Income tax collections were the main driver of this growth, and Patel-Jones said tax revenue from business profits went “bonkers” last year, after seeing a major decline in 2023.
“The higher-than-anticipated revenues allowed the city to make additional strategic investments and strengthen its financial position,” Patel-Jones said.
What a year
The city’s general fund took in about $228 million in revenue last year (+8.5%). General fund revenue increased by 0.3% in 2023; 6.3% in 2022; and 5.3% in 2021.
2024 saw the largest jump in revenue since at least 2011, possibly longer, says city budget data.
Income tax collections account for nearly three-fourths of general fund receipts.
Earnings collections exceeded $165 million in 2024. This was up 7.8%, or nearly $12 million. Income tax revenues dipped slightly in 2023.
Patel-Jones said the strong revenue performance allowed the city to increase funding for fire pile removal, demolition and capital investments for police, fire and public works.
The city originally projected a small increase in income tax collections and general fund revenue for 2024. The city said these projections were based on 2023 receipts.
The city usually has conservative revenue forecasts, and actual collections often surpass projections.
“This approach is used to ensure financial stability and long-term planning, helping the city avoid sudden budget shortfalls and allowing for strategic reinvestments when revenues exceed expectations,” Patel-Jones said.
A notable highlight was the spike in tax revenue from business profits. Collections surged nearly 45% to about $22 million.
Business profit tax revenue dropped 34% in 2023, and city officials say this likely was due to economic uncertainty, inflation and post-pandemic factors.
Officials said the sharp increase last year suggests that businesses had a better year and consumers increased spending.
Dayton did not have to use federal COVID relief funding to help balance the budget, which was city’s the original plan.
Dayton last year also saw increases in property tax revenue, interest earnings and EMS fees, said Jeanette Ghand, manager of the city’s division of management and budget.
Dayton general fund revenue
2024: $228M (+8.5% from prior year)
2023: $210M (+0.3%)
2022: $209.6M (+6.3%)
2021: $197M (+5.2%)
2020: $187M (+0.7%)
2019: $186M (+3.8%)
2018: $179M (+5.1%)
About the Author
