Financial Concerns: The past five years have been financially difficult for our city and local governments across Ohio. In 2012, the Ohio General Assembly broke its 75 year covenant with local governments by taking for itself sales tax revenue previously reserved for cities, villages, townships, counties and school districts. The General Assembly also eliminated the business tangible property tax reimbursement and the Ohio estate tax. Together these actions reduced our average annual revenue by about 20%.
In December, 2015 the General Assembly passed additional legislation benefiting certain taxpayers by eliminating their local tax obligations. When fully implemented, we expect this legislation will reduce our revenue by $250,000 annually. It is apparent that the Ohio General Assembly is no longer our partner in providing services to the citizens of Ohio.
In addition, 20 surrounding communities have increased their income tax rates over the last several years. Because we give a 100% credit for taxes paid to other jurisdictions, for an Oakwood resident working in Kettering, where the income tax rate is 2.25%, Oakwood only receives 0.25% of the 2.5% total taxes paid.
In 2005, the City of Moraine increased their income tax rate from 1.5% to 2% and in 2014 to 2.5%. An Oakwood resident working in Moraine now pays no income tax for Oakwood city services. The Moraine elections reduced Oakwood 2016 revenue by $124,000. The cumulative effect of all these income tax rate increases by surrounding cities reduces our revenue by about $450,000 annually.
In 2016, the City of Dayton increased their income tax rate to 2.5% and the City of Centerville increased their income tax rate to 2.25%. Their tax increases will result in an additional $360,000 revenue reduction in 2017. This situation is not sustainable.
The Value Proposition: Because of sound judgment from this and previous City Councils, and revenue from the now repealed Ohio estate tax, we have municipal facilities that will support our city for a generation or more; we own the Old River Sports Complex; we made Sugar Camp and Pointe Oakwood infrastructure improvements with no adverse impact to Oakwood City Schools revenue; we reduced city property taxes in 2008; we had no city property tax increase for 22 years until 2013; we have not raised city income taxes in 32 years; and we have no outstanding debt.
Our actual annual expenses went down each year between 2009 and 2014. Our citizens pay less for water and sewer than most people in the Miami Valley. Through retirements and productivity improvements, we have reduced our city staff by 12% since 2004 with no reductions in city services.
We made our refuse program self-supporting by reducing expenses and increasing the monthly refuse charge. We established a storm-water utility to account for the costs of this program. We increased fees and reduced expenses at the Oakwood Community Center.
In spite of our prudent fiscal management, we may need to ask for additional revenue in 2018. If needed, we will openly discuss this issue with our community. I am confident our citizens will support the recommendations or actions of City Council.
Because it is a well-established fact that local government is the most accountable and responsive government, we represent you and will see that our city provides the services you believe are important and necessary. And in doing so, we will prudently manage the resources our community provides.
City Council thanks our community for approving our property tax renewal levy last fall with a 72% affirmative vote.
Well Governed, Well Managed and Financially Strong: When I joined City Council in 2003, it was my belief that Oakwood was well governed, well managed and financially strong. I still hold that belief and will continue this tradition.
I would like to thank the citizens of Oakwood for allowing me to represent them as a member of Oakwood City Council for the past 14 years. I would also like to thank Oakwood City Council for allowing me to serve our city as Mayor for the last seven years. I also serve as Vice President of the Greater Dayton Mayors & Managers Association. With Council's approval, I will serve as President of the Association in 2018.
I am proud to serve with Vice Mayor Steve Byington who begins his 10th year on City Council and represents our City on the First Suburbs Consortium of Dayton and MVRPC. I am also