No Income Tax Increase Needed For 2013 Solon Budget
Solon is re-allocating some property tax money to deal with increasing salary and benefit costs and losses in state funding.
While the city of Solon is dealing with reductions in state funding, the city will not need any tax increases in 2013, said Finance Director Dennis Kennedy during a budget workshop Tuesday.
The general government fund is projected to bring in $34.6 million in revenue in 2013, with expenses projected at about $34.4 million. The general fund is the all-purpose account that allocates money to most city departments and is replenished largely by income tax revenue, the city's largest revenue source.
Income tax revenue is projected at about $39.8 million in 2013, with about $29 million being allocated to the general fund.
Kennedy said that Solon will direct more of its property tax revenue to the general fund to offset the loss in state funding.
This is possible because the city had paid down some of its bonds last year, freeing up the money for the general fund, Kennedy said.
Kennedy said that all cities are facing losses in state funding. Solon is hit by losses in revenue from the local government fund and estate tax receipts.
"We don’t anticipate the need for any kind of tax increase," Kennedy said.
Solon Patch will have more coverage of the budget process as it unfolds.