Background
In March, 2008, the City appointed 15 business leaders, economic experts and community leaders to an Economic Advisory Committee. The Committee's charge was to determine if there was a structural imbalance in the city's general operating fund. A structural imbalance exists when long term average growth in the city's revenues is not able to support the long-term average growth in expenditures needed to sustain an acceptable level of government services. The Committee concluded that a structural imbalance did indeed exist, and has resulted in a cumulative shortage of $80 million to $120 million in the general operating fund.
The Committee compiled a wide variety of options for City leaders to consider in resolving the structural imbalance. The Committee recommended that a combination of cost reductions and revenue enhancements should be pursued, and concluded that an increase in the City income tax rate was a necessary component in eliminating the structural imbalance.
In response to the Advisory Committee's recommendations, the City has developed a three-prong plan to include: reforming city government operations; creating jobs; and boosting city revenue. Part one of that strategy includes a 10-year comprehensive plan of government reforms and efficiencies expected to save between $100 million and $150 million over the next 10 years and includes implementing new approaches to employee benefits, public safety reforms and strategic partnerships. Part two of the plan focuses on economic development and job creation activities in order to bring new jobs into Columbus and retain jobs that are already here. The third prong is the implementation of an income tax increase.
This ordinance authorizes an increase in the city income tax from a rate of two percent to a rate of two and one half percent effective October 1, 2009.
Title
To increase the city income tax from a rate of two percent (2.0%) to a rate of two and one-half pe...
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