By Alex Holwerda
PEMBERVILLE — Residents are being asked to increase their income tax paid to the village.
Currently, there is a 1% village income tax. The proposal that will appear on the Nov. 5 ballot is for an increase of 0.5%.
“First implemented in 1976, the 1% income tax has changed over time. For the past few years, the average amount the income tax has collected annually is $600,000,” said Mayor Carol Bailey. “The village hopes to collect an additional $300,000 annually from the increase.”
Information flyers were handed out this year at the Pemberville Free Fair. The flyers explain that the money goes into the income tax fund, which is divided into two funds: 60% goes to the general fund, with the remaining 40% going to the permanent improvements fund.
The general fund supports the police department, utilities, lawn mowers, insurance, and more. The permanent improvements fund pays for the maintenance and improvement of buildings, roads, parks, streets, and anything lasting over five years.
“The village is not in any fiscal emergency,” Bailey said. “The inflationary cost to run the village is outpacing the increases in the general fund.”
The village spent $35,635 more than it took into its general fund last year.
Insurance costs have risen 71% between 2005 and 2023, which is one factor that has affected the general fund, according to the information provided.
