The city has maintained the same income tax rate since 1977. If the proposed increase fails, Miamisburg leaders said the effect will be felt throughout the community as the city struggles to sustain services at current levels.
“Without an increase in our revenue, the city will be forced to fundamentally change the way it does business,” said Mayor Dick Church Jr. “Cuts in public services will be deep, and they will affect every household.”
The city provided the following information regarding Issue 19:
Q: Who pays Miamisburg income tax, and what role does it play in city revenues?
A: It is paid by people who earn wages in Miamisburg and by those who work in another community that has a lower tax rate than Miamisburg. City residents who pay income tax to another municipality get a full credit for that local tax, up to the city's rate. About 70 percent of residents in the workforce will be unaffected by the proposed rate increase. Income tax is the city's largest source of revenue and pays for basic services, including police, fire/EMS, street maintenance and recreation services. City income tax in 2009 generated $10.1 million.
Q: What prompted the proposed increase?
A: Revenues are not keeping pace with the cost of providing current services to residents, in combination with the ongoing economic slowdown. The city must either initiate deep cuts in public services or pursue a revenue increase to maintain essential services.
Q: Are expenses being controlled?
A: Expenses have increased about 3.7 percent annually over the past decade despite increased costs that are out of the city's control, such as health care costs, minimum wage increases, required pension contribution increases, fuel and utility cost increases and unfunded mandates.
Q: What has the city done to control spending?
A: During the past decade, the city has eliminated positions and reorganized its workforce, renegotiated debt, participated in regional cost-saving measures and postponed scheduled capital improvements without diluting services to the public. Late 2009 budget cuts included freezing some vacant positions, significantly reduced travel and training budgets and further delay of planned capital improvement projects and equipment replacements. Most annual street maintenance programs have been suspended and a wage freeze is in effect.
Q: How much will the proposed increase cost?
A: A city income taxer payer who earns $50,000 would pay $250 more annually, or $20.33 monthly.
Q: How would retirees be affected?
A: Traditional retirement income from pensions, Social Security, investments — including 401(k)s — and interest are not subject to local income tax in Miamisburg. As a result, retirees would be unaffected by a rate increase.
Q: How much additional revenue would be produced?
A: About $2.8 million annually.
Q: How would additional revenues be used?
A: Enable current service levels, including police and fire/EMS services, and restore some normal capital investments, such as roadway maintenance and the replacement schedule of the service fleet vehicles, including police cruisers.
Q: How does the overall cost of local government in Miamisburg compare in region?
A: A city of Fairborn 2008 regional survey showed Miamisburg's cost to residents ranked the fourth lowest among 24 communities. This included costs such as real estate taxes, local income tax and water/sewer rates.
Q: If it fails, what are the consequences?
A: Without an increase in revenue, there is no question the city will be forced to dramatically cut expenses for 2011 and beyond. There will be fewer police and fire personnel on duty, which will increase response times. Recreation facilities, such as the Senior Adult Center and Sycamore Trails Aquatic Center, will be closed and some special events cancelled. Street services, such as leaf pick-up, curb side recycling and snow removal, will be reduced or cut.
For more information, call City Manager Keith Johnson at (937) 847-6456, or go to www.ci.miamisburg.oh.us.
Contact this reporter at (937) 225-9338 or kmcallister@DaytonDailyNews.com.
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