Ridley Park rejects call for earned income tax

RIDLEY PARK >> An earned income tax is not in the cards for borough residents for 2019 after a 4-3 vote Wednesday night scuttled a motion to approve publication of an EIT ordinance, which is a prelude to actual council action to establish such a tax.

Council Member Michele Endriss-Dalessio, a Republican, voted against the motion along with Democrats Dane Collins, Mike Gale and Jared Brennan. Borough manager Richard Tutak said council decided not to go forward with an EIT for 2019.

Action on the proposed new tax came about after a council workshop session attended by about

50 residents, with speaker after speaker opposed to a 1 percent EIT.

Andy Furman said council could have considered an EIT of

0.5 percent “rather than hit everyone over the head with a hammer.”

“It could be increased,”Furman said.

Aaron Taylor agreed with Furman, telling council that 0.5 percent is fair. “One percent is not,” he said.

Questions on who would pay an EIT were answered by council easily President Jim Glenn, who told the audience that anyone who lives and/or works in the borough would pay the tax. But if a resident already pays an EIT in a community where they work, that money would come back to the borough. He noted that he works in Eddystone and pays the tax to that borough.

“One thousand, one hundred and six people from Ridley Park pay an EIT to other towns,” Glenn said, adding that the tax would apply to earned income only, not pensions.

Matt Stepanic asked council what it could do to reduce expenses in the borough but Glenn said there isn’t an ounce of fat in the upcoming budget. Several speakers warned that an EIT could result in people deciding not to move into the borough or could affect the ability of residents who want to sell their houses.

“It doesn’t make sense to stay in the borough where there is a 1 percent earned income tax,” another man commented.

Applause greeted the vote not to proceed with the EIT.

Council then took action to approve the 2019 preliminary budget of $6,632,172 and a .75 mill real estate tax increase, bringing the total millage rate to 8.89 mills. A $15 increase in the trash collection fee brings that service up to $265 per dwelling unit. The increase is necessary because the Delaware County Solid Waste Authority raised its rates. No date was set for final adoption of the budget.

Council member Endriss-Dalession commented on why she voted against any EIT action.

“I voted against the EIT because I don’t think it would be in the best interest of our community,” she said.

Councilman Mike Gale said he felt rushed in dealing with an EIT.

“I think we need more time to think about it,” he said.