Local taxpayers will want to pay special attention, if not attend, the Fort Wayne City Council meeting on Tuesday. The council is scheduled to hold the first of two hearings on proposed tax increases. The increases are part of the city administration’s proposal to bridge an $11 million gap in the city budget as well as pay for needed road repairs and additional police officers and firefighters.
The hearing is on a proposal to adopt a new local option income tax, which would raise local income taxes for all Allen County residents from 1 percent to 1.5 percent, and a new property tax levy to support a cumulative capital development fund.
The new fund is expected to generate about $1.1 million a year. Most cities and counties – including Allen – already have this tax; Fort Wayne does not.
The council’s decision would affect all taxpayers in Allen County, not just those living in Fort Wayne. It would increase the income tax revenue available to all local units of government.
Council members are also likely to revisit a proposal that would save millions but would drastically change city employee benefits. City leaders proposed altering the city’s sick-time policy, requiring employees’ spouses to use insurance coverage at their jobs and eliminating compensatory time.
