CINCINNATI -- Property tax rates in Hamilton County won't go up in 2010, but Monday's actions by commissioners to keep a rebate in place puts the county in another fiscal bind.
The problem is in the undivided stadium sales tax fund, which will have a $7.2 million dollar shortfall next year.
The fund was created in 1996 after voters approved a sales tax increase to pay for Paul Brown Stadium and Great American Ball Park. One incentive to win public support was rolling back Hamilton County property taxes 30 percent.
Originally estimated to increase three percent per year, the recession has helped cut that number in half, according to Hamilton County Administrator Patrick Thompson.
To close the gap, Thompson proposed reducing the rollback, but a majority of commissioners said "no".
"I think the promise has got to be adhered to," said Republican Greg Hartmann.
Democrat Todd Portune agreed saying, "I cannot support invading the property tax rollback under these circumstances."
However, Commission President David Pepper, also a Democrat, said the 2-1 vote pushes the county off the fiscal cliff.
"This full rebate leaves the county with an enormous hole that unless filled very quickly is going to be a real problem," Pepper said.
The vote was applauded by Mark Quarry, Director of Government Affairs for the Cincinnati Area Board of Realtors.
"These are extraordinarily tough times for property owners," Quarry said. "That's why we felt the entire rollback needed to be maintained unabated."
COAST members Jason Cloyd and Chris Finney praised Hartmann and Portune for their actions, but were critical of Pepper's vote.
"When we go back on those promises it undermines your ability to lead," Cloyd told the three-member panel. "It undermines your ability to come to the taxpayers with a straight face the next time."
Finney added, "It (raising taxes) should be completely off the table without a vote of the people."
The rollback means a 2010 tax credit of $52 per $100,000 of a property's value.
Monday's commission vote takes care of a short term problem, but provides no long-term solution.
Neither Hartmann nor Portune suggested any concrete plans after the vote.
All three commissioners have said they oppose raising the sales tax again.
So, what is the next step?
It's very likely the county will approach all of the entities that draw money from the stadium sales tax fund to seek concessions.
The fund includes...
* Money to retire bonds used to build Paul Brown Stadium and Great American Ball Park
* Paul Brown Stadium operations
* Great American Ball Park operations
* The Banks development
* Property tax payments
* Property tax rollback
* Parking operations
"Unless everyone rolls up their sleeves and says here's what we can give up -- here's what we can do differently -- here's how we can reduce costs -- this is just going to get worse," Pepper said.
Portune said he hopes the county is able to maintain the full scope of program adopted by the voters until better financial times arrive.
"We need to get to a point three, four or five years down the road when we can take advantage of the increased economic development activity from things like The Banks," he added.
Pepper admitted negotiations could be very difficult.
"Most of these costs, unfortunately, are legally binding that we either violate or we abide by," he said. "If we violate them, what happens is we get sued and we lose and we pay anyway."
