Salem council to seek increase in income tax

Photo

Jerry Wolford

By D.a. Wilkinson

One councilman wants to make the tax increase permanent.

SALEM — Council took the first step needed to place a four-year, half-percent income-tax increase on the fall ballot.

But council members indicated Tuesday night they are far apart on the measure that will take two more council votes to reach voters.

Democrat Councilman Earl A Schory II, who heads council’s committee of the whole that previously discussed the tax, said he felt uncomfortable even bringing it up.

“I don’t know if I can introduce it,” he said.

But Republican Councilwoman Rita O’Leary said she would bring up the proposal.

O’Leary had the measure voted on once. She said the second and third readings needed for passage to put the tax before voters would be brought up at the next council meeting.

Mayor Jerry Wolford wants the proposed tax to generate about $2 million a year for four years. The city’s 1 percent income tax now brings in about $4 million a year.

Councilman Dennis Groves said he wanted to see the proposed tax turned into a permanent tax for any purpose, not just for capital improvements.

But Councilman David Nestic, an independent, pointed out that, “Government tends to grow in good times and bad times.”

He pointed out that people who work in the city but don’t live in the city don’t get to vote on the issue. The city pays its share of city worker benefits for the Public Employees’ Retirement System, as well as the worker’s share to the system. Nestic said most people are unaware of that arrangement.

Nestic said, “It’s a gold-plated table.”

Several residents at the meeting also complained about flooding in their homes and on streets last month and in recent years.

Steve Andres, safety-service director, said he had dug through old studies on the city’s water and sewer lines that dated to 1967.

Andres said the report showed, “There were manholes not located where they were supposed to be, and other manholes where they were not supposed to be.”

Andres said, “I’m not trying to make excuses.”

The report said at that time that the expected cost of fixing the sewer-runoff problems was $2.9 million.

wilkinson@vindy.com