MAYOR'S MESSAGE

Craig A. Stough 12/09/04

"2005 Budget Approved"

Sylvania City Council approved the 2005 Budget during their December 6, 2004 meeting. No new taxes, assessments or fees are included, and no programs or employees needed to be eliminated to balance the budget, despite the continuing economic slowdown.

The 2005 fiscal year budget includes 26 funds and appropriates $21.72 million to pay for personnel, contracts, supplies, materials and capital outlays, including the 2005 street repair program. Many of the funds are established for specific operations or services such as water, sewer, recycling, street repair and maintenance, and capital improvements. The general fund represents about 40% of the total budget. Police and dispatchers require the largest share of the general fund expenditures. Other large portions of the general fund are used for refuse collection and disposal, parks and forestry and the municipal court.

The largest source of revenue for the City of Sylvania comes from the 1½ percent income tax even though only about 30% of our taxpaying residents pay it to Sylvania – the rest pay local income tax to the municipalities where they work and receive full credit from Sylvania on their tax returns. City revenue from property tax is much smaller because only about five percent of the real estate taxes paid by property owners comes to the City. Most of the real estate taxes are for schools, county wide programs and Sylvania Township fire protection. Other revenue sources for the City are state-levied taxes, assessments, investment earnings, utility payments, fees and court costs. Rates for water and sewer will need to be reviewed as the costs for Toledo water and Lucas County sanitary sewer rise.

Of particular concern this year is discussion in the Ohio Legislature to reduce or eliminate Local Government Funds. These are State tax funds annually returned to Sylvania and other local governments and are estimated by the Lucas County Auditor to be $844,588 for Sylvania in 2005. Obviously, the loss of those funds would be a big loss to our community.

My thanks to Sylvania City Council for their timely review and approval of the 2005 Budget, allowing the City to move ahead with its programs and services without interruption.