Marion City Council held the first reading of two income tax proposals at their meeting on Monday, June 25. While the topic of tax increases historically results in long meetings with lots of objections, the discussion Monday was brief and not everyone was against the idea of an increase.
The first tax change, which would require City residents to pay local income tax on winnings from gambling, lotteries, and bingo, was simply given a first reading and there was absolutely zero discussion by Council or from the audience.
There was some discussion, however, on the proposal to increase the City of Marion income tax by .25 percent. The current plan, which must be approved by voters in November, calls for the police and fire departments to equally split 80 percent of that increase. The other 20 percent would be split equally between dispatch/disaster services and the streets department.
Marion Mayor Scott Schertzer said that he understands the concerns expressed by some council members over the 10 percent going towards the dispatch and disaster services. He said in the event a combined, county-wide dispatch is formed, this money would be earmarked for a department that no longer exists. He said he was willing to change the wording to give a little more freedom with that portion of the funds so that future councils and/or administrations could move the 10 percent to the police or fire departments at their discretion.
Council member Mike Thomas said that he feels the current language is fine. In the event of combined dispatch, he said the City would simply no longer collect that portion of the income tax increase. Thomas was adamant in his belief that it is extremely important that the public knows where every bit of the proposed increase would be spent.
Answering a question from the audience, Fire Chief Ralph Zwolle said the portion of the increase going to the fire department would not be to restore salaries and benefits that have been reduced in past years. He said their budget increase would be used to hire more personnel.
The idea that the police and fire departments would share equally in any tax increase was questioned as the police department experienced actual layoffs in the most recent budget cuts. It was explained that the police and fire departments have had similar budget amounts for years, but the fire department was able to handle the recent budget reductions without official layoffs because they had enough staff that was in a position to retire. So whether it was from actual layoffs or not, both departments have seen significant reductions in staffing.
Even with this and the previous increase to the income tax, the City of Marion would still have discretion over one percent of the income tax.
Answering a concern about council and/or the administration simply cancelling out any budget gains, Mayor Schertzer said it is not his intention to give the safety forces the required amounts from the proposed income tax increase only to reduce their budgets coming from the portion of the General Fund the administration would still control. Councilman Ralph Cumston, who chairs the Finance Committee, agreed that this would not happen.
Ralph Hill, a Marion resident, said it is ironic that the City of Marion asks the citizens to keep giving and giving while the residents were getting “absolutely nothing” for the taxes they pay towards an “$18 million budget.” Hill said he thinks the citizens of Marion have given enough and said there is not much “left in the pot.”
Mayor Schertzer corrected Hill, saying the City is operating on a $15.8 million General Fund budget. He also said the reason the issue will be put on the ballot is so that the residents can say for themselves what they want when it comes to services provided by the City of Marion.
One issue Mayor Schertzer said he hears about frequently from residents in the condition of roads. He said with this proposed increase, there would be about $170,000 per year in additional funding towards maintaining the streets.
Ken Morgan, a Marion resident, stood and urged the Council to pass the tax increase. “We need this tax,” he stated, saying that everyone will benefit from the increase. He said crime has been increasing and more money is needed.
Morgan said that people who are complaining about the increase proposal should provide better ideas if they have them.
“Some people would complain if you took their mother out for dinner for free,” stated Morgan.
At the end of the discussion, two people had spoke out in opposition to the increase proposal. No one on City Council has spoken against the issue.
The income tax increase had its first reading and Council will continue to discuss the proposal over the coming weeks. The issue must be submitted to the Marion County Board of Elections by the end of July in order to appear on the November ballot.
About Sean DeWitt
