Council hears first reading of voted tax

Councilors heard the first reading of an ordinance that will allow the city to ask residents to make the voted tax renewal permanent in the May primary during Monday’s St. Marys City Council meeting.

The city has a 10year, 0.5% income tax levy that helps cover capital improvements, safety equipment, streets and facilities. The voted tax is not up for renewal until May 2025, but city administrators want to have the voted tax renewal permanent. To do that, city administrators need council to approve having it go to a

primary election.

The levy has been in existence since 1985 and has been renewed three times, with city voters passing the renewal, 617-167 in the 2015 primary election.

The renewal generates about $1.5 million annually for the city, according to Director of Public Service and Safety Greg Foxhoven.

“It is not a new tax, we simply want to make it a permanent tax instead of a renewal and present this to voters of St. Marys in the May 20201 primary,” Foxhoven stated. “We have major capital improvement projects on the horizon and making this tax permanent and not a renewal will help us with our long-term financing planning as well as financing opportunities.”

Those financing opportunities include funding for a new municipal building, funding for the multi-year, multi-phase Spring Street Reconstruction Project, the possible treatment train south of town to improve the water quality of the Miami-Erie Canal and an amphitheater on South Street, just to name a few projects.

First, administrators need approval from council to put the issue on the primary ballot.

Foxhoven laid out a timeline for council to read the legislation, beginning at the Dec. 14 council meeting, followed by a second reading in the Jan. 11 meeting and the third reading on Jan. 25.

Foxhoven said city administrators recommended tabling the second reading of any legislation regarding the voted tax during the Dec. 30 meeting because it is not at council’s normally scheduled time and day.

The final council meeting of the year is scheduled for 5:15 p. m. on Dec. 30.

If council approves, documentation of the legislation would need to be submitted to the Auglaize County Board of Elections 90 days before the primary. A committee would be formed and members of council could join that committee. No city funds would go toward the campaign for a permanent tax.

Law Director Zach

Ferrall explained legislation would have to be drafted if it goes to the ballot but if that legislation were to fail at the polls, the original legislation making it a 10- year renewal would still be in place for 2025.

Councilors also heard the first reading of an ordinance for the city’s 2021 fiscal budget .

heard Ordinance 2020-38 to make appropriations for current expenses and expenditures of the city of St. Marys during the fiscal year ending Dec. 31, 2021.

Foxhoven informed councilors that the total budget is $ 62,249,382.43, which includes inter- fund transfers. Without those, budget expenses are $ 42,434,114.43.

Three changes about the budget that Foxhoven noted were a decrease in the Voted Tax Fund by $ 492,000, adding that funds in that account are tight.

“The auditor [Doug Riesen] looks at the carryover plus what we anticipate bringing in,” Foxhoven said. “We’ve got to match that with the projects we plan to do so my guess is that number will have to come down even more, which we are willing to do.”

The Water Fund was increased to $350,000. Foxhoven noted the city had hoped to demo the old water treatment plant but added that that project will most likely not happen.

“The rates increase has helped and it is getting us where we need to be but we still may need to back down that fund,” Foxhoven added.

The Sewer Fund was also increased to $150,000.

In other business on Monday, council:

• Heard the third reading and passed Ordinance 2020-30, vacating a 12-foot wide north-south and east- west alley in the Heusch and Mills addition to the city of St. Marys.

• Heard the third reading and passed Ordinance 2020-31, vacating a portion of Weston Street located in the J & DA Barrington Subdivision of outlot 61 to the city of St. Marys.

• Suspended the rules and passed Ordinance 2020-37, appropriate monies for deficiencies in the original Ordinance No. 2019-32 and any other appropriation ordinances for the fiscal year 2020. This ordinance is the third round of funding from the Coronavirus, Aid, Relief and Economic Securities Act that the city is giving out. The total funds appropriated is $155,749.41.

• Heard the first reading of Ordinance 2020-39 authorizing the purchase of various materials, equipment and services for the departments for the city of St. Marys.

• The next council meeting has been rescheduled to 5:15 p. m. Dec. 30.