ELYRIA — Voters stunned city officials Tuesday by overwhelmingly rejecting a longstanding income tax levy that generates $6 million a year, more than one-fifth of the city’s general fund budget.

Unofficial results  showed that 9,278 voters, or 69 percent, opposed renewal of the 0.5 percent income tax and 4,160 voters, or 31 percent, favored it. If passed, the levy would not have raised taxes for city residents.

“Losing $6 million is dramatic,” Mayor Bill Grace said. “It’s an understatement to say some cuts would be required to make up that kind of money. Now is the time to focus on another campaign.”

It’s not the time to think about cuts or layoffs, he said.

Renewal levies often pass without much opposition, so city officials decided not to wage a community campaign. That mistake won’t be repeated, Grace said.

“It’s a tax that has been in place for 30 years,” he said, “and we just didn’t feel it was necessary to campaign, but for November we will make sure the community is aware that it is a renewal — no new money — and how the money is used.”

In place since the 1970s, the 0.5 percent income tax provides the city’s general fund with about 22 percent of its money. The general fund is mainly used to pay the salaries and wages of police officers and firefighters, making the levy critical to the operation of the city, Grace said.

City Councilman Forrest Bullocks, D-2nd Ward, and chairman of Council’s Finance Committee said, “Even though it’s a temporary tax, I’ve always told people that it’s for permanent needs. Without that money, it’s really going to hurt our general fund. What we have to go on is the fact that it doesn’t expire until 2009. That gives us time to put it back on the ballot in November.”

Grace said, “I’m certainly disappointed that it failed. I think the ballot language confused people because it included the word ‘increase.’ ”

Contact Lisa Roberson at 329-7121 or lroberson@chroniclet.com.

 

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