City finance director warns state proposal to eliminate inside millage could cost Xenia nearly $1.9 million
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Summary
Xenia's finance director told council the state is considering eliminating inside millage. The city currently receives about $1.8'$1.9 million from 3.2 mills (estimated 2026), roughly 10% of public safety fund costs; staff warned service cuts or tax-shift could be necessary if the change proceeds.
Finance Director (Mr.) Duke briefed council during appointed-officials reports on a state-level proposal under consideration that could eliminate inside millage, a property-tax mechanism that the city currently uses for general revenues.
Duke said the city has no voted (outside) millage following a failed renewal in October and relies on 3.2 mills of inside millage that he estimated would generate about $1.8'$1.9 million in 2026. He said that revenue represents roughly 10 percent of public-safety fund costs and primarily supports personnel; he estimated losing that revenue would require budget reductions equivalent to about a dozen full-time positions or a shift from property to income taxes.
Duke described the potential change as a significant, unexpected fiscal shock and said the city has limited time to plan. He told council the administration will discuss options at the forthcoming work session. Council members indicated concern about the prospect of reduced services and said they expect detailed follow-up in the work session.
No legislative action was taken; staff said further discussion and scenario planning will follow.