LORAIN — What Council asked for was a revenue plan that would finally get the city out of the red.

What it got from Mayor Tony Krasienko this weekend was a revenue plan that would accomplish that — by increasing the city license plate fee and reducing the income tax credit for residents who work outside the city — and an expenditure plan.

Council members were still sifting through the 4-inch-thick, multi-binder proposal Sunday in preparation for today’s Finance/Claims committee meeting.

“It’s pretty far-reaching,” Councilman Dan Given, D-at large, said. “There is a lot of information to digest.”

And Given doesn’t believe residents are going to be pleased with the proposed tax increases.

“They will be storming City Hall with pitchforks,” he said, half-joking. “We attempted to try a license plate tax before for a lesser amount, and the public was upset. It’s no secret the roads in Lorain are similar to a war-torn country. We know something needs to be done. But I’m sure residents will feel just as concerned about this plan, demanding answers.”

Currently, the city collects $5 for every license plate sold in Lorain. The proposed $15 increase would bring in a total of $20 for the city, which would generate a total of more than $1 million a year to go toward road resurfacing.

Along with the license plate fee increase, Council will have to determine whether it wants to implement an income tax credit reduction, which would bring in an additional $3 million per year to the city.

“The response to the license plate fee increase has been pretty positive, as long as the money is spent entirely on the roads,” said Councilwoman Melanie Szabo, I-1st Ward. “Ninety-five percent of the people I spoke to are in favor of it.”

But Friday afternoon was the first she had even heard of an income tax credit reduction.

“There aren’t any jobs in Lorain to be had, so we’re not getting income tax from them,” she said. “I want to hear more about it. There has to be a discussion.”

According to the “City of Lorain Investment Plan,” the increase in taxes would eliminate the budget deficit and pay for additional city services, such as more employees in the building department, engineering department and parks and recreation department; and construction of a new fire station and a new utility complex.

While Given was still perusing the mammoth proposal Sunday and declined to say much, Szabo said she is in favor of some of the additions Krasienko proposed.

“The building department needs to be fully staffed, and the code needs to be fully enforced,” Szabo said. “We’re not going to attract anyone to live in this city when their neighbor’s home looks like it’s going to fall over. We have landlords who own property and don’t care about their rentals. We have people living in deplorable conditions.”

In addition to the proposed changes in the building department, Szabo would like to see the parks department enhanced and the east-side fire department moved, she said.

“We need the city of Lorain to have departments that are fully functional in order for the city to run,” she said.

Councilwoman Anne Molnar, D-at large, agrees.

In fact, she’s in favor of the entire plan — the tax increases and the expenditures for additional buildings, services and employees.

“It’s a good plan,” she said. “All of it is long overdue. The only way we’re ever going to get ahead in this city is to increase taxes.”

Molnar said she would oppose passing the plan as an emergency because it wouldn’t allow for a referendum.

Councilman Dennis Flores, D-2nd Ward, said the plan will likely irk a number of residents, but something needs to be done to generate money for the city. He has questions about the proposal he hopes to get answered tonight.

He is in favor of doing whatever it takes to see the city’s blighted areas cleaned up.

“I’m a little apprehensive (about the plan),” he said. “But on paper, it looks good.”

Councilmen Tim Howard, D-3rd Ward, Eddie Edwards, D-5th Ward, and Greg Holcomb, D-6th Ward, were still going through the proposal as of Sunday night and declined to say much.

But Holcomb said people he has spoken to so far have had positive input about the license plate increase — as long as it gets the roads fixed.

Councilman Mitchell Fallis, D-at large, also was going through the documents, but said he was happy about anything that would get the city to a balanced budget. He also was in favor of funding for road resurfacing but wanted to get more information before commenting on the expenditures.

Krasienko, Councilmen Bret Schuster, D-4th Ward, and Mickey Silecky, D-7th Ward, did not return phone calls seeking comment.

Contact Christina Jolliffe at 329-7156 or cjolliffe@chroniclet.com.

 

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