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London's levy proposal formatted same as last attempt
(by Alexa Libert, staff writer - January 25, 2010)
Layoffs may be the only option in 2011 if London voters don’t approve a 0.5 percent income tax levy on the May 4 ballot.
In an effort to maintain the city’s infrastructure, keep safety services funded and ultimately prevent layoffs, London City Council is proposing the increase which is estimated to generate $1.5 million in revenue, explained council President Bill Beathard.
The proposed levy request is the same as the one that failed in the November election. It includes up to a 0.5 percent tax credit for London residents who work outside the city and pay taxes to another municipality. The levy’s revenues would be divided evenly between the police and fire departments.
The hope, said Beathard, is that generating the revenue, which will specifically benefit the safety services, will free up other monies in the general fund that could both prevent layoffs and be put towards capital improvement projects such as bridge repairs, road repaving, and engineering and building a sidewalk for London City Schools’ new middle school.
At the end of 2009, city council approved a 2010 budget that does not include capital improvements. Currently, there is approximately $500,000 in the capital carryover fund. The fund could be depleted if the city tapped into it for the needed projects, Beathard said.
Council is forming a committee to explore other ways of funding those projects, such as the Ohio Department of Transportation’s (ODOT) Safer Route to School Grant, which could provide 100 percent of the money needed to build the sidewalk for the new middle school.
The Community Block Development Grant (CBDG) is another potential option for funding the sidewalk project. However, Beathard said he is apprehensive about using those funds because the city would have out-of-pocket costs and, if the cost estimates are inaccurate, the city could find itself in a bind.
Councilman Rodney Lauer said he wasn’t comfortable with the city not appropriating funds towards capital projects in 2010.
“I don’t think anyone on council likes it when you have to go 100 percent on operations and zero on capital,” Beathard commented.
Council will hold a special meeting at 6 p.m. Jan. 28 in council chambers for a second reading on the proposed levy request. Three readings are needed before council can place the issue on the ballot. Council’s next regular meeting is Feb. 4. The issue must be filed with the Madison County Board of Elections by Feb. 18.
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