Infrastructure needs push Martins Ferry toward possible income tax increase

MARTINS FERRY -- Martins Ferry City Council took the first step Wednesday toward increasing the city's income tax, advancing an ordinance for its first reading as officials search for ways to address a growing financial shortfall while tackling a long list of aging infrastructure needs.

The proposed increase comes as city leaders say Martins Ferry is facing mounting repair costs involving water lines, sewer systems, streets and municipal facilities, with limited funding available to address problems that have accumulated over decades.

Council's action begins the legislative process for a potential tax increase, which officials say would provide additional revenue to help fund capital improvements and critical infrastructure projects.

City leaders say the goal is to establish a sustainable funding source that will allow Martins Ferry to address infrastructure failures before they become larger and more costly emergencies.

The discussion surrounding the ordinance follows weeks of conversations about the city's financial challenges and the need to develop a long-term plan for replacing and repairing aging systems throughout the community.

Officials previously warned council that many of the city's infrastructure problems are no longer issues that can be delayed, with repairs becoming more frequent and increasingly expensive.

"We need to figure out how we are going to pay for some of these projects. We keep running around in circles. These projects are here. They are on your desk," Mayor John Davies told council. “They are here. They need funded."

A recent sinkhole collapse on Sixth Street highlighted the concerns facing the city. The roadway gave way after a sewer line became blocked by a boulder, causing water to back up beneath the street. While the immediate damage was repaired and the road was repaved, city officials said the incident was a reminder of the condition of infrastructure beneath Martins Ferry. The repair carried a $72,959 price tag.

"I'm going to mention this again. We got a bunch of sewer issues coming up. We are going to have some infrastructure issues down the road," City Service Director Andy Sutak said. "I'm not saying when or what, but like this sinkhole, we didn't know anything was going to happen and the next thing you know, it just collapsed and there's a 10-foot-wide hole, 20-plus-feet deep. These are all old infrastructures. All fallouts. Old creeks that were redone many years ago."

Officials have said the city needs a comprehensive infrastructure plan, but developing a plan requires a dedicated funding source to carry out the work.

Council members previously discussed a potential 1% income tax increase dedicated toward capital improvements, saying additional revenue would allow the city to begin addressing long-delayed projects.

The first reading of the ordinance does not immediately increase the city's income tax rate. Instead, it begins the process required under Ohio law for a municipality seeking to increase its income tax rate beyond the current level.

If council moves forward with the proposal, additional legislative action will be required before the issue can be placed before voters. Residents would ultimately have the final say on whether to approve the increase through a ballot measure.

The ballot language would outline the proposed tax rate and how the additional revenue would be used, with city officials indicating the funds would be aimed at addressing capital improvements and infrastructure needs.

Mayor John Davies said the city cannot move forward with major projects without identifying a way to pay for them.

"We've been kicking the can down the road for a couple of months now. We kind of put a plan together and then implemented the plan," Davies said. "It's not just one thing. It's everything and we just need to get a solid plan."