Saturday, June 29, 2013

Star-Press Reports Muncie Mayor Opposes Two New Local Income Taxes Proposed for Delaware County


From the Muncie Star-Press:

Two new local income taxes proposed this week to help Delaware County government’s financial problems won’t get the necessary support from the city of Muncie, Mayor Dennis Tyler said Wednesday.

“It’s just not the right thing to do,” Tyler told The Star Press.

Noting that Muncie City Council has to approve new local income taxes, even if they originate with county government, Tyler said, “You’d always like to have more revenue and resources to improve your community.

“However, I’m in constant contact with members of city council,” Tyler added. “We have no interest in moving forward with new taxes at this time.”

Tyler said Wednesday he still hadn’t seen a copy of the report delivered to a joint session of the Delaware County commissioners and Delaware County Council on Monday evening.

The report from Indianapolis financial consultants H.J. Umbaugh was requested by the commissioners as the county struggles with revenue decreases of millions of dollars and expenditures — particularly millions of dollars a year for health insurance — that threaten to bust the county’s budget this year and in 2014.

The Umbaugh report offered several recommendations, including reviewing the amounts contributed to employee health insurance by the county and by employees.

It also proposed a public safety local option income tax (LOIT) that could generate $2.4 million a year and a tax rate that would fund a cumulative capital development account of $1 million a year.

In Monday’s presentation, Paige Sansone of Umbaugh recommended the county work “with the city of Muncie” in adopting the public safety LOIT.

Tyler said he was aware of county government’s financial struggles. But the retired firefighter said that even to bolster public safety funds he couldn’t support a new local tax.

“No, I wouldn’t,” Tyler said.
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See the full article here:

http://www.thestarpress.com/apps/pbcs.dll/article?AID=2013306280007