Download - Income Tax Presentation012 Compat 2
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Lorains Future and the
City Income Tax
June 25, 2012
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Overview of the Additional Income Tax
Reduction in funding from State and in GrantReimbursement
Expected operating shortfall for 2013
Over the last several years, substantial cutshave been made to maintain status quo
As evident, the status quo has not been
maintained; without .5%income tax increase,the quality of services will continue todiminish
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State of the Parks
Lorain has 56 parks, which totals about 600 acres
compared to Elyrias 14 parks, which total 350 acres
(2008 figures)
In 2010, the Parks and Recreation Department wasmoved into the Street Department
Parks in disrepair and not maintained; overgrown
grass and shrubbery create safety concerns
Parks are important to community value and quality
of life
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Comparison of 2000 and Today
2000 Figures
Budget: $1,512,110
Employees: 21 full-
time employees*
Management: 2
2012 Figures
Budget: $324,009
Employees: 0 full-
time employees*
Management: 0
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State of the Roads
Currently, $1.5M is spent from OPWC funds for road maintenance
Currently, a 5 year/$5 license plate fee is used for Oberlin Avenue
According to the Citys Engineering Dept., at least $5M in roadwayrehabilitation is needed each year to bring all roads to anacceptable level
According to the Citys Engineering Dept., at least $35M would beneeded to bring all roads to an acceptable level
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Comparison of Lorain
and Other Cities
Elyria
187 centerline miles
Operating Budget: $2.39M
Overall Budget: $2.93M
About $12,801/mile
Lorain
236 centerline miles
Operating Budget: $1.5M
Overall Budget: $1.5M*
About $6,356/mile*Does not include Oberlin Ave license plate fee
Amherst
67 centerline miles
Operating Budget: $1.08M
Street Improvement (levy): about $1M
annually
Total Budget: $2.08M
About $31,045/mile
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State/County Cuts
and Revenue Decreases
Estimated total of $230,000 in cuts from Real &Public Utility and Homestead & Rollback (resulting inthe revaluing of real estate)
Estimated $1.2M in cuts from Local GovernmentFund and Estate & Inheritance (State funds)
Expiration of federal grants, which totalapproximately 1M in General Fund revenue
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Impact of Overall Budget
With cuts from State and property valuation
decrease, Lorain will lose about $1.4M
For 2013, the estimated revenue will be about
$26.4M For 2013, the estimated expenses will be about
$28.4M
These figures factor in the loss of federal grantrevenue and expenditures
The above results in an expected shortfall of $2M
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Efficiencies and Cost Cutting
Restructuring of Engineering Dept. to provide more services to Utilities inlieu of outside consultants
Restructuring of Community Development Department to removereplication of duties thereby delivering more dollars to the community
Property Maintenance Triage Proposal with Health, Building andCommunity Development
Regionalization and Collaboration with other governmental entities (i.e.wastewater, health, etc.)
Authorizing private contractors to cut high grass complaints for the firsttime ever, thereby freeing our employees to care for parks and roads
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Future of the City
Concerns over the past 10 years of the conditions of thestreets and conditions of parks
The status quo of 10 years ago has not been maintained dueto budget constraints
With more cuts looming from the State and the end of grants,the quality of service will continue to decline
The .5% ( of 1%) income tax proposal will cover the Stateshortfall and provide the ability to get things doneotheroptions do not provide this ability
We cant compete with our neighbors unless we dosomething NOW
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The Plan for the Income Tax
The of 1% is not a cure all
Overall, an estimated $5.3M/year will be generated
Of the $5.3M, the funds will be used the following ways:
Est. $2.6M for General Operating for Core Services
Est. $1.6M for debt service on $20M/20yr bond forimmediate roadwork in the next 2-3 years
Est. $1 M to augment annual roadway program
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Overall Picture
We cant cut our way out of our financial picture Due to state budget cuts and property devaluation, we face a
$2M deficit in 2013 (this does not include loss of grant dollars)
The .5% income tax is not a cure-all
The City will be continue to be aggressive in findingefficiencies and stretching dollars
The income tax will allow the City to cover the shortfall and
provide much needed infrastructure improvements for the
city If Lorain seeks a better future, we must invest in our
community
Its up to us
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of 1% Income Tax
Presentation
June 25, 2012