearly $1.4 million less this year over last. Fairfield provides water and sanitary sewer services, operates a municipal court and a large community arts center.
What is a TIF, JEDD, RID? These are financing plans used by communities to jump-start economic development. Each can inflate appropriations budgets because the money in one of these funds isn’t always spent in one year, but sometimes over several years, even decades. • TIF - Tax-increment financing districts allows a government to borrow against the expected future tax revenue of a completed project, spending it to build the necessary infrastructure. Each TIF agreement is different and often directs revenues to schools, too. • JEDD - Unique to Ohio, Joint Economic Development Districts allow municipalities to work with townships to develop township land for commercial or industrial purposes and allow an income tax or other taxes to be levied there. • RID - Residential incentive districts allow a government to divert a portion of the tax the taxpayer already pays for a determined period of time to pay for public improvements.
I cover news on the West Side of Cincinnati and western Hamilton County as well as public safety agencies including the Cincinnati Police Department. You can find me atcsmith@enquirer.com
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