Warren tax returns better than expected
Still wasn’t enough to prevent cuts, officials sayBy BILL RODGERS / Tribune Chronicle
Fact Box
Tax receipts
City income tax collections:
2004 $18,824,408
2005 19,846,297
2006 20,768,808
2007 18,732,996
2008 18,726,513
2009 (projected): 18,375,500
Sources: City income tax department and 2009 budget
WARREN - The city collected $326,513 more in income taxes than was expected in 2008, according to a press release from Tax Administrator Tom Gaffney.
But that money is still less than what the city received in 2007, and also was considered prior to cuts the city made to balance its budget, officials said.
The city had budgeted $18.4 million in tax revenue but brought in $18.7 million, which does not include tax refunds. The current figure is a decrease of just about $6,500 from 2007.
Although the figure is greater than expected, city administration said Monday they were aware that the department was ahead on collections. Mayor Michael O'Brien and Auditor David Griffing said those collections were factored into budget discussions which led to cuts throughout 2008 and 40 layoffs for 2009.
"It didn't all come in on the last day," Griffing said.
Gaffney said the tax department kept Griffing's finance department briefed throughout the year on collections.
O'Brien, who was in Columbus seeking state assistance for the city Monday, pointed out that even with the greater-than-expected revenue, the income tax was bringing in less money than it did in 2002. He added that revenue from the inheritance tax was down by about $250,000, and the local government assistance fund and interest rates were both down.
"The income tax is just one portion and even that portion is less than it was the year before," he said.
The 2009 budget projects about $18.38 million in collections, not including tax refunds.
City Treasurer John Homlitas thanked his "hard-working, diligent staff" for the collections as well as initiatives such as the non-filers program, which contacted people who did not file. The tax department had three investigators working to collect unpaid taxes in 2008.
Homlitas commented that the tax department would be ''decimated'' by the layoffs, which go into effect this year. The income tax department had two workers laid off at the beginning of this year, with one more to follow in May. The tax department had seven employees in 2008.
Gaffney said, other than job loss, the tax department did not notice any alarming trends in 2008.
''Withholdings are our big concern ... We've watched those numbers on a daily basis to see what they're doing,'' he said.
Gaffney attributed the increased figure to more intense collection and investigations in the tax department. One of the department's highlights in 2008 was bringing a $60,000 account to litigation, he said. Gaffney plans to keep these investigations going even with the reduction in staff.
"We're playing it by ear right now that we lost almost half of the staff. I still want to concentrate on collections and investigation work. That's where the money is," he said.
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pahootaman
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01-06-09 11:51 AM
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I hear what you all are saying, Release a budget surplus one day after you lay-off a bunch of people. Stay classy city hall.
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OutsideTheBox
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01-06-09 9:52 AM
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Like Ive said before, if this City actually knoew what it was doing - if they had truly done everything they could, we would go home quietly, but we knew darn well stuff like this would happen. The City ended the year not 1.75 million in the hole, but 300k in the black. So why did 40 of us get sent home? I doubt even they know why, but they'll still stand behind it.. Thank your mayor.
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SURV69
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01-06-09 8:58 AM
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WAIT A DOGONE MINUTE . . . When was the 2009 budget passed with the expected million dollar(?) deficit? It wasn't so long ago . . . was it, that the council shouldn't have had a better idea of the 2009 finances(that is, the 2008 taxes)? Did a whole lot of money just magically show up in the past week and didn't something similar to this happen a few years back(money got "found"?
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Sassysue
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01-06-09 8:26 AM
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OK this is OFF topic but ya gotta love it!! JACKSON, Ohio "Police say an angry 4-year-old Ohio boy grabbed a gun from a closet and shot his baby sitter. "The child has not been charged"
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OldManGrump2
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01-06-09 8:10 AM
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Things are worse in 2009 then they make them out to be. A surplus last year doesn't mean any this year. O'Brien needs to layoff his friends and family from the city payroll ASAP. They do nothing productive and will not be missed. City Treasurer John Homlitas needs to layoff his cousin as well.
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ponch28
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01-06-09 7:45 AM
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Let me get this right, the city is projecting a $350,000 shortfall in income tax collections for 2009. Each layoff is saving the city on average $63,000 per person. My calculation is five layoffs, not 40. I will even add in some additional expenses, but 40 people layed off. Something does not add up. Hello State Auditor, come on down!
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Sassysue
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01-06-09 7:44 AM
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Maybe just maybe they are educated guesses?
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import
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01-06-09 6:51 AM
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Nope.
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escaped
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01-06-09 6:35 AM
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Anybody else get the impression that this administration runs the city on pure guess work?
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