Sunday, April 18, 2004
The city has lost about $200,000 in income taxes due to plant closings.
By NANCY TULLIS
VINDICATOR SALEM BUREAU
EAST PALESTINE -- City officials won't know for a few weeks if city council's 2002 repeal of a tax credit for residents who work outside the city will have a significant impact on tax revenue.
The city began Jan. 1, 2003, to collect taxes from residents who work outside the city, and the taxes are being collected now. The residents had the choice of making estimated tax payments along the way or paying a lump sum by April 15, 2004.
City Finance Director Connie Robinson said the city has lost an average of about $200,000 per year in income tax revenue the past few years because of the closing of manufacturing plants.
Concerning the 2004 budget, Robinson said there was a carry-over from 2003 of about $59,000.
City council agreed to borrow $100,000 from the city's electric trust fund to cover expenditures for 2004. The 2004 budget is $7.3 million, with $1.8 million for the general fund.
Other actions
To help with budget shortfalls in recent years, city officials have borrowed from the city's electric trust fund, and city employees represented by the Teamsters and Fraternal Order of Police agreed to wage freezes.
Rich Pillsbury, who was a part-time patrolman and the city's service director, took a full-time position as a police patrolman. City Manager Gary Clark took over the service director's duties and the position of service director was abolished.