City Council approves budget plan increasing utility tax by 12%

DAYTON-The City Council approved Ordinance 1981, which is a 12% utility tax increase to mediate the budget deficiency, at a special meeting on May 19. The budget shortfalls are a result of the increased cost to the County per the interlocal agreement for law enforcement, dispatch and municipal court services to Columbia County totaling $612,500, as well as an increase in pull from the retirement benefit.

Mayor Zac Weatherford discussed four plans to rectify projected budget deficits that would begin in the fall. During the initial meeting on May 12, the council went to a vote to increase the utility tax by 18% but deadlocked, ending in a tie of 3-3.

During this special meeting, four plans were presented. Three of which included a hike in the utility tax by 12%, 15% or 18%. The lower tax percentages would also cut public works jobs. The higher percentage would leave services and workforce intact but cut from various current expense department funds and reallocate water and sewer investment interest. This is the only plan that would provide a long-term sustainable fix of all four plans. The final plan did not include an increase in the tax, but called for the elimination of Council and Mayor Salaries, a reduction in exempt employees' salaries and various cuts to services.

A vote was made on the plan with no increase in utility taxes but failed 2-5. Next, the 12 % utility tax plan was put forward for discussion. Council Member Delphine Bailey suggested an addendum to only reduce public works part-time employees by one instead of three and instead that the Mayor and Council forego their salaries. The motion to adopt the plan carried 4-2 with Ordinance 1981 and is set to begin June 1.

Public Works Director Jim Costello said, "Thank you Council for saving jobs."

Weatherford told the Council they can review and make changes at any time. Bailey pointed out that despite moving forward with the plan, it gives time to consider a long-term solution. Administrator Trina Cole suggested regular meetings to develop a sustainable plan as soon as possible.

New Council Member, Fred Crowe acknowledged that adopting the plan puts the City in "a tenuous position."

When the meeting opened for public comment, resident Norm Roth spoke up to say, "We can't tax ourselves out of this situation."

Councilman Dain Nysoe said of the approved plan, "The best thing about the amended Ordinance 1981, is that the increase in the utility tax for Dayton's citizen, was ONLY 12%, and not the 18% proposed by the Mayor. Even 18% would not have solved the financial issues facing the City. I would strongly encourage the citizens of Dayton, to get involved, attend council meetings, and help by being part of finding a solution. Their input is going to be welcomed."