LEBANON — The city is considering asking voters to raise income taxes this fall.

        “To sustain the level of service we've got, we need to bring in more revenues,” City Manager George “Pat” Clements said.

        The income-tax rate would go from 1 percent to 1.5 percent, according to a staff proposal presented to City Council on Thursday. However, residents who work in another city with an income tax would be credited..

        Springboro, Carlisle and Franklin have 1.5 percent income taxes, according to Mr. Clements, while Mason, Loveland and South Lebanon have 1 percent taxes.

        An increase would raise Lebanon's income-tax revenue from $4 million a year to $6 million a year. The money would mostly go into the city's general fund, which supports the police, parks, municipal court, planning, zoning and other administrative departments.

        Since 1999, expenses have risen faster than revenue, officials say. Mr. Clements told City Council at the beginning of the year that income tax, water rate and sewer rate increases were likely.

        Council will vote Tuesday on new utility rates — a one-third increase in each. If passed, they would take effect in August.

        City officials would like to put the income-tax referendum on the November ballot, which would require council to pass a resolution at its July 9 meeting.

        It would make the November ballot full for Lebanon voters, who already will face a 4-mill replacement levy for Mental Retardation and Developmental Disabilities and a 1-mill replacement levy for Mental Health Recovery Services.

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