Tag Archives: income taxes

May 3 Ballot: Renewing School Levies Issues 3 & 4

On May 3, Xenia voters will determine Xenia School officials will have enough money to convert one of the abandoned elementary schools (i.e. Arrowwood) into a new office building.

Voters should remember that they passed 1/2% income tax levy with the passing of the bond issue. By renewing the 1/2% income tax due to expire, taxpayers will be paying 1% of their incomes to our schools. In addition to the property taxes.

It would be a dream come true if voter turnout was nearly 100 percent or at least comparable to November turn outs. However, public officials depend on low voter turn out during off-season elections. That is because those showing up at the polls are mostly those officials have convinced to support their issue.

Nevertheless, the issue is whether our school officials actually need more of our incomes to either convert good school buildings for their preferred uses and/or to maintain the 3 other schools. I answer is no they do not.

The $5 million projected budget deficit may be real. But seeing budgets are always bloated by about 10% for contingencies, it just as likely the deficit is on paper only. In other words, it justifies their plans to close schools for the building program and to convert one into a new office complex.

To prove public institutions over-budget by around 10%, let’s look at the 2009 City fiscal audit.
The City projected operating expenditures would be $16,497,434 but actual reported expenditures were $15,195,407. This shows the budget was 8% over actual costs. The was true of revenues. City management’s estimated budget 8% higher than actual income ($16,457,683 budget and $15,096,409 actual). After looking at the schools financial audits, it appears that the officials have consistently over budgeted projection to around 3 percent. That means the school budget was $1.4 million less than actual expenditures last year.

The last fiscal audit showed a district-wide operating deficit of a little over $3 million. The reasons were all related to the recessionary economy except for an increase of salaries and benefits. It looks like the increase was in the range of 4-6 percent or $2-3 million.

Repeating the question, do school officials need another 1/2% of our income, which by the way amount to nearly $2 million? Should taxpayers funded converting usable school facilities into new offices?

What school officials should do is repair the old historic building they currently occupy. With appropriate renovations, the landmark could be restored to a well-functioning office building. In fact, all of the continuing income tax dollars could have been used to do that long ago. The other 1/2% income tax levy should be sufficient for maintenance and repair of the high school and the two middle schools.

The previously mentioned $2 million might do more to help the local community if spent at local businesses.

For those all of those reasons, Issue 4 should not be renewed. The school district actually does need the operating levy (Issue 3) renewed.

Comparing the City and Schools Revenues and Their Respective Tax Issues

By Daniel Downs

If you haven’t read the News-Current lately, you missed an important announcement. Xenia Community School officials are putting their huge bond issue back on the ballot in May. As the News-Current noted, 59% of the voters rejected another large long-term tax increase to fund the building of new schools.

The big push by school administrators and our elected school board is for the building of large complex for the high school and other community organizations. Rebuilding schools that have been around since the time I was born, which was around the time God created the earth, are of secondary importance. Among those schools are Shawnee Elementary, my first school, Cox Elementary, my second, and Spring Hill Elementary. Oh, my, I forgot the administrators want out of that ancient administrative building on the East side like yesterday. What is not needed is the current plan for less than the best type of schools.

To top it all off, voters will be voting on the city’s 5.0 mill operating tax levy in February. Having talked to my council member, read the council minutes, and reviewed the latest annual financial report, it is obvious that the city needs more money to compensate for the rising cost of doing business. Inflation continually reduces what a dollar buys. I just don’t see the need for an annual increase from $417,000 to about $1.9 million. I would certainly vote for a renewal and possibly for an addition 1.5 mills. But, in a deep recession, any new tax increases don’t seem like a good idea.

Nevertheless, let’s look at the two tax issues.

A renewal of the city’s 3.5 mill operating tax levy would continue generating the same amount it has since 1959, which is $417,000. As mentioned above, the proposed replacement levy of 3.5 mills with an additional 1.5 mills means property owners who used to pay around $26 a year for property valued at $100,000 will now pay an additional $153, which breaks down to about $12 more a month. However, those figures only cover the 3.5 mills plus a 1.5 mills addition. They do not reveal the overall amount of property tax paid to the city. The same owner of a $100,000 home currently pays about $135 in property tax to the city. If the levy is passed, the same homeowner will be giving the city $288 a year.

As everyone who is making a buck knows, the city taxes every dollar earned at the rate of 1.75%. The income tax generates about $9 million a year. That is over and above the $9 plus million residents pay for like water, sewer, and sanitation services. So the current levy is a relatively small but necessary part of the city’s operating budget. Because of inflating costs, the 3.5 mill levy now is worth only .92 mills. In other words, the city needs more revenue in addition to the inflationary rise of income tax revenue, which this year may decline along with their earnings on investments.

During the 2006-2007 school year, Xenia Community Schools received almost $3 million from its 0.5% income tax levy. The school district’s combined property tax levies is 43.9 mills, which brought in about $20 million. A family whose home is appraised at $100,000 pays the school district about $960 a year in property taxes. The bond issue would increase that amount to $1,092.

To see the whole picture on taxes, it must be realized that the total property tax burden of the above homeowner is currently $1,504 dollars a year. The tax proposed by the city will increase it to $1,657. The school bond issue would increase it to $1,769. The same property owner also pays the Greene County Career Center a little over $75 per year, and the County around $316. To repave our deteriorating side streets, voters will have to pass a bond issue to cover the estimated $30 million in costs. Moreover, every working resident currently pays 2.25% of their income to the city and the school district. Without any deductions, a family with annual income of $60,000 pays out $1,500 in income tax. If state and federal income taxes as well as sales and gasoline taxes are accounted for, the tax burden of voting tax payer is getting little too heavy for this deep recessionary period. We can all give thanks to the federal government for it too.