The Residential Real Estate Tax breakdown consists of 69.5% to Oakwood Schools; 1.6% to Montgomery County; 0.3% to Developmental Disabilities; 1.7% to Metro Parks; 13.3% to Human Services; 3.9% to Sinclair; 8.3% to the city of Oakwood; and, 1.4% to Wright Library.

Budget comparisons were presented for the primary operating funds (General City Services, Refuse Operations, Water Utility, Sanitary Sewer Utility and Stormwater Utility) for the years 2017 and 2018. There are very little differences in what is budgeted for 2018 compared to 2017 showing business as usual, with the exception of the Stormwater Utility due to the need to purchase a street sweeper.

For General City Services, there will be a continuation of comprehensive services. The last increase in the income tax rate was in 1984 and property taxes in 2013. Oakwood is beginning 2018 with an estimated $9.3 million in the eight primary operating funds. There are a significant amount of Capital Expenditures included in the 2018 Budget, most notably for street improvements and the reconstruction of the Shafor Park Tennis Facility.

The Refuse Operations is beginning 2018 with an estimated $530,000 balance. Refuse rates were last raised in January 2016 from $25 a month to $27 a month. There is no proposed rate increase in 2018, nor are there any capital equipment replacements. Over the next few years, a refuse packer and three dump trucks will need replaced.

The Water Utility fund is beginning 2018 with an estimated $1,030,000 million balance. It continues to be operated in compliance with all EPA regulations. The city has the 8^th lowest water rates out of 66 jurisdictions in the region. The last water rate increase was in January 2017. The Water utility includes $50,000 for Capital Expenses in 2018.

The Sewer Utility fund will begin 2018 with about $730,000 and projects 2017 expenses of $50,000 more than revenues. The 2017 regional rate survey showed Oakwood as having the 30^th 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. Oakwood has not raised sewer rates since July 2009, but in the eight years since then, Oakwood has absorbed five increases in the Dayton rate and three increases in Montgomery County’s rate. On average, each Dayton increase was over 4%, and each Montgomery County increase was over 3%. An additional Montgomery County increase of 14% is scheduled to take effect in 2018.

The Stormwater Utility fund will begin 2018 with about $280,000 and the utility is entering its sixth year of operation. The $7 per month rate went into effect in January 2017. The Stormwater utility includes $250,000 for Capital Expenses in 2018.

Since Oakwood gives 100% credit for municipal income taxes paid elsewhere, the city has lost more than $3.2 million over the past 10 years. Beginning this year, the annual loss is about $800,000. The annual growth in municipal income tax revenue has historically allowed the city to avoid tax increases, most importantly property taxes.

Mr. Klopsch shared the legislation being presented this evening contemplates establishing a 90% credit factor. This would provide residents with a 90% credit on taxes paid to other jurisdictions, versus the existing 100% credit. In extensive discussions with City Council and the Budget Review Committee, everyone worked very hard to evaluate the options to address this issue.

Mr. Stephens referenced the Income Tax receipts chart and asked if the reason there was not an increase in the 2017/2018 income tax is due to losing funding from other cities.

Mrs. Stafford answered no and she said it is because of House Bill 5.

Vice Mayor Byington explained that Oakwood is fortunate to have a citizen budget committee that currently includes 34 members and is equally represented by residents from each of our seven voting precincts. That committee met four times this year and endorses this 2018 budget. Vice Mayor Byington invited Committee Chair Dave Dickerson and Vice Chair Bill Frapwell to make a few comments about the citizen budget committee’s role in providing input on financial matters.

Dave Dickerson and Bill Frapwell addressed Council. Mr. Dickerson shared that the Oakwood Budget Review Committee (BRC) has been in place for 30 years and consists of a large and diverse group of Oakwood citizens. The committee’s role is to advise staff and council on city finance matters and to communicate the viewpoint of Oakwood residents regarding the extent of public services they desire and their willingness to pay the associated costs. The key to the committee is that members provide not only their own opinions but also provide the opinions of other Oakwood residents within their precincts and throughout Oakwood.