Xenia officials oppose Ohio bill limiting local budget power and property tax options

The Xenia City Council convened on June 26, 2025, to discuss several key agenda items, including funding for infrastructure projects and legislative concerns regarding property tax reforms.

The meeting began with a proposal for a significant infrastructure project aimed at rehabilitating West Main Street, from Orange Street to Church Street. The estimated cost of the project is $1,294,990, with a funding arrangement of 69% from state sources and 31% from the city, amounting to a local share of $401,446.90. City staff recommended approval of a resolution to authorize the application for Surface Transportation Program (STP) funds from the Miami Valley Regional Planning Commission, which is expected to complement the overall roadway improvements slated for 2028. The council unanimously approved the motion to prepare the application.

Following this, the council addressed Resolution 2025-33, which opposes House Bill 335. This legislation seeks to eliminate inside millage and transfer local budgetary authority to county budget commissions. Mayor Urschel noted that much of the bill's content has been incorporated into the state budget bill, making the resolution somewhat redundant. Instead, he suggested sending a letter to the governor urging a line-item veto of certain provisions. The council expressed agreement with this approach, emphasizing the need for local governments to maintain their budgetary autonomy.

Council members raised concerns about the implications of the proposed changes to property tax legislation, particularly regarding the potential for unilateral amendments to levy amounts by county officials. They highlighted that such changes could adversely affect local municipalities, school districts, and other government entities. The discussion included the impact of property value reassessments and the complexities of Ohio's property tax system, particularly the 20-mil floor that limits tax reduction benefits for certain school districts.

The council members expressed frustration over the lack of consultation from state legislators regarding these changes, which they believe could lead to significant financial challenges for local governments. They underscored the importance of engaging with local representatives to ensure that the needs and concerns of Xenia and surrounding communities are adequately addressed.

In conclusion, the meeting highlighted the council's proactive stance on infrastructure funding while also addressing pressing legislative issues that could impact the city's financial stability. The council plans to follow up on the proposed letter to the governor and continue monitoring developments related to property tax reforms.