Saturday, March 26, 2011

Taxing Euclid

City of Euclid 2010: trash and lighting fees passed to plug a hole in the City's budget. The promise made was that long term planning would start so that the City would not be caught short again.


2011: Again your City government proposes discussions on long term budget issues. Talk is fine, action is better. So, I have proposed a very old idea: An Ad Hoc Committee that can evaluate how Euclid raises money for City Services and make recommendations for changes. Such a committee should be made up of business people, our City Finance Director, and, a member of the public. Why an Ad Hoc Committee instead of say, the Administration or City Council? For independence and objectivity. In fact this committee should work much like our City Charter Review Commission. Every 8 years this committee examines our City government and offers recommendations that can then be put to a vote of the residents. The committee I have proposed should have similar authority.


Below are just some of the elements the committee should explore


City Income Tax: 2.85% levied on all income, and net business profits. Euclid shares .47% with the Euclid Public Schools. in the 2009-2010 school year, the schools received 5.2 million. Does this rate hurt the retention/attraction of business and residents?


Property Taxes: Better known for funding the Schools, property taxes are also collected by the City for general fund use. Estimated revenue for 20111: 1.6 million. Is our City Property tax burden to high?


Fines, Fees and Forfeitures: I have included in this category everything from housing inspection fees, ambulance charges, to criminal fines and forfeitures. The City has adjusted many of these categories in the past few years to better reflect the costs of police enforcement and inspection services.


Trash and Lighting fees: Under State Code, Euclid is allowed to impose a separate charge for street lighting and trash collection Both are set to expire after two years: should they?


Charter Provisions: The City of Euclid has two Charter provisions worth exploring:


(Property) Tax Reduction: This provision follows state law where levies are held forever to the dollars raised at the time of passage. For example, our Recreation Department is supposed to funded by the same levy that was passed in 1984. Because our Charter copies state law, our Recreation Department receives the same amount of money today, as in 1985. Because the levy money does not keep up with inflation, the City takes general fund money and transfers it to Recreation. (Charter, City of Euclid, Article II, Section 13)


Income tax credit: The City of Euclid give 100% credit for income taxes paid to other communities. So, if a resident works in Mentor, or Cleveland, and those communities pass an income tax increase, because of our credit provisions, Euclid would lose money based on the higher credit given. (Charter, City of Euclid, Article II, Section 12)


Taxation rates: How best to spread the burden to fund government while at the same time encouraging investment in Euclid.


State of Ohio: Changes by the State to the Estate Tax, and local government funds must be factored in as the committee explores changes.


The list above only touches the surface of what must be considered. But, the goal is pretty simple: evaluate and update how Euclid raises money for day to day operations. Make it so that the burden of taxation is shared fairly while also giving the City flexibility to handle any future economic downturns.


As always, let me know what you think


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Annual Spring Art Show


Presented by the Euclid Art Association, Euclid Public Library


April 9-16th - Public Reception Wed, April 13, 6:30-8:00 pm


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Mary Mavec Flower Sale


Bedding Flats and Hanging Baskets


Call for more information and orders before April 8th, 216-731-4666



Sunday, March 13, 2011

Euclid, Buy Euclid

ABC World News Tonight recently aired a wonderful series titled "Made in America." The premise is that buying more American made goods creates more jobs for Americans. ABC News estimates that 1% more spent on American made goods, a mere 18 cents a day, would immediately create 200,000 more American jobs (See ABCNEWS.go.com for the full series)

Let's take that concept to Euclid, with a twist: Buy Euclid. If we all made a concerted effort to spend more of our money here in Euclid, we can certainly have a positive impact on our City economy. Food, clothing, furniture, home improvement, entertainment, its all right here in Euclid.

From the City's stand point, the more money spent in Euclid the more likely these businesses (especially those locally owned) will make more money. That directly impacts how much tax revenue the City receives.

Greater demand at local businesses means that those establishments will stay in Euclid. And, more likely, those businesses will need more help, meaning more jobs will be created here in Euclid.

We, as a City can not simply depend on one or two large industrial firms for the City's financial well being. A healthy retail and commercial base is critical. So, lets all boost the health of our
retail sector, Buy Euclid.