Green finance committee previews move to regional tax agency; officials flag one-year cash-flow hit

Council members heard an extended presentation and question-and-answer session on an ordinance (20 26-15) that would authorize the mayor to contract with the Regional Income Tax Agency (RITA, referred to in materials as "Bridal") to administer Green's municipal income tax.

The mayor opened the presentation with background on a recent vacancy in the tax administrator post and said the administration had explored options. "This recommendation is not a reflection of the quality of our work or people," the mayor said, "but rather it's a recognition that municipal income tax administration has become increasingly specialized and complex." He said the move was intended to improve efficiency and compliance.

Finance Director Shelly Goodrich and two RITA representatives, Matthew Mao and Executive Director Amy Arrigi, described RITA's technical platform, collection processes and compliance tools. Goodrich said the city's current self-collection cost of about 2.54% contrasts with RITA's historical average cost of about 1.04%; RITA projected City of Green's cost of collection at roughly 1.11% to 1.23%. RITA officials said the difference would translate into recurring savings and improved enforcement.

RITA described a three-part fee structure: it retains 3% of gross collections throughout the year as a working retainer, then calculates the agency's actual cost-of-collection after year-end and issues a refund (a "retainer refund") if the retained amount exceeded the true cost. RITA said the retained funds are invested to offset the agency's operating costs and that member cities receive reconciliation deposits in the spring following the closed fiscal year.

"Our estimated annual savings by moving to RITA is projected to be between $300,000 and $350,000 a year," Goodrich said, adding that the projection includes elimination of up to three in-house positions and lower recurring collection and software costs.

Council members pressed presenters on the 3% retainer, the mechanics of the year-end reconciliation, and whether unusual events or large onboarding years could increase a member city's effective cost. RITA said its cost is calculated per community by averaging the community's share of transactions and its share of total dollars collected, then reconciling across the agency's audited results so each city's final percentage can differ.

RITA representatives also addressed data-security and legal questions. Amy Arrigi said taxpayer data are treated as confidential under cited provisions of the Ohio Revised Code and that the agency uses multifactor verification, SOC 1 controls, and an external audit program; she said RITA carries cyber-liability insurance (disclosed during the meeting as a $10 million policy) and described a prior legacy backup incident that prompted a notification and remediation process.

Committee members and the finance director also discussed the implementation timetable and a temporary cash-flow effect in the transition year. Goodrich warned that if the city switches to RITA on Jan. 1, 2027, the municipality will recognize only 11 months of cash collections in 2027 (because collections received in January are generally reconciled and distributed in February), creating a one-time reduction in cash receipts and reserve balances. Officials estimated the city's 2026 income tax revenue at roughly $30.6 million and noted an average monthly receipt of about $2.5 million; the administration said Green's reserves make it able to absorb the timing shift but that the effect would need to be accounted for in the 2027 budget.

Residents and members of the public who signed in were allowed to comment. Daniel Deckler asked how the projected savings would be realized against a roughly $740,000 income-tax department budget and whether personnel would be eliminated or reassigned. The administration said personnel accounted for about $474,000 of the 2026 departmental budget and that the city planned to work with the union: current staff would be encouraged to apply for open positions elsewhere in the city and the administration would follow required personnel processes.

Committee business also included other finance items that remain on 3rd reading: 2026-R27 (supplemental appropriations, total $529,258.99 including a $375,000 TIF-related adjustment), several bond ordinances to finance Southwood Drive and other street projects (2026-11, 2026-12 at $3.9 million with 20% city share, 2026-13 at $1.4 million) and a possible refunding ordinance (2026-14 up to $12,865,000); the chair indicated motions on those items would be made at the appropriate times in committee or on the council docket.

The committee recessed into executive session at points to discuss collective-bargaining strategy tied to another agenda item; roll calls on procedural motions were recorded as carried. The RITA contract ordinance remains under committee consideration; the administration indicated it expects to request time on a future council meeting for further consideration and potential adoption.

Next steps: The administration and finance director will finalize transition estimates and budget adjustments to account for the one-time timing effect, RITA will complete its onboarding materials and legal review, and the council is expected to schedule time during a regular council meeting to consider ordinance 20 26-15.