Twinsburgbulletin.com - Officials: Tax hike not complete relief

by Emily Canning-Dean

Reporter

Twinsburg -- The passage of a quarter-percent income tax increase will mean an additional $2.6 million in annual revenue for the city beginning in 2010. But even with the new tax money, officials admit there is still much work to be done.

Councilor Bob McDermott said the increased revenue will help the city, but explained that additional cost-savings measures will have to be considered in 2010.

For instance, billing residents for garbage collection at $36 per quarter-year could mean a large savings for the city. Residents are currently not charged for the service.

He said he would also like to reduce the city subsidy for the Twinsburg Fitness Center, which has been nearly $500,000 in recent years and is expected to be about $300,000 in 2010.

"We have about 5,000 residents who use the facility, but with such a large subsidy, the other 15,000 residents who don't use it are also paying for it," McDermott said.

"I think we need to either reduce costs or increase membership fees to cover the cost of the fitness center," said Councilor Bill Furey. "The city subsidy to the fitness center is more than 10 percent of the $2.6 million generated by the tax increase."

McDermott said the finance committee will have the opportunity to review the budget in December or January, after the mayor has submitted a budget proposal.

If some additional cuts are not made, Council could consider an increase in millage for levies or reduce the tax credit.

"I would not support an increase in taxes if voters did not get to decide," Furey said.

During the administration's campaign for the tax increase, dubbed "Protect Twinsburg," literature promised voters that the passage of Issue 32 would mean no layoffs of full-time employees. It also stated that current service levels would be maintained.

Councilor Gary Sorace said he wants to keep the promise of no layoffs or cuts in services.

New businesses to fill hole
if tax is repealed

Mayor Katherine Procop said she would like to see the city increase its income tax revenue by an additional $2.6 million in the next four years to make up for the $2.6 million the city would no longer receive when the income tax hike is repealed.

Councilor Sam Scaffide said he wants to see the tax repealed as soon as the city has bridged that gap.

"A surplus would be wonderful, but our goal is just to make up for this shortfall," he said.

Procop added she is hopeful that the city can be in a better place financially within four years.

"I recently found out from the Cleveland Clinic that their facility would bring in an estimated $600,000 annually in income tax revenue for the city," Procop said. "We had originally expected between $300,000 and $500,000 annually."

Finding a business to occupy all or part of the soon-to-be vacant, 2.4-million-square-foot Chrysler Stamping Plant would also help boost revenue, Procop said. She said she knows of several businesses who are considering moving operations into the plant.

"We are hopeful that Chrysler will work with these companies and the property will be viable," she said.

Larry Finch, director of community planning and development, said Chrysler would have rights to the property until July. After that, a prospective buyer could begin preparing for its operations and ordering equipment.

"It would probably be the end of next year before a business was operating in the facility," he said.

Finch also explained that the businesses looking at the stamping plant would not need the entire facility for operations.

"This could mean that another business could move in eventually," he said.

As the economy recovers, Finch said he expects that income tax revenue from existing businesses also will increase.

"Companies could start bringing back employees where there [previously] had been layoffs," he said.

E-mail: ecanning@recordpub.com

Phone: 330-688-0088 ext. 3172