01/06/2009 Meeting Minutes - Laserfiche WebLink

Home Browse Search

Council Minutes of 1/6/2009 opposed to the issue. The reasons for it were varied from individual circumstances to their general view of what the economy was doing and where the economy was heading. Some people who had relatives that were laid off spoke against it and the impact it would have upon those families in North Olmsted who had one working spouse, or the other spouse had just recently lost their job. The committee did receive some support for the tax increase as well. Some residents rose to speak saying, if it was important enough to be able to assist in the safety forces and avoid additional layoffs, then that would also be an important reason to pass this particular piece of legislation. This tax credit reduction issue does not have anything to do with the layoffs of police and fire and other workers in the city which have already occurred. This is separate and apart from that. The $483,000 deficit exists after the .layoff of 15 employees is considered. In committee, Councilman Gareau made a motion to hold the legislation in committee until the 2009 appropriation ordinance is reviewed. The committee motion was seconded by Mr. Kearney, and it passed 2-1 with Mr. Barker voting no. After speaking with individual members of Council, it was the consensus that they would like to issue to come out of committee and put to a vote. There has not been a great deal of support from Council on the issue of the tax increase. Councilman Gareau made a motion to relieve Ordinance 2008-164 from the Finance Committee and place it on the agenda for second reading. The motion was seconded by Councilman Barker. Roll call: Gareau, yes; Barker, yes; Jones, yes; Kearney, yes; Ryan, no; Orlowski, yes; Mahoney, yes. The motion passed with six yes votes and one no vote. Ordinance 2008-164 was removed from the Finance Committee. Mayor O'Grady thanked Councilman Gareau for the report which he said was accurate. The income tax credit reduction does not affect the layoffs that have already occurred. Those are separate. The income tax credit reduction passage does affect future layoffs. The administration has done everything they could do to control costs; they are down to very bare bones and there is no maneuver room left. His administration and the Finance Director have brought together a good, sound financial recommendation to Council that this additional revenue is needed. Without it, there will be additional layoffs. The Ohio General Assembly has repeatedly considered elimination or adjustment to the local government fund. If they choose to eliminate this, which could be done in July, that will be a reduction of $1.2 million in revenue. That is a massive amount of money considering the General Fund is $20 million. Without the tax credit reduction in place, we will see additional layoffs of Police and Fire and Service, and it will affect service delivery to our citizens. At the caucus meeting, he asked that the current legislation be amended to reflect input that the administration received from members of Council. The term has been adjusted to two years instead of four. Additionally, the reduction in 2009 will be 50% and then only a reduction of 25% in 2010 to reduce the impact. This tax does not affect senior citizens who are on a fixed income; it does not affect the unemployed. It affects only those with jobs and those earning lower amounts are affected at a much lesser degree than those earning large amounts. He asks for the amendment and for passage at the next meeting. 6