Village prepares to raise income tax to 1 percent

The income tax would double but not the income to the village, councilmen say.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
LORDSTOWN -- Village council is expected to begin the legislative process Monday to increase the income tax from 0.5 percent to 1 percent.
Members of council's finance committee agreed unanimously Tuesday to have the village solicitor prepare legislation increasing the tax effective July 1.
The tax currently generates about $3.2 million annually. This is down from $3.5 million in 2004.
Councilman Richard Briggs, committee chairman, said how much the added tax will generate is difficult to determine because of the unsteady economic climate.
Councilman Richard Dray said that though the income tax would double, the amount raised won't because of the downturn in local economic conditions.
Briggs said there will be an estimated 1,562 employees lost this year through July 17 at the General Motors Corp. and at Intier Automotive, which makes seating for GM cars made at the Lordstown complex.
There also could be reductions in work forces at companies that provide services to GM and Intier, and at Delphi Packard Electric Systems.
The cutbacks could cost the village between $750,000 and $1 million a year, Biggs estimated.
"This is going to be devastating to us," Biggs said of the job losses.
Here's the situation
Briggs, along with other committee members, Dray and Councilman Arno Hill, said the community needs the infusion of money from the increased income tax so the village doesn't deteriorate.
Committee members said that the village has not been maintaining its roads for the past two years and it has two bridges to maintain.
They also said traffic signal upgrade will cost $1.4 million, and sanitary sewers on the east end will cost $8 million to $11 million.
"We feel this is the responsible thing to do," Hill said, noting that an income-tax increase has been discussed for about four years.
Committee members pointed out that the village has been prudent with its current budget, noting the street department has been reduced from 10 to four employees and village workers are under a one-year wage freeze.
Dray said he thought the legislation would be approved by council.
He said the 1 percent tax would be low compared with Warren's 2 percent income tax and Youngstown's 2.75 percent.
The 0.5 percent tax has been in place since 1977.
yovich@vindy.com