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Major Revenue Sources
<br /> Executive Summary
<br /> City Of Lakewood Major Revenue Sources
<br /> Operating Ratios-General Fund-Budget Basis
<br /> For 2023 Income Tax(58%of 2023 General Fund Budget)
<br /> The City of Lakewood levies an income lax at a rate of 1.5%. The City's income tax is levied
<br /> REVENUE DOLLAR BY SOURCE upon wages,salaries,and other personal service compensation earned by residents of the City
<br /> where me nor ey a.ame rrom and non-residents working within the City. Residents of the City are granted a Credit for income
<br /> f 1, taxes paid to other municipalities to a maximum of one-half of one percent of income earned
<br /> r
<br /> Propert taxes $ 10,000,000 $ L1 d 1 '/, outside the City top to the City's tax rate of 1.5%). Employers within the City are required to
<br /> 60,550,100 $ I- r y 1�rt 11C� V� withhold income tax on the employee compensation and remitthe tax to the City at least quarterly.
<br /> $ 008
<br /> lotar0o`Rmmental $ h.133,
<br /> d. ueene.s,Perrnds,and Fcv, $ 1.430,000 $ o.o3 Additionally,the City's income tax is levied upon the net income of corporations and other
<br /> Chergce fur SIN— $ 3,386ew $ "1 business entities. Corporations and other self-employed taxpayers are also required to pay
<br /> r. rmee anIF odeanra5 $ 11r," $ 0.02 estimated tax quarterly and file a declaration annually with the City.
<br /> q. Mlscellanaouv Income $ 1518,373 $ 003
<br /> h. Transfers a Advaocoe m $ 450,000 $ ac, __ Income tax revenue is vital to Lakewood's economic stability,and it is also economically sensitive.
<br /> $ 3 606637 $ too Lakewood's income tax generated healthy income lax revenue in 2022,perhaps driven by the
<br /> community's strong, young professional tax base and the work from home movement.
<br /> Lakewood's 2023 municipal income tax projections considered the City's strong historical growth
<br /> Projected Reserves amidst the backdrop of the current economic challenges and a changing dynamic in Lakewood's
<br /> income tax stream. Lakewood is projecting approximately$30.6 million in income tax for 2023,
<br /> The City is committed to setting aside funds for future potential liabilities and creating financial which represents an increase over the$26.6 million budgeted for 2022 but may be less than the
<br /> reserves. This is done by passing structurally balanced budgets in which expenditures do not actual 2022 income tax revenues.We believe this strikes a balance between our overall optimism
<br /> exceed revenues in order to grow a recommended minimum Unencumbered financial reserve of on the City's overall economic vitality and our trepidations regarding the overall economy.
<br /> at least 60 days.The City's 2023 projected General Fund reserve is nearly 66 days.
<br /> The anticipated financial position at year-end 2023 will enable the city to fund the following
<br /> reserves per City Policy:
<br /> 1
<br /> Maintain$1.0 million towards the City's Economic Development account line for future
<br /> projects to be determined within the cit
<br /> pj
<br /> n Maintain$600,000 for anticipated employee
<br /> yee separation payments.
<br /> a Reserve at least an additional$100,000 annually towards the next 271h pay anticipated in )(i I,)fy 11
<br /> 2026.
<br /> 1
<br /> o Increase the General Fund Budge[Stabilization account Zine not to exceed 5"/0 of the prior
<br /> yoar's revenues.
<br /> PI4 rl, I �s
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<br /> Major Revenue Sources
<br /> Lakewood Income Tax
<br /> City of Lakewood Income Tax
<br /> C.II.-...2012-2021
<br /> Income Tax Source 2022 Breakdown 2023 Breakdown Chane
<br /> rncorne IncomeCredit Withholding 10,249,840 38.6% 13,952,100 45.7% 7.1%
<br /> Year C-11-if... change Tar.Rat. Ta:Crean Limit Business Net Profit 1,231.,600 4.6% 1,932,500 6.3% 1..7%
<br /> 2021 $ 27,433,222 7.83% 1,o% 50% 1% Individual income Tax 15,085,100 56,5% 14,671,500 48_0% -88%
<br /> 2020 $ 25285736 -0.48% 1-50% 50% 1%
<br /> 2019 a 25,107,039 6.39% 150% 50% 1% 26,566,540 100.0% 30,556,1.00 100.0% 15.0%
<br /> '2.018 $ 23,882,046 1.90% 1.50% 50% 1%
<br /> 2017 $ 23.436,422 -1.80% 1,50% 50% 1%
<br /> 2016 $ 23,866,0):5 1.45% '1.5'0% 50% 1%
<br /> 2015 $ 22,2'12,216 6.49% 1 v0% 50% 1%
<br /> 2014 $ 20,657,676 327% 1.50% 50% 1%
<br /> 2013 $ 20,190.414 4.91% 1.50% 50% 1%
<br /> 2012 $ 19,252,828 2.38% 1.50% 5.% 1%
<br /> 2022 $ 28,556,540 Budget
<br /> To Date 2022 $ 27,656,643 12.47%(u,rnugh October 2022 S vs october 2021)
<br /> 2023E $ 30,556,100 15.00%Over 2022 Edge d Amount
<br /> '.. Incorne Tax Dynamic
<br /> '.. Work CLE Live LAKEW Traditional New- Live in Lakewood/Work from Home
<br /> Cleveland 2.5% 0.0% 0.0%
<br /> I ncomeTax collections 2012-2021 Lakewood 1.0% 1.5% 0.5% Increased Lakewood Revenue
<br /> 33ojmcc.o Total City i'ax Paid 3.5% 1.5% 2.0% Savings
<br /> $25,001
<br /> $,Fcro,mers
<br /> $Lt,tica"n co
<br /> 2012 2013 2014 2015 2016 2011 2018 2019 2020 2021
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