Lewisville finance director warns HB 503 would cut 19% of the city's general fund; council votes to oppose

Finance Director Matt Bup read a prepared letter during the Feb. 2 Lewisville City Council meeting urging the Ohio House Judiciary Committee to oppose House Bill 503, and asked the council to endorse his submission.

"My name is Matt Bup, and I'm the finance director of the city of Lewisville in Stark County," he said before outlining the fiscal risks he believes HB 503 poses to small, bedroom communities. Bup told the council the city currently allows a 60% credit for taxes paid to other municipalities and that legislative changes in HB 503 could remove that flexibility.

"If this flexibility was lost, we estimate that we could lose somewhere around 1.6 million per year, which represents 19% of our funding in the general fund," Bup said, adding that the loss would jeopardize police, fire and EMS services and routine maintenance. He also said state-level property-tax uncertainty could represent an additional roughly 9.5% reduction in general-fund revenue.

Councilmembers discussed whether the motion should state opposition to HB 503 or simply approve Bup's letter; a motion was made and seconded that the council oppose HB 503 and approve the letter. Roll-call votes were recorded as yes by the members present.

The council's endorsement will be submitted with Bup's written testimony to the committee. No additional fiscal analyses were presented at the meeting; staff indicated the estimate in the letter is the city's current calculation.

Council returned to other business after taking the vote.