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Posted: 12:00 a.m. Sunday, Dec. 9, 2012
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By Marc Katz
Staff Writer
BROOKVILLE —
While there is not yet official consideration, Brookville will likely be looking for another revenue stream next year that most cities take for granted. The city may have to raise income taxes or, for the first time, put a levy on the ballot.
It is not something mayor David Seagraves or city manager John Wright wants to do. However, there are few choices.
“We run a fine-tuned machine here,” Seagraves said with a little bit of a chuckle after a recent council meeting. “If you live here, we’re going to take care of you. We’ve been able to service the citizens. But we don’t work off a lot of wiggle room.”
In fact, next year, there may be no wiggle room at all.
“I’m pretty sure we’re going to have to find some additional revenue stream,” Wright said. “It’s not rocket science. We can raise income taxes, or put on a levy.”
Save for a fire levy city residents share with overlapping Perry and Clay Townships, there are no other levies billed to city residents. Brookville runs strictly on its general fund, stocked with property and income tax collections. Its yearly budget is about $10 million.
“Our general fund, police, streets, everything, comes from a 1.75 percent income tax and property tax,” Wright said. “The council has not wanted to have levies.
“We’ve been able to operate, but we’re just not able to do capital projects. We used to do at least one capital project a year, or every other year. We haven’t done any for 3-4 years.”
At least three revenue streams, all part of departing taxes, come off the books next year. There will be no estate tax, local government fund taxes or personal property taxes. Brookville estimates that will be about $263,000 not ending up in the general fund.
If House Bill 601 is passed, the city estimates another $100,000 could be lost. That bill, co-sponsored by District 36 house member Mike Henne (R-Clayton), is aimed at making local income tax procedures across the state more uniform.
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