ELYRIA — Historically speaking, Elyria city leaders have had little luck passing a permanent income tax increase.
But come Nov. 3, Elyria voters will be asked to do just that for Issue 10, a 0.5 percent permanent income tax increase that will raise approximately $5.5 million per year.
The money is being sought to offset a $4.3 million deficit projected for 2010.
While this is the first general fund income tax increase proposed in 25 years, its passage would push Elyria’s income tax rate to 2.25 percent, a level above many other cities in the state.
Still, Mayor Bill Grace said now is the time to increase the income tax rate as the city has been unable to keep up with declining revenue brought about by the current national and state economy.
“We decided to go for a 0.5 percent increase because a smaller increase like a 0.25 percent increase would generate only about $2.3 or $2.4 million a year and that would not be enough to cover the projected deficit for next year,” Grace said.
“Most of our peer cities are at 2 percent or higher, and Parma is at 2.5 percent. Part of the reason why we have to go to 2.25 percent is the fact that our peer cities that are at 2 percent have been there for many years and have been able to weather this bad economy much better.”
This year, Elyria has had to battle budget shortfalls, remedied only by laying off city workers and cutting city services.
“The effects of the national economy have hit our city as hard as any — dramatically reducing our revenue,” Grace said. “The revenue just continues to decline. We are faced with either making substantial additional cuts or using the revenue from Issue 10 to attempt to maintain existing services.”
Grace has said the city would be in two very different situations should Issue 10 pass or fail.
Passage would mean that 10 laid-off firefighters would be reinstated, no police officers will be cut, a portion of the city’s parks and recreation programs will be restored and the Police Department would see a portion of their civilian support staff brought back.
However, if the tax fails, Grace said additional firefighters — on top of 16 that already were lost this year — will be cut, only those parks and recreation programs that can fund themselves will be offered, and the Street Department will have less money to maintain roads.
The most dramatic consequence would come at the Police Department.
While the department has watched the elimination of its jail staff and civilian work force, it has escaped cuts to the patrol force this year.
However, Grace said next year, 10 to 15 police officers will be laid off if the tax does not pass.
A cut like that would have rippling effects on the department, said Tom Baracskai, president of the Elyria Police Patrolmen’s Association.
Currently, EPPA represents 64 patrolmen of which nine are in the detectives unit, four are in the narcotics/neighborhood impact unit, two work out of the Wilkes Villa housing complex and are paid by Lorain County Metropolitan Housing Authority, one is the Elyria High School police resource officer and one is a member of the Violent Fugitive Task Force paid for by federal grant money.
That leaves 47 patrolmen on the road to handle calls. That number equates to approximately five officers for each eight-hour shift rotating 24 hours a day and seven days a week, Baracskai said.
“If we lose guys, we will still answer calls. I’m not saying we will not answer calls,” he said to residents at a recent town hall meeting. “But I am saying we will prioritize which calls get answered first. Now, you will have to wait a little bit longer to report a bike stolen from your backyard because officers will be handling more pressing calls first.”
Because of the ramifications to the city’s safety forces, Issue 10 campaign chairman and Councilman Kevin Brubaker, D-at large, is spending many of the days leading up to the election talking with residents.
“We have to get the word out about what this means,” he said. “This is about our city’s future, and I don’t want to see us looking at 14 months of cuts before we can even go back to the voters.”
It’s the city charter that dictates how and when city leaders can place income tax issues before voters. And, as it reads now, if Issue 10 fails, the city will have to wait until November 2010 before it can ask residents again to increase the income tax.
“Before residents fail this issue because they think it will permanently increase the income tax to 2.25 percent, they should know that in 4½ years, the city’s 0.5 percent temporary income tax will expire and if they feel we are doing better, they have the option of not voting to renew it and the income tax rate will drop back down to 1.75 percent,” Brubaker said. “This is needed now, but it does not permanently raise our overall rate to 2.25 percent.”
Issue 10
- What: A 0.5 percent income tax increase.
- Duration: Permanent.
- How much it would raise: A reported $5.5 million of additional revenue each year.
- Purpose: 80 percent will fund existing city services while the remaining 20 percent will go toward additional funding for the police, streets and parks and recreation departments.
- Cost to taxpayer: Individuals who work in Elyria will see less than $2 more deducted from their city income tax withholdings.
Contact Lisa Roberson at 329-7121 or lroberson@chroniclet.com.