Pozzuto said the 0.5% income tax is tied to water and sewer treatment plant improvements completed in 1988 along with other ongoing capital improvements. He said the current 0.5% income tax will expire when those water and sewer improvements are paid off at the end of the year. Pozzuto said the income tax generates about $5.6 million each year.
“From a capital improvements standpoint, a renewal is necessary to keep city operations running as they have been,” he said.
Pozzuto presented four options to City Council – from allowing the income tax to expire to putting an income tax increase on the ballot – and ultimately City Council decided to put forth to the voters a renewal of the 0.5% income tax. If voters approve, it will not raise taxes.
The ballot issue will undergo three official readings in July and August before being placed on the ballot.
“City Council decided to seek only a renewal because while we do not need to raise anyone’s taxes at this time, we do want to maintain these important services,” said Mayor John Agenbroad. “The $5.6 million generated from the 0.5% income tax funds services and operations that affect our resident’s everyday lives like road paving, park improvements and the purchase of police vehicles and snowplows. A ‘yes’ vote in November will maintain the high level of services and will not raise taxes.”
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