SIDNEY — “This is the first year collecting an additional 0.25 percent income tax dedicated to constructing, reconstructing, resurfacing and maintaining Sidney’s streets, alleys, bridges, curbs and gutters,” said Ginger Adams, city of Sidney finance officer. “Partial year collections totaled $2.2 million. Over the five-year levy, this tax should generate at least $17.5 million. Over $1 million was spent in 2015 with another $2.7 million budgeted for 2016 road and bridge projects.”

Her report continues:

The city’s permanent 1.5 percent income tax is its primary revenue source and supports services including police, fire, emergency medical, parks and community recreation. This portion of Sidney’s income tax generated $15.4 million in 2015, a $419,000, or 2.8 percent, increase over 2014. Of this total, taxes withheld from employees totaled $10.9 million in 2015, a 3.9 percent, or $415,000, increase over 2014, essentially returning to pre-recession levels. Although taxes collected based on business net profits remained at 2014 levels, $4.5 million, this continues to rest at historic elevated levels and is a volatile source subject to significant swings from year to year.

In total, 2015 income tax collections surpassed pre-recession levels by $1.8 million. This helped fill the void created when State legislators reduced Local Government Fund distributions by 50 percent, eliminated estate taxes and withdrew tangible personal property reimbursement, cutting Sidney funding by $1.3 million annually. In 2015, the total of all other sources of General Fund revenue was $5.4 million, a decline of $1.5 million when compared to pre-recession revenue. As evidenced by House Bill 5, approved late 2014, the State continues to pass legislation further eroding local revenue. As Sidney becomes more dependent upon local income taxes, subject to not only economic swings, but also State legislative changes, the city’s ability to provide local services becomes at risk.

Sidney’s 2016 operating budget reflects guarded optimism considering economic and financial uncertainty at both the federal and state levels. The 2016 operating budget of $27.7 million represents a decrease of 0.1 percent from 2015. Sidney’s 2016 budget includes a limited number of staffing additions, including adding seasonal labor for curb painting projects, returning seasonal parks maintenance staffing to pre-recession levels, adding back two firefighters to work peak demand periods, and adding a water treatment plant operator. After these additions, City staffing remains at 90 percent of pre-recession levels.

In addition to significant roadway improvements, Sidney’s 2016 capital budget reflects moving forward with the new water source construction and sewer system improvements complying with Ohio EPA requirements.

For 2016, Sidney reduced the monthly Ohio EPA fee by 30 percent. As promised, this fee reduction was possible because Ohio EPA’s approval of staff’s recommendations, construction bids within budget and lower cost debt. All other utility rate increases were 1 percent to 3 percent. Given 2016 rate changes, the average family of four should notice roughly a 4 percent reduction in their utility bill, with the low volume user experiencing approximately a 10 percent decrease.

View Sidney’s 2016 budget, audited annual financials, and monthly financials at http://sidneycityoh.minutesondemand.com/. Open the “City Financial Information” box on the page’s lower-left corner.

Your 2015 Sidney income tax return (or extension) is due no later than April 18, 2016. Forms are available at the City’s website (www.sidneyoh.com – Tax Department page) or our City Hall office at 201 West Poplar open 8am-5pm Monday through Friday, and 8 a.m.-noon on Saturday, April 9, to assist you with Sidney return preparation at no charge. (An exemption form is available for retired/disabled residents having no Sidney taxable income.)

Important 2016 state law changes — For taxpayers required to make 2016 quarterly estimated payments, due dates have changed. For employers who withhold Sidney tax, remittance due dates and penalties has changed. Visit our website or contact us at [email protected] for more information.