Council hopes to renew tax

A 0.25 percent income tax renewal will be on May 7 ballot for voters to decide

Lorain city leaders hope voters will say yes to a renewal of a ¼ percent income tax on the May 7 ballot.

On Dec. 17 City Council approved an ordinance and resolution needed to put the five-year income tax up for a city vote.

The income tax raises about $2.42 million a year, contributing to the city general fund budget that will be about $29 million this year, said Mayor Chase Ritenauer.

The elected officials who spoke about the tax were unanimous in asking city residents to understand the revenue is crucial for operations.

“This is probably the most important ordinance we’re going to be passing all year because without this important piece of legislation we will be in dire straits next year,” said Councilman-at-Large Joe Koziura.

“This is a renewal of the tax,” he said. “That’s not a new tax and I’m sure the good citizens of Lorain will see fit to support it next year in the primary.”

After the first phase of budget hearings for the general fund on Dec. 13, every city department in Lorain could use additional money to provide services, said Councilman-at-Large Mitch Fallis.

“This is a renewal and the money is desperately needed just to keep the status quo,” he said. “I’m sure that our residents will see the need and vote accordingly. I am certainly in favor, wholeheartedly in favor, of this particular ordinance to, again, maintain city services.”

“I hope to impress everybody, this is not new taxes, this is just a renewal,” said Council President Joel Arredondo. He encouraged city lawmakers to let the people know what it is.

Voters first approved the tax increase in a special election of February 2005, Ritenauer said. They renewed it again in May 2009 and May 2014, he said.

The money is needed as other sources of city revenues have disappeared in recent years, the mayor said. The city ordinance included the figures from those sources.

For example, the state eliminated the estate tax that between 2009 and 2013 gave Lorain an average of $740,838 in general fund revenue.

The state also has “drastically” reduced Local Government Funding to cities. Lorain projects a decrease of

“Whether it be the global economy or our friends in Columbus, it doesn’t matter. It’s led to the situation that we’re in. It is a significant amount of dollars that we absolutely need.”

— Mayor Chase Ritenauer

“We’re barebones-ing it throughout the entire city.”

— Councilwoman-at-Large Mary Springowski

$2.2 million in Local Government Funding in 2019 versus actual revenue in 2009, according to the city figures.

Lorain has lost the city’s Ford plant and has seen ups and downs with production at the United States Steel Corp. and the Republic Steel plants, Ritenauer said.

Overall he called it “assault on local taxation, local revenues.”

“Whether it be the global economy or our friends in Columbus, it doesn’t matter. It’s led to the situation that we’re in,” the mayor said. “It is a significant amount of dollars that we absolutely need.”

The income tax money helps fill that void and pays for services that city residents deserve, said Councilwoman-at-Large Mary Springowski. Looking at Lorain’s annual budget, no city departments are being extravagant, she said.

“We’re bare-bones-ing it throughout the entire city,” she said. Springowski and Ritenauer also discussed “dozens” of city jobs that have been eliminated in recent years.

Ritenauer called on the Council members to help sell the issue to voters. He asked Ward 2 Councilman Dennis Flores for support,

noting the improvement projects and businesses currently helping the downtown ward, which also is the mayor’s personal home ward.

However, Flores dissented, voting against the legislation, which passed with 10-1 votes. The move prompted a rebuke from Koziura.

“I’m not sure what planet Mr. Flores is on but this is the most critical piece of legislation, again, this resolution to put this on the ballot and for someone to have the audacity to vote against it, to me is an insult to the residents of his ward,” Koziura said.

Flores did not comment on his vote on the Council floor.

After the meeting public meeting, Council voted to go into a closed-door executive session to discuss pending litigation. Flores was not available for additional comment afterward.

Law Director Pat Riley praised Council Clerk Nancy Greer for her work researching the history and legal language needed for the city legislation.