Brecksville Income Tax Credit Reduction: Pharaohs leaving pyramids behind----A city not focused on the real needs of its residents and business owners

Mayor Hruby is proposing to increase tax revenues through a reduction in the city income tax credit for hardworking residents who call Brecksville their home, but work outside the city limits. The mayor will not be subject to the tax increase he proposes as he draws a pension from a former city position at the same time he is paid as the city’s mayor.

Mayor Hruby’s cites residents’ expressed needs for amenities including a field house and Water Park as well as additional government buildings, as the reason for the tax increase. While no one is disputing that it would be nice to have more non-essential city amenities, it’s important to ask if it is fiscally prudent. Experience shows us that individuals who spend too liberally on wants often struggle to maintain needs and financial troubles ensues as a result.

What the mayor’s plan fails to address is the two distinct costs involved: the cost to build and acquire, and the cost to maintain. After all of these amenities are constructed, who will pay for the ongoing maintenance? All of the residents of the City of Brecksville, including retired seniors on fixed budgets. One only has to look at our city’s Recreation Center and the recent addition of the Senior Center the mayor claimed the city needed. It is underutilized given our senior population, yet its maintenance is a permanent fixed cost in our city’s budget and has to be subsidized by tax dollars because membership dues do not cover the operational budget.

One of the more urgent priorities that has been frequently suggested to the mayor (who is also the city’s Safety Director) and city council members is to make our roads more pedestrian safe for walkers, joggers, bikers and strollers. This would not only encourage a healthy daily lifestyle and community connectedness but would increase safety for our pedestrians and drivers as well. Yet ongoing requests have been made and have fallen on deaf ears, leaving sections like Oaks Road, Fitzwater Road and Old Royalton Road dangerous for pedestrian traffic. Residents have repeatedly been told:

1. The city does not have the money

2. Residents would have to directly pay for the improvements

3. These “residential” streets are not intended for pedestrian traffic

Yet, magically, the city can manufacture money to pay for non-essential city perks with taxpayer money and all residents would have to subsidize their ongoing maintenance even though they may not use the facilities. In the meantime, drivers will play dodgem with walkers, joggers and mothers pushing baby carriages.

The underlying issue is why our current business tax base is not sufficient to meet our residents’ needs. Money issues don’t simply surface overnight. I was part of the Southside Brecksville Economic Development committee approximately 15 years ago when we recommended to the mayor that the city take more proactive measures to build out the southside infrastructure and begin to move away from warehouse type businesses which generate less in tax revenue for the city. The focus should be on attracting more professional businesses to build up our tax base thus reducing the residential tax burden.

What is more disturbing is that Brecksville has a major marketing advantage over many cities in attracting businesses as our city is centrally located in Cuyahoga County with easy access to both Cleveland and Akron. Yet one only has to drive around the city to see the many vacancies building owners like myself have, as well as the lower rental income we have been receiving. This ends up hurting the city due to a loss of potential employment and property taxes being collected that could be used for our schools, roads and other projects.

So what is the city doing to make Brecksville more attractive to businesses to locate here? Our mayor builds a salt garage and maintenance garages that in many people’s opinion violates business district zoning, right in the heart of our downtown by our historic square. Another feather in their city planning is to add a second long-term care facility to our downtown. How does this make our downtown more desirable for shoppers, merchants and businesses to prosper?

My financial planning company is located, Brecksville Commons. We approached the city about building a 25,000 square foot new headquarters on residential land the city landlocked (which is a prohibited practice) adjacent to the current Brecksville Commons buildings where our parking lot resides. The mayor refused to meet with us and other city council members refused to help resolve the problem. Meanwhile, at full capacity, the building could deliver a projected $40,000 in property taxes, and another $50,000+ in income taxes, let alone the tax revenue that would be generated by employees at that location bringing new business to local merchants.

It seems that Zev Weiss, CEO of American Greetings, knew something our mayor has yet to realize. At a business breakfast I attended with 24 other local business owners two years ago, Weiss was asked why American Greetings did not locate in Brecksville. He stated that Brecksville had the best location compared to Beachwood and Westlake; however the city lacked the infrastructure and the amenities American Greetings and its employees required.

When this was shared with city officials they claimed the Weiss family are owners in the property they are building on in Westlake. What they will not tell you is the Weiss family is a minority owner in the land and did not receive any special considerations. What the mayor and his council seem to overlook is that just like individuals trying to make smart financial decisions about their personal finances, business owners try to make smart decisions about their businesses as they have a lot at risk and are responsible to not only themselves but the people they employ.

The mayor, who has no “skin in the game”—since he is not subject to an increase in income taxes, nor does he have the burden of a business owner or commercial property owner—is taking the easy way out to pay for amenities through the hard work of others. While these amenities may be nice to have, they are not a necessity, especially when more pressing priorities cited by residents and business owners have yet to be addressed. This is problematic. We do not need a mayor looking to add other “pyramids” before he retires at a cost that will impact us all for many years to come. And if the mayor and city council really want to make an impact on our city’s finances, they need to have a better plan in place for working with business owners who wish to invest their hard earned money and efforts in our city if they truly want to improve our tax base for residents.

Sincerely,

Frank Fantozzi