'Let them tell us yes or no': North Canton to ask voters for hike in income tax

NORTH CANTON − City Council agreed Monday to ask voters to increase the city's income tax by a half percent.

Council members voted 6-1 to place a request to boost the income tax from 1.5% to 2% on the March 19 ballot.

The council switched from its original intention to seek a raise from 1.5% to 1.75%.

City Administrator Patrick DeOrio said that if voters back the income tax increase, he likely would recommend council not seek a renewal of a 1-mill road levy that raises about $385,500 a year. That levy expires this year.

Related: North Canton Council set to ask voters to approve income tax increase

Ward 3 Councilwoman Stephanie Werren cast the lone vote against seeking the income tax increase. She had supported seeking the smaller increase to 1.75%.

If voters approve the increase, everyone who works in North Canton will pay an additional 0.5% of income they earn in North Canton starting in January 2025. Those who live in North Canton but work outside the city would pay an additional 0.5% of their work income, no matter where they earn it.

Council on Monday also capped the credit for city residents who work elsewhere at 1.5% of their income.

A person working in North Canton who earns $50,000 a year in the city now pays $750 a year. If voters approve the income tax increase, that amount would increase to $1,000 a year. A person who lives in North Canton but works in Canton and earns $50,000 a year now pays 2.5% of that income, or $1,250, to Canton. That North Canton resident would, with the increase, have to pay $250 to North Canton. They formerly would have paid nothing.

The city expects to raise $3.6 million more a year with the increase. It would have gained an estimated $1.8 million with an increase to 1.75% and capping the credit for taxes paid to other cities at 1.5%.

Werren had championed asking voters for the smaller increase. She expressed concerns that the cost of a proposed fire and emergency medical services facility could come in higher than the $10 million to $12 million estimate, which could necessitate another financial request to voters.

Werren also reminded members that nearly 58% of voters rejected a proposed 0.5% income tax increase to fund a new safety center in 2018.

City administrator: 'Do we just want (North Canton) to be another average city?'

DeOrio, the city's administrator, argued that an increase to 1.75% would be just enough to plug a $1.5 million funding gap. He said North Canton would not have the funds to build a fire/EMS facility, expand space for the Police Department; enhance the city's park system, as requested by residents; and explore renovations to Dogwood Pool.

"The question that really is before us is 'What is your vision for where this community needs to be?'" DeOrio said. "Do you want it to be the beacon on the hill in Stark County? Or do we just want it to be another average city?"

He further narrowed his focus.

"Why do we want to send (voters) something that's a half measure?" DeOrio asked.

DeOrio said about half of the firefighters are female. They do not have their own sleeping quarters, locker room and restrooms at the city's fire stations built in the 1970s. He said the city faces a federal lawsuit if it doesn't build a new facility that provides those things.

The administrator also added that the city would not receive the bulk of any tax increase until 2026 as many who owed the tax from their income in 2025 would likely not pay it until April 2026. So the city would have to make cuts in services before that time.

Mayor Stephan Wilder: 'Put it out to the voters. Let them tell us yes or no.'

Mayor Stephan Wilder also backed asking for the hike to 2%. He said businesses looking to move into the city don't ask him what the city's income tax rate is. They ask him about how many sites the city has with more than three acres of land.

"For us to continue and grow and advance our city, I think we're at a crossroads where we need to go for a 2% income tax request," he said. "Put it out to the voters. Let them tell us yes or no."

Council member Daryl Revoldt, at large, said the income tax rate has been 1.5% since 1971.

Council member Jamie McCleaster, Ward 1, said after seeing additional figures from the city's finance department, he supported asking for the bigger increase. He said cutting emergency services can't be an option after a family member recently needed the assistance of paramedics.

"The 1.75 was just not going to be enough," McCleaster said. "What we heard a few weeks ago (at a council meeting on Nov. 13) is that the public wants to weigh in. So this is not the seven of us voting to impose an additional income tax. This is us voting to put it out there for the residents of this city to decide what path they want to move forward."

Related: 'When I feel like I'm singled out.' North Canton residents fervently oppose tax proposal

Related: Tax increase coming? North Canton considers eliminating its income tax credit

Council member Christina Weyrick, at large, said council must be clear with voters about how the money will be used, and what cuts will come if the city doesn't get the additional revenue.

Council member Dave Metheney, Ward 2, asked, "Are we going to plan for the future for the residents of North Canton or are going to push things totally down the road?"

He said if voters reject the increase, council would need to look at reducing the credit for residents who pay income taxes to other cities.

Metheny said that after 2024, when expenses exceed revenue by $1.5 million, he won't vote for any budget where costs exceed revenue.

Benjamin Young, the city's clerk of council, ended the meeting by reading a tribute to Revoldt, whose third stint on council ends Thursday. Revoldt, first elected 42 years ago, was a council member 1981-98, 2008-11 and 2019-23. He served as mayor from 1998-2001. Council voted to award the city's inaugural Golden Gavel award to Revoldt, honoring him for his many years of service.

Reach Robert at robert.wang@cantonrep.com. X formerly known as Twitter: @rwangREP.

Correction: The city of North Canton estimates it would receive additional revenue of about $1.8 million a year if the city's income tax increases to 1.75% from 1.5% and the credit granted to North Canton residents who pay income taxes to other cities was capped at 1.5% of income. An earlier version of this article gave an incorrect estimate on anticipated revenue.

This article originally appeared on The Repository: North Canton to seek half-percent hike in income tax on March ballot