Canfield residents to vote on half-percent income tax increase in August

CANFIELD

City residents will vote on a half-percent income-tax increase in the Aug. 4 special election.

City council Wednesday unanimously approved putting the tax issue on the ballot.

That additional half-percent — making the effective income tax 1.5 percent — would generate an additional $1.5 million annually. The city initiated its 1 percent income tax in 1972.

City Manager Joe Warino explained that general fund expenditures have risen while general fund revenues have steadied or decreased. The difference between the two was a surplus of $170,372 in 2010, a deficit of $613,149 in 2011, a surplus of $743,373 in 2012, a deficit of $245,080 in 2013 and a surplus of $97,540 last year.

Warino explained that there was an influx of about $200,000 in 2011 due to selling a city-owned property and another influx of about $358,000 in 2012 from selling stock. He added that the city eliminated longevity pay for employees a few years ago, bringing about $20,000 back to the general fund.

“Costs aren’t going down, and our reimbursements and revenue are going down,” said Councilman John Morvay.

Warino also cited money lost from local government funds, and the loss of the estate tax.

Read more about the situation in Thursday's Vindicator or on Vindy.com.