Crescent-News.com - Napoleon may vote on income tax

By JARED ORZOLEK

NAPOLEON -- Faced with a bottom line battered by the United States' economic downtown, Napoleon officials began an effort Monday to increase city income with a tax increase.

The move came as city council prepares to pass the 2009 budget, which will likely take place later this month.

Council passed a motion directing city law director David Grahn to draft legislation to allow voters to decide a .3 percent income tax hike in the May primary election.

With voter support, the .3 percent tax increase would bring Napoleon's total income tax rate to 1.5 percent, 1 percent for general operations and .2 percent for the parks and recreation department (parks tax is slated for renewal as soon as November 2009).

Grahn was also directed to draft legislation to reduce Napoleon's 100 percent income tax credit, given to individuals who live in Napoleon but work in other communities, to 75 percent.

"I can't make this budget work with smoke and mirrors. It's got to be real money," said city manager Jon Bisher.

The income tax changes are not the only revenue-generating moves Napoleon officials made.

Council approved the second of three readings of legislation enacting rate hikes for the city refuse department and passed the first of three readings of legislation reducing the budget of the parks and recreation department.

As proposed on second reading, the refuse department will charge a residential trash collection fee that jumps from $12.55 to $18 per month in 2009. The tag fee for extra bags will increase from $1.50 to $2.

Commercial trash pickup will go from $4 to $5 per month, with recycling available at $18 per month, according to the legislation.

These fees will increase revenues by close to $225,000 annually and will support trash collection, recycling, seasonal cleanup, mosquito spraying and the yard waste collection site.

The legislation also stipulates that items set out for seasonal pickup can only be placed at the curb within five days of the scheduled collection time.

Council previously tabled the first reading of legislation establishing user fees for the city's youth sports programs administered through the parks and recreation department, but heard the first reading of amended legislation Monday.

The parks and recreation department, which is supported by the voter-approved .2 income tax and subsidized by the city's general fund, is expected to spend close to $900,000 in 2009.

The legislation reduces capital expenses for the parks and recreation department and increase fees by $5 for shelter house rentals -- moves which reduces the general fund subsidy by close to $30,000.

Previously proposed within this legislation were sports program user fees totaling $20-$30 for residents and $25-$35 for non-residents for each sports program. These fees are not included in the legislation as passed Monday.

Council was to discuss legislation which would have given 2.5 percent pay increases for 2009 to non-bargaining city employees, but tabled that legislation pending further review of the budget.

Council will review the fiscal measure Monday during a special meeting slated for 7 p.m.

In other business, council:

-- passed third reading of legislation authorizing a license agreement for a piece of city-owned property to Norman Minnick. The city is issuing the agreement for the Maumee Avenue property because Minnick owns adjacent land and the city does not utilize the property.

-- approved 5 percent increases in the city's EMS rates.

-- approved a $3,500 change order, increasing Hull and Associates' contract for work on a project related to the relocation of the yard waste site.