The committee was actively engaged in discussions with Oakwood city leaders on how Oakwood responded to the elimination of the Ohio estate tax and to other state funding cuts over the last few years, and is pleased with the comprehensive and balanced manner in which we approached the loss of revenue. The committee has seen Oakwood city leaders work hard each year to develop a responsible budget and have witnessed first-hand the major steps taken to control costs.

The committee met four times this year to receive detailed briefings on financial matters and to provide feedback and counsel to Oakwood city leaders. The Budget Review Committee appreciates the good work of city staff in putting together a budget that is cost conscious, but provides the resources needed to continue delivering first-class city services. The BRC fully endorses the budget and recommends to city council that the 2018 Budget be approved. Recognizing that the sanitary sewer rates were last increased over eight years ago and understanding the need to address higher wastewater treatment costs, the BRC supports the proposed sewer rate hike. Finally, over the past several years, the BRC has studied the income tax credit issue and considered various options to address it. Accepting the fact that Oakwood is now losing over $800,000 annually by giving 100% credit on municipal taxes paid to other communities, the BRC unanimously supports action by City Council to pass legislation that would reduce the credit to 90%. The committee understands that this change to a 90% credit would generate about $600,000 in revenue annually, and believe this is the best action for the long-term financial health of our community.

Mr. Frapwell shared that city staff provides a lot of information during the Budget Review Committee meetings and is always very transparent. He stated that because other cities have raised their income tax rates, Oakwood has no choice but to respond with proposing a 90% credit reduction factor.

Mayor Duncan thanked Mr. Dickerson and Mr. Frapwell, as well as the Budget Review Committee members for being the eyes and ears of the community.

Thereupon, it was moved by Vice Mayor Byington and seconded by Mr. Stephens that the second reading be waived and that the 2018 budget ordinance be passed tonight.

Upon call of the roll on the question of the motion, the following vote was recorded:

There being five (5) yea votes and no (0) nay votes thereon, said ordinance was declared duly passed and it was so ordered.

A copy of the ordinance, having been placed on the desks of each member of Council prior to introduction, was read by title.

Vice Mayor Byington explained that in Ohio, residents pay local income tax where they work and where they live. The city of Oakwood currently gives a tax credit for all local income taxes paid elsewhere, up to the full amount of Oakwood’s 2.5% income tax. In other words, if a person pays taxes where they work, that amount is credited against the tax they owe to the city of Oakwood. This ordinance would reduce the credit.

This is a necessary step to stabilize city finances after losing nearly $3 million of funding per year due to the 2013 repeal of Ohio’s estate tax, state cuts to the Local Government Fund, and other state cuts, and after tax rate increases in 24 other cities have cost the city of Oakwood nearly $800,000 in annual revenue.

Some Oakwood residents will remember that a credit limitation ordinance was introduced once before, in February of 2014, and ultimately decided not to adopt it. That ordinance would have reduced the credit from 2.5% to 1.75%, effectively increasing some taxpayers’ local tax burdens by three-quarters of a percent. This ordinance takes a different approach. Instead of capping the credit at a specific percentage, it imposes a reduction factor of 0.9 to all taxpayers who receive a