Clayton unsure of next step after voters reject tax
Positions that are currently vacant within the development, police, fire, and Meadowbrook maintenance departments will remain unfilled, said Clayton City Manager Amanda Zimmerlin.
City of Clayton officials say they’re not sure yet whether they’ll ask residents a third time to change the city’s income tax structure, after voters rejected the proposal for a second time Tuesday.
Voters decided on two ballot issues Tuesday. They rejected the tax proposal — which would have increased the city income tax by 1% while also giving residents full credit for city taxes paid to other jurisdictions. And via citizen referendum, they voted against existing plans for a developer to construct 125 homes at the southeast corner of Phillipsburg-Union Road and Haber Road.
The income tax change was rejected in the November election by a 59.5-40.5 ratio. The results Tuesday were closer, with 52.1% voting no and 47.9% voting yes.
The proposal would have increased the city income tax rate from 1.5% to 2.5%. The accompanying change giving Clayton residents full credit for taxes paid to other municipalities would have saved some residents money, based on where they work, but wouldn’t have helped others. It would have collected more taxes from those who work in the city and live elsewhere.
City Manager Amanda Zimmerlin said Thursday no decision has been made regarding a potential third attempt at voter approval.
“Staff will have discussions with council on options for the future,” she said, noting the earliest the city could place another levy request on the ballot would be in November.
Zimmerlin has said the city’s existing income tax brings in $5.4 million annually, and the new system that was rejected was projected to raise $7.9 million per year. Clayton’s budget document projects the city to operate at a $1.3 million general fund deficit in 2024, with expenditures at $6.9 million. According to Zimmerlin, the city currently has a general fund balance of $3.8 million.
The city does not meet any of the Ohio Auditor of State’s guidelines to be placed under fiscal caution, which would trigger a fiscal analysis or review of fiscal practices. There are several factors which may qualify a municipality to be placed under fiscal caution, including if a general fund year-end carryover balance is one month’s worth of expenditures or less.
Zimmerlin said without adjustments, the city would begin to run a deficit in 2026. To combat this, she said the city will discontinue discretionary spending with a recommendation to council to cancel all non-essential services and events.
“Leaf pick-up for 2024 faces the possibility of being drastically reduced or not completed at all,” Zimmerlin said previously. “Community events such as Sweep Clayton Clean have been cancelled, and family events such as the Easter egg hunt and the Labor Day fireworks have also been cancelled.”
Positions that are currently vacant within the development, police, fire, and Meadowbrook maintenance departments will remain unfilled, Zimmerlin
added.
Officials will also consider moving from a soft-billing model for emergency medical services to a hard-billing model.
Soft billing allows a patient’s insurance company to be billed for transportation services, but only up to the extent of the insurance coverage. Under this model, municipalities may “write off” any remaining balance rather than billing a patient for it. Hard billing typically means patients are billed directly regardless of insurance status and/or the full balance is sought.
Councilman Ryan Farmer said he believes the tax increase was voted down because residents want the city to exercise fiscal responsibility.
“One thing I proposed (at a January meeting) was that we need to prioritize our budget and line that up with what the city values,” Farmer said Thursday. “Some of the other councilmembers seemed to be uninterested in doing that unless they had to, and that’s part of the reason residents aren’t happy with how things are going in Clayton.”
Housing proposal referendum
The vote on allowing Arbor Homes, also known as Clayton Properties Group Inc., to construct 125 single-family homes on a 43-acre parcel at the southeast corner of Phillipsburg-Union Road and Haber Road was soundly rejected by voters Tuesday.
Just over 77% of votes were cast in opposition to the measure.
A representative for Arbor Homes said Thursday the company has no comment on the failed referendum and declined to answer questions about whether they would seek alternatives to the project.
The Arbor Homes project has been a hot-button topic in the community since its proposal last March, with dozens of residents voicing concern during multiple council meetings.
A rezoning request to facilitate the project had previously been approved by council before a group of residents organized a grassroots campaign, known as “Keep it Rural,” which successfully gathered nearly double the required amount of signatures to qualify the referendum for the ballot.
“Over 70% of Clayton residents voted to ‘Keep it Rural,’” Councilman Kenny Henning said Thursday. “Ward 1 is predominantly rural land and citizens want smart developments they can agree with.”
Clayton resident Doug Bias, who helped lead the charge behind the “Keep it Rural” campaign, previously said the group is not against development as a whole, but that Arbor Homes plan fails to address several issues, including land flooding and traffic congestion.
Supporters of the campaign have also asserted the proposed development would not mesh with the surrounding area and nearby homes, which are situated on significantly larger tracts than those proposed by Arbor Homes.