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minfin 05-11-20
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minfin 05-11-20
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6/2/2020 2:44:14 PM
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Office Of Council
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Finance
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5/11/2020
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people have not been working, leading to less taxable income. This reality also affects the <br /> city's 2021-tax revenue. If people are not working, it reduces their need to pay the <br /> estimated tax. The city is going to be behind in its estimated revenue collection. The <br /> compacted timeframe to collect will cause further difficulties, as Lakewood has a largely <br /> transient population that is more difficult to collect from. The month of July should allow <br /> the city to catch up a bit on revenues. Director Rancatore noted that further setbacks with <br /> the coronavirus could be devastating to the city's finances. <br /> Councilmember Rader questioned the level of withholding one can claim while on <br /> unemployment benefits,taking into account the extra $600 provided individually through <br /> the CARES Act. Director Rancatore noted that unemployment benefits are not taxable for <br /> municipal income purposes. Only earned income is taxed. <br /> Councilmember Litten asked if the IRS has provided an estimate on how many people are <br /> waiting to do their taxes until July. Director Rancatore deferred to what was happening on <br /> the April report, and drew the conclusion that federal collections are likely mirroring <br /> what's happening on the municipal level.At this point 43% of total collections have been <br /> made compared to last year's figure. <br /> Chairman Bullock observed that the most acute differences in revenues seem to be due to <br /> differences in timing of collection between this year and last year. <br /> Director Rancatore gave an overview of how property taxes have been affected by the <br /> pandemic, noting that they are collected partially locally and through homestead and <br /> rollback payments (which are subsidized through the state). The city appears to be up <br /> 1.3% on the locally collected portion,but the numbers from the state should be lower than <br /> they were last year. The county has extended the due dates to pay property tax. <br /> Intergovernmental revenue and sales tax will be down this year. EMS billing has been down <br /> as well, with people avoiding going to the hospital because of COVID-19. <br /> Chairman Bullock asked for clarification on how the homestead and rollback funds work. <br /> Provided an example that explained how the state subsidizes a portion of people's property <br /> tax bills. <br /> Chairman Bullock inquired as to what taxes compromise the intergovernmental revenues <br /> that the city receives. Director Rancatore noted that the category includes property tax, <br /> homestead funds, and rollback funds. <br /> Councilmember Kepple asked whether the city has any net gains that resulted from service <br /> reductions. Director Rancatore indicated that there is no good news in that regard and that <br /> the administration has instituted a number of austerity measures. Mayor George added <br /> that overall city spending is down compared to last year. <br /> Councilmember Kepple asked what sort of share Lakewood would receive if House Bill 310 <br /> were to pass. Mayor George indicated that Lakewood would receive a little over $2 million. <br /> The mayor has advocated to Lakewood's representatives in the Statehouse to support the <br />
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