BUCYRUS—Out-of-town workers showed up at the city council finance committee meeting Tuesday evening to support police and fire services. Still, they lacked positive input regarding how the city has been managed.
Bucyrus Mayor Jeff Reser spoke first using a PowerPoint presentation to explain potential cuts as well as sources of revenue.
Reser outlined issues affecting city revenue that include: A decline in the city population that has continued over the last 20 years, a population that is aging and retired and therefore is not subject to pay income tax, more residents working out of the city, and those workers do not pay Bucyrus city income taxes, loss of the estate state tax and local government funds that combine to a total of $300,000 to $600,000 in annual revenue and lastly that tax revenue has not kept up with inflation.
Reser went on to explore potential long-term revenue increase options, which include:
The Regional Income Tax Authority (RITA) operates the tax department for several counties throughout the state. They can collect funds from those who have taxable income but are not paying taxes.
By switching to this program, most cities have experienced a 5% to 10% revenue increase. Annexation is a long-term possibility but will need negotiation with residents, businesses, and the townships. Legal considerations will be an obstacle, but this opportunity should be considered. Finally, an additional income tax levy has been discussed along with a property tax levy for safety forces equipment, which was supported in the past.
Potential short-term revenue generators include reducing the tax credit allowed for out-of-town workers, with a possible revenue increase of $845,000, according to the income tax department.
In addition, issues affecting revenue were outlined as well. With the 2022 closing of General Electric, the city was left with a potential loss of $300,000 to its tax base. Refunds were made, causing revenue loss from those working from home. These refunds resulted in $150,000 of lost revenue. Employees working from home got a refund on those taxes even if the business they worked for was based in Bucyrus.
Rising safety forces expenses have outpaced revenue increases by an estimated $600,000 since 2018. The city will need new fire equipment within the next ten years, including ambulances, a ladder truck, and an engine.
Payouts for retirees for both the fire department and police department are expected to be over $1 million within the next five years.
Mayor Reser pointed out possible long-term expense reductions by noting that he had approached the county commissioners about developing a county-wide dispatch service just as surrounding counties have. The county could also consider the option of a county-wide fire department and EMS service.
While the citizens in attendance appreciated Reser’s PowerPoint presentation, they were left with more questions than answers. Reser told the citizens that he should have given them the information some time ago.
By the time the Mayor finished, it was apparent that the quickest way to generate immediate revenue was to reduce or eliminate the tax credit on out-of-town workers.
Reser said there would be no part-time hires for the parks department to save some money immediately. The next step would be layoffs of employees, which is very costly to the city.
Because Bucyrus is a self-insured city, they would bear the brunt of unemployment costs for the first 26 weeks of a layoff. “The last thing we want to do is to lay people off.” Reser said.
Other suggestions included adding part-time fire and police personnel to reduce the cost of overtime pay.
Reser also pointed out that the recent expansion at Diamond Wipes and the addition of 70 positions at IB Tech will increase revenues. While Reser has distanced himself from the notion of annexation, he did say the option should be revisited. He told the Council that legally speaking, it’s everyone or no one regarding annexation; “You can’t pick and choose.” Reser said.
Reser maintains the city’s most significant issues are a declining population and a housing shortage. Considering all options, Reser said the increase in tax revenue is needed immediately.
Retiring City Auditor Joyce Schiefer told attendees that this is the toughest budget she’s seen in her 23 years of service. She provided data to the Council showing that by the end of this month, estimated expenses will be $5.2 million, up from $4.7 million year to date.
Schiefer told Council that while there have been applications for her position, potential replacements declined due to the pay offered. She suggested the city reach out to the State Auditor’s Office for assistance after she retires.
Schiefer, an exemplary and award-winning auditor, said that while she will do anything possible to assist the city, but her immediate responsibility is being a caregiver.
Finance Committee Chair Dan Wirebaugh asked committee members to put their positions on the record.
Councilman Terry Spiegel told Council:” I hate to see anyone pay more taxes because I surely wouldn’t want to. I also don’t want to see the fire department or police department laid off. We cannot afford to do that in this county with the situation that happened two weeks ago on Veterans Day. Who knows what could’ve happened. We could’ve been down two more officers at that point. We are lucky. They handled it very well and that just shows how good of training these officers are getting, and with that training, they’re leaving for somewhere else to get better pay. You can’t blame them for that. I would do that if I had The chance. So, the tax credit is something we are going to have to do at least for a little while until we get the other stuff rounded up like annexation or possibly a tax increase of some land taxes.”
Councilman Mark Makeever sympathized with those receiving tax credits. He also pointed out the deficits the city is facing. He expressed his strong position not to tax the elderly and those on fixed incomes through a raise in property taxes.
“No one has the answer. We need constituent input. This is going to hit the police and fire the hardest. I don’t know what the answer is, but we need to find a solution.” Makeever said.
Councilman Kevin Myers thanked the Mayor for his presentation. “I agree with the Mayor that the biggest problem is the lack of jobs and losing population.
Myers told Council that the only way he would support a tax credit reduction was the following:
If it was temporary, for just one year, & with a plan to place a renewable levy on the ballot, in which all revenue goes to safety and fire forces and nowhere else.
Chairman Dan Wirebaugh told Council he does not support any kind of reduction or elimination in the tax credit unless all other options are exhausted. Wirebaugh said it’s time for the 100 residents and 30 businesses annexed to “put some skin in the game.”
“I’ve been asking for a plan for 5 to 10 years and I still haven’t seen it. All I hear is let’s take away the tax credit, let’s take away the tax credit.” Wirebaugh said.
Wirebaugh then asked for public participation from the attending citizens.
Robert Taylor told Council that the police were leaving not only because of salary. “You’ve read the exit interviews, you know that.” Taylor said.
Not appreciating the “scare tactics” used by Council, Taylor said he would opt out of receiving police and fire services. “I can take care of myself. I don’t need the police at my house unless I’m having a party or something and they wanna come by for a beer. I have some fire extinguishers. But if it means that elderly people and people on fixed incomes are going to have to suffer then I’ll give up my tax credit to protect them. But if you’re going to do this thing you need to be fair. Raise the income tax altogether for all workers.” Taylor said.
Taylor also addressed continuing to pay a police officer to sit in on council meetings. He suggested that overtime be eliminated by allowing people like himself to concealed carry at the meetings. Taylor suggested the city lift the ban on citizens carrying firearms into Council. “Trust me, you wouldn’t have a problem.” the retired Marine told the Council.
Bucyrus resident Lisa Alsept told Council they needed to think long and hard before raising taxes on people on a fixed income.
“I don’t have a problem paying more but I have a problem with how it’s managed. And I don’t mean by Joyce or bookkeeping.” Alsept said.
Resident Melanie Ellis and her husband both work out of town. She pointed out what she felt was poor financial oversight. She also talked about the perception of how Reser can spend up to $49,999.00 without the Council’s approval.
She also explained her dissatisfaction with the city’s administrative assistant. Even though Council assured the citizens that projects like the Bicentennial Park do not cost the city money, Ellis told Council that the perception is that the employee is taking “photo ops” with other organizations while she is on the clock. Alsept made a public records request to review the administrative assistant’s emails and time sheets.
Former Council President Kurt Fankhauser told Council he approached Whetstone Township about sharing revenue with the city and was told they would absolutely not consider it. He said they have all the services they need already, so the city has no bargaining chips with them to encourage annexation.
Most people want to support police and fire but also want to avoid any of that money being placed in the general fund. At one point, Reser walked out of the meeting, leaving some participants frustrated.
Retired police officer Dale Wolfe brought some common sense to the debate: “Everyone wants the same thing.” Wolfe said.
Wolfe shared his experiences from patrolling in the 90s when there were only two officers on duty ( due to budget issues) for a fight that included 150 potential offenders. Those instances mainly resulted from drunk people getting into fights while trying to get food at Hardee’s.
Wolfe, who has a son on the force, is proud of our law enforcement community. He pointed out that the dangers officers face today was not present in his day.
Wolfe works part-time in security at the courthouse now and explained that people are just meaner than they’ve ever been and are more confrontational than ever been. He emphasized that a reduction in forces should not be an option.
Councilwoman Aaron Sharrock spoke about the responsibility of the Council to lead the way and make things like annexation happen. She also suggested wage freezes for the immediate future and for the Mayor and Council to take a pay cut as well.” People will move away if they don’t see a future here and I want them to see a future here. “Sharrock said.
Even with the Mayor walking out of the meeting, Council was still encouraged by the input presented. They will further review the information they have received and expect additional plans specific to the city’s needs to be presented to them in the next week.
Citizens are encouraged to email or call their council representatives with input. Crawford County will now continue to follow this developing news story.