PROPOSED INCOME TAX (ADDITIONAL) CITY OF TIFFIN NOVEMBER 6, 2012
City of Tiffin all Income 2011
36.5%
20.8%
4.2%
0.9%
29.3%
0.5%
7.7%
GENERAL FUND
SPECIAL FUNDS
ENTERPRISE FUNDS
DEBT FUNDS
INTERNAL SPENDING
CAPITAL PURCHASES
FUDUCIARY & AGENCY
GENERAL FUND 2002-2011
General Fund Income increased 5.56%
General Fund Expenses Increased 5.91%
Employees decreased by 9.7%
Insurance costs increased 83.5%
– 2002 Insurance costs were $933,190.56 and have about doubled to $1,712,382.54 by 2011
Consumer Price Index increased by
24.9%
General Fund Income Sources
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2008 2009 2010 2011 2012 2013
Income Tax
State Funding
Property Tax
Other income
City Belt Tightening since 2008
• Elimination of 15 positions
• Non-union employee hours reduced to 35
• No pay raises since 2008
• Requiring employees to pay more of health insurance costs.
STATE OF OHIO FUNDING DECREASES
• 2008 Funding was at $1,195,364.56
• 2009 Funding was up $1,517,510.35
• 2010 Funding was lower $1,157,642.16
• 2011 Funding even lower $805,871.13
• 2012 Budgeted $778,224.00
• 2013 Budgeted $391,907.00
By 2013 Ohio will have cut Tiffin’s general fund income by 8.1%
$803,457.56
• 2008 City receive $1,195,364.56
• 2013 City will receive $391,907
• 2014 The city expects to lose more.
The proposed .25% income tax will bring in an estimated $960,000
REVENUE DECLINE HISTORY
• Estate/Inherit taxes will be totally eliminated as of 12/31/12.– These taxes in 2008 were $381,075.59
– In 2009 $803,172.67
– In 2010 $435,237.06
– In 2011 $193,330.83
– In 2012 $237,018.59
– In 2012 Budget $354,000.00
– In 2013 $105,350.00
– In 2014 -0-
STATE REVENUE LOSSES
• Personal Property tax
– Received in 2010 $122,904.41
– Received in 2011 $ 21,744.05
– Projected in 2012 $ -0-
– Projected in 2013 $ -0-
CONT. STATE REV. LOSSES
• Local Gov’t Fund Thru State and county
– 2010 Received $599,500.69
– 2011 Received $595,114.90
– Projected 2012 $422,324.00
– Projected 2013 $315,907.00
CONT. GOV’T FUND
Including the previously stated state tax.
Totals lost will be:
2010 $1,157,642.16
2011 $ 810,189.78
2012 $ 772,324.00
TOTAL PROJECTED FOR 2013 $315,907.00
TOTAL LOSSES FOR 2013
• $706,498,10 total loss 2013 from 2010
• $456,417.00 total loss 2013 from 2012
1/4% Income Tax Increase and what it could do for the City of Tiffin
• This ¼% would generate approximately $960,000.00 in General Fund Revenue
• There has not been an increase in tax rates since 1987.
• Social Security, Pensions, Interest and Dividends, Military pay, Insurance proceeds, Unemployment benefits, and Workers Compensation benefits are NOT subject to City income tax. See next slide
How would the ¼% income tax increase impact a Tiffin Resident
FORM OF INCOMESocial Security
Pensions
Unemployment Compensation
Interest Income
Investment Income
Military Income
Proceeds from Life insurance
Alimony
Welfare Benefits
Average Household income ($36,400)
IMPACT$0
$0
$0
$0
$0
$0
$0
$0
$0
$91/year or $1.75 week
Income Tax Comparisons by City
as of 1/1/11
• Bowling Green 2.00
• Crestline 2.00
• Fostoria 2.00
• Galion 2.00
• Kent 2.00
• Oregon 2.25
• Rossford 2.25
• Toledo 2.25
WHAT WILL HAPPEN IF NOT
PASSED• Cost Cutting Measures with Budget
Reductions not being enough
• Revenue MUST be increased or Cuts will take place
– Only main streets will be plowed(no side streets)
– Police and fire response times will certainly suffer due to lack of man power
– Leaf pick-up could cease
City options if income tax fails
• Less police officers will be available for calls
• Less fire/EMS personnel will be available for calls
• Less employees in Street Department
• Serious affect on Parks and Recreation
Continued cuts – what will happen
• Street paving funds are already low but this could become depleted due to funding
• Infrastructure maintenance
• Parks will suffer and so will the activities
• High grass enforcements efforts will be reduced and property maintenance
• Personnel are going to be reduced
HOW MUCH WOULD THIS MEAN TO YOU BY ADDING 1/4% INCOME TAX
• Impact on resident making $36,400 a year would be looking at $1.75 per week.
• This is a small price to pay for the services that will be received– Great Safety services from Fire and Police
– Great Parks to take advantage of
– Improvement on street paving, city plowing, salting, leaf pick-up and maintenance for the City of Tiffin
CONCLUSIONS
• This tax is not to add programs but just to maintain what we currently have and restoring the City to where it should be. There have been many cuts already.
• This tax is to restore and add the essentials we have listed before you to maintain City services.