Plan to look at revenue from taxing suburbs

The city also plans to restructure its economic development department.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- With its long-awaited economic development plan expected to be unveiled later this month, the city wants its income tax collection agency to determine how much additional money the program could create by taxing those who work in surrounding suburbs.
City council will consider legislation Wednesday to authorize the board of control to pay 90,000 to the Regional Income Tax Agency. RITA, based in Brecksville, would provide a tax analysis of potential Joint Economic Development Districts and Systems.
RITA would provide analysis as to how much income tax revenue the JEDD and JEDS would generate for Youngstown and the surrounding communities as well as assist the city in explaining the benefits of the economic programs, Mayor Jay Williams said.
The study is supposed to analyze the city water operations to determine scenarios for selling water and expanding the service through JEDD with townships and JEDS with cities.
Would lower tax rate
The city would be able to immediately lower its 2.75 percent income tax rate to 2 percent or 2.25 percent for those who work in Youngstown but live in communities that agree to JEDD and JEDS, Williams said. Those who work in the JEDD and JEDS would pay an income tax with the amount and the split determined during negotiations with the other communities, Williams said.
The Youngstown proposal has met with resistance from officials in Boardman and Austintown. The officials are concerned the city wants to annex the townships even though Williams repeatedly says that isn't his intention.
The study is supposed to be ready later this month, Williams said. Discussions with surrounding townships and cities will also begin this month, he said.
"This is not a quick process," Williams said. "We want to negotiate for large, fairly comprehensive locations."
The city hired RITA in August 2005 to collect its income taxes. RITA collected 48.7 million in income tax in 2006 for the city compared with 46.1 million the year before. The increased amount is a combination of RITA's aggressively pursuing those who didn't pay city taxes as well as an increase in employment and employees' salaries in the city, city Finance Director David Bozanich has said. RITA's fee last year was about 1 million.
Department changes
Also Wednesday, council will consider legislation to restructure the city's economic development department.
Jeffrey Chagnot, the department's director, is resigning June 30 after working for the city for 30 years. Katie Timlin-Weily, the department's development director, has told the finance department she plans to resign in the next few months.
If council gives the go-ahead, the director's annual salary will go from 72,451 to 60,358 immediately and rise to 66,544 after two full years.
Timlin-Weily's job would be eliminated when she leaves. Timlin-Weily, a city employee for nearly 28 years, earns 44,321 annually.
The city would hire a project/grant coordinator with a starting annual salary of 56,000, increasing to 61,740 after two full years. Also, the city would name a monitor and compliance coordinator on a part-time basis. That person would earn 21 an hour for up to 1,500 hours a year, or a maximum salary of 31,500.
All of the jobs are selected through a written civil service test. If T. Sharon Woodberry, the city's deputy economic development director, is selected as director, her current job would probably not be filled, Williams said.
skolnick@vindy.com