AN INCOME TAX CREDIT REDUCTION –

TRENTON’S PROPOSAL FOR INCREASED REVENUE

MAINTAINING OUR QUALITY OF LIFE IN TRENTON

Although the City of Trenton currently has an adequate General Fund reserve, the long term picture is not so optimistic.  The current General Fund balance was built by the increased revenue when the income tax credit reduction existed from 2003-2005. During the years since, we have made cuts and been good stewards of those funds, carefully preserving the General Fund balance.  In fact, as an organization, we are very lean.  We are now at the crossroads we have been speaking of for several years.  The trend just now developing in the General Fund is a concern for our future.  In 2009 we began what we believe will be a long term sustained downward slide of the General Fund.  Several of the City’s largest General Fund revenue sources are projected to decrease in 2010 including the income tax, real estate tax, local government funds, and interest earnings.   Intervention and action will be needed to reverse the downward trend in the General Fund.  

 WHY IS IT CALLED AN INCOME TAX CREDIT REDUCTION?

 Ohio law requires the language “Income Tax Credit Reduction” to describe this initiative.  Let us be very clear!  This is not a reduction in tax paid, but instead is a fair and equitable way to raise additional revenue for Trenton, by reducing the tax credit allowed for tax paid to other cities from the current 1.5% down to 1%. 

EQUITY IN TRENTON

The City of Trenton has been operating with the same permanent income tax rate for 21 years and the same permanent real estate tax levy for 34 years.  Most (about 90%) Trenton residents pay no income tax to Trenton to help share the support for City services.  The Trenton income tax rate of 1.5% is the lowest in the county (along with two other cities), and the real estate tax levy of 3.24 mills is the lowest in the county among all cities.  The proposed income tax credit reduction is, we believe, the most equitable way to raise funds for the City because it will impact those residents who are not currently paying income tax to Trenton.  They pay no income tax here, but enjoy the same services 24 hours a day, seven days a week, as our citizens who do pay here.   

WHO WOULD PAY AND WHO WOULDN’T?

This DOES NOT apply to you if:   

·       You are unemployed

·       You are retired on Social Security, SSI, pension, IRAs, 401Ks, or annuities

·       You work in Trenton 

·       You currently pay Trenton the 1.5% tax

·       You are a business in Trenton

 This ONLY applies to those who live in Trenton, work outside the City, and pay income tax to another city.   

How much would it be?  As an example, Joe, who earns $55,000 working in a nearby city, would pay an additional $275 (just 75 cents at day!) to the City of Trenton, his fair share of the cost of the services he and his family enjoy:  fire, EMS, police, street paving, parks, water and sewer, snow removal, leaf pickup and street sweeping.  Joe’s neighbor, who works in Trenton, is already paying for these same services! 

THE BENEFIT TO RESIDENTS

Passage of this measure will allow the visionary 2025 Comprehensive Plan, which will improve the quality of life in Trenton, to continue to move in a positive direction.  A major move forward for the City will be to improve fire and EMS response capabilities by having part-time employees on duty.  The Fire Department and EMS are currently all VOLUNTEER.  In addition, matching funds are needed to take advantage of the many grant opportunities available to governmental organizations.  Upfront funds are also needed to prepare the Industrial Park for development, which will in turn benefit the City’s future.  Finally, besides stabilizing the General Fund, this initiative would continue to fund economic development and parks, as well as infrastructure maintenance and improvement.   

The proposed tax initiative is viewed as the fairest, most equitable way of raising revenue for the City and impacts only those who are currently not paying.  We are asking you to support this, and set the positive future course of Trenton.