MOUNT VERNON — In an effort to ensure Mount Vernon has funds for debt service, administration officials are looking to reallocate a portion of the city’s income tax revenue.
“We’re not asking the public for more taxes,” Safety-Service Director Tanner Salyers said. “This is just as tax revenue comes in, how do we allocate it in these different funds.”
The city collects a 2-percent income tax. One percent is the voter-approved tax that goes to police and fire (0.5 percent each). This allocation will not change.
City code allocates the other 1 percent to seven funds.
Council members gave a second reading on Monday to legislation that changes the allocation among those funds.
The ordinance reduces the allocation to the roads and bridges and capital improvement funds.
Both funds receive other revenue in addition to income tax revenue.
It increases the allocated amounts to the municipal facilities improvement and general funds.
City Auditor Daniel Brinkman said that reducing the allocation to the roads and bridges and capital improvement funds allows more money to go to the municipal facilities Improvement Fund (407 fund).
“We’re hoping we can use the 407 then to carry a lot of the debt service from then on once some of these [municipal] projects are completed,” he said.
In March, council members approved issuing up to $29 million in bonds to cover costs for the new police station.
The city has not yet sold the bonds and does not know the debt service. It will not know how much it will issue until the construction manager at risk has a guaranteed price for construction.
Legislation increases contribution to general fund
The $2 million the city received from the One-time Strategic Community Investment Fund is in the 407 fund. Under the new formula, it will receive about $814,454 in 2026.
“Two minor things that this ordinance also accomplishes is that it increases the general fund modestly from 52 to 54 percent, which will net us about $219,000 a year,” Brinkman told the council.
When calculating his projections for 2026 and 2027, Brinkman used 2025 revenue numbers.
“I’m hoping it’s going to be better than that, but we try to be conservative with the numbers,” he said.
The ordinance also eliminates the bond retirement fund. Unlike the other funds, which use percentages, city code requires the auditor to allocate a set dollar amount to the bond retirement fund.
“You have to kind of back-door it at the end of the month and figure out the dollar figures to account for that,” Brinkman explained. “That one’s more just housekeeping on our side.”
Salyers said the new allocations are not permanent because the city does not know the exact debt service at this time. However, he said the administration feels like this is a workable solution given current estimates.
“If we get into next year and it looks like the debt load for the police station, municipal center, the remodel of 40 Public Square for court services, and as we start looking at designs for the east end fire station and beyond, if more is needed, then we’ll have to assess at that point,” he said.
“But we do have a significant amount of municipal facility work that needs done, and we’re going to have to figure out how to handle that download while also running the government.”
Council members take additional legislative action
In addition to giving a second reading to legislation changing the income tax allocations, city council members took the following actions:
• Gave second readings to legislation authorizing the administration to bid and award a construction contract for the Blackjack wetlands and Veterans Walk of Honor projects and creating a resource coordinator position.
• Adopted legislation relating to curbside recycling.
• Suspended the third reading and adopted amended legislation regulating taxi cabs.
• Gave first readings to legislation selling a building on the city’s lot at 69 Sychar Road, a contract to provide fire/EMS service to College township, dispose of vehicles, and amending city code relating to section 1102 and storing large vehicles.
• Suspended the three readings and adopted legislation to participate in the Ohio Department of Transportation’s road salt program, pay bills, solicit Requests for Qualifications for demolishing the buildings at 10-20 N. Main and 6 E. Chestnut streets, participate in a Safe Streets and Roads program, and contract for brownfield remediation.
Parent urges caution during Senior Tag Week
Speaking during council’s public participation session, Andrea White asked the council to advise the Mount Vernon Police Department that April 13 to 17 is Senior Tag Week at Mount Vernon High School.
She said students using water guns potentially creates a situation for misunderstanding between law enforcement and the students. Council member Amber Keener said her son participates in water tag and that she will advise the MVPD.
Mobility Management Coordinator Joe Porter updated the council on the Transportation Advisory Committee’s activities.
Councilwoman LeNan Hager read a proclamation designating the week of April 13 to 19 as International Dark-Sky Week.
