The Star Beacon; Ashtabula, Ohio

Local News

January 16, 2013

Higher-than-expected tax collections could indicate Conneaut on the rebound

CONNEAUT — A surprising jump  in municipal income tax revenue is not only helping to keep the city of Conneaut afloat, but could be a sign the city has a brighter financial future.

Finance Director John Williams this week announced gains in the tax will help offset losses in state funding, putting the city at a break-even situation. The city collected nearly $3.1 million in income taxes last year, compared to $2.7 million in 2011. The numbers easily beat Williams’ estimate of another $2.7 million collection year for 2012.

“We’ve done much better than expected,” Williams told City Council at Monday night’s regular meeting.

Other tax-related numbers may indicate a positive swing for local employers. Income taxes paid by businesses jumped 112 percent last year compared to 2011, Williams said. Individual tax collections climbed nearly 7.7 percent, while withholding taxes inched up almost 3 percent over the same period.

“It’s a good economic trend,” Williams said.

One possible reason for the gains is the nation’s rebounding auto industry. Some of Conneaut’s largest manufacturers create products used by auto-makers and reportedly have added shifts and ramped up production, according to reports.

The city has also benefited from revenue provided by Lake Erie Correctional Institution, which became private property at the start of 2012, Williams said. When income tax, property tax and other sources are tabulated, the prison generated $857,000 for the city last year, he said.

Extra revenue has helped lessen somewhat the loss of state revenue, particularly cuts in local government funding ($300,000 reduction) and inheritance tax ($125,000 eliminated) that go into full effect this year.

“We’re feeling the full brunt in 2013,” Williams said.

The city is also operating with fewer employees and have scaled back expenditures in recent years, which has also helped the municipal bottom line, council was told.

Text Only
Local News
Ashtabula County Alive
July 4 Celebrations 2014
Summer off to Big Start
Ashtabula County Flag Day 2014
Northeast Ohio Soap Box Derby 2014
Tour de State Line and Boating Season
Ashtabula County Memorial Day 2014
Sam Magill Sr. Memorial
Armed Forces Echo Taps 2014
Lakeside Loop Color Run
Keeping Ashtabula County Clean and Healthy
Canoe Race and Ashtabula Easter Events
The Taping of the Teacher: A sticky Sitation
18th Annual Polar Bear Plunge at Geneva State Park
House Ads
AP Video
NDN Video
Under Armour Launches Biggest Women's Campaign with Inspiring Ad NYPD chokehold death of Eric Garner was homicide: medical examiner Christina Aguilera Pulls a Demi Moore! Man with no arms throws first pitch Chapter Two: Composing for a film in retirement Is Justin Bieber Dating a Model? Guardians of the Galaxy (Trailer) 'Sharknado 2:' Hottest Memes Surfing The Net Snoop Dogg Narrating Animal Footage Is Perfect Raw: Obama Gets Hug From Special Olympian Recapping a Blockbuster MLB Trade Deadline Tigers Acquire David Price - @TheBuzzeronFOX Russell Brand Slams Sean Hannity Over Gaza Conflict Segment Woman's Dive Goes Terribly Wrong Brian Williams Reports on Daughter Allison Williams' 'Peter Pan' Casting News Did Jimmy Fallon Look Up Heidi Klum's Dress? What Drama? Miranda Kerr Poses Topless Plane crashes in San Diego Costco parking lot Justin Bieber Takes To Instagram To Diss Orlando Bloom You Won't Believe the Celeb Cameos in "Sharknado 2"