COLUMBIANA CO. Financial situation is studied
Council says it will inform voters about a corporate ballot issue.
By D.A. WILKINSON
VINDICATOR STAFF WRITER
SALEM -- City council may not immediately seek a general tax increase at the ballot despite declining revenue.
Council did vote Tuesday to put one issue that affects corporations before voters, but it did not seek a general revenue increase.
When it comes to the city's general financial woes, Councilwoman Nancy Cope, R-at large, said after the council meeting, "I think we're going to try something."
However, she declined to indicate what officials may do instead of putting a tax issue on the ballot.
Council set a special meeting at 4:30 p.m. Thursday to discuss the city's finances.
Cope, the head of council's finance committee, told council there have been talks about an income tax increase, levies and cutbacks.
"There's kind of been an ongoing discussion about this," Cope said. "It's not a quick decision for us."
The city's income has remained stagnant over the past four years, while all costs have risen, she said.
City's income
Revenue and spending figures weren't immediately available, but Cope said the city's income this year is about seven percent behind last year.
City officials have said that the recent closing of the Eljer Plumbingware Co. in Salem will cost the city about $60,000.
Cope noted that Salem has been more fortunate than other municipalities that have had to lay off workers.
Council did vote unanimously to ask voters in November to decide whether to tax "S"-type corporations.
Such corporations are now being taxed by the city but the federal government decided last year that the public had to vote on such taxes, according to city officials.
While the amount generated by the tax isn't large, city officials said, the city needs the revenue.
The amount generated by the tax each year wasn't immediately available.
Information explaining the corporate issue to voters will be presented before the November election, council members said.
wilkinson@vindy.com