St. Marys hopes to make levy permanent

ST. MARYS - Council members are taking the first steps to change a 10-year, 0.5% income tax levy first passed in 1985 into a permanent tax.

Members on Monday gave first reading to an emergency resolution to place the new permanent tax on the May 4 ballot. They plan to table the resolution at their next meeting at 5:15 p.m. Dec. 30, wanting to give the public time to voice any concerns and agreed the irregular timing of the meeting so close to the new year holiday would interfere.

The tax generates about $1.5 million each year for the city. Its revenues fund the police, fire, parks and engineering departments as well as the street program, according to safety service director Greg Foxhoven.

Voters renewed the tax in 1995, 2005 and 2015. City administrators said they aim to put an amendment on the May primary ballot to eliminate the need for renewals. If the amendment were to fail, it would not get rid of the tax, which instead would come up for renewal again in May 2025.

Foxhoven said the city has major capital improvement projects on the horizon, and the change would help officials arrange long-term financing and planning options.

In other business, council members also gave first reading to the city's 2021 budget and materials ordinances. The projected spending budget for the year is about $42 million, though Foxhoven noted numbers within the budget would likely change before final passage.

The most recent changes to the budget included an increase of $350,000 to the water fund to pay for the demolition of the old water plant and a $150,000 increase to the sewer fund.