minfin 12-11-23 - Laserfiche WebLink

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Director Rancatore went on to explain the integral functions of the Finance Department, which encompass financial reporting, the preparation of the Annual Comprehensive Financial Report, income tax collection, budget development and preparation, and utility bill collection and administration. Emphasizing the significance of the Annual Comprehensive Financial Report, Director Rancatore stated that it represents the Department's most substantial yearly project. Highlighting the accomplishments of 2023, Director Rancatore noted the Government Finance Officers Association (GFOA) award received by the Finance Department for the City’s 2022 Annual Comprehensive Financial Report and the Auditor of State Award with Distinction for the same year. Looking ahead to the 2024 budget, Rancatore addressed the rise in professional service costs attributed to a categorization change. Assistant Finance Director Eddy presented on the Lakewood Municipal Income Tax, highlighting the Department's focus on customer service with the goal of generating revenue through an efficient database while providing excellent service. Assistant Director Eddy detailed that the department annually audits over 30,000 tax returns for Lakewood taxpayers and businesses, playing a crucial role in collecting over 55% of the General Fund revenue. Assistant Director Eddy emphasized the department's commitment to staying informed about legislative updates at the federal, state, and local levels. In 2023, the Lakewood Municipal Income Tax collected a substantial $30 million, with over 6,000 payments processed through the e-file/e-payment service. She explained that the e-file/e-payment service provides taxpayers with the ability to prepare, file, and pay current-year tax returns or quarterly estimated payments. Assistant Director Eddy then discussed Ordinance 2023-36, which reflects changes made by Ohio House Bill 33. The ordinance includes the exemption of all minors from tax (already in effect in Lakewood) and alternative apportionment for businesses with remote workers, allowing businesses to apportion net profits to one location. Noteworthy updates include an extension of the net profit filing deadline by one month, communication prohibition to taxpayers if a federal extension has been filed and reduced maximum late filing penalties with a waiver for first-time filers, starting with the tax year 2023. Councilman Shachner asked about the consultant expenditure related to Diversity, Equity, and Inclusion (DEI) mentioned on page 73 of the budget book. Finance Director Rancatore clarified that this expenditure is allocated as part of the anti-racism task force, and the study mentioned is budgeted within that framework. Councilman Bullock raised a question about Ohio House Bill 33 and its potential impact on Lakewood, particularly concerning changes in apportionment due to the prevalence of remote workers. In response, Assistant Director Eddy explained that this year will be used for analytical purposes to determine whether companies with remote workers in Lakewood will choose to file in Lakewood or opt for other cities like Cleveland. She explained that the changes allow businesses to select the city for apportioning net profits, introducing a new dynamic in decision- making for tax filing. 9