Tuesday, February 16, 1999
Mayor resists payroll tax
Falmouth scrutinizing budget items
BY SUSAN VELA
The Cincinnati Enquirer
FALMOUTH — Rather than automatically revive talk of a 1 percent payroll tax, city council has gone back to crunching numbers for the 1999 budget.
City officials said Monday they intend to fine-tune the spending plan drawn up by last year's council before addressing the need for a payroll tax.
“It has not been discussed any more,” said new Mayor Jim Hammond. “We're trying to see if there's any other avenues.”
The problem is a loss of tax dollars. The March 1997 flooding of the Licking River resulted in flood-damaged homes, some of those homes being abandoned and, ultimately, a smaller tax base.
In December, council approved a 1999 spending plan of about $550,000. Council was considering up to $100,000 in budget cuts when Mr. Hammond, then mayor-elect, told them to hold off on the cuts.
The former police officer said he'd be willing to consider a 1 percent payroll tax rather than risk a drop in morale because of cuts.
But, first, council's three-member budget committee will advise the full council, which has only two holdover members from December, on how it should tackle the present budget.
The budget committee recently met with department heads to discuss individual budget plans. The discussions led to a realization that there could be more revenue than expected.
The work may mean that talk of a 1 percent payroll tax could die for good, committee member Gene Flaugher said.
The committee plans to present a budget report at the next council meeting at 7 p.m. March 9, in the city offices, 230 Main St.
Former City Manager Steven Hasson, who was hired on a temporary basis after the floods, proposed the 1 percent payroll tax last year to make up for lost tax revenue.
Three council members voted for it and three against. Former Mayor Max Goldberg was not there to break the tie.
The tie vote killed the proposal, which prompted Mr. Hasson to propose 1999 budget cuts totaling $99,698. They included the elimination of a detective position and a reduction in emergency dispatchers.
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