City asks for temporary income tax hike

DAYTON, Ohio (WDTN)- The City of Moraine has already made millions of dollars in cuts and can’t wait any longer for help.

“Overall we lost a substantial amount of money initially it was about 50% of our income tax revenue left as GM and the other operations ceased,” says Moraine City Manager David Hicks.

In 2000, the top 10 employers generated about 9 million in income taxes.

In 2013, that number had dropped to a little over $2.9 million.

“We have built up a large cash reserve so we can sustain operations during the transitional period, but we are replacing those thousands of jobs with hundreds of jobs. Fuyao is promising 800 hundred jobs, which is great we’re delighted to have them coming to town, but that’s replacing 7000 that at one time worked at the GM plant,” explains Hicks.

Hicks says the city has already slashed its operating budget by 20 percent.

“We’ve reduced our staffing from around 157 authorized employees to I think 102 or 3 today. We’ve also cut part-time staff from over 200 to about 148 right now. All of the employees in the city accepted a pay cut in 2010 and that pay cut of 10 percent is still in place,” comments Hicks.

In order to avoid more cuts, the city is putting a temporary income tax increase on the May 6 ballot.  It would increase the current income tax from 2 percent to 2.5 percent for five and a half years.  It’s expected to generate about $1.8 million a year.

“We feel pretty confident that the public is supportive of this,” comments Hicks.

The city reports that more than 90% of income tax dollars comes from people who work in Moraine but don’t live there.

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