YOUNGSTOWN — Because of a $7 million “unexpected windfall” in business income growth in 2024, Youngstown’s 2025 income tax collection saw a 6.23% decline from the previous year, but it was still the second-best year ever for collections in the city’s history.

Also, the decline was half as much as city Finance Director Kyle Miasek had projected.

Miasek had forecasted the city’s gross tax collection in 2025 from its 2.75% income tax and business profit tax to be $53,925,000. It ended up being $57,291,300, which is 6.24% more than projected.

In 2024, the city collected a record $61,100,100 in income tax and business profit tax.

That was largely because the business profit tax grew by an unprecedented 131.56%, going from $5,564,600 in 2023 to $12,885,300 caused by what Miasek described last year as an “unexpected windfall.” That came from Vallourec Star, which makes seamless steel tubes.

Miasek expected the business income growth to shrink by 63.02% to $4,765,000. Instead, it declined by 53.8% to $5,952,500.

“It grew by more than $1 million than I forecasted and I’m happy about it,” Miasek said. “It didn’t decline as aggressively projected.”

The amount of income tax collected from those who work and / or live in the city, which makes up the largest amount of money the city received from the 2.75% tax, went up 4.59% in 2025 compared to 2024. The city collected $46,446,700 in 2025 and $44,406,300 in 2024.

“We have shown consistent growth year after year in individual withholdings,” Miasek said.

The city gets about 85% of its income taxes from those working in the city but living outside of it.

Also, the miscellaneous income tax growth category went up 28.45% in 2025 from 2024. That is revenue from professionals such as doctors and lawyers and a small amount from those who work for businesses that don’t withhold Youngstown income tax during the year.

It went from $3,808,500 in 2024 to $4,892,100 last year.

Before 2022, the city never collected more than $50 million in gross income and business profit taxes. For the past four years, it has exceeded that amount.

Miasek expects 1.81% growth this year with $58,330,000 in gross income and business tax collections.

That includes a 2.05% increase in individual income tax collections, 0.04% in business income growth and 1.69% in miscellaneous income tax growth.

“We’ve not experienced an economic downturn in the Youngstown business market in over a half decade and that was because of COVID,” Miasek said. “Everything in the city is trending in the right direction. Last year, we had a one-time payment, but the overall decrease even from that was half as much as I forecasted.”

Miasek added: “We are optimistic that based on the pattern that we will see growth in 2026, which will provide the platform for most of the department heads’ operating requests that include capital expenditures for the 2026 budget.”

The city’s finance department is working on the 2026 budget. Miasek will discuss Wednesday with city council the budget requests for smaller departments that aren’t seeking capital expenditures at the first budget hearing.

City council has to approve the 2026 budget by March 31.

Capital expenditures for 2026 approved last year by city council include up to $2.1 million for the purchase of two new fire pumper trucks. The trucks are expected during the first half of this year.

Also, the city will pay $1,403,061, retroactive to Jan. 1, to Emergency Medical Transport to provide ambulance service in the city.

EMT will also receive a 3% increase in 2027 to $1,445,153.

The city signed a three-year agreement in December 2022 to pay $3.968 million in total to EMT using American Rescue Plan money. That ARP money ran out at the end of last year.

The city let the contract automatically roll over for 2026 and 2027 — both with 3% annual increases — in July.