Mayor Earl Leiken Asks Sussex Residents to Support Tax Increase

Shaker Heights Mayor Earl Leiken hammered home the city's reasons behind a proposed income tax increase for more than an hour Wednesday night at a Sussex Community Association meeting.

As for much of 2012, Leiken told a crowd of about 50 at that decreasing revenues and state-approved cuts to local governments have put Shaker in a financial bind. With operating revenues declining since 2007, Leiken said the city is on track to carry a $4.9 million deficit by 2015.

"We're so sorry that we've ended up in this position," Leiken said.

The mayor traced the city's issues to the lower-than-usual real estate receipts and interest income Shaker began receiving in 2007 when the country was swept by an economic downturn. Since the state hasn't recovered from the downturn, legislators cut funds to local governments, which had brought about $742,500 per year. The estate tax also expires Dec. 31. The city received an average of $5.6 million in estate tax funds each year from 2002 to 2011.

Leiken read from note cards and used Powerpoint charts to illustrate that the city's "quality of life" would be compromised if voters don't approve an income tax increase from 1.75 percent to 2.25 percent. That terminology irked some residents, who wrote off the presentation as vague and threatening. Others sided with the city, saying they would pay to keep services at their current level.

"Take stock of what you have," one resident said during the portion for public speaking. "Where would you go (if the increase is approved)? Some place else to go through the hassle of moving to save $500?"

The woman received applause when she concluded by saying, "I'm not moving."

Shaker Heights resident Wayne Grant, who remains undecided on the issue, gave Leiken a mixed review. He hopes government and the public can meet in the middle on the $6 million the city says it needs to replace outgoing funding from the state.

"I think he needs to work on his presentation skills a little bit, but other than that I think he gave us the information he felt that was important," Grant said. "Rather than going up from 1.75 (percent) to 2.25, could there be something in between? I think there are some ideas with trash pickup or housing inspections that could be considered, moving these areas."

Leiken discussed several measures the city has taken to cut expenses in the face of fiscal trouble. It cut 58 jobs in five years, and annually saves $549,442 from negotiated union contracts that don't provide yearly wage increases. He said the city continually reaches out to potential businesses and raised about $18 million for the upcoming Van Aken District project, which could bring in future corporate investments.

The mayor maintained that those actions aren't enough, especially with the expected loss of about $450,000 as a result of declining residential and commercial property values. 

City Councilman Earl Williams followed Leiken's presentation by saying that residents with a household income of $50,000 can spend an additional $21 per month on the tax increase or lose trash pickup, school crossing guards, swift police response time and other services they enjoy.

"This election is about a choice," Williams said. "If you choose to want to remain where we are as a city, you will support this tax. No one else in Columbus is listening to us."

Check back later for more coverage from the mayor's tax increase presentation.

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