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Questions and Answers

How will the revenue be used? (Based on current income tax calculations, the projected revenue is estimated to be $2.5 million)

  • Per Section 4 of , "the proceeds from one-quarter (1/4) of one percent of the total increase of one-half (1/2) of one percent of the income tax rate will be used solely for public safety; specifically, would be used to bring back the 12 laid off positions (6 firefighters and 6 police officers) and would be used for the Public Safety Division's purchase of rolling fleet (i.e., fire trucks, medic units, police cars, etc., as well as other capital purchases such as equipment replacement) and/or existing debt service payments for equipment already purchased. Ordinance No. 10-27  $750,000$500,000
  • The remaining one-quarter (1/4) of the one-half (1/2) percent increase will be used for the following (per minutes of January 7, 2010):
    • Street Rehabilitation Program ... $500,000 (as you know, Xenia's streets are in very poor condition.  Some streets have been improved with grant dollars, but the majority of our streets do not qualify for grant funding.  Currently, only $150,000 is budgeted for street rehabilitation.  This funding would be used in addition to the $150,000, for a total of $650,000 each year, to begin the street rehabilitation process.)
    • Other General Capital Improvements ... $750,000 (Fleet Maintenance, City Facilities, Information Technology, Parks, etc., fall under this category).  The City's fleet--Public Service vehicles including snow equipment--other than Police and Fire vehicles--fall under this category; maintenance and improvements to City Facilities--City Hall, Public Service Center, etc.--fall under this category; Information Technology (computers--hardware and software, servers, etc.); and parks need playground equipment.  All departments, including the Police Division, Fire Division, Communications Center (9-1-1), Public Service Center, Water and Wastewater Treatment, Finance Office, etc., depend on computers and their various programs for their day-to-day processes.  For more details on critical capital improvements needs, click here.

What is the "Rainy Day" Fund aka "Cash Reserve"?

  • The "Rainy Day" fund is a cash reserve to be used in the event of an emergency including catastrophic disasters and other natural disasters.  The reserve also allows the City to withstand short-term revenue declines when revenues are expected to quickly return to normal levels.  It also provides the City the opportunity to receive a good bond rating (currently it is designated at A-1), which means when we have to purchase a $900,000 Fire Truck and we have to finance it, we will receive a lower interest rate.  To learn more about municipal bond ratings, click here.

What about "Enterprise Funds" generated from the payment of Utility Bills?  Why can't we use that money to pay for Police and Fire Personnel?

  • It is ILLEGAL to use revenue from enterprise funds (Water, Sewer, Sanitation, Stormwater Revenue) that is generated from the payment of utility bills for any other purpose other than items directly related to water, sewer, sanitation, and stormwater, such as salaries for persons working in those areas, operating expenses, capital improvements, etc.

You currently have a positive cash flow in 2010 (revenues exceeding expenditures) ... so why do you need extra revenue?

  • The City is not permitted to operate at a deficit like the federal government.  Revenue shortfalls must be offset by cutting expenditures. Since many of our operating expenses (electricity, fuel purchases, etc.,) are fixed, the cuts usually come by way of a reduction in force or more conservative spending habits and budget cuts.  The City has exercised both.  Please review the following current cash flow projections and expenses scenarios (numbers in red represent negatives): 

If the levy passes and minimum manning does not, click here to see a cash flow projection.

If the levy fails and minimum manning passes, click here to see a cash flow projection.

If we had only asked for a .25% income tax increase, click here to see a cash flow projection.

If nothing changes (the levy and minimum manning issue both fail), click hereto see a cash flow projection.

FACTS AND FIGURES:

  • To view any "Comprehensive Annual Financial Report" aka CAFR from 2009 to 1983, please click .  All CAFRs are audited by certified accounting firms and accepted by the Auditor of State.  To learn about the difference between a CAFR and a budget, click.here
  • If you would like a copy of this year's or next year's proposed budget, please contact the Finance Division at 376-7235.
  • The City has not received a voted income tax increase since 1991.
  • The City receives approximately 9% of the property taxes paid by City of Xenia residents, which includes both voted (outside millage) and non-voted (inside millage).  To learn more about your property taxes and how they are disbursed, click here.  Once there, conduct a search for your property by typing in your name, address, or parcel I.D. number.  The results will appear on the left side of your screen, click on the link for your property.  To see the property tax payments and disbursements, click on "Additional Property Information" and then click on the "Tax Dispersal" tab.  You will see the Xenia City Tax rate is based on 1976 Levy Year calculations and the voted millage was 3.5 but the taxable voted millage is only 0.859915*.  As an example, a home valued at $315,000 paid only $83.01 on voted property taxes to the City in 2009; a home valued at $112,920 paid only $29.74 on voted property taxes to the City in 2009; a business valued at $158,170 paid only $93.44 on voted property taxes to the City in 2009; and a business valued at $12,086,480 paid only $7,140.17 on voted property taxes to the City in 2009.
  • The 3.5 mill operating that has been in place since 1959 generates approximately $400,000 per year (*effectively now less than 1 mill).  Due to a state law (House Bill 920) passed in 1976, the assessed value used to determine the amount paid was frozen unless a REPLACEMENT levy was passed. This 3.5 mill operating levy has only been RENEWED since it was initially passed in 1959.  Therefore, it is generating revenue based on your property's assessed value in the 1970s.  To learn more about HB 920 and how your property taxes are levied, click here.  (Courtesy of Lucas County, Ohio)