By Mayor Ron Messer
It’s that time of year when our personal attention turns to paying off holiday debts, covering price increases, and paying taxes. The topic of taxes was one of the four most mentioned concerns in our last resident survey. And, on the national level, there’s the frequent news about our Federal government’s efforts to pass a budget and to reduce our $33 trillion national debt.
Well, we don’t have a budget problem in the City of Montgomery. In fact, we are financially healthy with a thriving economy and sound conservative financial processes and controls. As a result, we have been awarded the “Auditor of State Award with Distinction” by the State of Ohio that fewer than 5% of all Ohio government agencies receive. In addition, our Aaa bond rating from Moodys allows us more favorable interest rates to fund capital improvements.
Here are some of the most common financial questions and concerns from our citizens.
Q. Do we have an outside financial audit every year?
A. Yes. We have an annual independent audit from Plattenburg Certified Public Accountants.
Q. Do we have a balanced budget?
A. Yes. For example, our 2025 total budget has $33.5 million in revenue and $32.5 million in expenses. Our operating budget has $15.5 million in revenue and $14.5 million in expenses. As a result, we are able to maintain our reserve goal of 6 to 12 months of operating expenses, which ensures we can continue to provide services in the event of a financial crisis that impacts our community.
Q. How is the budget developed?
A. Every year, our senior leadership team develops a thorough budget process that is ultimately approved by our Finance Director and City Manager. That five-year budget is then reviewed in painstaking detail with the city council and public for input and approval. It’s important to note that we have a conservative bias by estimating the high side for expenses and the low side for revenues.
Q. Why are my taxes so high?
A. For property tax, you can see on your bill that Montgomery’s share is about 20% of the total. The other 80% is for our excellent schools and the 12 Hamilton County levies that the public voted to approve. For income tax, Montgomery’s rate is 1%, which is as low as or lower than most surrounding communities.
Q. What are the sources of revenues and expenses?
A. Primarily, income taxes support our general fund, and property taxes are a supplemental source of revenue. Public safety (police and fire) is almost 33% of our expense, with general government and Parks & Recreation about 25%. Capital expense is just over 20%, and debt is only 10%.
As you can see, our city finances are healthy, and our budgeting process is thorough and open to the public. This process continues to pay the bills and fuel sustainable growth and quality of life in our beautiful city.