MAYOR KATHY CATAZARO-PERRY DOESN'T KNOW HOW TO ADD?

MASSILLON CITY COUNCIL 

SET TO REJECT MAYOR'S PROPERTY TAX

VIDEOS

COUNCILMAN ED LEWIS, IV
QUESTIONS
"THE NUMBERS NOT ADDING UP"
  =========================
BUDGET DIRECTOR/TAX ADMINISTRATOR
KEN KOHER
ON
NUMBER OF NON-RESIDENT TAXPAYERS
=========================
COUNCILMAN PAUL MANSON
ON
RESTORATION PLAN
=========================
COUNCILMAN ED LEWIS, IV
ON
RESTORATION PLAN
=========================
COUNCILMAN MILAN CHOVAN
ON
RESTORATION PLAN   

As matters stand as of the date of this blog, it seems likely that Massillon City Council will on Wednesday arrive at a consensus to reject Mayor Kathy Catazaro-Perry's real property based tax increase proposal (1.5 mills) in favor of council's plan to:

• ask voters to approve a hike in the city's income tax by two tenths of a percent,
• for five years,
• in exchange for council dropping the city's $25 per property owner street lighting assessment, and
• conditioned on council restoring Massillon income tax credit to 100%

Councilman Ed Lewis, IV (Republican - Ward 6) sounded the underlying reason ("the numbers don't add up) as to why council is likely to reject the mayor's plan:

• as council met again (LINK to blog on first meeting) last night in a bifurcated session 
• about 1-1/2 hours before a regularly scheduled council meeting and approximately 1/2 hour on the tail end of the regular meeting

To summarize on Lewis' notion that "the numbers do not add up:" to wit:

• that most (except those who own rental/business property in the city) of the 73% (2012 numbers) of "within city limits based business non-resident employees"  would not pay Catazaro-Perry's proposed property tax,
• Note:  As far as Massillon government employees are concerned, about 60% are resident Massillonians

• that one projection of city finances presented to council indicates that the city will be carrying a surplus five years down the road at about $1.3 million, having done nothing

• as compared to another projection indicates a deficit at about $1.4 million five years hence, 

So the thinking on council appears to be: why approve a plan that adds more burden to those who own residences and business buildings in Massillon in the light of contradictory estimates as to where the city ends up five years henceforth?

Here is video of the Koher/Lewis exchange:



Where did the 73% figure come from?

Budget Director/Income Tax Administrator Ken Koher, that's where, to wit:

As far as those persons who are employed in the City, the information available takes int d account the number of W-2s filed by employers. Employers includes resident employers and non-resident employers that file withholding taxes with the City. Keep in mind, the number of W-2s will be on the high side of the actual number of workers since employees come and go during a year's time and some work multiple jobs within the city limits. However, the proportion resident versus non-resident W-2s should give us an idea of the makeup of workforce.

For year 2012 the reconciled totals indicate 7,008 W-2s for Massillon residents and 19,372 for non-residents. This translates into the workforce being 27% Massillon resident workers and 73% non-residerft workers. W-2 earnings reflect that 28% of the reported wages are paid to resident employees while 72% are paid to non-resident workers. The income tax withheld mirrors those percentages. It is interesting to note that the average earnings for resident workers is $21,197.66, or 7.5% higher than the $19,710.41 for non-resident wage earners.

And at the work session last night:



Ever since council met last week, council has been struggling to understand the numbers.

They have repeatedly asked Koher to clarify the numbers in last week's and last night's work sessions.

And Koher has valiantly endeavored to provide numbers that make sense.

One gets the sense that Koher, a first-rate finance man, doesn't have much wiggle room in what he shares with council and what he feels would not meet with Mayor Kathy's approval if he were to share it.

Consequently, he is going back and presumably discussing with the mayor what she is willing to have him provide council.

All of which means that council feels that it cannot make a final decision on what its restoration plan will be until Wednesday at its planned 5:30 p.m. meeting.

What council needs to know is how much "net" (after deducting the elimination of the street lighting assessment and returning the income tax credit to 100% of the Massillon tax rate) the city will realize in added revenue.

Once council knows those numbers, it can then determine how much of a .2 (1.8 to 2.0) income tax increase will go towards repair of  the city's streets as compared to how much is set aside for streets vehicle/equipment replacement.

So what council is trying to do is very simple.

Make "the numbers add up!"

As far as the SCPR can tell, it seems that council members think that Koher is being straight with them and accommodating to their requests for key financial information.

But it seems that it is "a process of pulling teeth" and the SCPR thinks it is not Koher who is the problem.

Of course, Koher is not going to finger the mayor.

Another administration figure that council has been well taken is Safety Director Al Hennon (a former Massillon City Schools superintendent.

During last night's council meeting a buzz enveloped council chambers when it came to light that Hennon resigned earlier in the day for personal and health reasons.

A common comment among council members was that they were surprised how long Hennon lasted. 

He was appointed September 17, 2013 and lasted until March 16, 2015; some 18 months.

One has to wonder how much longer Koher will last, no?

With Hennon now gone, a Koher departure would likely be devastating to the embattled Catazaro-Perry administration.

There remains an unanswered question.

Will the mayor allow council to substitute income tax based restoration for her proposed real property tax?

The SCPR for one would not be surprised if the mayor rejects the change and consequently it could be that 15% "across-the-board" cuts are coming in April.

If that happens, the further question is what impact will it have on the Catazaro-Perry/J. David Ress match up in the Democratic primary come May 5th.

One thing seems to be sure.

A Ress victory (Ress says he will work with council) has prospects of ushering in an era of the administration and council working together in contrast to the pitched battles that plagued the Catazaro-Perry administration relationship with council pretty much from the onset of Catazaro-Perry as mayor.

Ress says that, if elected, he plans on retaining Koher whom he considers to be a terrific finance guy.

Same man, different mayor all of a sudden "the numbers start adding up?"

Here are videos of Councilmen Paul Manson, Ed Lewis, IV and Milan Chovan with their views of the night's proceedings.

PAUL MANSON, DEMOCRAT, COUNCIL-AT-LARGE



ED LEWIS, IV, REPUBLICAN, WARD 6



MILAN CHOVAN, REPUBLICAN, COUNCIL-AT-LARGE