How Were Your 2020 Taxes Used in Summit County Cities?

Citizen Auditor, Loren Sengstock, has released a per capita analysis report of all thirteen (13) cities in Summit County, Ohio. His credentials and experience in government finance and consulting on the implementation of governmental accounting, payroll, utility billing, and income tax administration systems in Ohio and Michigan have provided him with a genuine and original perspective on presenting a ‘Citizen/Auditor’s’ analysis of governmental financial reports. He is using that extensive experience in the creation of a unique graphical report that can be used by any ‘citizen/taxpayer’ to evaluate and compare the audited financial data of cities in Summit County on a per capita (per person) basis. Mr. Sengstock is bringing the governmental financial operations of these cities down to an individual or a per capita perspective that will enlighten any ‘citizen/taxpayer’. The 2020 report is available now at www.citizenauditorohio.com in the Summit County, Ohio section of the website.

The report is created by inputting the Governmental Funds financial information from the audited annual financial reports available from the State of Ohio Auditor website into a database, then dividing the data by the U.S. Census population for each city to calculate a per capita database used in the creation of all the graphical presentations in the report. The Governmental Funds include the General Fund(s), Special Revenue Funds, Debt Service Funds, and Capital Funds (detailed definitions are provided in the report) were selected because they represent the combination of revenues (primarily sources are income taxes, property taxes, and intergovernmental revenue sharing), expenditures (by programs such as Public Safety, Public Service, General Government, etc), and other funding sources (includes Debt Issuances, Interfund Transfers, etc.). These funds are used by all local municipal governments to account for program expenditure categories such as Public Safety (Police, Fire, EMT, Dispatch), General Government (Administrative-Mayor, Council, Finance, Zoning, Building, Engineering, etc.), Transportation (roads, sidewalks, etc.), Leisure Time (Parks, Recreation Centers, Fitness & Senior Centers, etc.), and Capital Outlay (Capital Asset Projects – Roads, Buildings, Police/Fire Equipment, etc.). [Governmental accounting terms can often be confusing so Mr. Sengstock has provided definitions in the transmittal letter of the report.]

The following is an example of one page from the 2020 report that reports on which city(s) in Summit County are collecting the highest to lowest amounts in combined per capita income taxes and property taxes. The combined average for 2020 is $918 per capita for income taxes and property taxes collected in Summit County (a 4.3% increase over 2018’s $880). The highest combined per capita amount is in the City of Fairlawn of $1,677, followed by the City of Hudson $1,367, and City of Twinsburg $1,218.

Reviewing this report will provide the reader with an informed understanding of the spending priorities of their local municipal government(s). Reducing the financial data to a per capita amount and then comparing that to the average spent, Mr. Sengstock is helping each ‘citizen/taxpayer’ better understand how and on what programs local governments are spending our tax dollars. The report also provides a factual financial basis in determining whether or not our elected representatives are using tax dollars in a cost-effective manner? Evaluating the report can generate specific financial questions for the Mayors, Councils, and Administrators regarding their responsibilities in providing for accountability and transparency, along with whether they are being good stewards of our tax dollars.

Another example of valuable information is provided on Appendix ‘A’ – Page 3 of the report, wherein you can learn that the average per capita total taxes and other revenues collected in 2020 is $1,781 and the average per capita expenditures is $1,721. In 2020 all of the cities were able to maintain positive Net Changes in Fund Balances; apparently pandemics do instill fiscal caution on governmental agencies, especially since the revenues were higher than in 2018.

Here is just the big picture on total per capita revenues and expenditures by city in the following graphical reports; see where your city stands on overall revenues and spending your tax dollars:

Each community in this report also has a revenue and expenditures graphical analysis compared to the county average. The following is an example of the City of Twinsburg’s revenues and expenditures by program group(s). It shows where the Mayor and City Councils spending priorities are and how they compare to the county averages:

As ‘citizen/taxpayers’ we must educate ourselves to stay informed and better understand our government and its fiscal stewardship. This per capita report is an excellent first step in fulfilling our duty to be informed and aware of what our government is doing with our tax dollars. Thomas Jefferson was known to have said ‘Information is the currency of democracy’, so be informed or you run the risk of being short changed!

There is a vast amount of data and information presented in this report and it will take many articles to explore it fully and absorb all that it contains. There are now multiple years available for both Summit and Lucas County which can be used for comparisons of the large and smaller communities. So, keep watching for more articles in the future…….

Loren Sengstock, Citizen Auditor

www.citizenauditorohio.com

(330) 888-9459