8/29/11 Millersburg readies FAQ sheet on income tax
By Nick Sabo
August 29, 2011
269
SUMMARY: $500,000 generated by tax would restore services, cover state cuts
An income tax increase will put Millersburg back on the financial footing of four years ago, according to council and village officials.
In a work session Wednesday Aug. 24, village officials threw out the number that declines in state and other revenues have pared back expenditures since 2007: Approximately $456,000 per year.
Millersburg hopes to offset these losses with a one half of one percent income tax, which will raise an estimated $500,000 per year. The tax will be in addition to the villages existing one percent income tax and will go before voters Nov. 8.
The tax is collected on wages earned by village resident and wages earned within village limits.
The $456,000 includes a $72,000 general fund deficit brought on in the last six months of 2011 that will continue into 2012. The cuts came in the wake of austerity measures in Ohio Gov. John Kasichs two-year state budget. Kasich has promised there will be no new revenue at least for the next two years.
Ever-spiraling revenues - brought on by a weak economy, a 10 percent loss in persons paying the existing one percent income tax and cuts by the state- have led the village to reduce, or eliminate, expenditures for vehicle and equipment replacement, and street paving. As streets remain open and vehicles are used, wear and tear presses issues that we cant kick down the road any longer, Village Administrator Kevin Brooks said.
The meeting Aug. 24 was called to craft a fact-sheet that explains the villages financial state and will hopefully address some residents concerns. Mayor Jeff Huebner is planning to schedule two public meetings on the issue in September and October.
The result of the meeting is a draft of a fact sheet that first addresses the whys and how the village arrived in its current financial predicament. It proceeds to why it was decided to try an income tax instead of a levy, and eventually lists services that may be effected if the village does not secure new revenue.
Services that may be affected include mosquito spraying, limited snow removal, leaf pick-up, and the village contract with Medway Drug Enforcement Agency, among others. Other services that have gone unfunded for years, such as street paving, will most likely continue to be neglected.
In selling the income tax to the public, Huebner urged caution. Though services may likely have to be cut to balance the budget, council is leery of anything that might resemble a threat.
On the other hand, council realizes it has to advocate for itself. Many person have approached council with false information, Huebner said. Huebner said a lot of people are under the impression that the village is paying for new water and sewer lines to the proposed fairgrounds site off state Route 39 west. The fairboard and New Pointe church are collaborating to fund the line installation; the village will have nothing to do with the lines until they are in the ground and operable.
If we wait too long, there will be so much misinformation out there that we wont be able to turn it around, Huebner said.
Huebner said distribution efforts to get the fact sheet to village residents may include a mailer or door-to-door campaign. The village website will also be updated to include information.
