ATHENS, Ohio — Acting Athens City Council President Jeff Risner, 2nd Ward, brought forth a salient question at the council’s Nov. 25 committees meeting: “OK, public, do you have anything to say?” regarding the city’s proposed income tax increase.
The city is proposing an income tax increase of 0.3%, which would raise the city’s income tax rate from 1.95% to 2.25%. The earliest it would appear before voters would be May 2025.
First reading of the ordinance to place the administration’s proposed income tax increase is set for the next regular Athens City Council meeting on Dec. 2. If enacted, the income tax increase would go into effect in 2026.
Athens resident Mary Abel answered the call by expressing her concerns in detail.
“When you first look at [the proposed income tax increase], it sounds pretty innocuous and not too bad,” Abel said.
But, Abel said, the proposed increase on wage earners would actually be a hike of about 15.4%. As such, it would amount to one of the largest increases since the inception of the city’s income tax — which was 1% in 1964.
And that, Abel said, would be quite a burden on wage earners.
U.S. Census Bureau data shows that the city’s estimated 2023 median household income was $38,543, and that 43% of residents live below poverty level. The census bureau also estimates that more than two-thirds of the city’s housing units are renter-occupied.
Abel added that social media posts suggest that many people in Athens are struggling to make ends meet.
“We know that inflation has hit everybody, and everything,” Abel said. “I doubt that many people in this city are going to receive a 15% increase in their income this year or next year.”
Before increasing its income tax, Abel said she wanted to know what belt-tightening measures the city has made to try to reduce its expenditures.
Abel said the city needs to look at how staff levels have grown in the last five years — and how many positions have been left vacant. She also said the city needs to answer specifically how it would spend the $2.6+ million the income tax would generate.
That question was echoed by council member Alan Swank, 4th Ward.
“The city can use the money, but do we need the money, and if we need it, what do we need it for?” Swank posed.
Swank noted that increasing income taxes means that some city residents get to vote on a tax that they won’t pay, while those who live out of town but work in Athens will have to pay the tax but won’t get to vote on it.
“This is a tough one; it’s a tough topic,” Swank said.
Swank said the council has several options. They could:
- place the income tax on the ballot as proposed;
- place a lesser amount on the ballot and engage in “belt-tightening measures”;
- put a property tax increase of 5 mills on the ballot instead of an income tax increase, since all property owners would pay it and use city services;
- put a smaller property tax increase on the ballot with belt-tightening measures; or
- place a combination of property tax and income tax on the ballot.
Another option is limiting the income tax levy to a specified period subject to renewal, such as a 5-year levy, Swank added.
Budget breakdown
At the meeting, Swank highlighted the additional amounts various city offices would receive from the tax hike. (Editor’s note: On Dec. 2, Swank told the Independent that the amounts he cited at the meeting were incorrect and gave corrected information. We are using the correct figures here for clarity.)
For example, the mayor’s office would receive nearly $107,000 from an increased income tax rate. “What’s that going to go for?” Swank asked.
The Athens Police Department would receive an additional $537,888. “Will that be to hire new officers? New cars?” Swank asked.
Lands and Buildings would receive about $106,400 more per year. “Will that be so we can get the weeds out of the bricks on Union Street, so a local business person doesn’t have to do it? I don’t know,” Swank said.
According to City Auditor Kathy Hecht, nearly 80% of next year’s $19 million-plus general fund is spent on personnel. Most funding for the general fund comes from income taxes, which are projected to generate about $15.5 million this year.
Treasurer Josh Thomas said that through October, city income tax revenue stood at $14.65 million — about 4.9% ahead of October 2023. But, he said, the city’s economic growth is not keeping up with the costs of providing services to city residents.
City officials — including Hecht, Thomas and Service-Safety Director Andy Stone — say that personnel costs are rising due to health insurance, workers’ compensation, and required pension contributions for first responders.
At the council’s Nov. 18 meeting, Stone noted that withholding from Ohio University employees has fallen from 42% of revenue in 2008 to 29% in 2023. He blamed the falloff on larger numbers of OU employees who work from home, making at least part of their earnings free from city income tax.
But Swank had a different take on the change: More jobs that aren’t tied to the university.
“Our economy is getting diversified in this town, and that’s a good thing,” Swank said.
Swank said OU President Lori Stewart Gonzalez has directed her upper-level administrators to work within the city. OU did not immediately respond to a request for comment for this story.
HAPCAP transit plan
In other business, the council heard about a countywide transit development plan that outlines Hocking Athens Perry Community Action’s plans for its bus routes over the next 1–5 years.
HAPCAP Transportation Director Carolyn Conley and Mobility Coordinator Ben Ziff said the plan, which is being finalized, involved more than 300 survey respondents.
Overall, survey respondents said existing service is good, but riders want restored Saturday service. APT has not provided Saturday service since 2020; it would cost around $500,000 annually.
The new plan, which is being finalized, focuses on
- bidirectional service on main routes such as those serving The Plains and Chauncey, instead of routes that go clockwise and counterclockwise;
- minimizing routes that generate little ridership;
- avoiding duplication to sites covered otherwise;
- offering a new, fixed route to Jacksonville, Trimble and Glouster;
- modifying service to Albany with microtransit van service that is more cost-effective; and
- restoring Saturday service.
In the past, Athens has provided up to about $200,000 for APT, but this year it’s projected at $150,000. About 1% of Athens’ income tax is dedicated to transportation.
Athens is the only local government that provides fixed funding for public transit, Ziff said. OU provides support to HAPCAP through the Bobcat Pass, which allows students to ride for $1 — of which OU pays 90 cents. APT also serves housing complexes largely inhabited by OU students, such University Courtyard Apartments and The Summit at Coates Run.
Conley said HAPCAP is exploring the idea of a countywide sales tax levy to help support public transit. Ziff noted that most successful public transit operations in the state have a dedicated sales tax for revenue, or a medical transport system to support costs. HAPCAP has neither for APT.
Before the coronavirus pandemic, APT provided 400,000 rides per year, “which for a community this size is remarkable,” Conley said. But ridership has dropped markedly since, now at around 320,000 rides annually.
Union contract nearing for code enforcement
The finance and personnel committee reported on Nov. 25 that a tentative contract agreement has been reached with American Federation of State, County and Municipal Employees Local 2403, which represents five city code enforcement employees.
Highlights of the contract included modified boosted pay increases based on years of service, with a first-year increase of $2.36 per hour, a second-year increase of 4.5%, and a third-year increase of 4.25%.
“We’ve gone through a period of adjustments to account for inflation,” Stone said.
The contract also reduces the length of service needed to accumulate vacation time. After 6 months of service, an employee receives 10 days of vacation time; 15 days after 6 years; and 25 days after 18 years. The contract also increases bereavement leave from 3 to 5 days and adds 200 hours of parental leave. The compensatory time cap has been increased from 102 hours to 240 hours.
Water line replacement: Factory Street
The city and safety services committee discussed installing a new water line on Factory Street to serve OU’s Heritage College of Osteopathic Medicine building a new research building at the corner of Station and Factory streets.
Stone said the new water line would connect with two larger lines, including one on Union Street. The project was bid by OU as an alternative to the research building plans, with the city having an opportunity to take over the project, Stone said. Doing so would give the city more water line options should there be a break.
The city has set aside $222,000 for the project, paid from the city’s 2025 water maintenance fund, Stone said. Work should start in the summer of 2025 and finish within a year.
“It does not appear it would have an adverse impact on any businesses,” Swank said.
Court/Union streets intersection: ADA-complaint accessibility
The transportation committee discussed new ADA ramps and crosswalks, and delved into a citizens’ petition for preference of authentic Athens bricks instead of stamped concrete.
Some council members, however, said that while bricks are a characteristic of the Athens Uptown Historic District, ADA compliance and the needs of disabled persons were more important than adherence to authenticity.
Solveig Spjeldnes, 1st Ward, noted that the city has an opportunity to replace four ADA ramps in all four corners of the intersection of Court and Union streets. The ramps are adjacent to construction on the Lostro Building (formerly Follett’s Bookstore), currently in being converted into a multi-use building.
Council President Sam Crowl said he received a letter from Tim Traxler of Millfield and an attached petition with 85 signatures, asking for use of authentic Athens bricks at crosswalks to stay in compliance with historically accurate repair work within the city.
When it comes to a choice of adhering to historical standards for bricks vs. ADA-compliant streets for people, Risner said, “I’ll choose people.”
Spjeldnes asked if the project construction firm, M&M Construction, could complete sidewalk work on Court and Union streets over the upcoming winter break at OU. There are also crosswalks involved in the ADA project.
Stone said the city would push the work on the intersection, possibly over the winter break. The city initially appropriated $168,000 for its share of the work, and he added the amount has been increased to $200,000 to be paid from the street fund.
Athens City Council’s next regular meeting will be at 7 p.m. Monday, Dec. 2, in Athens City Hall, Council Chambers, third floor, 8 E. Washington St. Meetings are also available online. Regular sessions are on the first and third Mondays of the month; committee meetings are on the second and fourth Mondays.
Keri Johnson contributed to this reporting.
Let us know what's happening in your neck of the woods!
Get in touch and share a story!
