Why is the levy needed?

The City has lost approximately $3 million in funding from the State of Ohio due to the elimination of Tangible Personal Property Tax, reduction of the Local Government Fund, and elimination of Estate Taxed. Fifty percent of our streets are in poor condition as of 2020, and many are located in residential areas. Many streets have potholes which are a safety concern and a possible cause of damage to vehicles. Poor streets have a negative effect on the City’s image and can contribute to lower property values. 

How much money will the levy generate? 

The 3.9 mill levy will raise $3.1 million per year for ten years between 2021-2030.  

How will the money be spent?

All funds generated by the Streets Levy will be used to repair and resurface existing roads in our community, with an emphasis on residential roads. All of the funding will be used on neighborhood roads, informed by resident input.

How many miles of streets does the City have to maintain? 

Hamilton has over 250 miles of street to maintain. With current funding, the City is only able to pave 2-3 miles per year. Passage of the levy will allow the City to repair up to 4 miles of street and maintain up to 4 miles of street per year. Currently, 70% of the City’s streets are in fair to poor condition, with 50% of the city’s streets rated as poor.  

Can the money raised from this levy be used for anything other than road maintenance?

No. A Council Resolution passed on May 22, 2019 —the same resolution that placed the levy on the ballot— mandated that levy funds be used exclusively for street resurfacing and maintenance.

How many lane miles of road are in poor condition?

In 2020, more than 50% of roads are in poor condition. Hamilton has approximately 250 total miles of existing roads.  

What do fair and poor road conditions actually mean?

The condition of a road is tied to the speed at which it is deteriorating. Roads in ‘fair’ condition have visible cracks in their surface, and at this point the foundation of the road is in the early stages of deterioration. Roads in ‘poor’ condition show extensive surface cracking or crumbling. It is at this point that the foundation of the road is either critically compromised or a complete loss. As road conditions worsen, the probability of potholes forming increases dramatically, as does the cost to repair the road. 

How much is the City currently spending on street repair?

At this time, the City is spending approximately $2 million on annual road repairs.

Will the levy funds be a substitute for current funding? 

No. Levy funds will raise an additional $3.1 million to pave our streets. This is on top of the $2-2.5 million typically spent to resurface streets prior to the levy’s passage in 2020.

Will alleys be repaired since many homes only access their garages via the alleys?

Alleys are not repaired by levy funds. As repairs or resurfacing is needed, staff will consider alternative funding sources.

The levy passed in 2020, when will the City have access to the money?

The levy is in place with the tax year beginning January 1, 2020 with collections set to start in 2021. The first funds from the levy will be available to the City with the first real estate tax settlement from Butler County received in April of 2021.

How much money will this levy cost me? 

The cost of a property mill levy is based on the taxable value of your property. For the proposed 3.9 mill levy a property owner can expect to pay $11.38 a month for a home valued at $100,000. 

What is the taxable value of my home?

The tax value of your home (also known as the assessed value) is different from the market value. The tax valuation is usually lower than current market value. You can find the tax valuation of your home on your Real Estate Tax Bill or by looking it up on the Butler County Auditor’s Website - http://propertysearch.butlercountyohio.org. This value is taxed at a 35% rate.  

When will I start paying for the levy? 

Residents began paying for the levy in 2021.

Will the City purchase any street repair equipment from the Levy Fund?

No. All funds will be devoted directly to fixing our streets.

How much inside millage (unvoted) and voted millage does the City currently receive from property taxes? 

The inside millage (unvoted) is capped at 10 mills when accounting for overlapping jurisdictions. The City of Hamilton taxing district is currently capped at 10 mills for the inside millage (unvoted) limitation with 62% of this funding going to the Schools and County. Hamilton currently has three 1.0 mill levies that are outside millage (voted): Charter Amendment Fire Levy (November 1953), Police Levy (November 2002), and Fire/Paramedic Levy (November 2002).

What are the different types of street improvements? 

Preventative maintenance: Roads that are in good and fair condition should receive preventative maintenance to extend their useful life. Examples of preventative maintenance include: crack sealing, slurry seal, and microsurfacing. Preventative maintenance is the least expensive method of improving a street. 

Resurfacing: Streets that are in fair condition can be resurfaced to bring them back into good condition and extend their useful life. One option is to apply a thin layer of material (usually 1 to 2 inches thick and limited to travel lanes). A second option is to perform a full resurfacing which typically requires milling and removing the old asphalt pavement and applying new asphalt. This option is typically thicker in depth and usually runs from curb to curb.

Reconstruction: Streets in very poor condition require a complete reconstruction. Reconstruction is extensive street repair work that typically involves the excavation of the existing street to the original ground and the rebuilding of the gravel base and surface layers of the asphalt. Reconstruction is typically at least five times more costly per lineal foot than resurfacing.

Which streets will be repaired first? 

Each neighborhood has the ability to pick which streets should receive priority for funding throughout the levy. See link to survey below the FAQ section.

Will the streets adjacent to Spooky Nook be repaired using funds from this levy? 

No. Streets adjacent to the Spooky Nook Champion Mill project can not be repaired or maintained using levy funds per City Council resolution.

How will this make a difference for me? 

Street quality directly affects the entire community. Directly to any driver or passenger who use our roads and indirectly through property values. 

Will levy dollars be used to finance economic development projects?

No. While new developments often have associated infrastructure work, those improvements are paid for with other funding sources such as Tax Increment Financing (TIF). Levy dollars and our annual road repair budget can only be used exclusively for repairing and maintaining existing roads in Hamilton.

Why not bring in new businesses to increase the tax base and fix the roads?

Ultimately this is our goal. However, building the tax base is a long process. To put this in perspective, the city would need to attract 3,875 jobs with an average salary of $40,000 every year for the next ten years to generate income tax revenues equivalent to the revenues generated by the proposed streets levy. 3,875 jobs is nearly three times the size of the workforce of the City’s largest employer. While Hamilton has seen significant growth over the past five years, this increase in income tax revenue has been mostly offset by cuts to local government funding from the State of Ohio. 

How much would it cost to bring all roads in Hamilton back to ‘good’ condition?

It would cost approximately $150 million to bring all roads in Hamilton back to ‘good’ condition. 

Is the cost of the levy locked in at year-one for each property, or will it fluctuate with the value of the property over time?

The cost of the levy will be locked in at year one.

Where does the City currently get the money to maintain roads?

The Street Maintenance Fund receives its revenues from the gasoline tax that is levied and controlled by the State of Ohio along with the City’s municipal motor vehicle license tax of $20 per vehicle registration from owners who reside within city limits. These revenues support local street construction, maintenance, and repair. (Source: 2018 Adopted Budget, page 151). 

Have road maintenance costs increased?  

Yes. From 2010-2020, the cost of asphalt has risen from about $45 per ton to $70 per ton. 

Why doesn’t the city just apply for grants?

Where possible, the city does apply for grants and partners with the state to maximize each local dollar spent. The city uses the Ohio Public Works Commission, where about $1 million is awarded to Hamilton each year. ODOT has awarded funds to the city of Hamilton for the urban paving program, which identifies specific stretches of road to be paved as replacement is needed. The city also is often awarded CDBG grant funding. 

Are there other sources within the City budget that could be cut to fund these costs?

To increase the budget for street maintenance, the City would currently have to cut funding to core services. Money would need to be cut from areas such as Public Safety, Parks, Health, and other areas that are vital to the health of our city. 

What other options did the City considered?

Income Tax Credit Reduction - The additional revenue generated by reducing the income tax credit being reduced from 100% to 50% in Hamilton was originally going to be used to supplement both road maintenance and public safety expenses. This option was abandoned after public hearings on the proposal were held and the proposal was not approved.

How much of the work on the streets will be done by city workers versus outside contractors? 

While we do our best to hire locally, because of the small scale of our paving program and the seasonal nature of paving, it is more cost effective for Hamilton to contract for major paving projects in the city. We do have a small paving machine that existing staff run during the paving season. The scope of what we can accomplish with this is limited. Additionally, the City does not own a milling machine.

Will curb and gutter be included? Or will I be assessed? 

Yes, curb and gutter is included. Sidewalk replacement is the property owner’s responsibility.