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Waynesville: Institute income tax or abolish village

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Steve Johnson, a village of Waynesville Street Department employee, tries unsuccessfully Friday, Nov. 6, 2009, to repair a chipper that hasn't been used since last year. Village manager Bruce Snell said street maintenance items could be on the chopping block since voters rejected the proposed 1 percent income tax levy last week. Staff photo by Apryl Pilolli

Apryl Pilolli/Staff photographer Steve Johnson, a village of Waynesville Street Department employee, tries unsuccessfully Friday, Nov. 6, 2009, to repair a chipper that hasn't been used since last year. Village manager Bruce Snell said street maintenance items could be on the chopping block since voters rejected the proposed 1 percent income tax levy last week. Staff photo by Apryl Pilolli

By Justin McClelland, Staff Writer Updated 12:36 PM Wednesday, November 18, 2009

Waynesville leaders say if they do not institute an income tax immediately, they will have no choice but to abolish the village.

Council directed staff to draw up plans for an income tax at a meeting Monday, Nov. 16. Even though a measure to get voter’s approval on an income tax in Waynesville was soundly defeated by 38 percent on Nov. 3, village council can still vote in its own income tax of up to 1 percent.

“I will go ahead and be the bad guy and recommend (an income tax),” said councilwoman Sandy Stemple. “This is our only option.”

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, who did not work for the village during this time period. Since that time, an entirely new leadership panel has taken over Waynesville, but they are left to dig the village out of its financial hole.

“We didn’t create the problems, but they are our problems to fix,” Snell said.

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.

“What cuts are we going to make?” said Charles Feicht. “There’s nothing left to cut.”

Feicht said the city could eliminate street resurfacing and snow removal, but even those areas would not entirely eliminate the village’s deficit.

Of the council members, only Mayor Earl Isaacs said he would not vote for an income tax, but when pressed, did not have an alternative plan to suggest.

Stemple and others said the only alternative they saw beyond an income tax was to formally dissolve the village of Waynesville. Such a move would put the entire village under county and township control with the debt left divided and assessed to the property taxes of the former village.

“We have to pay one way or another,” said Ron Kronenberger, a village business leader who attended the meeting. “We pay for an improved quality of life by living in an incorporated village with our own services or we pay for nothing.”

If Council does institute an income tax, voters could repeal it through a referendum vote. With close to 700 people voting against the income tax levy in November, members of the Village Council conceded a referendum vote was likely, but pledged to inform voters why the income tax was necessary.

The Council will meet at 7 p.m. Thursday, Nov. 19 to explore the specifics of an income tax.

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

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