DELPHOS – Officials in the city of Delphos are hoping to raise an additional $400,000 a year through a 0.25 percent increase in the income tax.
They will need voters to approve the measure first.
The proposal is on the Nov. 5 ballot and seeks to raise the income tax from 1.5 percent to 1.75 percent, said Tom Jettinghoff, the auditor for Delphos.
“We have shortfalls in the general, the water and sewer fund,” Jettinghoff said.
The water fund is short by $320,000, the sewer fund short by $540,000 and the general fund short by $260,000, he said.
The loss of estate tax and the local government fund along with hits from businesses closing have created the shortage in the general fund, Jettinghoff said.
In total, the city needs to make up $1.12 million, Jettinghoff said.
The potential $400,000 that could be raised still isn’t enough to make up all the money but it will help, he said.
“If voters don’t approve it, City Council will have to decide where to look for more revenue or less expenditures,” he said.
Jettinghoff said placing the issue on the ballot gives residents the chance to vote on the way they want to make up the revenue loss.
Most of the city’s money is raised through the income tax, which includes people who work in the city as well as outside the city. The city has 7,000 residents, he said.
The last income tax increase in the city was about 20 years ago when it increased from 1 percent to 1.5 percent, Jettinghoff said.
If approved the money would go in the general fund for general expenses, he said.