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Income Tax Increase Unanimously Recommended to Council

Mayor Bill Tomko entered office in January of 2016

Mayor William Tomko, 2016

On Tuesday May 31, the finance committee of council, meeting as a committee of the entire council, (all council members were present and voting) voted unanimously to recommend to council putting the administration-proposed tax increase on the November 2016 ballot.

The residents of the Village will now have the final say in what kind of town they want Chagrin Falls to be.

The proposed income tax increase will be from the current rate of 1.5% to 1.85% (approximately 1/3 of 1 percent). This will result in a maximum tax increase of $35.00 on every $10,000 of wage income before applying the tax credit for taxes paid to other taxing communities. The tax increase will not apply to retirement income or passive income such as interest or dividend income. For residents living in Chagrin Falls and working in another taxing community, (which is the overwhelming majority of our residents), the current tax credit rate of 75% will remain unchanged and unlimited in amount. This proposed increase is projected by R.I.T.A. to generate $750,000 per year.

The use of these funds would be restricted to funding:

1. Permanent improvements

2. Infrastructure maintenance

3. Cemetery perpetual care

During the next five years, approximately 75% of the funds generated by the proposed tax increase will go towards road repair and maintenance. For a detailed listing of where the proposed tax increase will be spent see the Proposed Projects Spreadsheet where we have listed each proposed project by year and the reason why we are proposing to undertake the specific project.

While no one likes any tax increase, I believe the proposed tax increase is the fairest means to raise the funds required to finance vital capital replacements and maintenance projects. We are not asking for funding for nebulous projects as we have specifically identified the individual projects and stated the reason we are proposing to spend funds on it. Most identified projects can be seen by driving down the road and for those that can’t call me (247-8399) and I will show you the project.

There will be several council meetings (June 13 and 27) before this proposal goes to the Board of Elections for placement on the November general election ballot. At each of these council meetings there will be ample opportunity for public input on the proposed tax increase. If you wish to comment or have questions, I encourage you to come to the meetings.

 

Mayor Bill Tomko

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