Tuesday, August 4, 2009

New Permanent .5% Income Tax on November Ballot

Last night, City Council voted 8-3 to place a new, permanent .5% income tax on the November ballot for voter approval. If passed, Elyria's income tax will increase to 2.25%, one of the highest in the state.

Council also passed a resolution that, if passed, the new funds would be allocated as follows:
80% to maintain city services at existing, reduced levels;
7.5% to city street improvement program (including engineering and street repairs);
7.5% to the police department; and
5% to the Parks and Recreation Department.

No new money is to be allocated to the Elyria Fire Department, which is currently operating with one station. No money is to be allocated to improve the downtown area, for economic development, for the law director's office or for any other areas included within the General Fund.


D. Ezell said...

I'm wondering how much does .5% represent in dollars?
And...also how each member voted? I think these are two fair questions.

The proposal sounds reasonable but it's a little heavy on the "maintaining city services" side. It clearly shows the magnitude of the current economic condition.
Thanks for the effort Mark Craig, we appreciate it.
Keep swinging!

MARK F. CRAIG said...

It is estimated to generate an additional $5.6 million in revenues. This would allow $420K to go to the Police, $420K to Street Improvements and $280K to the Parks and Rec Department.

Voting against the measure was Garry Gibbs, Kevin Krischer and myself. I argued that we should have only requested a .25% tax increase and made it temporary, as I pushed for in the spring.