November 2, 2006

By Diane Chiddister

Questions about the effects of Issue 21 on affordability, Village services and annexation were among the concerns raised at Monday night’s Town Hall meeting at the Bryan Center. About 25 people attended the event, which was sponsored by the Yes for Yellow Springs Committee.

The organizers intended the event as an opportunity for villagers to raise questions and gain information about Issue 21, the $8.4-mill five-year property tax levy which will be on the Nov. 7 ballot, according to facilitator Bruce Heckman. Present were Village Manager Eric Swansen and Village Council members Jocelyn Hardman, Karen Wintrow, Bruce Rickenbach and Kathryn Chase. Council member Judith Hempfling, who earlier that day announced that she no longer supports the levy, did not attend.

“Affordability is a huge issue,” Patti Dallas said. “We need to think in terms of human needs.”

If the levy passes, some villagers will struggle to pay the additional costs, according to Hardman, who said, “At that point we’ll have to show the community what kind of community we are.” She suggested that volunteers might help educate people about property tax exemptions for those over 65 or with low incomes.

If villagers vote the levy down, they are telling Council that they can’t afford to pay for the Village’s human services, including the Gaunt Park pool, the maintenance of the library building and the community use of the Bryan Center, according to Hardman. At a Council meeting last week, Council members voted 3–2 to cut those services if the levy fails.

“If people can’t afford it, they will tell us,” Hardman said.

The levy will raise about $743,000 yearly for five years in an attempt to address the decreasing revenues from income tax, which is currently the largest source of revenues for the Village’s general fund, the Village’s main operating budget. In an opening presentation, Swansen stated that since 2002 Village income tax has been down about 17 percent per year, due to an aging population and a loss of local jobs.

This year, the projected general fund deficit was about $366,000, although the Village actually had a balanced budget because it drew down monies from special revenue funds. However, the Village cannot continue to do so because the reserves are almost gone, Swansen said, and a new source of funding is necessary.

“Everyone agrees we need the money,” said villager Cy Tebbetts. “The question is how we raise it.”

The Village has limited ways to raise revenues, and those ways include income and property tax. Because only about one half of Yellow Springers work, and many work outside the village, raising income tax would yield inadequate income, Hardman said. A new property tax seemed the most equitable revenue source, she said, because those who pay taxes are those who use services, and also it is not limited to those who are earning an income.

Some villagers expressed concerns about how the Village has used its revenues so far. Larry Turyn raised questions about the Village’s loan to Community Resources of $300,000 to start the Center for Business and Education, and wondered when the Village would get that money back.

The loan will be paid back as the CBE begins to attract businesses, according to Community Resources member Carol Gasho, who said the CBE, which is located near the corner of East Enon road and Dayton Street, has already received about $1.2 million in grants and is moving ahead.

The CBE is critical as a longterm solution to the Village’s economic challenges, Swansen said.

“Taxes are not the solution,” he said. “What we need is to restore job growth, and that’s what the CBE is set to do.”

Currently, the CBE is stymied in attracting new businesses because it does not yet contain necessary infrastructure; consequently, Swansen said, the state does not promote it to prospective businesses.

“It’s really vital for us to pitch that property to the state and other companies,” Swansen said.

In response to a question from Dallas about whether or not the possible annexation of the Fogg farm property would financially help or hurt the Village, Swansen said the answer is not yet clear, but will become more clear after an annexation study is done to determine potential costs and expenses.

Joseph Giardullo asked Council members if, should the levy fail, they would consider putting another levy on the ballot soon.

“It seems there’s a movement that says, let’s vote this down and bring it back later,” he said.

Should the levy fail, the Village would have to go ahead and cut services next year, Swansen said.

“The reason why this is on the ballot now is this is the last opportunity to make a decision without having to make the cuts,” according to Swansen, who said a future levy would involve waiting at least a year for additional revenues.

“If the levy fails, it’s telling us that we as residents say we can’t afford the services,” Hardman said.

Contact: dchiddister@ysnews.com