North Canton considering placing paving, storm sewer tax hikes on May ballot

NORTH CANTON − Residents here may be asked to approve a property tax increase for paving streets and upgrading the city's drainage system.

Administrator Patrick DeOrio recommended Monday that City Council put such a revised measure on the ballot.

If council approves the recommendation, voters in the May 2 primary would decide whether to more than double how much North Canton homeowners pay for the city's street levy and storm sewer levy.

Voters originally approved the 1-mill street levy in 2005 and the 1-mill storm sewer levy in 2010. They've renewed it within five years since. They each bring in about $387,000 a year.

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What is North Canton City Council considering?

Under DeOrio's proposal, he wants council to present a replacement and an increase for both levies.

The city would place on the ballot a proposed five-year, 2-mill street levy and five-year, 2-mill storm sewer levy. Updated for current, higher property values, each 2-mill levy, if approved, would generate an estimated $1.02 million, an increase of nearly 165% the original amount, DeOrio said.

If the city sought a 1-mill replacement levy to base the millage on, updated for substantially higher property values then the revenue would be $512,000 each or an increase of 32%.

DeOrio did not have an estimate of how much an increase would cost the owner of a $100,000 home. Voters in November 2019 renewed for five years both the 1-mill street levy and 1-mill storm sewer levy. At that time, the cost for the owner of a $100,000 home was $26.12 a year for both levies.

None of the six council members present at council's Monday evening meeting at the North Canton Civic Center expressed any opposition.

"What we know is that levy for that paving is not enough to take care of what it's supposed to take care of," said council member Stephanie Werren, Ward 3.

Council member Daryl Revoldt, At-Large, said, "We're at the point the best possible price (of resurfacing) doesn't get us to where we want to be. ... We know the funds raised are insufficient."

Why is the money needed?

DeOrio said inflation in the cost of asphalt and synthetic resurfacing material means $387,000 in revenue a year doesn't go as far as three years ago.

He said the city engineer's office groups streets together to be paved together to save money, but the savings aren't enough to offset the increases in materials and labor. And the resurfacing of residential streets is almost never eligible for federal or state grants.

"The more it costs, the less roads, the less linear feet we get to do," said Deorio.

City Engineer Rob Graham said the cost of asphalt has risen from $60 a ton in 2019 to $68 a ton in 2021 to $78 a ton this year. The cost of polymer resurfacing material has risen from $91 a ton in 2019 to $162.50 a ton this year.

If the revenue from the street levy stays at $387,000 a year, "we could start falling behind," on paving streets, Graham said.

"You could forget (resurfacing) any alleys," DeOrio said.

He said the city is soliciting contractors' bids for 2023 next week. Graham is already estimating asphalt rates will be as high as $85 a ton.

DeOrio said seeking a one-mill replacement street levy isn't enough.

"I don't think $130,000 extra is going to make a credible difference," he said.

Council President Matthew Stroia, At-Large, expressed concern that even if voters approve the increase, it still won't be enough to meet paving needs.

"In three, four years, it's going to be unknown what we're going to be paying," he said. "My question is is two mills enough?"

DeOrio said, "There's never enough for everything. But we have to act based on what taxpayers can afford. ... I think (two mills) is enough based on what we know right now."

Graham said if the city has a substantially higher budget for road resurfacing, it could save money per mile paved because it can cheaper rates by offering contractors bigger jobs.

Revoldt said, "Now we're at a point, we really have to look at revenue. ... If you ignore (falling behind on paving roads) it doesn't go away. It only gets worse."

Council member John Orr, Ward 4, who supports an increase to two mills, said council has to educate the public on the need for the higher levies.

"If we put this on the ballot without educating voters, it will fail," he said. "If we educate them, it will pass."

By state law, council would have to approve and file any proposed levies for the May 2 ballot by Feb. 1. DeOrio said council would likely have to have an emergency vote sometime in January.

If voters approve the levy increases, the first collections would be in February 2024. If voters do not renew or replace the levies, they would expire and no longer be collected after 2024.

Reach Robert at robert.wang@cantonrep.com. On Twitter: @rwangREP.

This article originally appeared on The Repository: North Canton Council weighs tax hikes to fund streets, storm sewers