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HomeMy WebLinkAbout02-05 Resolution RECORD OF RESOLUTIONS ---- __ _yay ton ~egal Bla~'~!2~~__N().,_3<?'-Q~~_______________ ---- ---..-----.--- . .---- ~----------- -------..---- --- ---- --- --- -- ---- ----- -- m__-.--____ , 02-05 Resolution No. Passed .20 --------- ----- ----- - -I -- --- - ~_.---.::---:-- ~.-:: A Resolution Expressing Concerns to State Legislators and State Executive Leaders on the Financial Impacts of the Proposed State of Ohio Biennial Budget. WHEREAS, the 126th General Assembly is preparing the biennial budget for the State of Ohio, for the period July 1, 2005 through June 30,2007; and WHEREAS, the proposed budget includes reductions in the local government funding received by municipalities, counties, townships and libraries; and WHEREAS, these reductions will have a negative impact on the ability of these local governments to provide services to their residents; and WHEREAS, in 2004 the City of Dublin received $1,258,000 in local government funding which was 2.6% of the total General Fund revenues; and WHEREAS, increases have been proposed for the State's share of dumping fees (tipping fees) to increase from $2 per ton to $4.75 per ton; and WHEREAS, these increases will result in an increase in the City of Dublin's cost to provide solid waste collection services to its residents; and WHEREAS, the proposed dumping fee increase would have resulted in an increase of $33,500 in 2004 or an increase of2.3% in the City's refuse collection costs. NOW, THEREFORE, BE IT RESOLVED by the Council ofthe City of Dublin, State of Ohio, '7 of the elected members concurring that: Section 1. The City Council ofthe City of Dublin hereby expresses its concern with the proposed reduction oflocal government funding to municipalities, counties, townships and libraries and the increase in the State's share of dumping fees from $2 per ton to $4.75 per ton included in the State of Ohio's proposed biennial budget. Section 2. A copy ofthis Resolution be forwarded to the Governor, the President of the Senate, the Speaker of the House of Representatives, the City's State Senator and State Representatives. Section 3 . That this Resolution shall take effect and be in force at the earliest time provided by law. Passed this T)-fh day of 7l? ClAA.J....... ,2005. Mayor - Presiding Officer ATTEST: ~a~ Clerk of Council I hereby certify that copies of this Ordinance/Resolution were posted in the City of Dublin in accordance with Section 731.25 of the Ohio Revised Code. City Manager 5200 Emerald Parkway. Dublin, OR 43017 Phone: 614-410-4400 · Fax: 614-410-4490 Memo CITY OF DUBLIN To: Members of Dublin City Council From: Jane S. Brautigam, City Manage~5. Q)~' Date: March 1, 2005 Initiated By: Marsha I. Grigsby, Director of Finance ~~ Re: Resolution No. 02-05, A Resolution Expressing Concerns On The Financial Impacts of the Proposed State of Ohio Biennial Budget SUMMARY: As you are aware, the State of Ohio is in the process of preparing its biennial budget for the period July 1, 2005 to June 30, 2007. The current version of the proposed budget includes changes that would have a negative financial impact on the City of Dublin, as well as other local governments. The City is a member of the Central Ohio Municipal Alliance (COMA). COMA is coordinating an effort to provide information to the state legislators and executive leaders to assist them in understanding the financial impacts their proposed budget modifications will have on municipalities in providing services to our residents. The local government revenue distribution from the State is proposed to be reduced by 20% effective January 2006. Dublin is not impacted by the reduction as much as other municipalities because local government revenue is a smaller percentage of our total General Fund revenues than other jurisdictions. The proposed reduction will result in a loss of revenue (approximately $250,000) in 2006 and any reduction of revenue has an impact. A spreadsheet reflecting the City's recent history of local government revenues, as well as other state related funding is attached for reference. This information has been forwarded to COMA along with a worksheet highlighting the importance of local government funding to the City. COMA will be compiling information from its membership to present on our behalf to state legislators and executive leaders. The City has also calculated the impact the proposed increase in the State's dumping fee will have on the City's budget. This information has also been forwarded to COMA. We recognized that preparing a balanced State budget is difficult with the economy of the past few years; however, municipalities provide basic services to residents and we feel it is important for the decision makers at the State level to be aware of the impact they have on our ability to provide those services. RECOMMENDATION: Staff recommends that City Council pass Resolution No. 02-05 on March 7,2005. T:\2005\018-RES-02-05 MEMO.doc . Deputy City Manager/Director of Finance 5200 Emerald Parkway · Dublin, OR 43017 Phone: 614-410-4400 · Fax: 614-410-4490 Memo CITY OF DUBLIN To: Jane S. Brautigam, City Manager From: Marsha I. Grigsby, Deputy City Manager/Director of Finance Date: February 14,2005 Re: Local Government Funding In response to a request from the Central Ohio Municipal Alliance, I have prepared the attached spreadsheet which reflects the local government funding and other funding sources received by the City over the past four years from the State or State programs. I have also included the revenue we receive from personal property taxes because of the discussions to eliminate this tax. As I mentioned earlier, the local government funding we receive would not be considered a significant funding source; however, any revenue reduction has an impact. I would not want to overstate the impact the reduction or loss of this revenue source would have on the City. Also, my bigger concern would be what is next. There has been talk about modifying estate taxes and personal property taxes in the future, not because of the State's budget problem, but as a result of concerns over the type of tax. Taking into account the City's revenue sources that could be impacted in an effort to balance the State's budget and those sources that could potentially be adjusted or eliminated for other reasons, the City's General Fund could potentially lose approximately $2.5 million or 5.2% of the General Fund revenues annually, based on 2004. Other revenues received from the State or State controlled revenues total approximately $769,000 per year. I have also completed and attached a copy of the spreadsheet the City of Westerville put together. Once you have chance to review, let me know if you want me to forward the information to Kevin Futryk and prepare a Resolution expressing the City concern with the reduction of local government funds to municipalities. c: V. Faye Gibson, Director of Taxation T:\2005\OI4-Local Govt Fund Memo,doc City of Dublin Local Government Receipts - General Fund Total Percentage General of Total Franklin Delaware Union Fund General Fund Year County County County State Total Revenue Revenues 2001 $312,298 $311,108 $0 $758,086 $1.381,492 $44.134.871 3.13% 2002 324,353 275,166 0 717,691 1,317,210 45,140.703 2.92% 2003 291,748 294,404 309 708,738 1,295,199 46,245,575 2.80% 2004 254,124 294.664 485 708.738 1 ,258,011 48,129,430 2.61% Total $1 182 523 $1 175342 ~ $2 893 253 $5251 912 Other Receipts From The State - General Fund Total Personal General Property Estate Cigarette Liq uor Fund Year Reimbursement Taxes Taxes Permits Total Revenue 2001 $15,834 $649,235 $792 $35,263 $701,124 $44,134,871 1.59% 2002 8,643 753,146 603 32,379 794,771 45,140.703 1.76% 2003 8,643 649,634 767 44,078 703,122 46,245,575 1.52% 2004 8,643 1,169.893 664 43.606 1.222,806 48,129,430 2.54% Total ~ $3221 908 ~ $155326 $3421 823 Other Receipts From The State - Other Funds(1) Parkland Debt Acquisition Service Safety Year Fund Fund Fund Total 2001 $228,263 $4,852 $52,994 $286,109 2002 240,162 3,335 51,699 295,196 2003 283,195 3,827 59,034 346,056 2004 294.621 2.327 59,991 356,939 Total $1,046,241 $14,341 $223,718 $1 284 300 (1) Homestead/Rollback receipts. Personal Property Taxes - Other Funds Parkland Debt Acquisition Service Safety Year Fund Fund Fund Total 2001 $243,732 $2,785 $155,042 $401,559 2002 294,257 3,363 201,776 499,396 2003 241,770 2,763 165.713 410,246 2004 243,417 1,391 166,915 411.723 Total $1 722924 01/25/05 I - I THE IMPORTANCE OF LOCAL GOVERNMENT FUNDS TO THE CITY OF DUBLIN % OF GENERAL % OF GENERAL # OF MILLS OF FY 2004 FY 2004 GENERAL FY 2004 LGF FUND FUND PROPERTY TAX INCOME TAX % RATE GENERAL FUND FUND REVENUE (ALL REVENUE EXPENDITURE NEEDED TO(2) NEEDED TO REPLACE REVENUES EXPENDITURES(1) SOURCES) BUDGET BUDGET REPLACE LGF'S LGF'S $48,129,430 $44,764,945 $1,258,011 2.61% 2,81% 0.771 0,047% Program / Service Specific Programs & Services ImDacted Bv Potential LGF Funding Reductions Impact The City of Dublin does not allocate local government funds to any specific program or service. Local government funds are included in our total available resources and therefore any reduction would have an impact on the City's overall ability to fund programs and projects. The following are examples of operational costs: City's mandated retirement costs(based on 2004 actual) $3,258,395 General Fund subsidy to the Street Maintenance and Repair Fund (2004) $1,500,000 General Fund subsidy to the Safety Fund (2004) $7,200,000 General Fund subsidy to the Recreation Fund (2004) $2,500,000 Number of New I With 100% reduction of the LGF Funds the City of Dublin would need to create new jobs Jobs Needed IAssumptions: Annual income per employee of $40,000 with a 1.50% payroll tax rate to the General Fund 2,097 $ Amount of New Real Tax Base I With 1QO% reduction of the LGF Funds the City of Dublin would need to increase real property tax base $ 718,000,000 IAssumption: Inside millage rate of 1.75 mills and 2004 tax year assessed valuation of $1,622,347,573 ijil;I.I~Efi~~REXlE'rQm~~~S~lsT~f.1'CETF:ONb','UG'~~ "EROMTHE $TATEANDCOUNTY k.....,_,......;.;.,.;.....;../'.,,<;i..,....,...............,.....,.+"/..;ii":.,.'i:..'.........,.,..,...'.., ..,.... ....,.....,....>,..."_._. ..-.,.......,.,.......:'.......".. _' .. -'.", ,-,:c'_",,:',,'- .,...-...,.,...',.,.,.,..,>'..... .;/,....,,,,.,,,..., .0.'_'. ,'".-...",,' ,..-,.,..,:,.:"....,-..;.......,... .:........".,.,:.:....>...,,',._.<""~'''i\ State $ 708,738,00 Franklin Count $ 254,124.00 Delaware Count $ 294,664.00 Union Count $ 485.00 (1) Includes transfers for capital projects and debt service in the amount of $3,146,300. (2) Based on Tax Information for Estimated Resources received from Franklin County. How Governor Taft's Budf!et Proposal will Affect Solid Waste Operatinf! Expenses In the City of Dublin Points of interest for local governments: . Current budget expires June 30th, 2005 . Chief of Staff noted local government funding has been frozen (not cut) since 2002 while other state spending has been cut . State's local government fund subsidies would drop 20% for cities and counties starting in 2006 . A $2.75/ton tax increase to the tipping fees at the Franklin County landfill would begin in 2006 In 2004, 12,204 tons of refuse entered the landfill from the City of Dublin. The increase of 2. 75/ton in tipping fees would have cost the City of Dublin $33,561. Using a 5% increase in tonnages to the landfill, without considering increases in recycling, the cost per year to the City of Dublin is as follows: 12,814 projected tons in 2005 - no increase to the City of Dublin 13,455 projected tons in 2006 - cost to the City of Dublin is $37,001 14,128 projected tons in 2007 - cost to the City of Dub1in is $38,852 14,834 projected tons in 2008 - cost to the City of Dublin is $40,793 15,576 projected tons in 2009 - cost to the City of Dublin is $42,834 16,355 projected tons in 2010 - cost to the City of Dublin is $44,976 Over 5 years, the cost to the City of Dublin for increased tipping fees due to Governor Taft's proposed budget is $204,456.