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WELLSVILLE – Wellsville Village Council has only a short time to decide on placing a possible half-percent tax increase on the May ballot.
With all members of council present, along with the Wellsville Police Department, the council's finance committee motioned Tuesday to order into legislation a resolution to place a one-half percent income tax levy before voters in the May election.
Money generated from the levy, should it go on the ballot and pass, will be geared toward providing a 50 percent tax credit for local residents who work outside the village, while revenues would be evenly divided between equipment and wages for the village's safety forces (police and fire departments) and for paving of the village roads.
Councilman/finance committee chairman Tony Cataldo said council appeared to be in agreement of a tax increase, noting he had asked Fiscal Officer Hoi Black to see what other communities outside of Wellsville – which currently pays 1 percent – pay for their taxes. Cataldo noted Toronto has 2 percent, Columbiana is at 1 percent, while Lisbon and Leetonia are both at 1.5 percent.
Black mentioned residents who work outside of the village would be able to receive a tax credit from the levy, and provided three scenarios for council. One would be 25 percent, one 50 percent and 100 percent credit, should the village increase the tax from 1 percent to 1.5 percent.
Using Steubenville as an example, residents would still have to pay the 2 percent taxes for Steubenville, but residents would either have to pay 1.16 percent of the taxes if council agreed to 25 percent credit, 0.75 percent payment on the 50 percent, and would be only responsible for Steubenville taxes if they received complete credit.
Black said the levy, if passed, would generate $12,000 to $30,000 this year, noting that it would not be applied to residents until July.
As for where the money goes, council had some concerns over how the money would be allocated.
One aspect agreed upon by council was that half of the funds would go toward paving roads. Cataldo pointed out that many thought a previously passed levy, one for a permissive license plate tax, would go toward paving, but instead went for other matters.
"Years ago, we put that license plate tax down and people were assuming that was going to paving," Cataldo said. "Well that pays for salt, pays for wages, pays for insurance, pays for hot-patch, pays for everything else."
However, one aspect that brought comment and concern was the other 50 percent, where Cataldo mentioned that it would go toward the police department, while other members of council felt it should to go toward both police and fire.
Cataldo contended the levy for the fire department brings in $182,000 once combined from two other levies, which caused Fire Chief Barry Podwel to react.
"Fire department got enough money with their levy when we combined them five, six years ago…unless Barry has a better idea to make money for the fire department," Cataldo said.
Podwel then asked Cataldo where the money was coming in to the department, to which Black stated the fire levy started 2016, with a deficit of $111,000, but are now $3,000 to the good, largely due to the department holding off on hiring. However, Black said the other fire levy is still in a deficit of $11,000.
Council member Diane Dinch, meanwhile, was amongst other council members who felt the money should be divided between both safety forces, noting a police levy that passed in 2011, which helped with police wages.
"I guess my only concern is if you designate that just for the P.D., and the people say 'Well, we passed one levy to give the police raises and now you're upping this to give more money to the police'," Dinch said. "I guess that's what I'm concerned about."
Cataldo added the police department is considered to be in the general fund, which has a deficit, and if the extra money goes to the general fund, the police would receive the money anyways.
Councilman John Morrow also agreed to have the money divided between police and fire, and ultimately the decision was to divide for both safety forces, to which a special revenue fund will need to be created.
Council will look to conduct a special meeting later this week to pass the resolution so that the village can file to the Columbiana County Board of Elections by the Feb. 1 deadline. The meeting will take place at a time and date to be determined.