What is Issue 29?

On November 6, 2018, Gahanna voters will consider changing the city’s earned income tax rate from 1.5 % to 2.5 % with 75 % of the additional dollars dedicated for necessary capital projects and maintenance.

What is an Earned Income Tax?

A tax on wages, salaries, tips and other earned compensation

Not taxed:

Retirement Income
Social Security
Unemployment
Disability payments
Military compensation

Why is additional revenue important now?

Since 2007, the State has dramatically scaled back the funding distributed to local municipalities with the reduction of the local government fund and grant opportunities.

The City of Gahanna has seen its investment returns, which were its second largest source of revenue, decline dramatically.

Over the years, the City has adjusted expenses to match revenue in a number of ways.

A portion of this adjustment has included the deferral of infrastructure maintenance such as repairing cracked and crumbling streets.

This maintenance deferral has reached a critical point and must be addressed.

How would the additional 1 % be allocated?

75% of the additional revenue would be restricted and dedicated to necessary capital projects and maintenance, like fixing our aging, crumbling streets, curbs and addressing parks projects.

25% of the additional revenue would go to operations, where it will be used to keep safety a priority and our community competitive and vibrant.

If the ballot issue passes, what changes will the Gahanna community see?

Streets and Curbs

  • The City will double its program from 3 miles a year to 6 to fix crumbling streets where maintenance was previously deferred due to lack of funds
  • Funding to allow complete replacement of the remaining concrete streets
  • Funding for a NEW curb program to fix crumbling curbs
  • Ability to fund roadway projects to address traffic congestion

Safety

  • Allows continuation of the School Resource Officer program and would fund other additional community police/safety resources in the future
  • Improved street lighting through investment in LED technology to enhance public safety

Community

  • Funding to complete the last section of the Big Walnut Trail which would create trail access from the north end of Gahanna (Morse Road) to the south end of Gahanna (Pizzurro Park)
  • Funding available that could build a city-wide trail system that would provide more connectivity and walkability between Gahanna’s neighborhoods, parks, businesses and schools
  • Funding to allow further development of the Veterans Memorial Park corridor

What will the new curb replacement program include?

If the ballot issue passes, the City would create a curb maintenance program that would allow the City to take financial responsibility for maintenance of the curbs, with a focus on subdivision and residential streets

If the ballot issue passes will the Agler/62/Stygler intersection be redesigned to reduce traffic congestion?

Passage of the ballot issue would give the City the opportunity to fund projects like the redesign of the Agler/62/Stygler intersection.

Will we get a recreation center?

Passage of the ballot issue would give us the opportunity to fund projects like a recreation or aquatics center.

Will the City take the fireworks away if the ballot issue fails?

Private partners have stepped up to assist with funding of Gahanna’s July 4th firework celebration. It is the City’s intent to maintain those partnerships to continue this community tradition

How much money will this increase generate for the City?

If the ballot issue passes, will the city provide full credit for taxes paid to other cities?

Yes. In anticipation of the ballot issue passing, Gahanna City Council has introduced legislation to change the income tax credit from 83.3% to 100% for income earned beginning January 1, 2019

In conjunction with the passage of the ballot issue, the City’s Tax Credit will go from 83.3% credit to 100%.

What does this mean for me if I live in Gahanna and work elsewhere?

Please visit Gahanna Issue 29

Use the tool on the city website at the address above to estimate how Issue 29 will affect you

If Issue 29 passes, how will it affect people working in Gahanna, but living in another city?

An example might be the best way to answer the question:

  • A person lives in Columbus and works in Gahanna
  • Currently they pay Gahanna 1.5% income tax and Columbus 1% (the difference between the tax rates)
  • Close to $4 million dollars per year is currently going to neighboring communities under this scenario.

 

  • If Issue 29 passes, that same worker would pay the full 2.5% to Gahanna and 0% to Columbus
  • This would bring approximately $4 million dollars per year to Gahanna instead of going to neighboring communities

What happens if the issue fails?

If the November ballot issue does not pass, Gahanna is facing a $2.9 million dollar deficit for the 2019 budget year compounding in subsequent years to over $8 million dollars. The exact reductions would be determined through the budget process; however, we know that:

  • The funding to fix our streets would need to be reduced after 2018
  • A lack of funds would prevent building additional recreation and bike trails
  • Gahanna would not be able to add new parks or recreation facilities in the community
  • Gahanna would need to review all programs including the current School Resource Officer program
Did you know that over 80% of the population in central Ohio is in a 2.5% taxing district?
Did you know that of eight (8) different iterations of tax and credit combinations that this was the closest without exceeding the overall revenue need?