7/3/2018 City Council Meeting -- 2019 Tax Budget

Message Topic Search Topic Options Post Reply Create New Topic Printable Version Translate Topic

   MIDDLETOWN CITY COUNCIL AGENDA - TUESDAY, JULY 3, 2018
BUSINESS MEETING - 5:30 P.M. - COUNCIL CHAMBERS -  LOWER LEVEL

Motion Agenda

a)  2019 Tax Budget

For Business Meeting: June 19, 2018DATE June 5, 2018
TO: Douglas Adkins, City Manager
FROM: Jacob Burton, Finance Director

PURPOSE The attached 2019 Tax Budget for the City of Middletown is hereby submitted as required by the Ohio Revised Code. Schedule June 19, 2018 - Public hearing, receive, file and adopt by Motion June 20, 2018 - Deliver to Butler and Warren County Auditors

BACKGROUND AND FINDINGS The Annual Tax Budget has two purposes: 1) The 2019 beginning cash balances and 2019 projected revenues for each fund in this budget become the estimated 2019 resources for the City. The 2019 annual appropriations usually passed by City Council in November 2018 may not exceed these estimated resources. The objective, therefore, is to be realistic in these resource projections. If necessary, these estimated resources can be amended in writing during the 2019 calendar year by the Finance Department. This would be necessary if revenues are underestimated in this budget, or if expected revenues are not received. 2) A City's annual tax budget also supports the need for its annual property tax levy. The current levy of 6.90 mills (1.0 mill for the Senior Citizens Levy) will be requested for 2019. The assumptions made in projecting the 2019 revenues and expenditures in this tax budget were:

1) Revenues in all funds agree with the most recent Financial Plan. The General Fund revenues projected for 2019 are projected with a 0.4% decrease and expenditures projected with 3% increase.
2) All 2019 operational costs agree with the most recent Financial Plan.
4) The 2019 debt service costs are at actual levels based upon debt repayment schedules already set. Capital improvement expenditures are from the five-year capital improvements plan.
5) These estimates are based on the current knowledge of the revenue stream and the current expenditures.

ALTERNATIVES There are no alternatives. This budget must be submitted each year.

FINANCIAL IMPACTS The 2019 Tax Budget indicates that General Fund expenditures will exceed General Fund revenues by approximately $1.6 million and that the 2019 year-end cash balance in the General Fund will be about $2.8 million, which is a 9% reserve balance. This budget will be replaced with a permanent appropriation resolution later this year.

EMERGENCY/NON EMERGENCY Emergency legislation is needed to meet the deadline to be submitted to the County Auditor on or before July 15.

Author	Message Topic Search Topic Options Post Reply Create New Topic Printable Version Translate Topic
Analytical Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Citizen Joined: Nov 19 2015 Location: United States Status: Offline Points: 562	Post Options Post Reply Quote Analytical Report Post Thanks(0) Quote Reply Topic: 7/3/2018 City Council Meeting -- 2019 Tax Budget Posted: Jun 30 2018 at 1:48pm
	MIDDLETOWN CITY COUNCIL AGENDA - TUESDAY, JULY 3, 2018 BUSINESS MEETING - 5:30 P.M. - COUNCIL CHAMBERS - LOWER LEVEL Motion Agenda a) 2019 Tax Budget For Business Meeting: June 19, 2018 DATE June 5, 2018 TO: Douglas Adkins, City Manager FROM: Jacob Burton, Finance Director PURPOSE The attached 2019 Tax Budget for the City of Middletown is hereby submitted as required by the Ohio Revised Code. Schedule June 19, 2018 - Public hearing, receive, file and adopt by Motion June 20, 2018 - Deliver to Butler and Warren County Auditors BACKGROUND AND FINDINGS The Annual Tax Budget has two purposes: 1) The 2019 beginning cash balances and 2019 projected revenues for each fund in this budget become the estimated 2019 resources for the City. The 2019 annual appropriations usually passed by City Council in November 2018 may not exceed these estimated resources. The objective, therefore, is to be realistic in these resource projections. If necessary, these estimated resources can be amended in writing during the 2019 calendar year by the Finance Department. This would be necessary if revenues are underestimated in this budget, or if expected revenues are not received. 2) A City's annual tax budget also supports the need for its annual property tax levy. The current levy of 6.90 mills (1.0 mill for the Senior Citizens Levy) will be requested for 2019. The assumptions made in projecting the 2019 revenues and expenditures in this tax budget were: 1) Revenues in all funds agree with the most recent Financial Plan. The General Fund revenues projected for 2019 are projected with a 0.4% decrease and expenditures projected with 3% increase. 2) All 2019 operational costs agree with the most recent Financial Plan. 4) The 2019 debt service costs are at actual levels based upon debt repayment schedules already set. Capital improvement expenditures are from the five-year capital improvements plan. 5) These estimates are based on the current knowledge of the revenue stream and the current expenditures. ALTERNATIVES There are no alternatives. This budget must be submitted each year. FINANCIAL IMPACTS The 2019 Tax Budget indicates that General Fund expenditures will exceed General Fund revenues by approximately $1.6 million and that the 2019 year-end cash balance in the General Fund will be about $2.8 million, which is a 9% reserve balance. This budget will be replaced with a permanent appropriation resolution later this year. EMERGENCY/NON EMERGENCY Emergency legislation is needed to meet the deadline to be submitted to the County Auditor on or before July 15.

VietVet Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Council Joined: May 15 2008 Status: Offline Points: 7008	Post Options Post Reply Quote VietVet Report Post Thanks(1) Quote Reply Posted: Jun 30 2018 at 4:20pm
	Well let's see here.....the expenditures are more than the revenues according to the numbers in this budget. Hmmm. Is this the way any of you run your household budget? If so, how long do you think it would take you to accrue some major debt? The 2019 tax budget indicates the General Fund expenditures will exceed the General Fund revenues by approx. 1.6 million. How does this happen if you want a balanced budget? Shouldn't revenues EXCEED expenditures? Don't understand how this is acceptable. Wonder why members of council don't require the city manager to present a "revenues exceed expenditures" type of budget. Council should insist on cutting the spending until the revenues are at least in line with expenditures, right? Curious as to their reasoning on this.
	I'm so proud of my hometown and what it has become. Recall 'em all. Let's start over.

Analytical Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Citizen Joined: Nov 19 2015 Location: United States Status: Offline Points: 562	Post Options Post Reply Quote Analytical Report Post Thanks(0) Quote Reply Posted: Jul 04 2018 at 9:06am
	At last evening's 12 minute and 34 second long city council meeting, the members voted to unanimously approve Mr. Adkins 2019 Tax Budget. In a related matter, Mayor Mulligan and Mr. Adkins advised that procedural matters regarding the proposed 0.25% City Income Tax increase must be in place as early as August 8.

VietVet Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Council Joined: May 15 2008 Status: Offline Points: 7008	Post Options Post Reply Quote VietVet Report Post Thanks(1) Quote Reply Posted: Jul 04 2018 at 9:27am
	That would push the city income tax to 2%, not unlike some surrounding communities but will hurt this city due to it's low income tax base. The problem I have with the city agenda is why do they always have to solve money problems by shafting the people who live here by adding additional taxes to an already poor community? Do they not know that they have created the low income situation that has overwhelmed the city and lessened the revenues? You are trying to find water in a well that went dry years ago. This is a poor community city leaders. Knowing that, why would you want to add more taxes and take what little money people have to live on? People, like Mulligan, who come up with the tax suggestions are the same people who can afford the additional tax and absorb the hit. Most living here are not in the same situation as the Mulligans of the world. City leaders, proposing these ideas, need to recognize the inability to pay for these suggested tax increases by a large segment of the city population. Any tax increase will hurt many in this city. Leave the money in the people's pocket and let them spend what little disposable income they have. Work on it from another angle. Decrease your spending and work with the money you have. Stop asking for more, just to blow it on the pipe dream nonsense you have shown in the past. Trim the fluff and cut back to basics. You waste too much of the taxpayer's money now. Just tend to the basics and eliminate the extracurriculars on your budget agenda until you find some legitimate revenue. Optimum word here is legitimate, which doesn't include tax increases as the only solution.
	I'm so proud of my hometown and what it has become. Recall 'em all. Let's start over.

redbengals Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Resident Joined: Aug 29 2017 Location: Middletown Status: Offline Points: 125	Post Options Post Reply Quote redbengals Report Post Thanks(1) Quote Reply Posted: Oct 10 2018 at 3:34pm
	We will plug any gaps with bake sales