Scaggs voices his side on taxes

By Jane Beathard

Staff Writer

As promised, Steve Scaggs voiced the reasons for his opposition to a proposed income tax increase at Thursday’s regular meeting of London City Council.

On June 7, Scaggs and fellow council member Dick Minner voted against a resolution to put the 0.5-percent income tax increase on the Nov. 6 ballot. Five other members supported the measure.

If approved by voters, the increase will also halt collection of a 1.4-mill property tax that currently funds the fire department and free up money for street repairs and other capital improvements.

Following the June vote, council president John Dixon challenged Scaggs for alternative suggestions to solve a pending deficit in city finances.

Scaggs never addressed that issue directly on Thursday, but listed reasons why he opposed the levy proposal.

He said an independently funded fire department needed a governing board similar to the group that oversees finances of the Madison County EMD. Scaggs is a medic with the EMD. The levy resolution did not specify how an independently funded fire department would operate.

Scaggs also said collection of the 1.4-mill property tax should halt in January instead of June next year, if voters approve the levy. He also questioned timing of the levy since city residents are likely to face additional sewer assessments in coming months.

He questioned the wisdom of a levy that benefits one department over all others.

“The levy should benefit the whole city,” he said.

Finally, Scaggs asked what city administrators are doing to cut the budget instead of raising taxes.

London Safety-Services Director Steve Hume responded to Scaggs’ objections point by point, saying most could be resolved by additional city council action.

“Council has yet to decide when to cut off collection of the (1.4-mill) property tax,” Hume said.

However, he noted an early cutoff would leave the city short-changed for the first six months of 2013.

It’s also within council’s power to decide on future sewer assessments and establish a board to govern the fire department, he added.

Hume said levy approval should add $800,000 to the general fund. How that additional money is used is again up to city council.

Dixon advised Scaggs to sponsor future legislation for allocating the excess funds.

Hume said city administrators have been thrifty, slicing $1.5 million from the budget since 2009.

“We’ve laid off custodians, clerks and street department workers,” Hume said.

Dixon and council member Stan Kavy stressed London’s money problems are the result of moves by the administration of Gov. John Kasich to balance Ohio’s budget.

“The State of Ohio balanced their budget by taking money away from us,” Dixon said. “We’re here on our own. No one else is going to support us.”

He referred to a $500,000 cut in local government funds from the state.

“We’re going to be responsible for our own quality of life,” Kavy noted