Study Reviews Potential Results of Merger

Highlights from the Steen Study

A study commissioned by Washington Township provides insight into city and township finances and some of the potential consequences of merger. The study by Steen & Company, a certified public accounting firm from Columbus, reported these key findings:

◄ City and Township Assets and Liabilities –

The township has about $9 million more than the city in equity, an amount determined by subtracting total liabilities from total assets. The study notes that if the county’s appraised values for land were used, then township equity would increase up to $18 million more than the city’s. The difference in equity is due in part to the city’s debt, which is about $15.4 million more than the township’s debt.

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◄ Potential Personnel Costs or Economies –

The study did not find evidence of an “economy of scale” to be gained through merger when it looked at four Ohio cities comparable to a merged Centerville/Washington Township. In those communities, average per capita spending was higher than Centerville’s and significantly higher than the township’s per capita spending.

Both the township and the city spend less per employee than the peer group and both have fewer full-time equivalent employees per 1,000 population. “It can be concluded that as a government’s budget or expenditures increase, it also adds staff at a comparable rate,” the study states.

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◄ Potential Income Tax Revenue –

Additional income tax revenue from merging the city and township was estimated “conservatively” at $1 to $3 million, excluding revenue from businesses and non-residents who work in the township. Because many challenges exist in estimating income tax revenue, the best approach would be to survey residents and businesses in the township.

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