Tipp City Council has announced that it will be conducting a special meeting on Monday, January 31st, 2011 at 6:00p.m. to hold a final vote on whether to place a tax increase on the May election ballot. The first reading of the measure was held at the regularly-scheduled meeting on January 17th, and in order to get the issue on the May ballot, council must have the second reading and final vote prior to its next scheduled meeting.
The tax consideration arises from the recommendations of the Capital Improvement Program Committee which was appointed by City Council in late 2010. The Committee reviewed the finances of the City, and its capital improvement needs over the next ten years. It was comprised of 20 citizens of various backgrounds and experience. After meeting several times in the fall and winter of 2010 it recommended a combined .5% income tax increase to address the City’s capital needs over the next 10 years. The proposed tax cannot be used to fund City operational expenses like salaries, benefits or fringe (insurance).
The City’s current income tax rate is 1.25%, with 1% going to fund both Operational and Capital expenses, and .25% to the parks and pool complex. The .25% Parks levy is set to expire in 2012 resulting in Tipp City’s tax rate reverting back to the original 1% which has been in effect since the early 1980’s.
The City’s position has been that, although there has been no new taxes in the last 30-years, capital needs of the City were never addressed and roads were left to further deteriorate. The City has continued this inability to re-pave any streets in the last several budgets, with the exception of Hartman Avenue and Horton Avenue. These were done through significant cuts in the city’s budget in 2009 to be able to appropriate funds for these projects, which were desperately needed.
The CIP Committee agreed with most of the City Staff’s assessments of the deteriorating condition of the streets, and Fire/EMS, and called for an immediate ballot measure in May. Prior to the economic disaster of 2009, Tipp’s City Council went to the voters requesting a similar tax increase to fund these same Capital improvements, both requests being defeated by voters. The meeting is open to the public.
