FINANCE COMMITTEE OF COUNCIL
CITY
HALL, 100 LOCKVILLE ROAD
TUESDAY,
MAY 21, 2008
EXPENSE
SUBCOMMITTEE
9:50
P.M.
1. Finance Committee of Council’s Subcommittee to review Expenses opened at 9:50 P.M., with Mr. Fix, Mr. Sabatino, and Mr. Sauer present. Others present were Cristie Hammond, Tricia Sanders, Tim Hansley, Lynda Yartin, Linda Fersch, Chris Schornack, Larry Jones, Lora Gischel, and others.
2. APPROVAL OF MINUTES OF May 6, 2008, Meeting. Mr. Sauer moved to approve; Mr. Sabatino seconded the motion. Roll call was taken with Mr. Fix, Mr. Sabatino, and Mr. Sauer voting “Yea.” Motion passed, 3-0.
3. SCHEDULED MATTERS:
A. Presentation by Regional Income Tax Agency (RITA). Mr. Fix stated Ms Gischel was present this evening to provide an overview of RITA. Ms Gischel stated she had distributed a packet of information to all members and she would be happy to answer any questions anyone might have. Ms Gischel stated RITA was formed in 1971 to form the Regional Council of Governments, and she stated they are a government entity. Ms Gischel stated their sole purpose is income tax administration and on July 1st they will be serving 142 communities throughout the State of Ohio. She stated RITA is governed by a nine member Board of Trustees that is made up from their communities and currently they have seven finance directors, one mayor, and one tax administrator on the Board. She stated the Board is on three year rotating terms, and they appoint the Executive Director who is responsible for the day-to-day operations of RITA. Mr. Sabatino clarified that the Board members are elected by the members and all of the positions are at large. Ms Gischel stated the Board will be putting forth a change at the annual meeting to expand the Board composition to eleven members from nine. Ms Gischel stated RITA’s headquarters are located in Brecksville, Ohio, and they have offices in Upper Arlington and in Youngstown. She stated they also have a staff member that serves out of City Hall in Mentor three days a week.
Ms Gischel stated RITA is divided into three core services that are registration, compliance, and collection. She stated probably the biggest thing to note on the compliance side is that RITA recently received access to IRS information and that system should be up and running soon. She stated while they do offer taxpayer assistance she does recommend that you keep a tax administrator on staff to make sure that RITA is doing what they are supposed to be doing and also to provide information to RITA as each community is different. She further stated by using the lock box system, the money is deposited as quickly as possible and they will send the city’s money twice a month. She stated it is almost as if the City’s tax department expands by 135 additional employees. Ms Gischel stated RITA does bill for quarterly estimated taxes. Ms Gischel stated she understood the City utilizes the Mayor’s Court process for tax cases and she would probably recommend that be kept in-house. Ms Gischel stated they do offer e-file, e-payment, e-registration, and they do have a 24-hour phone system that is available so people can call in and check on their estimated payments, their refunds, etc. She stated they also have agents available Monday through Friday from 8:00 A.M. to 5 P.M. for people to contact.
Mr. Fix clarified that should the City decide to go with RITA, they would convert three years of history so they would pick up everything. She stated then everything after the start date would be sent to RITA and it would be updated within RITA’s systems. She stated if the City has payment plans set up, that is converted over as well. Mr. Fix stated in order for this group to consider moving this to Finance Committee they would need a formal proposal from RITA. Ms Gischel stated that has been provided to Mrs. Fersch and as far as an estimated cost, the range right now with the one percent tax with the fifty percent credit, your collections being $4.2 million, they estimate the cost to be $129,900 to $143,600. Mr. Fix clarified this is an estimate and the contract would be entered into with the Council of Governments and that contract is the same for all of their communities. She stated you enter into that contract once, and it continues until such time you notify them that you no longer wish to participate. She stated the contract does state that if you no longer wish to participate you must notify them by June 30th so you can be moved out by December 31st of that year. Mr. Fix clarified all members would like to have the City Manager and the law director review the contract and forward it to this subcommittee for review it at their next meeting which is scheduled for June 4, 2008. Ms Gischel stated if the City were to change their tax rate as discussed earlier tonight, the City would be collecting approximately $5.9 million and the cost would be approximately 2.66 percent.
B. Review and discussion regarding Planning and Zoning Department expenses. Mr. Fix stated due to the late hour he would request this item be continued on the agenda for the next meeting.
Mr. Fix stated for the next meeting the Subcommittee would review the proposed RITA contract and the Planning and Zoning Department expenses.
4. ADJOURNMENT. There being nothing further, Mr. Sauer moved to adjourn; Mr. Fix seconded the motion. Mr. Fix, Mr. Sauer, and Mr. Sabatino voted "Aye." Motion carried, 3-0. The Expense Subcommittee adjourned at 10:35 P.M., May 21, 2008.
RESPECTFULLY SUBMITTED:
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