By January 14, 2016 Read More →

Lakewood Hospital and City Taxes

Build Lakewood, Lakewood Hospital

Information regarding Lakewood City taxes posted on the Build Lakewood Facebook page:

Are taxes going up when the hospital finally closes? We asked the City of Lakewood’s Director of Finance Jenn Pae: “There will not be an increase in the income tax rate as a result of the elimination of inpatient services at Lakewood Hospital effective Feb. 5, 2016.

The City’s finances are strong enough to weather the reduction in the withholding tax revenue that was generated from Lakewood Hospital. It is just one part of many different revenue sources that fund the City’s General Fund.

In fact, the City’s reliance on hospital generated withholding income tax revenue has decreased over the years prior to the announcement of the Letter of Intent. That means we are not a company town, and the City’s income tax revenues have been steadily increasing over the past 5 years because of growth in residents’ salaries.

Also, the terms of the Master Agreement keep the City financially “whole” and then some. Meaning that the sale of $8.2 million sale of 850 Columbia Rd, the $7 million for development of the hospital site, and continued lease payments, as well as withholding tax from the remaining employees at the hospital, total the estimated amount of withholding taxes and lease payments through the duration of the lease that was set to expire in 2026.

Any additional development on the hospital site, building permit fees, and property tax revenues are above what the City would have received if the status quo continued until 2026.

Keep in mind that property tax values increased by 8% for 2016, and the City will see increased revenues from property tax for the first time since 2007.

And don’t forget that nearly 100 new homes are being constructed in 2016 on the McKinley School and Rockport sites, so the City will realize income tax revenues, and the City and Schools will both realize property tax revenues that previously did not exist.

Finally, don’t forget that if there ever was an increase in income taxes, first it would have to be approved by City Council, and per the City Charter, this would automatically be put on the ballot for approval or disapproval by the voters to the increase or change in the credit.” ~ Jenn Pae, director of finance, City of Lakewood, Ohio – Municipal Government

Are taxes going up when the hospital finally closes? We asked the City of Lakewood’s Director of Finance Jenn Pae: “…

Posted by Build Lakewood onĀ Monday, January 11, 2016

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