North Canton's Tax Policies Detrimental to its Schools Now Foretell Calamity for the City!

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