As a former member of the Pickerington City Council, I have worked on a number of issues for the city. Clearly one remaining issue (task undone) was the level of revenues for the city. As we watch the current city council members struggle with the city?’s current expenses and wait to see what options to resolve these revenue short falls will be presented to the public I wanted to put forward my own recommendations. My numbers come from the staff and the financial advisor.
Currently a majority of the city residents live in Pickerington and work in another city that charges them income taxes on that income. Depending on the source of the data those workers and taxpayers in that category range from 65% to 85% of the Pickerington residents live here work there. In addition at least another 10% of the taxpayers that live in Pickerington and live on a fixed income. Most fixed income (social security, retirement plans, 401K distributions and IRA distributions) are not taxed by the city income tax system.
Since most, if not all options available to the city council, must be voted on by the City voters then to it to pass in bad economic times they must put sugar on it to pass it.
All options that I have heard so far require a tax increase or at least a higher burden on the city taxpayers. The second question is that why is it reasonable for cities like Columbus and Canal Winchester to charge a 2% income tax with a 100% credit to its residents working elsewhere and Pickerington opts not to do so? They seem to want to stick it too the city residents. It also double taxes our residents with local taxation.
I want to advocate today that the city put on the November ballot a 2% income tax with a 100% credit for all earned income from cities like Columbus and Canal Winchester.
Here are the advantages to the City.
1. It raise enough money to ($1.7 Million annually) to pay current debt service payments and met the operating expense demands.
2. It will maintain the current general fund reserves and may increase them some what.
3. It will ensure a strong police force and an adequately staffed force.
4. It will give over 65% of the Pickerington taxpayers a tax break with not having to pay two city income taxes.
5, It will have a minimal affect on the seniors because retirement incomes and social security incomes will not see the city income tax increases. The city dose not tax these sources of income (state law).
6. Clearly future increases in revenues will be based on a 2% income tax base rather than a 1% or even a proposed 1.5% income tax.
7. It will allow the city leaders to address some of the current issues that are proposed to being cut like Police manpower (womanpower), street improvements like Refugee and 256, Street paving and many other projects that are in lower priority categories.
8. It will allow the city to pay some the current debt instruments off in 9 or 10 years instead of the 20 or 30 years being proposed.
9. It will allow the city to build a larger general fund reserves account and to allow for a much higher Moody?’s bond rating thus saving the city additional money in interest costs for the future.
By Ted Hackworth
Currently a majority of the city residents live in Pickerington and work in another city that charges them income taxes on that income. Depending on the source of the data those workers and taxpayers in that category range from 65% to 85% of the Pickerington residents live here work there. In addition at least another 10% of the taxpayers that live in Pickerington and live on a fixed income. Most fixed income (social security, retirement plans, 401K distributions and IRA distributions) are not taxed by the city income tax system.
Since most, if not all options available to the city council, must be voted on by the City voters then to it to pass in bad economic times they must put sugar on it to pass it.
All options that I have heard so far require a tax increase or at least a higher burden on the city taxpayers. The second question is that why is it reasonable for cities like Columbus and Canal Winchester to charge a 2% income tax with a 100% credit to its residents working elsewhere and Pickerington opts not to do so? They seem to want to stick it too the city residents. It also double taxes our residents with local taxation.
I want to advocate today that the city put on the November ballot a 2% income tax with a 100% credit for all earned income from cities like Columbus and Canal Winchester.
Here are the advantages to the City.
1. It raise enough money to ($1.7 Million annually) to pay current debt service payments and met the operating expense demands.
2. It will maintain the current general fund reserves and may increase them some what.
3. It will ensure a strong police force and an adequately staffed force.
4. It will give over 65% of the Pickerington taxpayers a tax break with not having to pay two city income taxes.
5, It will have a minimal affect on the seniors because retirement incomes and social security incomes will not see the city income tax increases. The city dose not tax these sources of income (state law).
6. Clearly future increases in revenues will be based on a 2% income tax base rather than a 1% or even a proposed 1.5% income tax.
7. It will allow the city leaders to address some of the current issues that are proposed to being cut like Police manpower (womanpower), street improvements like Refugee and 256, Street paving and many other projects that are in lower priority categories.
8. It will allow the city to pay some the current debt instruments off in 9 or 10 years instead of the 20 or 30 years being proposed.
9. It will allow the city to build a larger general fund reserves account and to allow for a much higher Moody?’s bond rating thus saving the city additional money in interest costs for the future.
By Ted Hackworth