Salem wants tax increase to restore services in city

Current tax receipts sit at about $5.1 million a year.
By D.A. WILKINSON
VINDICATOR SALEM BUREAU
SALEM -- City council members say they will ask voters to approve a 0.5 percent-income tax increase in November.
Council members came up with the idea Tuesday during a committee of the whole. If approved, the increase would bring in about $1.8 million a year, according to city Auditor James Armeni. The city began collecting a 1 percent income tax in 1968, according to officials.
Armeni told council that income tax receipts are flat. The general fund, which runs most city offices, is about $5.1 million a year.
Council now splits its income tax receipts, with 80 percent going for operating costs and the rest going toward capital improvements. Armeni said the tax and split is the envy of some other communities.
Councilman Clyde Brown said the tax was needed to restore city programs, such as paving streets instead of patching them. Brown said the tax can be sold by going door to door.
Council Greg Oesch said, "It's up to taxpayers if they want to incur more taxes."
But council agreed earlier Tuesday to recess as usual during August. Council then turned around and set a special meeting for Aug. 15 to act on portions of the voter-approved plan to negotiate for utility rates.
But Councilman Justin Palmer said, "I don't think we need to do something right now."
Officials said the deadline to put the issue on the ballot is Aug. 24. Palmer said council would probably have to hold at least one public hearing on any proposed issue.
Palmer noted that Law Director C. Brooke Zellers was not present to advise council on whether it can make the deadline. Some council members have failed before to put an issue before voters on a tight deadline after quick discussion.
Ongoing fire district dispute
After the meeting, Palmer mentioned the issue that no one talked about during the meetings. An administrative law judge has recommended that the State Employment Relations Board find that the city violated state law in creating the Quaker Community Fire District with Perry Township.
Council members in 2005 created the district, saying it would save $600,000 a year.
Michael Burns, head of the firefighters union, said council had been saying that the $600,000 would take care of the city's tight revenue. Now, he added, the amount council says is needed has jumped to $1.8 million.
"Council needs to address the issue before putting it on," Burns said.