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Mayor against Waynesville income tax

Council members in Waynesville, home of the annual Ohio Sauerkraut Festival, will vote in the next two weeks to institute an income tax.

Staff photo Council members in Waynesville, home of the annual Ohio Sauerkraut Festival, will vote in the next two weeks to institute an income tax.

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By Justin McClelland, Staff Writer 5:00 PM Friday, November 20, 2009

Waynesville Council is pushing forward with plans for an income tax it says is necessary to save the village despite open hostility from residents.

At what was technically a meeting of the three-person finance committee, but attended by all members of council as well as more than 50 residents, the committee recommended Thursday, Nov. 19 that council install a 1 percent income tax for five years. The income tax would carry a full credit for residents who work in other municipalities and pay a local income tax there.

Even though a measure to get voters’ approval on an income tax in Waynesville was soundly defeated by 68 percent on Nov. 3, council can still vote in its own income tax of up to 1 percent.

The village is facing a deficit of more than $250,000, particularly in police and street maintenance and repair funds. The village has been under fiscal emergency since April 2008 and has had financial problems dating back to 2005, when virtually no bookkeeping was done for at least 18 months, according to Village Manager Bruce Snell.

Several council members have said that if they do not raise the money, they will have no choice but to dissolve Waynesville.

Council must present a recovery plan to the state’s recovery commission by Dec. 29. The plan must give a detailed strategy of either cutting costs or raising revenue to make up for the village’s $250,000 shortfall.

“The income tax would remove the burden from being fully on the property owners,” Snell said, before noting that he would have to pay the tax if imposed, as would all village employees.

“It’s obvious we didn’t want it,” said resident Ed Vaca. “Our elected representatives should consider our voting.”

Vaca did note that the residents had passed several property tax levies over the past two years including a library, school, and police levy.

“If you can justify why you need it, there’s a good chance it will pass,” Vaca said.

“Don’t be so damn afraid of an income tax,” said Ken Harris, who added he felt residents needed to read and fully understand the tax before rushing to judge it.

Of the seven person village council, only Mayor Earl Isaacs has spoken out strongly against the tax.

“I’m not shoving anything down the residents throat,” Isaacs said.

Isaacs said he believes the fiscal emergency means that the village should make deeper cuts, up to and including eliminating the role of the village manager and embracing the “strong mayor” method of government. Gary Pelkey, who will take a village council seat in January, made a similar suggestion during the open forum.

“Before we had a village manager, we had a government center that was perfect for this town and it was paid for,” Isaacs said in a written statement. “Every village manager we have had has done nothing but talk the council members into growing a government that we the citizens cannot (sic) afford, and use this town as a stepping stone to advance their career.”

Isaacs also suggested cutting pay for part time police officers and eliminating one full-time officer.

Isaacs downplayed concerns of the village being abolished.

“The village of Waynesville has been here for 200 years,” Isaacs said. “We’ll get through this.”

Council woman Sandy Stemple, who heads the finance council, said that 80 percent of the money raised through the income tax would go to paying down the village’s debt, while the other 20 percent would go towards its general fund, which pays for police and village salaries. If council does institute an income tax, voters could repeal it through a referendum vote.

Council will next consider the proposed income tax at its meeting Monday, Dec. 7 and vote on the matter Dec. 14.

Contact this reporter at (513) 696-4544 or jmcclelland@coxohio.com.

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