Salem mayor proposes fiscal fix
By D.A. WILKINSON
SALEM
Mayor Jerry Wolford made a proposal Tuesday to ease the city’s financial woes, but city council didn’t respond.
Wolford suggested that the city end income-tax reciprocity with other communities.
Reciprocity means that Salem — and many other communities — does not collect income tax on workers who pay income tax in another community, or from people who work in Salem but live and pay income taxes elsewhere.
Salem has a 1 percent income tax.
Other communities, Wolford said, give a 20 percent tax credit to people who must pay in two locations.
Wolford said that eliminating the city’s ordinances on those two issues would generate $378,600 a year.
He said that the mayor cannot make the change, adding, “It takes four votes” from council.
City officials in February said the city was facing a $350,000 revenue shortfall.
Council members made no comment on his proposal.
In March, three firefighters were cut, leaving 12 firefighters and a chief. The newest firefighter has been brought back temporarily under an employment program and the cooperation of the firefighters union.
Three police officers were cut, leaving the city with 18 police workers and the chief and a lieutenant. None of the three has come back.
The police chief’s full-time secretary was laid off, with no backup worker, and a part-time housing inspector was furloughed.
Two workers in the street department are retiring and won’t be replaced. There would have been two layoffs in the street department without the retirements.
Council did approve an emergency ordinance with the American Federation of State, County and Municipal Employees Local 2701 for a one-year contract extension without a pay raise.