3. City of Tiffin all Income 2011
FUDUCIARY & AGENCY
7.7%
INTERNAL SPENDING
0.5%
ENTERPRISE FUNDS GENERAL FUND
36.5%
29.3%
SPECIAL FUNDS
20.8%
DEBT FUNDS
0.9%
4.2%
CAPITAL PURCHASES
4. 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%
5. General Fund Income Sources
$8,000,000
$7,000,000
$6,000,000
$5,000,000
Income Tax
$4,000,000 State Funding
$3,000,000 Property Tax
Other income
$2,000,000
$1,000,000
$0
2008 2009 2010 2011 2012 2013
6. 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.
7. 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
8. 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
9. 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-
10. 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-
11. 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
12. 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
13. TOTAL LOSSES FOR 2013
• $706,498,10 total loss 2013 from 2010
• $456,417.00 total loss 2013 from 2012
14. 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
15. How would the ¼% income tax
increase impact a Tiffin Resident
FORM OF INCOME IMPACT
Social Security $0
Pensions $0
Unemployment Compensation $0
Interest Income $0
Investment Income $0
Military Income $0
Proceeds from Life insurance $0
Alimony $0
Welfare Benefits $0
Average Household income $91/year or $1.75 week
($36,400)
16. 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
17. 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
18. 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
19. 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
20. 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
21. 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.
2008 Income tax was 62.82% of general fund income State funds 19.16% 81.982011 Income tax is 70.81% of General Fund and State funds 9.11% 79.922013 Income Tax projected to be 74.14% of General Fund and State funds will be 4.23% 78.37
The City has not asked for an income tax increase since 1982? Maintained reasonable services for the years by exercising conservative spending on basic governmental services, maintaining fiscally prudent staffing levels. Economic Development Grant solicitationsAs the economy worsened took additional measures
Since the 1930’s? Local Cities have always received back some State taxes, know as the Local Government Fund. The purpose of the fund was to assure that state taxes collected were getting back to the local communities that paid them. For the last ten years, as the state economy has gotten worse we have watched the state rob these funds and reduce the local government share year after year in an attempt to balance the state’s budget. It is clear that in the near future, this fund will be entirely eliminated and we will no longer receive any funds from the State. The additional funds from this income tax levy will allow us to replace this revenue eliminated by the state.