City may outsource its tax collections
Wednesday, December 3, 2008 3:29 PM
By MIRIAM L. SEGALOFF
ThisWeek Staff Writer
Pickerington City Council indicated this week that it may reverse course and outsource the city's tax collections department as a cost-saving measure.
Council voted 4-3 Tuesday night in favor of a first reading of a proposal calling for the city to join the Regional Council of Governments and use its Regional Income Tax Agency (RITA) to administer the city's income tax ordinances.
Previously, on Nov. 19, council's finance committee voted 4-3 against recommending council make that move.
At that time, council members debated whether the move would save money, and, if so, whether it would be worth the perceived reduction in customer service.
City finance director Linda Fersch and other staff members have recommended the change, which they estimate could save the city between $52,000 and $78,000 a year.
The contract with RITA calls for the organization to keep 3 percent of all tax collections. Fersch said that in the past, cities that use RITA see an increase in the amount of tax revenue they collect.
Rather than lay off the two full-time tax department employees RITA would replace, Fersch, who is also the city's acting human resources director, has recommended those individuals be placed in other city jobs left vacant by a long-term hiring freeze. One of those positions, she said, is in the water and sewer department and is funded through utility revenue. The other is paid for through the city's general fund.
A third, part-time tax department employee is expected to retire this winter and a fourth department employee will remain.
Council member Brian Wisniewski, who has now voted twice against the move, has argued that any savings created by using RITA will be negligible and is not worth the risk.
''I have nothing but respect and admiration for our tax department and what they do for our community,'' Wisniewski said. ''I will practically guarantee if we go with RITA, you will not get even close to the level of service we have now. Is that worth $50,000 to me? Absolutely. I just think it is a bad idea.''
Wisniewski was originally joined in opposing the change by council members Tricia Sanders, Cristie Hammond and Keith Smith. Council members Brian Sauer, Michael Sabatino and Jeff Fix remain in favor of joining RITA.
Sanders, however, changed her vote this week to support the contract.
''It was never that I was anti-RITA,'' she said after Tuesday night's meeting. ''I was just worried if this was the time to do it. After talking to some people in Reynoldsburg, both residents and administrators, I decided this is a good thing. There are services provided through RITA that can enhance revenue and benefit our citizens.''
Sanders said she was originally concerned that with the change, the city staff would be further reduced and that would have a negative impact on services provided to citizens.
''I was assured that was definitely not the case,'' she said. ''Because we've had the hiring freeze in place, we definitely need the staff.''
Wednesday, December 3, 2008 3:29 PM
By MIRIAM L. SEGALOFF
ThisWeek Staff Writer
Pickerington City Council indicated this week that it may reverse course and outsource the city's tax collections department as a cost-saving measure.
Council voted 4-3 Tuesday night in favor of a first reading of a proposal calling for the city to join the Regional Council of Governments and use its Regional Income Tax Agency (RITA) to administer the city's income tax ordinances.
Previously, on Nov. 19, council's finance committee voted 4-3 against recommending council make that move.
At that time, council members debated whether the move would save money, and, if so, whether it would be worth the perceived reduction in customer service.
City finance director Linda Fersch and other staff members have recommended the change, which they estimate could save the city between $52,000 and $78,000 a year.
The contract with RITA calls for the organization to keep 3 percent of all tax collections. Fersch said that in the past, cities that use RITA see an increase in the amount of tax revenue they collect.
Rather than lay off the two full-time tax department employees RITA would replace, Fersch, who is also the city's acting human resources director, has recommended those individuals be placed in other city jobs left vacant by a long-term hiring freeze. One of those positions, she said, is in the water and sewer department and is funded through utility revenue. The other is paid for through the city's general fund.
A third, part-time tax department employee is expected to retire this winter and a fourth department employee will remain.
Council member Brian Wisniewski, who has now voted twice against the move, has argued that any savings created by using RITA will be negligible and is not worth the risk.
''I have nothing but respect and admiration for our tax department and what they do for our community,'' Wisniewski said. ''I will practically guarantee if we go with RITA, you will not get even close to the level of service we have now. Is that worth $50,000 to me? Absolutely. I just think it is a bad idea.''
Wisniewski was originally joined in opposing the change by council members Tricia Sanders, Cristie Hammond and Keith Smith. Council members Brian Sauer, Michael Sabatino and Jeff Fix remain in favor of joining RITA.
Sanders, however, changed her vote this week to support the contract.
''It was never that I was anti-RITA,'' she said after Tuesday night's meeting. ''I was just worried if this was the time to do it. After talking to some people in Reynoldsburg, both residents and administrators, I decided this is a good thing. There are services provided through RITA that can enhance revenue and benefit our citizens.''
Sanders said she was originally concerned that with the change, the city staff would be further reduced and that would have a negative impact on services provided to citizens.
''I was assured that was definitely not the case,'' she said. ''Because we've had the hiring freeze in place, we definitely need the staff.''