As chair of the Bexley City Council finance committee it is my unfortunate role to stick my neck out and put a proposal on the table to facilitate discussion as we attempt to solve our projected deficit. Last night I proposed that we go to the ballot with a 0.5% income tax increase, bringing our rate to 2.5%. I also proposed that we cut expenses more aggressively than would be necessary to simply balance the budget, in order to gain some ground on our financial standing in the event that the estate tax funding source is lost in 2013. I threw out a target of $1m in cuts, as opposed to the $400,000 in cuts that would be necessary to simply balance the budget in combination with a 0.5% tax increase. It is my belief that with concerted effort the city could obtain this level of cuts without tangibly reducing city services, but I don't dispute that in order to do so we will need a united and determined city government and we will need our employees to come along with us as partners in the effort; while not impossible, the sort of environment needed to realize these savings will be very difficult to obtain. I also asked council to consider the possibility of making this a four year, temporary tax issue, as the final fate of the estate tax as well as the local government fund is still unknown, and it would be prudent in my opinion to be ready to lower the rate if the state-controlled funding model unexpectedly improves.
I put these thoughts on the table as a starting point to council reaching a final decision on how to best proceed, and I'm very open-minded to alternatives. The auditor, for example, favors a slightly tweaked credit model which would be advantageous to the city in the event that other municipalities where our residents work end up raising their tax rates. Some council members voiced opposition to the concept of a temporary tax issue, and the feasibility of making the higher level of cuts that I am proposing was called into question. I understand all of these concerns, and I believe that we will come to a consensus on how to best move forward over the next couple of council meetings.
As far as next steps - I believe that we will be having a first reading of the income tax issue at our next council meeting. As we discuss the nuances and advantages of the income tax credit levels, etc, the ordinance language may be amended prior to final passage of the ordinance. I would anticipate that we will pass the ordinance by the July 12th council meeting.
I believe that part of what makes Bexley the best place to live, work, and raise a family in Ohio is the quality and consistency of our city services, and I value the impact that these services have on my quality of life as a resident. I also know that a very small percentage of my local tax burden goes to the city in the first place. I believe that the city has cut a lot of costs over the past few years and explored all options, and that even as further efficiencies are found in certain areas, the overall paradigm is the same - despite our best efforts we cannot offset the financial burden that is being handed to us by the state, compounded by generally flat income trends, without tangibly impacting the services being provided to residents. To be perfectly clear, this is a voter decision. We are passing an ordinance that will place this issue on the ballot, and ultimately it will be the voters who decide whether this tax issue is appropriate.
Note: To get up to speed on the budget situation as well as some various options for cutting expenses or increasing revenues, download the budget presentation from the city website. Additionally, residents can chime in with their thoughts via an online survey.
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