Oxford Village residents may receive some much-needed financial relief when they open their July tax bills this year.
Councilman Tony Albensi is leading the charge to lower the village’s 11.12-mill tax rate.
‘I’m hoping to do at least a half-mill,? he said. ‘Anytime you can put money back in people’s pockets, it’s a good thing.?
Last week, village Manager Joe Young was directed to look for ways to cut a half-mill, which equals about $59,000 in revenue, from the village’s proposed budget for 2009-10.
Young indicated the possible tax cut could be achieved either through budget cuts in the general fund, use of existing reserve funds to make up for the $59,000 or a combination of the two.
Residents are invited to speak on the proposed village budget and millage rate for the upcoming fiscal year, which begins July 1, during a public hearing Tuesday, May 12 at 7 p.m. in the village council chambers (22 W. Burdick St.).
As it stands right now, the proposed budget is $6.46 million of which $2.33 million is considered the village’s multipurpose general fund. It would be supported by levying 11.12 mills for the fourth consecutive year.
According to Young, the proposed general fund budget represents a $305,208 (or 11.6 percent) decrease over the current amended budget.
‘I think we need to continue tightening the budget, cutting the budget and reduce the millage by at least a half-mill,? Albensi said. ‘I would love to go up to one full mill.?
‘Last year, during budget session, which was my first budget session on council, I made it a goal of mine, and asked council to try to make it a goal of theirs, to see what we could do to reduce the millage this year.?
Even though general fund tax revenues for the village’s coming fiscal year are projected to decrease by $128,000 (or 9 percent) due to declining property values, Albensi’s confident a tax cut can be accomplished.
‘I think we can still be prudent with this budget and at the same time, get that millage down,? he said.
Part of the reason is because the village is carrying some hefty fund balances (i.e. reserve monies). The proposed $2.33 million general fund for next year is projected to have a fund balance of $445,291 or 19.1 percent, according to Young.
If the $700,000 that gets allocated to the police budget is subtracted out, Young said the $445,291 fund balance becomes 27.2 percent of the remaining $1.63 million general fund.
Most auditors recommend municipalities carry fund balances between 10-15 percent. The village’s recommended minimum for fund balances is 12 percent.
‘There’s no reason for us to be sitting on our residents? tax dollars like that,? Albensi said. ‘I’m not one who believes if we’ve got extra money, we should just spend it.
‘My feeling is if we’ve got extra money we should cut that fund balance down, reduce people’s tax burden and put some money back in their pockets, not our pocket.?
Albensi’s position found support from village President Chris Bishop and Councilman Mike Hamilton.
‘I think we should give any tax break we can to the village residents. Every little bit helps,? Hamilton said. ‘Half-mill seems small, but it’s big in everybody’s pocketbook.?
Bishop said council should ‘strive? to give people a ‘reprieve? on their property taxes for as long as possible.
‘I appreciate President Bishop’s public support and encouragement in assisting me in trying to get this done,? Albensi said.
However, if the time comes when the tax cut begins ‘to erode our fund balance beyond the level that we’re comfortable? with and the village faces the prospect of having to cut ‘essential services,? Bishop wanted it understood that half-mill may have to be reinstated.
Councilwoman Teri Stiles is by her own admission ‘on the fence? about the possible tax cut, given the declining tax revenues and uncertain state of the economy.
‘I agree with their thinking that it would at least put some money back in the pockets of the people, but I’ve got some hesitation about it because we may have to increase it next year if it doesn’t work,? she said. ‘I would hate to turn around and say now we need to increase it.?
‘I would like to see (the millage rate) stay the same because we’re facing so many revenue cuts and that might help us this year.?