You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

City tax revenue offsets state losses

Urbana finance director says Ohio changes mean city must be cautious.


Although Urbana continues to see improvements in its income tax, estimates from the city’s finance director show those gains will be offset by decreases in other sources of revenue.

Council members recently took an early glance of the city’s tax budget, a snapshot of the revenue that might be available for the next fiscal year.

According to information from Lee Williams, Urbana’s finance director, revenue from the city’s income tax has increased a little more than 3 percent, a projected increase of about $200,000. The revenue from the income tax accounts for about half the city’s budget. However, the city is expected to lose as much as $125,000 from the loss of estate tax alone.

“The 2011 to 2012 income tax rebound has improved the city’s financial outlook,” Williams told council members. “However, lower state funding, the phase out of the tangible personal property tax and the loss of the estate tax has had a negative revenue impact and has created a financial issue that all of us must continue to focus on.”

Overall, Williams said the general fund budget will be about $6.4 million this year. However, projected expenses will eat into all but about $20,000 of the general fund revenue. The city’s overall budget, not including federal or state grants, is expected to be about $13.3 million.

“We’re lucky that income tax is coming up because it’s offsetting the revenue losses,” Williams said.

The city has two budget cycles annually. The tax budget cycle, which occurs earlier in the year, provides an estimate of the revenue that will be available. The appropriations budget, which typically is discussed in the fall, provides an estimate of the city’s expenses.

The tax budget will have three readings before council members and must be adopted by July 15. It must be presented to the Champaign County Budget Commission by late July.


Reader Comments ...


Next Up in Community News

Nicki Minaj signs modeling contract with Wilhelmina 
Nicki Minaj signs modeling contract with Wilhelmina 

Nicki Minaj can add “model” to her list of jobs. Vogue reported that the rapper, actress, songwriter and mobile video game creator has signed a modeling contract with Wilhelmina Models, a talent and model management agency. Specifically, Minaj will join Wilhelmina’s celebrity division and will work with the agency on campaigns...
82-year-old dancer fulfills dream of getting back out on the dance floor
82-year-old dancer fulfills dream of getting back out on the dance floor

When Joyce Dixson is moving to the music, she finds joy. “She’s always danced. She taught me how to dance in the middle of our living room,” her daughter, Kathy Robinson told WSB-TV’s People to People. Joyce, now 82, was a military wife and often joined her husband at a club on the military base. “Every Saturday night...
Hartman: Charlie Sheen tweets that Reds ‘Rookie’ is a winner
Hartman: Charlie Sheen tweets that Reds ‘Rookie’ is a winner

If you haven’t heard of Rookie Davis yet, we’ll just have to let Cincinnati Reds fanatic Charlie Sheen introduce you. Not long before Sheen’s tweet, Davis shared that he was excited to tell his family he would be breaking camp with the Reds after spending the spring in a battle with several youngsters for a spot in the roster. Davis...
Study: 10,000 steps might not be enough for healthy life
Study: 10,000 steps might not be enough for healthy life

The standard for a healthy amount of exercise has widely been accepted as 10,000 steps a day. However, new research shows this might not be enough.  Researchers in Scotland looked at postal workers and tracked how many steps a day they took — their average was 15,000, according to The New York Times.  Those who achieved...
Authorities identify 3 storm chasers killed in crash near Lubbock, Texas
Authorities identify 3 storm chasers killed in crash near Lubbock, Texas

UPDATE @ 10:51 p.m.: Authorities have identified the driver of the Suburban as Kelley Gene Williamson, 57, of Cassville, Mo., CBS Dallas, other Texas media and CNN are reporting. The Suburban's passenger was Randall Delane Yarnall, 55, also of Cassville. The Jeep's driver has been identified as Corbin Lee Jaeger, 25, of Peoria, Ariz. According to authorities...
More Stories