Roll Call: Lynn Love, George Yakoubian, Ed Treft, Louie Sanders, Tim Bulger, Kirk Stanfield Others Present: Village Administrator Greg Martin, Solicitor Heather Niedermeier Heyman, Matthew Mau from RITA (via telephone)

 

The Village has invited residents to take part in discussions regarding a 1% income tax. The meeting started with an overview of the proposed tax, which is a 1% income tax, with no credit. A review of the last meeting was given, including some updated answers to questions: - If any credit were to be given, it would be on the tax withheld or paid to another municipality. - If you are currently filing a Form 37, or any other RITA form, you would simply just add the Village of Attica to your return. You don’t need to fill out an additional form. - Business income is taxed by starting with the AFTI or Adjusted Federal Taxable Income. More information is on the ritaohio.com. - Income tax will be withheld and remitted by the employer. If you work in a municipality that does not have an income tax, you can set up an estimated tax with RITA and make quarterly (or more often) payments. A list of priorities for the use of tax income was reviewed, including (in no particular order): street paving/repair, storm sewers, abandoned properties, parks/pool improvements, public safety and ordinance enforcement, Village office staffing, civic improvements/community activities, downtown revitalization/Village pride. Several attended. Questions/comments/answers are recapped below: Councilman Love: If we were to amend the resolution, how would we do that? Solicitor Heyman: If before the ordinance is passed, by a motion to amend; if after passed, by another ordinance. Jeff Love: Will there be a dollar amount or percentage attached to funds or projects when this is passed so people know where the money is going? That is the goal. Do you think it’s best to let voters decide? Council can enact up to a 1% income tax by ordinance, anything above that must be passed by a vote. Tony Wurm: How many other places have started out with no credit and then changed it later to give a credit? (Matt Mau/RITA) That’s not something readily available; could try and look that up. The Village is currently being sued by a member of Council, but you think you can handle our 1% income tax? Unable to discuss pending litigation, but the same issue has been raised twice before with negative results. I don’t think it’s fair to use that money for abandoned properties. I would like to see something that enforces the junk ordinances if this is passed. Paul Jones: I lived in a town where they passed this and just kept going up. Who’s to say that won’t happen here? Council can only enact up to 1%. Anything above that would have to be passed by a vote. They cannot add an additional 1% later; it’s 1% total. Steve Swander: I don’t see a need for the income tax and believe you should spend within your means. Based on numbers, half of this would go to police? In local government, we cannot spend what we don’t have. Lou Hoyles: Why can’t you spend the $1M in the bank? There are restricted funds. The balance you hear at each meeting is a pooled balance. Some of it is restricted. A few examples: $130,000 is CDs, $66,000 is Coronavirus Relief funds that were given this year to be spent on specific things and returned if not spent, $42,000 is an advance to fund the Veterans Memorial Park project, $167,000 is a reserve balance for USDA loan payments in 2048/9 that we must keep at that balance. Fund monies must also stay within a certain fund; for example, the sewer fund could not pay for something in streets. Tom Holmer: What is happening with the water plant; are they going or staying? That has not been determined, and the Village is exploring options at this time. You are asking for our money; we just want to know why and where it will go. Joe Wagner: Will HB5, with the 20-day rule, be in effect here? We are not familiar with that and will have to get back to you on that. It would be nice to see an allocation of where the money is going to go.

 

Other discussion was had that while public safety is a priority, specifically a police department is low priority. There are other options, but even contracting with the Sheriff’s office for one patrol for 40 hours could be as much as $72,000. Also, without a contract, the Sheriff will only enforce state laws, not local ordinances.