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1. What is the state of the city’s financial situation?

In 2008, the City of Huber Heights responded to citizen’s desires and allowed for a .25% earned income tax rate to rescind by vote of the citizens. At the time, there was more than $12 million in cash reserves in the city’s operating reserve fund. Since then, the city has been forced to deplete the reserve at an average rate of $2 million dollars per year in order to maintain current levels of safety and city services. Voters rejected an attempt to raise new revenue in 2012. Maintaining current service levels, the reserve fund will be depleted in 2015, and the city will need to raise additional revenue through an earned income tax increase or forced to drastically reduce city services.

2. Why hasn’t the city informed the residents of this financial situation?

The City of Huber Heights is dedicated to being open, honest and transparent. In 2012, the city went to the voters with a tax increase that would have generated enough revenue to maintain current service levels preventing the depletion of the cash reserve; however, the voters turned it down. Now that we are at the crossroads, we are informing residents of the choice that they will need to make: raise new revenue through an earned income tax or experience reduced safety and city services.

3. If the city knew it was spending its cash reserves, why is the music center being built?

The music center is funded with a projected payment plan consisting of only Tax Increment Financing (TIF) revenues, and no general fund revenues. The music center is currently being built using short-term notes (less than 1% interest) to finance the construction which will save the city money on interest charges as opposed to obtaining bonds at the current time. Once the construction is finished, and the total costs are verified, long-term financing will be sought. The payments on the music center will then be made from the TIF funds. TIF funds can only be used on infrastructure and public facilities, not on safety or city services, personnel, or operational expenses (i.e. they can be used to build a building, but not used to pay for staffing or operating the building). Again, no general fund money is being used to build the music center. A separate fund will be created to operate the music center. The operational expenses are expected to be covered through a variety of projections to include: sponsorship's, naming rights, operating revenue, and the terms of the operations agreement. In our estimates, there is no projected loss when including all the revenues available generated by the music center. Again, this includes naming rights deal, sponsorship's, etc. The operating revenue is difficult to project at this time; however, it is proportioned based on the number of events held. In other words, the sales of tickets, concessions, etc. for the events held are projected to financially support the cost of operating the facility.

An independent feasibility validation study conducted by the nationally  recognized Conventions Sports & Leisure details all projected  revenue and economic development impacts, view the Feasibility Validation Study March 14, 2013 (PDF).

4. How was the construction contract for the music center awarded?

The city put out a request for a bid from qualified and experienced building companies that have constructed similar types of buildings in the past. Once all qualified bids were received, the city awarded the contract to the lowest and best bidder.

5. How does the cost of our music center compare to the one built in Cincinnati?

The buildings may look similar; however, there are considerable design and structural differences. In addition, there was more infrastructure required to build our music center. The PNC Pavilion was built in 2008 as an addition to an existing site, using already owned land and infrastructure. Our project had to include costs such as the purchase of the land, site work, the parking lot, concession buildings, bathrooms, a courtyard area, landscaping, and additional exterior building costs. Considering the differences in scope as well as the difference of construction costs compared to 6 years ago, the cost of our music center cannot be directly compared to PNC Pavilion.

6. What is the projected economic development impact of the music center?

The music center was designed and built to become an economic catalyst for Huber Heights. The goal and mission of the music center is to provide a top-class amenity, add to the cultural arts, and bring people into the area to spark additional development and economic benefit to our community. This concept has already been proven to work, as a major economic boost has been attracted in even before the music center is completed! GoodSports hotel and fieldhouse will be breaking ground in the Spring, and will bring the world of sports tourism to our community. Their project is expected to bring well over $100K each year in additional revenue just at their facility. That does not include the economic benefit to our existing and future restaurants, hotels, and other service and entertainment businesses. There is a growing flow of interest from other significant development that will positively impact the economic growth and development of Huber Heights. An independent feasibility validation study conducted by the nationally  recognized Conventions Sports & Leisure details all projected  revenue and economic development impacts, view the Feasibility Validation Study March 14, 2013 (PDF).

7. What will the music center’s impact on our city’s safety services be?

There will be a demand for some additional safety services; however, many of the needs will be met through the operations of the music center itself. For example, internal security will be hired by the operator and will be paid as part of the operations of the event. In addition, any extra costs for specific events will be billed to that event. Much like any other activity within the community such as festivals, parades, fireworks, etc., we have good plans in place to manage the increased event-specific demands.

8. Where can I view specific information regarding the city’s financial status?

Our commitment is to keep up-to-date, factual information available for our residents. We are always open for requests, and we are continuously building the information made available on the city website. The city’s financial information, including annual reports and budget expenditures, can be viewed on our website by visiting the Finance Department's page.

9. Why is the city talking about raising taxes instead of making do with less money?

The city is dedicated to serving its residents with the level of services they desire. The current level of safety and city services is unsustainable at current revenue levels. Because of this, the city is allowing its residents to decide if they would prefer to maintain current safety and city services by voting to pass an earned income tax increase, or reduce/cut safety and city services by voting to deny an earned income tax increase.

10. What exactly is taxed in an earned income tax?

An earned income tax is exactly that; tax on income that is earned through employment or business operations. Retired senior citizens and those unemployed are not taxed. The following items are not taxed in an earned income tax:

• Interest
• Dividends
• Capital gains
• Pensions
• Annuity income
• Unemployment
• Income from estates
• Social security benefits

11. How can I participate in having my voice heard by city officials?

You can view all upcoming community engagement sessions on the City’s website, Community meetings and city ward meetings will be announced on our website, Facebook page and local media.

12. Can the city explain the use of the Emergency Clause that seems to be used for legislative actions taken by the City?

We commonly get questions about why items are passed by council as an “emergency,” along with the suggestion that things are being rushed through without public input or comment. We have heard these concerns, and are working diligently to give as much time possible between public meetings for citizen input and discussion about agenda items. However, there are still appropriate times when either waiving the readings, or passage of an item as an emergency will be necessary. View the Emergency Clause page for details and a full understanding.