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17-80 Resolution I III , , .. RECORD OF RESOLUTIONS , , National Graphics Corp,. Cols., O. ~ ~ Form No. 6233-A i I Resolution N 0 'mJr-_~_O__m__m______m p assednm_____m_______m_m_ m_____mm____m_19 ____m_ I I i A RESOLUTION APPROVING THE PROPOSED FORMULA D FOR ALLOCATION AND DISTRIBUTION OF LOCAL GOVERNMENT FUNDS IN FRANKLIN COUNTY AS I DEVELOPED BY THE FRANKLIN COUNTY BUDGET COMMISSION. WHEREAS, the Franklin County Budget Commission has requested that responses to the proposed formula be in the form of a resolution acted upon by members of each subdivisions legis- lative authority: NOW, THEREFORE, BE IT RESOLVED by the Council of the Village of Dublin, State of Ohio, ,1 of the elected members concurring: SECTION 1. The proposed formula for allocation and distri- bution of local government funds in Franklin County as developed by the Franklin County Budget Commission is hereby approved. SECTION 2. That this resolution shall take effect and be in force immediately upon its passage. D Passed this "'T day of :r~ ' 1980. JUt...,-"~ iJ.~.L/,,- Mayor - Presiding fficer ATTEST: ~):\.~ Clerk of Council ~ p . . . C Alternative Method for Allocation of the Undivided Local Government Fund in Franklin County, Ohio For 1981 Allocation as Proposed for Adoption --'June 23, 1981 by FRANKLIN COUNTY BUDGET COMMISSION C 0 . ~ .' , , ALTERNATIVE METHOD FOR ALLOCATION OF THE UNDIVIDED LOCAL GOVERNMENT FUND IN FRANKLIN COUNTY Section 1 INTRODUCTION The express intent of this Alternative Local Government Method of Apportionment is to create and implement an 0 allocation system that is objective and equitable; and also to promote harmony among the various tax subdivisions which must share in the allocation of the undivided local govern- ment fund. In lieu of this proposed alternative method of apportion- ment, a statutory method of allocation (outlined in Section 5747.51 of the Ohio Revised Code) may be used to apportion the undivided local government fund. The statutory method of allocation is not considered here because it fails to offer any clear standard or guideline to follow in making the distribution. U In designing this alternative, the two primary limitations of the present statutory formula were closely analyzed in order that they and the difficulties which they have created in the recent past, be excluded from this alternate system. These limitations were recognized to be: 1) the inclusion of an inflexible minimum or "floor" allocation which was based upon an undivided fund much smaller than that which now exists, and 2 ) the allocation of monies in excess of that floor by means of a formula which utilized a subjective and therefore debatable concept termed "relative need." {q"/'~frfl71 - ~ - The methodology employed by this alternative, and the reasoning behind it, are as follows: (] First, it allocates to each local subdivision a guar- enteed "base allocation," which will be adjusted annu- ally. The rationale here is that annual adjustment of the base will restrict the "excess" to a minimum. , .. .. - 2 - Second, it allocates the lIexcessll above the base allocation by employing three equally-weighted stat- istical factors which are entirely objective and sub- .o_._..~_,__, .",__.", ,--.-.,-".....",."-,,.~."...-<"._"'_....*--- ject to simple verification. "_....~...,.-~,_.. C The three statistical factors employed in allocating the and the reasons for their use, excess, are: 1) Population 7 Assessed Value Per Capita - which intends to express, in mathemetical terms, a resource, namely the self-help potential of a subdivision through property taxation; 2) population ~ Per Capita Income - which intends to express the self-help potential of a subdivision through income taxation; 3) Population X Population Density - which intends to express the relative population size and density of a C subdivision, factors which contribute to the amount and cost of services required by its residents. The choice of these factors was made upon the weight of repeated recommendations by concerned third parties that they provide a more scientific and accurate measure of financial need. Section 2 DEFINITIONS For the purpose of this formula, the following terms shall have the meanings assigned below: l. Population - The number of inhabitants in each subdivision as determined by the most recent esti- mate of the Mid-Ohio Regional Planning Commission. D 2. Assessed Value - The latest official taxable assessed valuation as published by the Office of the Franklin County Auditor. 3. Assessed Value Per Capita - Assessed Value divided by population. ..' . .. " - 3 - 4. Per Capita Income - Per capita income employed by the Federal Office of Revenue Sharing, as published in the text, "General Revenue Sharing Data Elements" for the latest allocation period, or the latest per U capita income as published in the latest "Popula- tion Estimates and Projections" report for Ohio of the Federal Bureau of Census, whichever is more recent. 5. Subdivision Area - The area, in square miles, as currently available from the Franklin County Engineer's latest report. 6. Population Density - Population divided by Sub- division Area. 7. Prior Year Allocation - Local Government monies for a given year as originally allocated by the Frank- lin County Budget Commission, or revised by the C Ohio Board of Tax Appeals or the Ohio Supreme Court. 8. Prior Year Distribution - Local Government monies for a given year as actually distributed by the Franklin County Auditor and shown in his records, including those monies physically distributed in a calendar year other than that for which the allo- cation was made. 9. Base Allocation - The minimum guarenteed allocation for a subdivision. 10. Total County Allocation - The allocation of Local Government monies for Franklin County as certified D by the Ohio Department of Tax Equalization, or other agency designated by statute to make the certification, to the Franklin County Budget Commission. 1l. Franklin County Board of Commissioners' Allocation - Thirty percent of the total county allocation, prior to application of the formula for all other subdivisions. ,.. . .. , . , - 4 - 12. Metropolitan Parks Board's Allocation - Five and one- half percent of the total county allocation, prior to application of the formula for all other subdivisions. 13. Total Base Allocation - The accumulated total of Base C Allocation for each subdivision. 14. Total Excess Allocation - The Total County Allocation less the Total Base Allocation. Section 3 FORMULA FOR APPORTIONMENT The order to be employed in apportioning the Undivided Local Government Funds is outlined below. These steps are to be applied exactly in the order listed. A. Determine the Total County Allocation, as certified by the Ohio Department of Tax Equalization. B. Base Allocation C l. For each subdivision, total the first prior year's allocation amount and the actual distri- bution amounts from the second and third prior years. Each subdivision's Base Allocation equals the average of these three amounts, except that the Franklin County Board of Com- missioners' Base Allocation shall equal thirty percent of the Total County Allocation and the Metropolitan Parks Board's Base Allocation shall equal five and one-half percent of ~he Total County Allocation. 2. Total the computed Base Allocation, the sum D being the Total Base Allocation. C. Compute the Total Excess Allocation by determining the difference between the Total County Allocation and the Total Base Allocation. ~ '" . . l - 5 - D. Allocation of the Excess 1. Except for the Franklin County Board of County Commissioners and the Metropolitan Parks Board, compute each subdivision's portion of the total U excess allocation on a percentage basis. The percentage which applies to each subdivision is determined in the following manner: a) Calculate the following factors for each subdivision: 1) Population/Assessed Value Per Capita 2) Population/Per Capita Income 3) Population X Population Density b) Calculate the total, within each of the three categories, of the factors for all subdivisions. c) with respect to each factor, determine what U percent each individual subdivision's figure is of the total. d) Compute an "average percentage" for each subdivision, employing the three percen- tages obtained for it in a) above. 2. Apply each subdivision's "average percentage" against the Total Excess Allocation to determine its individual Excess Allocation. E. Compute each Individual Subdivision Allocation by totaling the individual subdivision's Base Allocation and Excess Allocation. F. If, in any year, the Total County Allocation is less D than the Total Base Allocation as determined under this formula, then the Budget Commission, in making the Local Government Allocation shall apportion the Total County Allocation as follows: . , . . , , - 6 - l. Determine what percent the Total County Allocation is of the Total Base Allocation, and 2. Apply this percentage against each subdivision's Base Allocation to produce an "Adjusted Base C Allocation," the Total of this figure for all subdivisions being equal to the Total County Allocation. G. Under this Alternative Method of Apportionment, the Franklin County Budget Commission annually shall continue to extend the opportunity to be heard to the representatives of each subdivision, pursuant to R.C. s 5747.51 (B) . However, an appearance at such hearing by a subdivision's representa- tives shall in no way be mandatory. The only discretionary power which is possessed by the Budget Commission under this alternative is the ability to determine what demographic statistics comply with the def- ( initions in Section 2 of this alternative for use in making the apportionment. In the case of a dispute as to which of conflicting statistics or sets of statistics are called for by Section 2, the final decision shall be made by the Budget Commission. H. Distribution of all avaiLable monies received shall be made to each subdivision on a current monthly basis. I. In the event that during the ensuing calendar year the actual funds received by Franklin County exceed that as originally certified by the Ohio Department of Tax Equal- ization said additional funds shall be apportioned in the following manner: l. The first seven hundred and fifty thousand dollars D ($750,000) of additional funds or portion thereof shall be distributed by applying the percentage determined by dividing each Individual Subdivision Allocation by the Total County Allocation. ~ . .. ... . I . - 7 - 2. Any additional funds shall be distributed thirty percent (30%) to the Franklin County Board of County Commissioners, five and one-half percent (5.50%) to the Metropolitan Parks Board and the C remainder as set forth in Section 3, Paragraph D (Allocation of Excess) above. Chairman Member ( Secretary [: , t . ~~9)~ C~ INCORPORATED Dublin, Ohio 43017 July 16, 1980 0 TO: Members of Council FROM: Sherman Sheldon, Village Manager RE: RESOLUTION RE: LOCAL GOVERNMENT FUNDS I would favor approval of the proposed new allocation formula for the following reasons: 1. In my opinion, it is much more equitable than the formula currently being used and the primary reason is: A. It establishes a "guaranteed base allocation" for each sub-division, and more importantly: B. It establishes a formula for "excess funds" opposed to the concept of distribution based on, in their terms, "relative need" and which I person- ally label as "arbitrary" distribu- ~ tion by the Budget Commission. 2. In my opinion, the Village will fare at least as well as we do under the old formula and, quite frankly, I feel that the new for- mula may benefit us more with a "guaranteed base" coupled with the elimination of the "arbitrary" distribution of "excess funds". Respectfully, ~4/.;r ~ Sherman Sheldon Village Manager mb Attachment '"