PROPOSED INCOME TAX (ADDITIONAL)CITY OF TIFFIN

NOVEMBER 6, 2012

TAX INCREASE .25 %

City of Tiffin all Income 2011

36.5%

20.8%

4.2%

0.9%

29.3%

0.5%

7.7%

GENERAL FUND

SPECIAL FUNDS

ENTERPRISE FUNDS

DEBT FUNDS

INTERNAL SPENDING

CAPITAL PURCHASES

FUDUCIARY & AGENCY

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%

General Fund Income Sources

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

2008 2009 2010 2011 2012 2013

Income Tax

State Funding

Property Tax

Other income

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.

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

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

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-

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-

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

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

TOTAL LOSSES FOR 2013

• $706,498,10 total loss 2013 from 2010

• $456,417.00 total loss 2013 from 2012

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

How would the ¼% income tax increase impact a Tiffin Resident

FORM OF INCOMESocial Security

Pensions

Unemployment Compensation

Interest Income

Investment Income

Military Income

Proceeds from Life insurance

Alimony

Welfare Benefits

Average Household income ($36,400)

IMPACT$0

$0

$0

$0

$0

$0

$0

$0

$0

$91/year or $1.75 week

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

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

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

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

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

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.

VOTE FOR THE CITY