TIPP CITY — The Tipp City Council on Monday introduced an ordinance to allow the city to place a 0.5 percent, 10-year capital improvement renewal levy on the Nov. 3 ballot.
Tipp City’s municipal income tax rate is 1.50, according to the ordinance, and that rate has only increased by 50 percent “in the past 39 years to provide for capital improvement and infrastructure projects, purchases, and repairs.”
Half of the current 0.5 percent income tax levy will expire at the end of June 2021, and the other half at the end of December 2022. The ordinance adjusts the termination dates of the renewal levy to match the end of December 2032. If this renewal levy is approved for the ballot and then approved by voters, both halves of the 0.5 percent income tax will recommence from the date they were supposed expire until December 2032.
A public hearing regarding this ordinance will be held at the council’s next meeting, which will be June 1 at 7:30 p.m. It is unknown at this time if that meeting will be held remotely or in-person. After the public hearing, the council will likely vote on this ordinance, which would send this renewal levy to the Miami County Board of Elections to be placed on the Nov. 3 ballot.
Mayor Joe Gibson encouraged the community to give its input on this ordinance.
“Please talk to your council members,” Gibson said. “It is not an increase in one’s taxes. It’s a renewal.”
At the council’s last meeting, the council discussed in work session the city’s 10-year capital improvement plan and how the renewal of the city’s capital improvement levy would be necessary in order to complete those projects, as well as purchase replacement vehicles and equipment for the street, parks, police, fire, and EMS departments. The cumulative cost of the 10-year capital improvement program between 2021-2032 is estimated at $28,196,755. The average annual cost would be approximately $2,560,887.
According to Finance Director John Green, without the tax renewal, none of the projects planned for after 2021 would be fully funded. Outside of this levy, the city would have a budget of about $900,000 a year for capital improvements. Green estimated the city would receive between $2.5-2.6 million a year with the levy renewal.
Green provided cost estimates for residents if the 0.5 percent income tax levy was renewed. For a resident earning $50,000 a year, the cost would be approximately $250. For a resident earning $75,000 a year, the cost would be approximately $375 a year.
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