Miamisburg places income tax increase on May 4 ballot

The city’s current 1.75 percent income tax has been in effect since 1977 and is the largest source of revenue for the city.

“Our revenue sources are simply not keeping up with the cost of providing services, and the current economic downturn has only magnified the problem,” said Mayor Dick Church Jr. “With no reasonable expectation that the economy will rebound soon, the city has two choices — initiate deep cuts in public services, or pursue a revenue increase that will maintain police, fire/EMS and other essential services.”

Income taxes are paid to Miamisburg by people who earn wages within city limits.

City Manager Keith Johnson estimates that about 70 percent of residents will not be affected by the proposed rate change.

“There are no other realistic alternatives,” Church said. “This ballot initiative will enable voters to tell us what they want from their local government.”

The city’s tax credit will not be affected, meaning that residents will continue to receive full credit for income taxes paid to other municipalities.

Traditional retirement income, such as Social Security, pensions, investments and interest is not taxable by the city. This means that senior citizens and those on fixed incomes would not be affected by the proposed rate change. In 2009, Miamisburg closed with a budget deficit of more than $1.1 million and now projects a 2010 deficit of about $1 million.

Johnson said cash reserves have been used to bridge the gap between revenues and expenses, but reserves will be depleted if corrective action is not taken.

“Operating expenses have been cut so dramatically that at this point, further cuts would have to include facility closures and the reduction and elimination of services upon which the public has come to rely,” Johnson said.

The city will be providing more detailed information to the public about this ballot initiative and the city’s financial condition.

Church and City Council said they encourage voters to contact the city with questions and concerns, or go www.ci.miamisburg.oh.us.