PAYING THE BILLS

A closer look at West Chester’s revenue sources

Property taxes make up the largest portion of West Chester’s operational budget revenues that are put to use to serve the community. West Chester itself has no mechanism to collect taxes, but rather receives funds distributed by Butler County, the State of Ohio and in some cases the federal government.

Part of the complexity of serving a township of more than 64,000 residents and 3,600 businesses is diversifying revenue streams to benefit the community and lessen reliance on the more volatile sources of revenue that come to the community.

In total, Township revenues in the operational accounts are approximately $48 million annually. Budgeted expenses are always within available resources.

Property taxes, of course, are the primary source of revenue. West Chester receives 1% of every tax dollar for general government services and 1% of every tax dollar for roads. This is considered “inside millage” and is the only property tax collection that comes to West Chester that is not voted upon by residents.

The approximately $1.8 million collected in property taxes annually for general government services funds West Chester Township’s administration, finance, human resources, community development, parks, planning & zoning, etc.

“The Township must be frugal to provide the types of services the community demands within the constraints of revenues,” said Finance Director Ken Keim. “Obviously, property taxes alone cannot support these services and so we rely on other funding sources as well.”

The Township also receives funding from the Local Government Fund (State of Ohio), from a permissive tax applied to hotels and based on room stays, from liquor permits, fees and fines; and from interest. These funds are typically more subject to the overall economy (travel, etc.) and therefore West Chester plans and budgets for these revenues in a more pessimistic way.

The implementation of a Joint Economic Development District in the community in 2009, made the biggest difference in diversifying the Township’s revenue stream without increasing property taxes for general government services. West Chester currently has one JEDD – a defined area in which a township can collect a 1% income tax from those working in the defined area. West Chester’s only JEDD is at the corner of Cincinnati-Dayton Road and Union Centre Boulevard and is occupied by GE Aviation.

The approximately $1.8 million raised each year through the JEDD is shared by the General Fund (general government services) and Police and Fire.

“Revenue resources such as JEDD and TIF have allowed the Township to be sustainable and remain conservative in terms of maintaining carryovers,” Mr. Keim said. “There is still no magic wand that casts a spell ensuring that West Chester will always reap the benefit of these resources, so in planning and budgeting it is important that West Chester recognize its limitations as a township to manage services in the long run without a dedicated revenue source to support it.”

Residents sometimes cite a desire for more parks and similar opportunities. It is important to note that in the early 2000s West Chester residents voted against a park levy and community center then leaving parks to be funded from general government funds and supplemented through TIF.

Townships are sometimes referred to as “ala carte” government because in order to get “extra” services a new dedicated levy is likely required to do so.

Public Safety has clearly been a service supported by the community as is evidenced by passage of two new levies in 2020. Township Police and Fire services are funded primarily with these levy funds, but the Township endeavors to stretch this funding through grants, EMS billing, fines, liquor permits, JEDD and TIF. The police department also partners with Lakota in a commitment to the mission of protecting youth and a shared responsibility for employing school resource officers through the full year.

Sources of Township Funding

Your Property Values. Your Property Taxes.

The value of your property is determined by the Butler County Auditor’s Office which is required to do a revaluation every six years with minor changes each year; and the property taxes you pay is determined by tax levies approved by voters and by an inside millage.

West Chester Township levies 1.49 mils that go toward general government and roads (2% of each tax dollar) which is a millage approved by statute without voter approval. This inside millage is permitted via Article XII of the Ohio Constitution. The state Constitution allows for up to 10 mils to be assessed without voter approval and this amount is segmented among various levels of government. West Chester Township’s portion was set in the early years of the state and has remained the same since.

West Chester also has four voter-approved levies, two each for Police and Fire - 9.0 gross mils for Police and 8.0 gross mils for Fire & EMS.

Many equate increased property values with increased property taxes. While that is the case to some extent, most levies are constricted to the collections that were set at the time they were approved. The inside millage collection can increase with increased property values, which is applied to West Chester’s 1.49 mills or 2% of your tax dollar.

A formula called the effective rate however, is applied to all properties within the jurisdiction to reduce individual tax collections so overall collections do not exceed the amount approved at the time the levy was approved.

Use the QR code to access a video that shows how this works.

An increased property value is generally a good thing. Taxes might increase in some cases, but primarily it means your investment is doing well and ultimately the owner will reap the benefit.

Assessed valuation is 35% of actual property value. Property taxes are based upon levies applied to the assessed value of the property.

Learn more about your property’s value and how it translates to property taxes paid by visiting the Butler County Auditor’s website.