MANSFIELD — Mansfield Finance Director Kelly Converse, for a second straight month, has illuminated revenue caution lights for City Council.
In May, Converse told local lawmakers income tax revenues were lagging 1-percent below estimates for 2025 through April. She said this largely stems from changes at the state level in business net profit tax collections — that are impacting city revenues.
On Tuesday, Converse said income tax revenues through May were down 3 percent compared to 2024.
“As we get through the tax season, things will level out and then we’ll see another boost again in October when that next deadline hits,” Converse said.
“We’re still keeping a close eye on all of those things, but it’s very concerning that it is down. Again, it is business net profit tax that is down for us that’s causing that decrease,” she said.
In Ohio, businesses operating within a municipality that levies an income tax are generally subject to a municipal net profit tax. This tax is applied to the business’s net profits generated within that specific municipality.
Under a change at the state level, companies are now allowed to apply their losses and carry them forward at 100 percent for five years, according to the city finance director.
“In the past, we limited that carry forward to 50 percent for the same time period and that kind of helps slow those business losses from hitting our books at the same rate,” Blankenship said in May.
“The state changes have not helped us at all in that regard. So we’re gonna keep a close eye on that revenue as we go through the year,” she said.
“Hopefully, I mean, I don’t foresee at this point in time us having to make any (budget) changes. But if this doesn’t right itself, then we’ll be looking at not having very much of a carryover at the end of the year,” the finance director said last month.
Converse also cautioned council about revenues in the city’s water and sewer funds.
“Where we’re concerned about in water and sewer, the water is only at 38 percent of budgeted revenue for this point in time, and it’s $400,000 less than this time last year,” Converse said.
“(That’s) mostly due to commercial accounts and I don’t know if that’s a timing issue, but maybe it’s something that we need to review because it (was) still just higher at this point last year,” she said.
“Same thing with sewer (revenue). We’re at 41 percent of estimated revenue and $300,000 less than last year … again in commercial accounts. Keep in mind we increased the revenue estimate for water this year, but we kept sewer flat and we’re still below that estimate,” she said.
“So those two funds are a huge concern,” Converse said.
The finance director said her department has selected a new payment processor for the city.
“We have vetted many, many companies and we chose the company with the most robust set of offerings. We handed them the company that gave us the cheapest pricing and asked them to match — and they did so,” she said.
Converse said she will have legislation in July for council to consider regarding that new payment processor.
“Hopefully, that will increase revenue for the city as more people adopt an online payment and start to pay faster and more regularly with us. So I’m happy to be bringing that to you next month,” she said.
In other activity on Tuesday, City Council:
— voted to accept a $250 donation from Rumpke to be used at the new disc golf course at Middle Park.
— voted to accept a $250 donation from Mechanics Bank to be used at the new disc golf course at Middle Park.
— voted to accept a $1,000 donation from Southern Title of Ohio, Ltd., to be used at the new disc golf course at Middle Park.
— voted to accept an $1,000 donation from Worner Roofinf for the Mansfield Police Department Neighborhood Impact Section.
— approved the designation of the Mansfield Community Improvement Corp. as the agency for the city for its industrial, commercial, distribution and research development.
— approved amended community reinvestment areas with KJBS, LLC, 1027 Trimble, LLC, and M&D Real Estate Investments, Ltd.
— approved an agreement with the Ohio Dept. of Transportation on a 2027 road resurfacing agreement on a section of Ohio 13 within city limits. The city will provide percent matching money for the project using the street maintenance and repair fund, permissive sales tax, sewer fund and street resurfacing fund.
— approved a contract to obtain updated geographical information system used to make decisions on managing and improving the city’s water and sewer infrastructure.
— approved a Small Government Enterprise Agreement with the Environmental Systems Research Institute for GIS software licensing and support services.
— discussed in caucus the fiscal year 2026 tax budget for the City of Mansfield and Mansfield Township, both of which must be submitted to the Richland County Auditor’s Office. The legislation is scheduled for a vote July 15.
