Politics & Government

Strongsville Loses a $1 Million Tax Next Year -- Can the Budget Handle It?

Officials try to balance expenses against declining revenue

 

The end of estate taxes in Ohio will take a big chunk out of Strongsville's revenue stream next year, officials said.

Mayor Tom Perciak said the change in state law will cost the city about $1 million in 2013, and every year after that. 

Find out what's happening in Strongsvillewith free, real-time updates from Patch.

The state is also reducing the money it gives to cities through the Local Government Fund -- about $500,000 a year in Strongsville, Finance Director Joe Dubovec said -- and the Commercial Activity Tax, about $350,000 a year.

That's a total of almost $2 million less revenue than the city is used to getting.

Find out what's happening in Strongsvillewith free, real-time updates from Patch.

Still, the general fund will squeak by with a $3,300 surplus -- without touching the $7.4 million balance it will carry into 2013.

Dubovec said income tax collections this year are up about 4 percent over 2011.

"What we're doing with economic development is working," he said. "We're up about $1 million so far this year."

A number of area cities joined together to fight the end of the estate tax, but were not successful.

Strongsville City Council agreed in April to spend $5,000 to join the Council to Protect Ohio's Communities, a coalition organized by Shaker Heights.


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