The Municipal Income Tax typically grows each year, helping to offset annual cost increases. The 90% credit factor approved by City Council is expected to raise about $600,000 in new revenue, revenue that replaces money lost over the years as numerous communities, including Dayton and Centerville, raised their tax rates. Oakwood has not raised the income tax rate since 1984.
In regards to property taxes, there was a decrease in property taxes as a result of a property tax levy expiring in 2008, and an increase with a new levy approved in 2013. The minor changes from year to year are a result of increases in the total valuation of Oakwood property.
A full 55% of the local municipal tax paid by Oakwood residents is remitted to the taxing jurisdictions where Oakwood citizens work, and Oakwood loses more revenue every time another community raises their tax rate.
The Residential Real Estate Tax breakdown consists of 68.5% to Oakwood Schools; 1.8% to Montgomery County; 0.3% to Developmental Disabilities; 1.7% to Five River MetroParks; 13.8% to Human Services; 4.0% to Sinclair; 8.5% to the city of Oakwood; and, 1.4% to Wright Library.
Mr. Klopsch then provided highlights of the 2019 Budget related to taxes and fees. The budget includes: a 10% income tax credit reduction factor in 2018; proposing a $3/month fee increase for refuse services; and no fee increases in Water, Sanitary Sewer or Stormwater. The last tax and fee increases for the income tax rate was in 1984; property taxes was in 2013; water rates was in 2017; sanitary sewer rates was in 2018; stormwater rates was in 2017; and refuse rates was in 2016.
For General City Services, there will be a continuation of comprehensive services. Oakwood is beginning 2019 with an estimated $9.6 million in the eight primary operating funds. The 2019 budgeted expenses are $43,000 below revenues. 2019 income tax receipts are budgeted at $7.85M, where 2018 income tax receipts are estimated at $7.25M. Oakwood receives 8.5% of the property taxes. There is about $1.2M for Capital Expenditures included in the 2019 Budget, most notably for street and sidewalk improvements.
The Refuse Operation is beginning 2019 with an estimated $536,000 balance. The 2019 Budget includes $220,000 for Capital Expenses. There is a proposed monthly refuse rate increase from $27 to $30, to be effective January 2019.
The Water Utility fund is beginning 2019 with an estimated $1,160,000 balance. It continues to be operated in compliance with all EPA regulations. The city has the 7th lowest water rates out of 66 jurisdictions in the region. The last water rate increase was in January 2017. The Water Utility includes $290,000 for Capital Expenses in 2019.
The Sewer Utility fund will begin 2019 with an estimated $1,061,000 balance. The 2018 regional rate survey showed Oakwood as having the 47th lowest sewer rate out of 63 jurisdictions. The majority of the sewer expenses are paid to Montgomery County and the city of Dayton for wastewater treatment.
The Stormwater Utility fund will begin 2019 with about $275,000. The $7 per month residential rate went into effect in January 2017. There are no capital expenses in 2019.
Beginning year balances over a five year history were presented for the five primary parts of the budget (General City Services, Refuse Operations, Water Utility, Sanitary Sewer Utility and Stormwater Utility) for the years 2015 through projected 2020.
Mr. Klopsch shared that the Public Works Department uses refuse packer trucks, the single largest and most expensive piece of equipment in the City fleet, with the exception of fire trucks and the sewer vactor truck. The public works mechanics found a way to replace the back end of the trucks to extend the life of the packers versus buying new ones costing $250,000 – $300,000. A similar process was also followed with street sweepers. Earlier this year, a used street sweeper was purchased and shipped to Oakwood from Texas. The city mechanics installed the conveyor system and debris hopper from the Texas unit onto the City's old cab and chassis, pushing back the cost of a new street sweeper purchase to a later date. All of the work was done in-house providing cost savings to Oakwood taxpayers.
Mr. Stephens asked if the Capital Expenses in the Refuse Operations are for the purchase of vehicles.
Mr. Klopsch answered yes. He shared that the Public Works Department is proposing to purchase two new scooters, and a new hook truck with dumpster container.
Mr. Klopsch thanked Finance Director Cindy Stafford and her staff for doing a fantastic job with their diligence in managing daily finances.