OAKWOOD, Ohio (WDTN)- City council rejects ordinance that would cost some residents more in tax dollars, but the mayor says the city faces major cuts.
It was by a 2-2 vote that Oakwood City Council shot down a 1.75 percent credit limit on municipal taxes paid to other communities.
The proposed ordinance would have affected residents who live in Oakwood, but work in Dayton or Kettering.
As it stands, those residents pay a tax rate of 2.25 percent– which they get credit for in Oakwood. The tax rate in Oakwood is 2.5 percent, so residents pay the difference of .25 percent.
Under the tax credit limit, residents would be paying the city .75%.
Mayor William Duncan said the most it would cost anyone was $237 a year.
The mayor also said the city has made significant cuts over the last five years, including personnel.
“We have not had layoffs in Oakwood, but we have had about a 10 to 12 percent total reduction in force over the last five to six years,” said Mayor Duncan.
In 2013, trash rates went up from $12 a month to $25 a month.
The city also charged residents $6 a month to cover the cost of cleaning sewers and street cleaning equipment.
According to the mayor, it wasn’t enough “We need to convince them that the cuts that we’ve made are sufficient, in which case, we’re going to need to find new revenue sources to balance our budget.”
18 people spoke out against the ordinance at the last meeting. Mayor Duncan said many of them felt it was unfair that only some residents would have to pay more in taxes.
He said the only options are to increase the overall city tax rate, or continue to increase fees for services.
“If the citizens say no new money, no matter what– Oakwood will no longer be Oakwood,” Mayor Duncan said.