Marietta City Council on Monday heard the first reading of a resolution to adopt the 2013 tax budget.
Total general fund revenue for 2013 is projected to be $9.38 million, down from more than $10 million realized in 2011, and $9.77 million expected by the end of this year.
"It's important to note, when you look at the intergovernmental revenues of this tax budget, that in 2010 we received nearly $1.8 million, but in 2013 the projection is for around $431,000," said Councilman Michael Mullen, I-at large.
He said that represents a loss of 75 percent in those revenues.
"There are very dark clouds on the horizon for both state and federal resources," he said. "So we need to move forward cautiously with city finances."
The tax budget is an estimate of the next year's municipal revenues and expenditures that must be submitted annually to the Washington County Auditor.
The city must submit the tax budget in order to continue receiving reimbursement from state tax revenues.
Councilman Tom Vukovic, D-4th Ward, noted a huge loss in revenue would result from the Ohio legislature's elimination of the estate or inheritance tax.
"We're taking a major hit from loss of the inheritance tax," he said. "That tax brought $543,000 in 2011, and only a residue of $25,000 is expected in 2013."
The second reading and public hearing on the tax budget is slated during Thursday's regular city council meeting at Lookout Park.
A copy of the budget is available for public inspection in the city auditor's office at 308 Putnam St.