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Martins Ferry City Council considering tax credit cut

Martins Ferry Mayor John Davies, left front, reports to City Council on Wednesday. Beside him is Service Director Andy Sutak, and behind them are council President Kristine Davis, left, and council Clerk Kay McFarlan. T-L Photo/JENNIFER COMPSTON-STROUGH

MARTINS FERRY — In an effort to raise additional revenue, City Council is considering the reduction of an income tax credit that currently benefits some residents.

During the March 30 meeting, Councilwoman Suzanne Armstrong gave a Finance Committee report and said members were considering changes to the 100% income tax credit that is given to residents who work in other communities where they must pay income tax. On Wednesday, she made a motion to have Law Director Paul Stecker create an ordinance that would reduce that credit to 75% beginning in July, and to further reduce the credit to 50% in 2024.

During discussion of the matter, Armstrong told other council members that setting the tax credit at 75% is estimated to generate additional revenue of $21,000 per year, while cutting the credit to 50% would garner an additional $43,400 for the city annually. Although the gains would be relatively small, several officials agreed that the change would be a good first step toward improving the city’s finances.

“We have to do something to generate revenue,” Mayor John Davies said.

Council members voted unanimously to direct Stecker to create the ordinance for consideration.

Following the vote, Davies stressed that council is considering a tax credit change, not an increase or a new tax. Councilman Bob Hunker added that the city currently has a 1% income tax and that council cannot increase that amount.

“Any increase above the 1% would require a vote by the citizens,” Hunker said.

Also at the March 30 meeting during the budget appropriations planning process, Auditor Jack Regis Sr. said a change was made to how the city’s share of the mayor’s insurance was paid. The Times Leader incorrectly reported that the expense was transferred to the EMS fund; however, Regis clarified Wednesday that the cost is now being covered by the Street and Sanitation Fund.

In other matters, Davies reported that multiple breaks occurred on a single waterline last week, putting a strain on city workers. He also said cameras have been installed at the impound lot and that the facility will be put into use as soon as some city-owned vehicles are moved from it.

Davies also discussed a recent conversation with Columbia Gas officials, who are conducting a major line replacement project throughout the city. He said the company agreed to try and smooth out areas of Zane HIghway where work has been completed. He also said he is working with the company to ensure it will repave Sixth, Eighth and Ninth streets after it completes work there, as the city recently resurfaced those streets.

The mayor also announced he is preparing to take applications for the position of police chief, following the retirement of John McFarland. Jerry Murphy, a longtime officer and sergeant, is currently serving as interim chief. Davies does not have a timeline for filling the post in a more permanent capacity.

Talk also turned to the repair of two road slips near the Martins Ferry City Schools’ campus. Ownership of School Road and Alumni Road is unclear, and officials said the city cannot afford to fund those major repairs. A Street Committee meeting was scheduled for 10 a.m. April 27 to discuss the matter further, with Stecker and school Superintendent Jim Fogle to be invited.

Councilman Bruce Shrodes, who works as a school bus driver, estimated the cost of the repairs will be millions of dollars.

“Every kid in the city runs those roads on buses or in vehicles,” he added, noting that the safety of students and school staff needs to be a paramount concern and suggesting that help to fund the repairs might be available through the state or other sources.

A Finance Committee meeting was set for 10 a.m. April 26. Council’s next regular meeting is scheduled for 6 p.m. May 3 in Council Chambers on the second floor of the City Building.

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