Prepared Comments Made to
NORTH CANTON CITY COUNCIL
August 14, 2017
North Canton was once overly reliant on the Hoover Company
thinking that the days of Hoover would last forever.
With
the large numbers of well-paying jobs at the Hoover Company, a minimal income
tax for the City was sufficient and provided ample revenue for City operations.
The
loss of Hoover in 2008 should have ushered in an increase in the City's income
tax rate but that has not happened.
Instead,
a flawed mindset took hold that by keeping an artificially low income tax rate
business would locate in North Canton.
To
augment that flawed mindset, commercial tax abatements were given to businesses
over the years to entice them to locate here. They were given freely as good-will
gestures, sort of a thank you; as if to say here is a little token of our
appreciation simply for locating to the City, often with fewer than a handful
of employees.
The
commercial tax abatements that this Council has approved that I have observed
since 2003 repeatedly resulted in a loss of revenue for the North Canton City
Schools.
The
tax exemption given to North Ridge Place was the wake-up call for the City's
School District.
I
hope each of you here at City Hall are beginning to see that North Canton's tax
policy has not been good for the City or the City's schools and that you have
not been good fiduciaries of public tax dollars.
The
artificially low income tax rate that many here on City Council have praised
each other for maintaining over several years has resulted in the following:
1) Reduced revenue for the City that could have been used
for vital infrastructure improvements.
2) An opportunity for the North Canton City School
District to place their own income tax on the ballot for voters at this fall's
November General Election.
Can
anyone blame the school district?
For
years and years, this Council and this Administration have given away revenue
desperately needed by the schools with nary a thought of the financial burdens
you were creating for our City schools.
How
does it feel to see the North Canton City School District come after a funding
source typically utilized by municipalities?
Now
the shoe is on the other foot and I am sure you do not like it.
The
school income tax of 0.75 % when combined with North Canton's 1.5 % income tax
rate will result in a combined income tax rate of 2.25 %.
It
is my understanding the school income tax will remain in effect for thirty-four
years if the school's ballot issue passes.
What
is the likelihood that voters would further increase the City's income tax rate
at some point in the future on top of the added school income tax rate?
That
presents a calamity for the City of North Canton.
Does anyone in here believe that this City
will need to increase its income tax rate in the next thirty-four years?
What
is the likelihood voters would approve an income tax rate increase for the City
when a combined City/School income tax rate is already at 2.25 %?
Not
very probable!
The
City's long-standing artificially low income tax rate along with the needless
commercial tax abatements that have been handed out to businesses for years,
have been ill-conceived.
North
Canton, the City schools and its residents now face a "financial
perfect-storm."
All of this as a result of many years of North Canton's
failed tax policies!
Thank you,
Chuck Osborne