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Citizens committee and Warren mayor agree that city needs half percent income tax increase
By Ed Runyan
WARREN
A citizens committee and Mayor Doug Franklin have exchanged letters regarding the committee’s recommendations for how to use additional money that would be generated by a half-percent income-tax increase on the ballot next month.
The committee said in a letter to Franklin dated Tuesday it “unanimously and strongly” endorses the tax increase.
The five-member committee, headed by businessman Paul Clouser, had unfettered access to city financial information while investigating the proposed tax increase.
The committee made nine recommendations to Franklin, including one that city officials say they can’t promise – setting aside $200,000 per year in a reserve fund to improve the city’s bond rating and overall financial health.
The committee said its review found that the city’s general fund, which pays for basic services, is “in serious financial distress,” in part because revenues have dropped by $7 million since 2008.
The recommendations assume passage of the tax, which would increase city revenue by $3.5 million to $4 million per year.
If the tax fails, Franklin has said “drastic cuts” are in the offing, including layoff of about 10 police officers. A two-year federal grant the city has accepted will provide funding for the fire department.
The following are the responses Franklin gave to the committee recently:
1. The committee recommends the hiring of 13 police officers, with emphasis on the heroin epidemic and the “collateral crime it generates.”
Franklin: He anticipates hiring eight to 12 officers.
2. The committee points out that the $2.4 million U.S. Department of Homeland Security Assistance to Firefighters grant the city recently received could make it necessary to make even deeper cuts in the police department if the tax fails at the polls.
Franklin: He vows to set aside $1,057,000 in the next two years if the income tax passes so that firefighters hired under the grant “can ideally be retained after the expiration of the grant.”
3. The committee and city agree that $500,000 per year should be spent on roads.
4. and 5. The committee recommends that the city set aside $200,000 per year in a reserve fund and other money for economic development.
Franklin: The income tax increase can only be used for police, fire and roads.
6. The committee seeks quarterly meetings with the mayor regarding economic development.
Franklin: He agrees, as long as the companies involved agree to disclosure.
7. The committee seeks quarterly meetings with the auditor regarding finances. The auditor agrees.
8. The committee seeks a meeting with Franklin after the November election to schedule a community forum on issues not directly related to the levy. Franklin agrees.
9. The committee seeks monthly meetings for the next two years to discuss issues such as hiring and retention of police and fire personnel, the city’s golf course and energy-efficiency. Franklin agrees.
In addition to Clouser, the committee consists of Rocco Adduci, principal at Liberty High School; Dick Thomas Jr., former Warren service director; Roy Yancy, a citizens advocate; and Pastor Todd Johnson. Adduci and Johnson were selected by Franklin; Clouser picked Thomas and Yancey.