Council gives second reading to increase in taxes

Council and administration say they don't want to see Lordstown slide back.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
LORDSTOWN -- Village council is expected to increase the income tax from 0.5 percent to 1 percent at its June 19 meeting because all lawmakers say they support it.
At the request of Councilman Richard Biggs, chairman of council's finance committee, lawmakers moved the legislation boosting the tax to a second reading Monday. He asked for passage at its next meeting.
Biggs said the income-tax increase effective July 1 will generate about $2.7 million annually. He pointed out that the village had anticipated revenue this year of $3.2 million, but will actually take in $2.7 million.
The increase is needed, Biggs said, because he doesn't want to see Lordstown become a "Third-World" community.
Council received a generally mixed reaction from residents who addressed the issue during the meeting.
"This tax thing is insane," commented resident Phillip Tobin. He called for cost-cutting measures rather than putting the cost "on the backs of workers."
Dick Morgan, who served council for 12 years, said he doesn't know of any way to continue services except with a tax increase.
Another resident suggested the tax be placed before voters rather than council imposing it.
Councilman D. James London countered that putting the increase before voters "is the easy way out."
Another resident suggested that the imposition of the tax may detract from any money-generating issue placed before voters by the school board for building renovations. The school board must go before voters to generate revenue.
Mayor Michael A. Chaffee said the village is at a financial crossroad, and to do nothing is the wrong course of action. "The schools are very much a part of this whole thing," the mayor said, noting sanitary sewers and road maintenance will hopefully attract residential and business development that will increase property taxes that go to the school district.
Problems with GM
Although revenue is falling off because of layoffs at the General Motors Corp. complex here, the installation of sanitary sewers and road maintenance "is the primary engine" driving the need for the increase, Chaffee said.
Councilwoman Mary Jane Wilson said that close to half the residents don't have sanitary sewers and are facing the high cost of having new septic systems installed.
Although supporting the issue, Wilson said she would have rather seen the increase with a five-year limit when it would be reconsidered by lawmakers again.
For Councilman Michael Sullivan, the loss of the third shift at GM was his deciding factor to support the increase, adding that the automaker doesn't pay any property taxes because of the abatements it has continued to receive.
"I don't want to see our village deteriorate," said Councilman Arno Hill, noting it has spent a lot of money over the years to keep GM in Lordstown while other communities haven't spent any funds.
Councilman William Dray argued that nearly a third of the village's budget was spent recently to secure a new waterline for the GM paint plant. He noted the village only received $2,892 annually from the property tax.
The village is 25 square miles with 72 miles of roads to maintain, Dray added.
He pointed out that GM does not support the police and fire services. He said the village paid $680,000 for a ladder truck the village didn't need, but was purchased to reach the roofs at GM complex.
yovich@vindy.com