CLAYTON — Following the Nov. 7 defeat of Issue 23, the City of Clayton Income Tax – 1.5 percent existing with a 1 percent increase while restoring the 100 percent tax credit paid to other municipalities by residents, city council voted to pass in one reading a resolution for the placement of the same proposal on the March 19, 2024 primary election ballot.

Council passed the resolution at its Nov. 16 meeting.

Council also adopted under emergency status an ordinance approving amendments to income tax sections of the administrative code to provide for imposition of an annual income tax rate of 2.50 percent per year on income and restoring a 100 percent tax credit for income taxes paid by residents to other municipalities.

Prior to council dealing with any legislation on its agenda, during the visitors’ comments, Haber Road resident Alisha York addressed council about the tax issue.

She stated she had heard through the grapevine that the income tax issue might be placed on the March ballot as well as the Northmont City Schools levy.

“The community is based on the school, and so if we put both those increases on the ballot again in March we may not be successful for the school or for the city,” York said. “So, it might want to be something you guys want to think about in general in talking to the school board for both the city and for the school. Because obviously it didn’t work last time and if it’s both on there again, it’s probably not going to work again.”

Mayor Mike Stevens stated that those conversations are actually taking place.

“Good. I just wanted to make sure because we all want to be successful,” York added.

When council began to address legislation on the agenda, city leaders began to discuss revenue issues.

“This is the income tax going back on the ballot,” said City Manager Amanda Zimmerlin. “The reason that I put this on the agenda is because we have to certify, as you know, to the board of elections by the twentieth of December what ever decision council decides to make, so we are working with a very tight timeline.”

Zimmerlin noted that if the income tax issue is approved by voters, it would generate the same amount of income council had discussed previously.

“It’s up to council whether or not you want to place it on the ballot,” Zimmerlin stated. “I think that Mr. Henning had brought up the idea of placing a police and fire levy on the ballot and that may go over better, but right now there are some constraints with that and Martina (Dillon, city law director) wants to walk through the process.”

Dillon noted the city had a police and fire levy adopted in 2017 as a renewal for a continuing period of time, meaning the city did not have to come back to voters every five years.

“So, in order to replace that we would have to basically put a replacement levy for an increase for a continuing period of time on the ballot,” Dillon said. “The process to do that requires two separate pieces of legislation.”

The first is a resolution that is sent to the county auditor’s office requesting information the city needs for a second piece of legislation to determine the rate the city would seek for the levy.

“Given the fact that the board of elections deadline is Dec. 20, you would have to do that ordinance by an emergency so that it can become immediately effective rather than have two readings,” Dillon stated. “In order to get all that accomplished you would probably, depending on what the schedule is, have a special meeting before Dec. 20 in order to pass that ordinance.”

Dillon noted that pursuant to the Ohio Revised Code, once the city puts a replacement levy on the ballot it can only do so once per calendar year.

“If you put it on the ballot in March and it did not pass, you could not place it on the November ballot,” she said.

Henning stated that he is not in favor of the income tax going back on the ballot after its recent failure.

“I think the police and fire have tremendous community support and that would be way more likely to pass in the March 2024 primary,” Henning said. “My other thoughts are that in March 2024 there is potentially only going to be a competitive Republican primary. With one party showing up to the polls to vote on this, I don’t feel it (income tax) is going to pass.

“I don’t see people coming out and voting an issues only ballot,” Henning continued.

Director of Finance Kevin Schweitzer pointed out that with the police and fire levies, those would be two separate 3.5 mill levies on the ballot, not just one combined levy.

“Is there a way we could put it on the ballot to increase it to a percentage that stops us from having to supplement police and fire from the general fund?” Henning asked.

Zimmerlin said she requested Schweitzer to provide her with some preliminary figures.

“We are looking at about 8 mills. That is what we would have to put on the ballot to generate $3 million and that’s an additional levy, not if it’s a replacement,” Zimmerlin said.

Council member Dennis Lieberman said that in preparation for the meeting he was looking at where the city stood as far as property taxes, and he noted that Clayton has some of the highest property taxes in Montgomery County.

“If we attempt to add to that… up to 8 mills, I think that’s a disaster waiting to happen,” Lieberman said.

“I would agree eight mills would if Northmont couldn’t pass a five point nine mills,” Henning said.

“One of the reasons that we shied away from doing that the last time with the last levy, and I have gotten that question many times, is it really just comes down to the economics of it, the millage we would need to make it sustainable.” Zimmerlin stated.

Stevens stated the income tax credit has been a heated topic and that he has received more complaints about it than all the other city issues combined.

Henning agreed with the mayor, adding that is has been an important topic among residents over the years and that what

“Kenny, and I don’t mean this personally, I hate to agree with Alisha, but I do think we should coordinate our efforts with what the school is doing and I don’t know what the school is doing,” Lieberman said.

Schweitzer, who serves as the treasurer for the Citizens for Northmont Schools, said a follow-up meeting about the school levy was held the night before.

“From their indication its (school levy) is not going on the ballot in March,” Schweitzer stated.

Henning asked if the income tax should be reduced from 2.5 to 2.25 percent. Lieberman responded that all that would do is kick the can down the road and that the city would have to increase it later on to address it needs.

Council member Tina Kelly said she felt a lot of people did not understand the issue clearly. Schweitzer agreed stating that despite mailings, the city newsletter, and posts on Facebook and other social media outlets he still received phone calls from residents asking what the income tax issue was all about.

“Trying to figure out how to get people informed is going to be the biggest challenge,” Schweitzer stated.

Tim Gorman suggested withdrawing the proposed Salem Springs development as a way to generate more support. Greg Merkle proposed not putting the income tax back on the ballot right way until conducting community surveys and that pushing it through as an emergency might be perceived as the city trying to force the issue.

“We need to take a step back and assess how best to approach it. We need the money and the resources to function and it comes down to either having the resources or you don’t have the same services and the people to provide them,” Merkle said.

Reach Ron Nunnari by email: [email protected].