Lowellville officials express need for half-percent income-tax hike

By Jeanne Starmack

LOWELLVILLE — Village administrators and council members want to sell residents on an income-tax increase, and they have until it goes on the ballot in May to do so.

Council is expected to vote on putting the increase on the ballot at a special meeting Monday. The increase would be from 1.5 percent to 2 percent.

Before a council meeting Wednesday, council, the mayor and administrators hosted a public hearing to present their case for the increase and to take questions. The meeting was sparsely attended.

Last year’s income tax brought in revenues of $318,000. The increase would raise an additional $100,000, which, officials said, will be put to good use.

A big concern, says Mayor Jim Iudiciani, is budget carry-overs from one year to the next. He said the village uses the carry-overs to afford matches for state grants to do street, sidewalk and curb projects.

At the end of this year, there may not be a carry-over, he’s said — and it will be hard to come up with funds for the projects.

Iudiciani also said the village should start a paving program.

Councilman Phillip Alfano agreed and added that the village needs new equipment for streets.

Council members also said the village has been lucky to have good services, such as a full-time police department. May small towns don’t have that, they said.

“Our police are full time but get paid part time,” said Councilman Keith McCaughtry. “Our employees need pay raises,” he continued, adding their pay is not as high as their counterparts’ in nearby communities.

Council members said they could run the village without the increase, but residents will have to make do with less.

“We’re not saying if you don’t pass this, we’ll lay people off,” said Councilman Robert Coppola. “But we’ll have to do without and we’d like to do a lot more.

The increase is so we can prosper and move on,” he said.

Costs have gone up, said Councilman Paul Meehan. An example, he said, is the cost of street lights — from $6,400 a year in 1995 to $22,000 a year now.

“Today is a good day to talk about salt,” he said. Last year’s cost for road salt was $12,000, he said — in 1995, it was $1,500.

Councilman Ronald Rotunno said the $100,000 extra in the budget could help with projects in the business district, and new businesses might move in.

The police and fire chiefs said they support the increase.

“People need to wake up and realize we aren’t back in the 1970s,” said Police Chief William Vance.

The village’s 1.5 percent income tax has stayed the same since 1976.

Fire Chief Al Boggia said that right now, one of the department’s engines needs a part that costs $4,000. He said that in the department’s $36,000-a-year budget, he’ll have to take the money away from another line item.

“I’m in full support of this,” he said. “Diesel fuel, everything it costs to run the department is going up, but our budget isn’t.”

Iudiciani says the timing may be unfortunate with the bad economy, but he has been telling council for seven years that it needs to put an income tax on the ballot.

Coppola said that by the time the tax takes effect, in January 2011, the economy might be better.

The income tax doesn’t affect everyone who lives in the village. It affects people who live and work in the village, or people who live in the village and work but don’t pay an income tax elsewhere. People who live in the village and work in a city that has a higher income tax have to pay the difference to that city. The tax increase won’t affect retirees.

Council members also said they are supporting the county’s half-cent sales-tax renewal that will be on the May ballot.

Anna DeAscentis of the county commissioners office said the half-cent represents an estimated $13 million of the county’s overall estimated revenue of $57 million for 2010.