Health & Fitness
Stow receives grim news for future funding
Councilman Mike Rasor reports on a special meeting of the Finance Committee to discuss future city revenue.
The Finance Committee of Stow City Council met Wednesday evening for a budget update.
To sum up, there is modestly good news on the tax revenue side, and there is seriously bad news on the state funding side.
After six months of data, Stow has already collected 55 percent of its income tax expectations. The numbers fluctuate wildly from month to month, so it is hard to gauge whether this is reliable data. However, other cities have seen 5 to 7 percent growth, so perhaps the news is somewhat dependable. Hopefully so.
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The news is grim, however, when it comes to money coming in from the state. This year, Stow will lose about $300,000 in tangible personal property replacement money. Next year, the state will also remove about $430,000 in local government fund money and Stow will likely see some decline in property tax, as tri-annual revaluations will go into effect. In 2013, the city will have to face these issues, plus the loss of approximately $300,000 in expected estate tax revenue. Plus, the local government fund reductions will then be $750,000.
To recap:
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- 2011 – $300,000 less revenue
- 2012 – $1,080,000 less revenue (from 2010 numbers)
- 2013 – $1,700,000 less revenue (from 2010 numbers)
What does this all mean for you?
First, Stow is on the clock. We have to find $300,000 in savings this year, or else that money comes out of our dwindling unencumbered funds.
Second, the budget needs fundamental changes, beginning in 2012. No longer can the Good Ole Boy Network ignore legitimate proposals to eliminate layers of bureaucracy and reduce the amount of employees who are not directly providing services. (Note to all members of council or candidates for council: If you aren’t willing to take this duty seriously, then don’t bother running.)
Third, and I know I sound like a broken record, but the city needs a person with business sense as the mayor. This is a $28 million corporation with more than 200 employees. It’s not the place for someone who is just there to advance a political career. Our city’s fate is on the line.
City council committees will meet against on Monday at 5:30 p.m. and on Thursday at 7 p.m. for the council meeting.
Visit www.mikerasor.com for more information on city meetings and news.