The Xenia City Council met in a Special Session on January 7, 2010, at 4:00 p.m., in the City Council Chambers, City Hall, with the following members present: Wesley Smith, John Caupp, Dale Louderback, Jeanne Mills, Patricia L. Felton, Marsha J. Bayless, and William R. Miller. POTENTIAL LEVY DISCUSSION: Mr. Percival said to meet all the timeline requirements for the May 4" ballot, Council needs to introduce legislation today if an income tax increase is chosen as a ballot initiative, Our charter dictates that Ordinances to levy taxes cannot be passed as emergencies; therefore, an introduction is necessary today, with a second reading on January 14, 2010, resulting in an effective date of February 13,2010. The filing deadline for the Board of Elections is February 18, 2010. Mr. Percival acknowledged that Mr. Bazelak sent out some information and Councilman Smith responded by proposing separate ballot issues. Mr. Merriman also has several handouts, the first is titled, “May 2010 Ballot Initiative Revenue Information”, which he distributed to all present. The handout depicted Current Cash Flow Projections and proposed Cash Flow Projections from 2011 through 2015 based on two options: 1) Income Tax at 2.25% (an increase of .50%); and 2) Income Tax at 2.00% (an increase of .25%): Revenue Cains 2011 2012 2013 2014 2015 ae Sa (8472,208.75) | (S1,029,069.49) | ($1,502,211.70) | ($1,910,726.62) | ($2,059,030.97) Ballot Option 1 Income Tax to 2.25% | $2,740,000.00 | $2,740,000.00 | $2,822,200.00 | $2,935,088.00 | $3,052,500.00 Cash Flow Projections | $2,267,791.25 | $1,710,930.51 | $1,319,988.30 | $1,025,361.38 | $993,469.03 Ballot Option 2 Tncome Tax to 2.00% | $1,374,000.00 | $1,374 000.00 | $1,415,220.00_| 91,471,829.00 | $1,530,702,00 Cash Flow Projections | $901,791.25 | $344,930.51 | ($86,991.70) | ($438,897.62) | ($528,328.97) Mr. Bazelak said over the last few years, the revenue projections have had to be recalculated many times as things have changed considerably. Councilwoman Felton asked if a handout showing cash flow projections based on a property tax increase would be distributed today. Mr. Bazelak said no; staff wanted to meet today to determine if Council was desirous of moving forward with an income tax increase. If so, that requires introduction and subsequent passage of an ordinance. Given the 45-day timeframe for an ordinance to become effective, it would need to be introduced today [to meet the Board of Elections filing deadline}. If a property tax increase is sought, only a resolution is necessary, and it is only a 15-day window from introduction to becoming effective; therefore, we have some time. Councilwoman Felton said she cannot make an intelligent decision with only half the