Huber Heights considers income tax levy

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What: Huber Heights City Council meeting

When: 7 p.m. today

Where: 6131 Taylorsville Road

Huber Heights officials might place a levy on the November ballot that would ask voters to increase the city’s income tax rate from 2 percent to 2.35 percent.

The issue, if passed, would generate $2.3 million in new revenue — filling a projected gap in the city’s budget at the end of 2015 and preventing potential cuts to public safety personnel.

The increase would be a “status quo ask” to maintain current level of services, interim city manager Rob Schommer said. City Council is scheduled to weigh a motion at tonight’s meeting to move forward with ballot language preparation.

“Huber Heights is at a crossroads,” Schommer said. “Our community has two choices — raise revenue, or reduce safety and city services. We are facing a difficult situation that involves a serious decision by the community, and we will be truthful in sharing specific facts needed to make an educated decision.”

Schommer unveiled last week at an administration committee meeting what the $2.3 million in cuts would be if the measure is on the ballot and fails. They include:

Ninety percent of the police and fire department budgets fund personnel, with operations consuming the remaining 10 percent, Schommer said.

Since 2008, Huber Heights has lost $13.7 million in governmental revenue. Among the sources were a 0.25 percent reduction in the city’s income tax approved by voters in 2008, and the elimination of the state’s local government fund and estate tax.

The economic recession also cost the city an additional $8 million during that same time, Schommer said. Huber Heights has increased its budget by 1.6 percent since 2008.

“The city has proven we’re efficient,” Schommer said. “That’s why we’re providing the opportunity for the decision to be made by the people.”

If the November issue passes, Huber Heights will continue to offer full credit to its residents who work outside the city, Schommer said.

Also at the end of 2015, 0.2 percent will fall off the city’s current income tax rate — a 10-year tax measure that took effect in 2006 and brings in $1.6 million annually. The city will likely seek a renewal of that 0.2 percent in 2015, Schommer said.

Huber Heights collected $9.7 million in income tax receipts in 2013. The city collected $11.8 million in 2008.

John Thomas III, a Huber Heights resident since 2008, said he is not in favor of the issue, saying an increased income tax would “run more businesses out of Huber.”

“They really need to think this thing through before they try it,” Thomas III said. “It will mess things up even worse.”

While Thomas III commended the city’s police force, he said the city’s $18 million music center project is a “waste of money.”

“We’re talking about two different types of funding,” Schommer said. “The Heights is a project that comes from special sources of funding (tax increment financing). We need an economic catalyst to build a tax base and lessen the burden on taxpayers. We’re on the rise, but that $2.3 million gap needs to be filled, and it’s not going to happen overnight.”

Councilwoman Jan Vargo said the message that needs to be shared with voters is that it’s up to them which direction the city goes. She said the city’s decision to give voters the opportunity to reduce the income tax rate by 0.25 percent in 2008 proves the city does not want more money than what it needs.

“That’s why we’re asking for the status quo,” Vargo said.

Huber Heights voters rejected a 0.25 percent income tax increase by a 2-to-1 margin in March 2012.

Representatives from the Huber Heights Liberty Group could not be reached for comment.