income tax presentation012 compat 2

7/31/2019 Income Tax Presentation012 Compat 2

1/13

Lorains Future and the

City Income Tax

June 25, 2012


2/13

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


3/13

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


4/13

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


5/13

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


6/13

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


Overall Budget: $1.5M*

About $6,356/mile*Does not include Oberlin Ave license plate fee

Amherst

67 centerline miles


Street Improvement (levy): about $1M

annually

Total Budget: $2.08M

About $31,045/mile


7/13

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


8/13

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


9/13

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


10/13

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


11/13

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


12/13

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


13/13

of 1% Income Tax

Presentation

June 25, 2012

income tax presentation012 compat 2

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