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Ottawa County commissioner Mark Stahl said the recently completed 2025 general fund budget is “a balanced plan of fiscal responsibility.”
The budget is projecting general fund revenues to reach approximately $25.14 million and anticipates expenses of $24.9 million.
The commissioners are anticipating the county’s share of the sales tax to generate about $10.6 million in 2025 – about $625,000 more than was projected in the 2024 budget. As of Oct. 31 of this year, sales tax receipts were $9.4 million.
Ohio has a state sales tax of 5.75 percent and allows local governments to collect a local option sales tax of up to 2.25 percent. Ottawa County levies a sales tax of 1.25 percent. The county budget anticipates the additional tax to collect $2.1 million next year.
The commissioners are budgeting $3.5 million in investment/depository income next year. As of Oct. 31 this year, collections had surpassed $4 million.
The county is expecting a decrease in investment/depository income in 2025 due to interest rate reductions implemented during 2024 by the Federal Reserve Bank.
“The certificates of deposit we’re in are all staggered in their maturity times and as the maturities come off we’re being a little conservative in what the interest rates will be when we roll them back in,” Stahl said.
The budget is estimating receipts from the general property tax in 2025 to be $4.3 million, roughly $64,000 lower than what’s been collected through October this year and $250,000 less than estimated total collections for 2024.
Stahl said the lower 2025 property tax estimate reflects a decision by the commissioners to have the county budget commission temporarily reduce the county’s portion of property taxes from 2 mills to 1.5 mills.
The reduction will be in effect for the 2024 property taxes collected in 2025.
The county commissioners, Stahl, Donald Douglas, and Mark Coppeler, in a recent meeting unanimously approved a resolution to lower the millage after having discussions about the rise in property valuations and the expected increase in taxes with members of the budget commission.
“I think when we get to January and residents get their tax bill there is going to be some substantial tax increases,” Stahl said. “Of the inside millage, the county collects 2 mills. We told the budget commission we want to decrease collection on the full 2 mills and only collect on 1.5 mills based on the new appraised values and tax rates.”
Without the action taken by the county commissioners to reduce that millage, the dollars generated by the 2 mills would have increased by approximately $1.5 million for tax year 2024 (collected in 2025), Anthony Hatmaker, county treasurer, said.
On the expenditure side of the county budget, the sheriff’s office – which takes up about a third of the general fund budget - has been allocated $8.95 million for 2025 – an increase of about $89,000 from what was requested.
Stahl said the additional funds represent a combination of reduction in supplies and contract services and increases in salary expenses.