03/04/2025 Meeting Minutes - Laserfiche WebLink

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City of North Olmsted 2025 Revenue Assumptions Generally, historic trend has been used very effectively for many of our estimated resources in the past since we are a more mature built out community, keeping our revenue sources consistent without dramatic swings in income taxes, property taxes and charges for services. The last five years have challenged this due to global outside circumstances, but 2025, for the most part, will follow trend. While the US economy still faces challenges, albeit maybe for different reasons, trend once again is a reliable method ofprojection for 2025. The biggest question we have some control over is what is going to happen to our local economy in 2025- 2028 that will impact future tax and other revenue streams. Although these questions are not going to be answered today, we should keep these front and center over the next few years. • Several of am larger taxpayers planning on moving to other cities/states over the next few years. How quickly can we bring new companies with good wages to backfill these spaces? • How will the mall and adjacent plazas' viability or ability to be reimagined in a way that brings jobs and taxes to our community, considering the fate of in-store retail? • How are our hotel and restaurant sectors going to be impacted? • What will be the impact to North Olmsted businesses if the Browns do move their stadium to Brookpark? Property Taxes - The county determines property rax collections estimates and the collectability percentages. This projection reflects last year's .3 mil reduction in the general fund collections, reducing it from 8.3 to 8.0 mils. All other funds' millage rates have not changed. The biggest change from our discussions in late December is the county increased our col lectability rate from 95% to 98.02%. Note the projections we receive only include the current year tax collections, not any delinquent amounts since there is no guaranteed collection timeline. See Attachment 1 for each funds' estimates. Additionally, as we discussed last year, the TIF amendment adds the Lorain Rd business parcels to the Greer Northern TIF. The state and county take 12-24 months to get it actually set up and running allocating the taxes for the parcels to the TIF fund, so there will be monies deducted from our General Fund in a future year(s) to pay the TIF fund retroactively as we are receiving those funds currently in the regular tax dollars. The preliminary estimate given by the economic development department is about $385,000 annually. Income tax - The projection for 2025 is essentially the same as our actual receipts in 2024, which ended less than what was estimated. The most critical piece of this is the withholding because it comes in a consistent manner— either monthly or quarterly, depending on the business. As I have stated previously, the hybrid work schedules of our residents offset the hybrid work schedules of our businesses. So while I expect in 2025 a start in the decline from the businesses that leave, even if the stated dates are in subsequent years, cost of living increases, along with construction workers on the major projects, can offset it. Note that some businesses are requiring their employees return to an office, so this may change the impact of our resident's remote work. See Attachment 2 Charges for Dispatch Services — First year for Olmsted Township and Olmsted Falls, which is $300,000 each, along with Fairview at $265,000, plus additional for prisoner care. Mayors Court Costs and Fines - Per the clerk of court and after discussion with police chief, volume in enforcement will continue to be at 2024 actual level, so the projected 2025 fines and court costs are similar to 2024 actual. EMS Fees —50%to Gencral Fund / 50% EMS Fund; The 2025 projections are based on historic trend I y keeping volume of EMS erns and hospital transports comparable to 2024.