Summary and Charts
During the October 31, 2012, work session there were several questions concerning the millage, the allocation of the proposed income tax expenditures and state reductions, and projections related to the City’s fund balance. Several of these questions were answered using charts and projections that were generated to aide in this discussion. Each chart has a brief explanation of what the charts and projections indicate and a link to the chart itself. Detailed questions and answers are being developed to address some common questions about the income tax and will be finalized shortly.
The first chart illustrates the total millage a resident pays based on their property value as of 2011. Of the total 70.82 effective mills, the City receives 10.94 mills or 15.4% of the total effective millage rate. (2011 Effective Millage Rate)
The second chart illustrates the effective millage rate the City receives and the allocation of those funds. (2011 Total City Effective Millage)
The third chart illustrates the reductions in State funding as a result of the State balancing their budget in 2011. The chart shows the projected $2.3m reduction by year for all funds (General, Police and Streets) over a three year period. The State reductions include accelerated reductions in local government, personal property taxes, utility deregulation and the elimination of estate taxes in 2013. (Reductions in State Funding All Funds)
The fourth chart illustrates the actual revenue/expenditures and fund balance for 2010 and 2011, 2012 budgeted and projected (2013-2017) revenues/expenditures and fund balance. These projections reflect the State reductions and illustrate the year in which the City would be below the 15% General Fund balance objective. (Revenue/Expenditure & Fund Balance Projections)
The fifth chart illustrates the projected revenue and expenditures related to a 1.5%, 7 year income tax. The rate and duration of the proposed income tax was settled on as a result of spending several work sessions reviewing all revenue alternatives. The goal was to offset the dramatic state reductions, eliminate voted property tax levies and implement a funding mechanism for a capital improvement plan designed to address the over $200m in needed capital improvement projects throughout the City. (Projected Revenues/Expenditures for 7 year - 1.5% Income Tax)
The sixth chart illustrates where the funds would be expended on average over the life of a seven year income tax. See description at bottom of the chart. Almost 50% of the income tax will be dedicated to reduction of the voted tax levies. (Average Allocation of Expenditures for a 1.5% Income Tax for 7 Years)
The seventh chart shows the percentage of expenditures used for the three main expenditure categories (Capital, Police and Streets levies). The chart also illustrates when each levy expires, the amount that is generated from each levy and the percentage these three categories represent of total projected expenditures. (Percentage of Expenditures by Year)
The final chart reveals the income tax rates from the various municipalities in the region sorted by highest to lowest. (Municipal Tax Rates)
Should you have any questions concerning this information please feel free to contact our e-mail site that we have established for the income tax at: email@example.com
City of Beavercreek’s Operating Revenue Challenges - Updated September 19
The City of Beavercreek is projected to lose approximately $2.3 million dollars in state funding through 2013. This includes losses resulting from the State’s phase-out of the local government fund (LGF), personal property tax reductions, utility deregulation taxes, and the elimination of the estate tax in 2013. City officials must consider an earnings tax or an additional property tax levy to replace lost revenue.
The current management team has been in place since 2007 and has historically been conservative in operating city functions. During budget preparation for 2008 city officials introduced a line item approach to this annual process. Anticipating near future revenue challenges city staff has pursued every eligible state or federal grant available, including $35,217,527 in infrastructure grants from 2007 to present. In addition to consolidation of city services with other governmental agencies, the City has reorganized departments from seven down to five, developed the city fuel island at the Municipal Maintenance facility to save on gasoline costs, evaluated every open staff position for consolidation, and increased the proportion of benefit cost that each employee pays as well as many more cost effective/efficient efforts.
If lost revenue for the City is not replaced by continuation/renewal of property tax initiatives or passage of an earnings tax, the City of Beavercreek will face very tough and difficult cuts to personnel, city services, and programs.
Dialogue with the community will continue as the City moves toward a new revenue initiative in 2013.
Should you have comments or questions contact City Hall at (937) 427-5510 or firstname.lastname@example.org.
Presentations to City Council