HUDSON — The city saw an 11 percent increase in income tax revenue from 2017 to 2018.

Last year, Hudson collected $23.67 million in income taxes, about $2.37 million more than the $21.3 million recorded in the previous year, city communications manager Jody Roberts said. Nearly 75 percent of the city’s general fund revenue comes from income taxes, she said.

Roberts said the city does not have complete employee numbers for 2018, but noted the city’s withholding tax revenue rose by $1.4 million (or 9.6 percent) from 2017 to 2018.

City Council President Bill Wooldredge said legislators have been able to take advantage of the additional revenue.

“The good economic times and our outstanding economic development have generated additional tax dollars, some of which have gone into our roads, which are a top priority for many residents,” he said.

Wooldredge said the economic development occurring in the Hudson Crossing industrial park has played an important role in generating more income tax money for the city. He said the city spent an additional $1.4 million on road work in 2018.

Council member Alex Kelemen said that while he welcomes the added revenue, he said officials should be “cautious about attributing this [increase] strictly to new business development.”

“The largest part of our growth in 2018 is due to the increased economic activity among the wide employer base,” said Kelemen. He added that the 11 percent increase “partially offsets” a 2 percent increase in the city’s personnel costs and a 1 percent rise in operating expenses.

According to Jim Stifler, the city’s chief economic officer, Hudson companies have either added or committed to add 1,850 jobs during the last three years. He said 1,850 is a conservative number because city staff contacted or tallied the number of jobs that are being provided by about 15 city businesses.

Stifler said 741 of the 1,850 jobs are from nine new companies (two that are on the way) and one expanding business, all of which are part of Hudson Crossing.

He said that 290 of the 741 jobs have been promised — but not yet delivered — by companies through tax incentive agreements they have established with the city. In addition to the jobs added or being added in Hudson Crossing, Stifler said he used Tax Incentive Review Council data and contacted about six “existing and fast growing companies” to find out how many jobs those firms added during the last 36 months.

City officials provided this job information as part of their application to the Intelligent Community Forum in an effort to be recognized as a Top 7 “Smart” city. ICF recently honored the city as a Smart 21 community for the second consecutive year. Stifler said the Top 7 communities will be announced Feb. 11.

Stifler said companies which are setting up shop in Hudson are offering services and products that are “aimed squarely at the future.”

“The business growth comes from ‘future friendly’ businesses such as healthcare, medical devices, polymers, homeland security, financial forensics, telemarketing and technology,” he said.

The annual pay for these jobs range from $50,000 to $110,000, according to Stifler.

He said these companies see Hudson as “an asset to attract employees.”

“The markers of a forward looking community are extremely important to these future friendly employers and their employees,” said Stifler. “This helps them justify paying a higher cost to be in Hudson.”

 

Reporter Phil Keren can be reached at 330-541-9421, pkeren@recordpub.com, or on Twitter at @keren_phil.