Wednesday, June 12, 2013

Journal-Gazette Reports Fort Wayne Employees' Benefits Cut

From the Fort Wayne Journal-Gazette:

The Fort Wayne City Council members cut $2 million worth of employee benefits Tuesday and expect to cut another $2 million next week.

City union members jammed the council chambers, spilling out into the hallway when the room reached capacity as the council considered proposals to dramatically change sick-time policies, health insurance benefits and end comp time for police officers.

The council also held the first of two public hearings on proposed tax increases, including an income tax hike that would cover everyone in Allen County, but only five people testified.

Three people spoke in favor of the income tax proposal, which would raise the local income tax from 1 percent to 1.5 percent.

Jane Ford, president of the Historic South Wayne Neighborhood Association, said her neighborhood and all seven neighborhoods that make up the Packard Area Planning Alliance support the tax increase because of the need for increased police presence.

“We consider them our guardian angels,” Ford said.

But Carl Jackson said there must be other options.

“Raising taxes would be a permanent solution to what might be a temporary problem,” he said.

A second public hearing on the tax increase proposals will be next week.

Despite the tax implications – property tax revenue is set to go up at least $5 million and possibly $6 million, and the income tax could bring the city up to $17 million – most of the discussion in the 3 1/2 -hour meeting centered on benefit cuts for the city’s 1,800 employees.
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See the full article here: