Oakwood City Council is expected to vote Jan. 7 on whether to place a property tax issue before voters in May.

The amount and duration of the levy is still being decided, Mayor Bill Duncan said. “I can say that it will be more than 3 mills, but less than 4. It might raise 40 to 60 percent of the approximately $1.5 million we need.

If a levy passes, it would not result in tax collection until 2014.

“We will have two readings on this ordinance. Council’s final vote will be in February. To get it on the May ballot, we need to approve it at least 90 days before the election.”

Council has approved a 2013 budget of $12.94 million in non-enterprise funds that incorporates spending cuts and fee increases that will account for about half of the city’s pending $3 million gap created by lost state funding and the repeal of Ohio’s inheritance, or estate tax.

A four-mill levy would bring raise $1.37 million. Three mills would bring in $853,000.

Additional taxes, or a reduction in Oakwood’s income tax credit, might be sought to cover the rest.

“We aren’t ruling out additional spending cuts or efforts to consolidate operations. Those are always on the table. We are hoping it doesn’t have to be all new taxes,” Duncan said.

Oakwood City Schools are also considering a new levy in 2013.

The 2013 budget includes a pay freeze for city staff and public works employees. All three unions representing Oakwood’s public safety employees have agreed to a freeze in 2014.

Klopsch said it’s the first time in his 20 years as city manager that the staff won’t receive at least a minimal raise.

“It’s a bare-bones budget in terms of maintaining our services,” Klopsch said. “There are no new programs. There will be no new spending. We’re focusing on where we can continue to cut.”

If voters reject new taxes, Klopsch said the city will have few options.

“We could give the community center back to the YMCA and maybe save $250,000 a year. We could cut public safety even more. We are already at minimum levels. If we cut staff there more, overtime costs will mean we are no better off, and we could not respond to calls the way we do now,” he said.

A hike in Oakwood’s 2.5 percent income tax rate would also require voter approval. A reduction in the income tax credit could be voted in by council.

In 2011, Oakwood voters approved a five-year extension of a 2.72-mill levy that brings in $450,000 a year.

City officials allowed a 5.5-mill property tax levy to expire in 2008 because estate tax collections made it unnecessary.

Capital improvements will be held under $1 million in 2013. About $600,000 of that will be devoted to annual street, sidewalk and curb repairs.

Mostly through attrition, full-time staff has been reduced from 95 in 2004 to 85, with plans for four more positions to dwindle by 2015.

Starting in 2013, employees will also pay a higher percentage of their health insurance premiums and the city will reduce its contributions to their health care spending accounts.