Officials warn of woes even with sales tax

Commissioners must have hearings before enacting a sales tax increase.
By D.A. WILKINSON
VINDICATOR SALEM BUREAU
LISBON -- Columbiana County officials estimate that the county will have financial problems early next year even if things go well.
And, they said Wednesday, they will have an even bigger problem if they don't collect a 0.5 percent sales tax.
Commissioner Sean Logan said that the county "is looking at some pretty drastic situations coming up."
Commissioners expect that they will be short of money earlier in the year instead of running short as usual at the end of the year.
Voters earlier this month rejected the 0.5 percent sales tax for the third time.
Commissioners voted to have public hearings at 1 p.m. Dec. 6 and 6:30 p.m. Dec. 13 at the courthouse on whether to enact the sales tax.
Loss leaves hole
The commissioners still collect the 1 percent sales tax approved by voters, but the loss of the 0.5 percent sales tax left a 4 million hole in the county budget.
Commissioner Gary Williams suggested commissioners again begin to collect 2 mills of real estate tax, which they can do without a vote.
But Logan and Commissioner Jim Hoppel voted against the idea. The property tax would bring in about 3 million a year.
Without the 0.5 percent tax, the commissioners say they are looking at a 14 million budget next year. When commissioners collected the half-percent tax, the county had an 18 million budget.
Sorely needed
Commissioners said that even if they enact the 0.5 percent sales tax, the county will have a financial crunch. State collections of the additional tax won't reach the county until mid-year.
Hoppel said, "I'm convinced we can't do without it."
Williams, who was defeated for re-election in November, said the county commissioners had been their own worst enemy in seeking approval of the tax because they kept telling residents they needed the additional tax revenue.
County officials have predicted a problem from a lack of funds, but they have since found ways to cut spending and keep operating.
Williams added that if commissioners enact the tax and instantly borrow against receipts to keep full operations going in 2007, it would take three to five years for the county to straighten out its finances.
Hoppel had agreed in 2000 to give up collecting the real estate tax if voters approved the 1 percent sales tax. He said he wouldn't break his promise to voters by again collecting the millage.
Logan said that if the commissioners enact the 0.5 percent sales tax, voters could put a measure to repeal it on the ballot in 2007.