Answers about City & Township Government

The City of Centerville has adopted the policy that the city and township should take steps toward merger. We will use this space to check facts, provide context to comments, and answer your questions. If you have a question that isn’t listed, you can submit it on our Financial Studies page or call the township at 433-0152.

Q. – Which provides services at the lowest cost – cities or townships?

A. – The per capita cost of services in townships is always lower than that of cities, according to Dr. Hugh Hinton in his University of Toledo presentation.

Washington Township and Centerville supply services economically compared to other comparable jurisdictions, however the township provides services at a lower per capita cost than the city.

In 2006, the township spent $20 million to provide services for close to 30,000 residents, while the city spent $24 million for about 23,000 residents. The township also provides two major services – fire and recreation – to the entire 53,000 population of the city and township. In other words, Washington Township spends less money and serves more residents.

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Q. – If services cost more for cities, then why do cities and townships merge?

A. –  The University of Toledo draft study notes that merger actually is not common and that it typically takes place for one of three reasons: to prevent annexation, to encourage economic development, and to protect a tax base for a school system. None of these reasons apply to Centerville/Washington Township.

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Q. – Why are township services more economical?

A. –  Residents benefit from the economies of scale made possible by Washington Township’s association with Montgomery County. The township’s working relationship with Montgomery County provides two outstanding cost efficiencies in the areas of police services and road maintenance and improvement.

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Q. – Why are road services more economical in a township?

A. –  While cities are required to maintain all roads within their city limits, townships are not required to maintain county and state routes inside their jurisdiction. This results in considerable cost savings for townships.

The cost of capital improvements on these roads saves townships even more money. While townships have the same ability as cities to improve roads, they are not required to assume the financial burden of county roads. Instead, they may choose to rely on the county to make road improvements or to partner with the county on county roadway improvements.

In Washington Township, two major road projects for Social Row Road and Clyo Road will be necessary in coming years. Those projects are estimated at $32 to $37 million -- $17 million for Social Row and $15 to $20 million for Clyo.

These projects now are the responsibility of the Montgomery County Engineer. However, if the city and township merged, they would become a financial obligation for the new, merged city.

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Q. – Why are the township’s police services more economical than the city’s police services?

A. –  Contracting with the Montgomery County Sheriff’s Office for police services provides significant economies of scale for township residents. In 2006, Washington Township provided police services to nearly 30,000 residents at a cost of $2.97 million, while the city spent $5.76 million for about 23,000 residents.

The city and township provide the same level of road patrol -- three officers and a supervisor on each shift.

Washington Township receives a variety of important support services through the sheriff’s office, including dispatching services, SWAT team, organized crime unit, victim advocate, hostage negotiating team and more. City police also receive a higher salary and benefits package than sheriff’s deputies. Top pay for a Centerville officer is $66,393, compared to $58,822 for a sheriff’s deputy.

If the two departments merged, the cost of police services would total more than $12 million. To maintain the city’s ratio of 1.7 officers per 1,000 residents, the city would need to increase its number of officers from 42 to 90. Based on its current cost per officer of $137,166, the estimated cost for a merged department is $12,344,974.

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Q. – Can the township continue to depend on the county to provide police services?

A. –  Absolutely. Unfortunately, the University of Toledo draft report expressed uncertainty about a continuing relationship with the county, citing funding shortfalls. This is entirely inaccurate. Washington Township and the Montgomery County Sheriff’s Office have a very strong working relationship that is mutually beneficial.

“The county and township enjoy a highly productive working relationship that provides cost-effective services,” according to a statement issued by the sheriff’s office. “Washington Township ‘pays its freight.’ We are highly satisfied with this working arrangement and foresee it continuing for many years to come.”

The township benefits financially from the county’s consolidated services such as evidence collection, traffic reconstruction, holding cells, SWAT teams and hostage negotiations. Some of those services are used infrequently and would be expensive to recreate on the local level. At the same time, the county benefits from the contributions of deputies assigned to Washington Township who participate in consolidated services that, when needed, assist residents throughout Montgomery County.

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Q. – Mayor Kingseed says city roads are of better quality because cities are “able” to make road improvements and townships must rely on the county.  Is that true?

A. - Townships and cities have the same ability to improve roads. Washington Township has initiated major road projects, such as McEwen Road and Spring Valley Pike, and will continue to undertake other needed projects.

However, the township has a greater choice than cities in how it funds certain road improvements. This choice gives taxpayers the opportunity to save millions of dollars on road projects.

The township has the ability to widen roads using township funds if citizens decide they wish to pay for the improvements, or the option to allow the county to make the improvements at little or no additional cost to local taxpayers. A third option allows the township to partner with the county on county roadway improvements.

The township constantly monitors these choices, weighing the condition of its roads against the cost to tax payers. In the process, we listen to our residents who offer their opinions through trustee meetings, comment cards, emails, phone calls, and citizen surveys.

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Q. – Are Trustees breaching their responsibilities and not cooperating?

A. – Township Trustees have a strong record of working with the City of Centerville on many projects that benefit our community and maximize government efficiency.  However, the Town Crier reported that Township Trustees have “decided not to cooperate in forming a merger commission” and that this is a “breach” of their “responsibilities to constituents.”

At this time, Trustees favor collaboration and cooperation with the city, not consolidation.  Trustees have not adopted an official position because the report from the University of Toledo still is in draft form and inconclusive. 

Formation of a merger committee is up to the residents of Centerville/Washington Township, not elected officials. So far, the residents we have heard from – about 96 percent of them -- say they are against merger. The large majority of residents who attended a March 31 merger study meeting expressed a similar sentiment.

From what we have witnessed, residents at this time are not driving a discussion about merger. Rather, the city has adopted a formal policy to promote merger and is vigorously pursuing it. Centerville’s mayor wants trustees to join with the city in persuading residents to move forward in the merger process.

Trustees are continuing to solicit citizen opinion. Residents are encouraged to make their opinions known by calling our Government Center, speaking at Trustee meetings, or commenting on this web site.

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Q. – I’ve heard that the University of Toledo study commissioned by the city and the township has recommended merger. Is that true?

A. - No. The final line of the draft report concludes: “There are a number of alternatives to a merger, and there is no immediate pressure to make an irreversible decision.”

The study’s author, Dr. Hugh Hinton, told residents at his March 31 presentation that merger would cause the cost of government to rise. “The per capita cost of services to townships is always lower than cities. Townships on a per capita basis provide services for less than cities.”

The quality of government services probably would not be affected by merger, according to the draft report.

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Q. – The University of Toledo study isn’t posted on your web site. Why not?

A. – The University of Toledo report isn’t finished. The township has identified numerous corrections to our current draft that, when compiled and tallied, are of significant consequence to the study.

We are in the process of reviewing these with the University of Toledo. Until the current draft is revised, it would not be responsible to post the information on our web site where it could be interpreted as an accurate, final report.

The draft report currently estimates that the cost of government would increase by about $3 million to $5 million if the city and township merged. However, the township has identified a number of factors that could increase the cost of government by at least $7 to $8 million over what the city and township now pay. This is due to factors such as overestimated revenue and underestimated spending for a merged government. In addition, financial responsibility for two township road projects estimated at $32 to $37 million would shift from the county to the new, merged entity.

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Q. – I’ve heard the phrase ‘one government, one community.’ Would merger make us more of a community?

A. - Centerville/Washington Township already is one community. We share the same school district, the same fire department, the same recreation center, and the same park district, library, historical society and senior center. We celebrate together with Americana, Woodland Lights and summer programs at Stubbs Park.

Many of our community programs exist through direct collaboration. The Centerville-Washington Township Historical Society, the Americana Festival, the Centerville-Washington Diversity Council, and Hithergreen Center all are sustained through a cooperative effort by the city and township.

This year, the city and township are working together on an accessibility project along State Route 48. In prior years, we have partnered on the parking lot project at Town Hall Theatre that supports the Heart of Centerville and in a long list of other projects.

The bottom line is we have a wonderful community. We enjoy quality services that are provided in an efficient, cost effective manner while allowing our residents the ability to choose where they want to reside and how they wish to pay their local taxes.

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Q. – Is having one government more efficient than having two? Are there economies of scale to be gained by combining jurisdictions?

A. – A study by Steen & Company has offered us the opportunity to see how we compare to other communities in terms of efficiency and cost effectiveness. The study looked at four Ohio cities – Hilliard, Kettering, Upper Arlington and Dublin – that are comparable demographically to what a merged Centerville/Washington Township would be. Shared services, housing stock, population and economic base were among the factors considered.

In those communities, average per capita spending is well above what the city or township now spend. In fact, of the six governments studied, Washington Township had the lowest per capita spending at $675, with Centerville in fifth place with a per capita spending of $923.

Dr. Hugh Hinton, who prepared the University of Toledo study for the city and the township, also notes that merger would cause the cost of government to increase. “The per capita cost of services to townships is always lower than cities. Townships on a per capita basis provide services for less than cities,” Dr. Hinton said in his March 31 public presentation.

However, economies of scale can play a role in efficiency. It was noted in the University of Toledo study that the township provides police services and road maintenance and repair at a lower cost than the city. That’s because the township benefits from the economies of scale associated with receiving police services and some road services from Montgomery County.

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Q.– Did the University of Toledo study look at what happened to other communities that have merged?

A. – Yes. The University of Toledo draft report cites three cases in which Montgomery County townships and cities have merged. The study points out that in two of those three mergers, communities underestimated the cost of merger or overestimated revenue, or both. The study suggests that a similar miscalculation occurred in the third merger because an income tax was required and the effective property tax rate declined by only one mill.

The township followed up on the Toledo case studies and learned that the three merged communities – which included six cities and townships – have on average raised their income tax and property tax. For instance, with the Clayton-Randolph Township merger, residents of Randolph Township now pay a 1.5% income tax where previously they had none and their property tax has gone up a little more than 2 mills. Residents of Clayton have saved .5 mills in property tax, but now pay a 1.5% income tax when previously they had none.

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Q. – Why has the topic of merger been raised?

A. - The topic of merger was raised by the City of Centerville when city council members asked township trustees to join them in a study to assess:

1) Potential cost savings from combining any functions of the two governments

2) Positive and negative consequences to merging departments.

Since that time, the city has adopted merger as a “policy” and the mayor made merger a central highlight of his 2007 State of the City address.

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Q.– Why has merger been raised at this particular time?

A. - The topic of merger tends to be raised by the city every five to seven years. In November 1976, an issue was placed on the ballot about whether unincorporated Washington Township should be annexed into the city of Centerville. The vote was 573 for the issue and 7,140 against.

In 1991-1992, a citizen task force spent about a year studying the pros and cons of remaining a township, merging with another government, or incorporating as a separate government entity. The Future Government Task Force did not recommend merger at that time. Residents also were surveyed that year and the majority said they favored retaining the township form of government.

More recently, the topic of merger was raised by the city in 1996 and 2002.

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Q. – I’ve heard the city state that Washington Township’s property tax revenue will level off within the next 10 to 15 years and that the township will then face financial challenges. Is that true?

A. - Every local government – city or township – is faced with some financial challenges when the land within its jurisdictional boundaries is fully developed. That is one of the main reasons why cities reach beyond their boundaries to annex land.

In the case of Centerville and Washington Township, the city is closer to being fully developed than the township. Our Create the Vision Community Plan, developed jointly with the city and township, shows that the city is 86 percent developed, while the township is well behind that at 73 percent.

The best way to ensure economic stability is to provide enviable services that make people want to live here, and to provide them in the most cost-efficient manner available.

The township provides this for the entire Centerville/Washington Township community through outstanding fire and EMS services and through high-quality recreation programs that offer great appeal to young families who are looking for a place to locate.

Washington Township provides these services in a highly economical way, as we’ve seen from the Wade Steen study – in fact more economically than any government polled. The township keeps approximately a 25 percent balance at the end of each year and projects revenue and operating expenditures five years out, unlike most jurisdictions which only project capital improvements. Our projections indicate a vibrant financial future for years to come.

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Q. – Is it easier for income tax to keep up with financial challenges?

A. - It’s been said that earned income taxes are more flexible than property tax, and indeed that’s true because when employees get a pay raise, so does the city. However, that principle cuts two ways. Earned income tax rises when residents’ salaries rise, but also falls more quickly than property tax during times of economic hardship such as recession. Property values tend to fall more slowly than salaries, if at all.

It’s true that township residents return to the polls more frequently than city residents to vote on taxes. This occurs because levies expire and because the amount of revenue a property tax levy collects from real estate is, in effect, “frozen” after the first year a levy is passed.

While the city has described this as a weakness, the township and many of our residents see this as a great strength. When residents return regularly to the polls to vote on taxes, it helps keep our government very efficient and highly accountable.

In essence, property tax is as flexible as residents want it to be. Our residents have consistently provided their solid financial support and we have no reason to believe that this won’t continue. Just this spring, our 53,000 residents in the city and unincorporated township passed fire and recreation levies by a wide margin, with more than 60 percent of voters approving them.

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Q. – I read in the Town Crier that the property tax burden acts as a disincentive to potential businesses to locate in this community. Is that true?

A. – Washington Township is seen by businesses as a highly attractive area to locate. The vacancy rate in the overall Dayton area market was twice that of Washington Township in a 2005 survey of retail property owners.

The township’s 7.8 percent rate is very healthy, yet leaves enough room for businesses to find the space they need. In the same survey, the average vacancy rate in the Dayton area was 15.6 percent.

Washington Township continues to attract commercial construction, as demonstrated by 79,691-square feet of new commercial space approved for zoning permits in 2007. In 2006 – a banner year for township commercial development – 240,150-square feet of new space was approved.

Any tax creates some disincentive to businesses. That’s true whether the tax is an income tax or a property tax.

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Q. – I read in the Town Crier that taxes impose a burden on property owners, particularly those with fixed incomes. Is that true?

A. – Recent changes in state law give property tax relief to seniors. The new law removes income tax requirements from the Homestead Reduction Program, allowing any homeowner age 65 and older to qualify for the property tax reduction. Homeowners who are permanently or totally disabled also qualify.

The average tax reduction in Montgomery County is about $517, according to Montgomery County Auditor Karl Keith. The new law exempts from property taxes, the first $25,000 of value of the home.

If you or your spouse turn 65 in 2008, you most likely qualify, but you must apply before Monday, June 2, 2008. To apply, call 225-4341, obtain an application at a library or senior center, or visit www.mcrealestate.org.

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Q.– What happens next?

A. – That depends entirely on residents. If residents want to retain the township form of government, they do not need to take any action or sign anything. If they want the city and township to merge, then they would need to undertake a merger process.

A merger process, which can only be initiated by residents, begins with a petition for a merger study committee. The petition includes possible names of study committee members. If a petition is signed by 10 percent of city and 10 percent of township residents who voted in the last gubernatorial election, then the issue of a merger study committee is placed on the ballot. To make the fall ballot, a total of about 1,100 validated signatures from the city and about 1,400 from the unincorporated township would be required by August 21.

If the ballot issue passes in both political subdivisions, the merger study committee would have two years to study merger and make its recommendations in the form of a merger report. Its recommendations would then be placed on the ballot for voter consideration. Merger would need to pass in both political subdivisions.

If merger is voted down, then the issue can not be raised again for three years from the time voters rejected it.

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