proposal was to take control over the administrative process of municipal income tax, which will benefit special interest groups and create a new stream of revenue for the State of Ohio, all at the expense of cities. Two weeks ago, a judge in Franklin County issued a preliminary injunction against the State of Ohio for their recent actions. The case will be adjudicated this year.
Although Oakwood has not increased its city income tax rate since 1984, 24 other cities where our citizens work have increased their income tax rates. Because we give a 100% credit for taxes paid to another jurisdiction, their tax increases have reduced our revenue by about $800,000 annually.
These cities include Blue Ash, Brookville, Centerville, Clayton, Cleveland, Columbus, Dayton, Evendale, Fairborn, Franklin, Huber Heights, Kettering, Mason, Miamisburg, Middletown, Moraine, Oxford, Piqua, Sidney, Springfield, Tipp City, Vandalia, West Carrollton and Xenia. Oakwood residents work in all of these cities.
Dayton, Kettering, Moraine and Centerville account for over $600,000 of the $800,000 revenue shortfall.
Although it is never a pleasant task to raise income taxes, it has not occurred in Oakwood since 1984. In a representative form of government, we are elected to represent the best interests of our residents and, if we do not do so, the residents will replace us as provided by our charter and the laws of the State of Ohio. I concur with Vice Mayor Byington that this ordinance is the most balanced and appropriate way to spread the impact over the broadest base of residents.”
Vice Mayor Byington read the following statement into the record:
“Several years ago there was a tax credit plan before this Council that I was not able to support. While I fully understood the varying factors that led to it proposal, and completely agreed with the need those factors created, I could not support the details of the plan that was ultimately put forward. As part of my “no” vote, I openly shared my specific concerns at that time. However, that version’s subsequent failure, did not make the underlying need for a viable budget solution go away. In fact, many of the factors which we predicted would steadily get worse and exacerbate that need, have ultimately come to fruition.
This Council, our incredible City Staff, and the hard-working volunteers on our Citizen Budget Review Committee have worked diligently since that previous vote to re-shape the specifics of that proposal into a revised solution that best serves the broadest contingent of Oakwood residents as possible. It has certainly not been an easy process. There has been a tremendous amount of quantitative analysis, detailed fiscal modeling, and exhaustive public discussions that have gone into the formation of the plan before us tonight. Unlike our so-called leaders in Washington and Columbus, we did not hurriedly or haphazardly throw this plan together. We put in the hard work. We took our time to make sure that the process was thorough and inclusive. Doing so allowed us the opportunity to properly present and thoroughly vet all of our options with a wide range of Oakwood residents.
This is not to say that everyone we have discussed our findings with has liked our conclusions or the resulting policy suggestions that have come from them, but I can definitively say that everyone who has taken the time to contact me through calls, e-mails, or in person, and I suspect the same is true for my fellow Council members, has had their thoughts and opinions heard and thoughtfully considered. We do not hide from open discussion; we relish it. It makes us better at our jobs.
In the toxic political environment that our country is going through right now, I am extremely proud of the fact that, at the local level, the meaningful involvement and active participation of our citizens allows this Council and all of Oakwood’s City staff to engage in true public service; and not politics as usual.
Ultimately, leadership boils down to confronting the challenges that immediately face our community and doing what we believe is truly best for our City and its future prosperity. It is that charge which is going to guide my vote this evening.”
There being no other Council comments, Mayor Duncan called for a vote.