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Canfield officials mull budget ideas as revenues decrease

Published: Wed, April 9, 2014 @ 11:12 a.m.

CANFIELD — City officials, meeting to discuss a new loan to restructure debt and build an extension to the police department, expressed concern over lack of revenue to keep the city operating within their budget.

Councilman John Morvay floated the idea of a capital improvement levy during the managers’ meeting in the Canfield city council chambers Wednesday morning. He said that would go toward the purchase of new vehicles, which the city has budgeted a new K-9 vehicle for the police department and a new plow truck, technology upgrades, and building improvements.

“I think we need it and we are at that point where we need to ask the taxpayers,” Morvay said.

However, Mayor Bernie Kosar, Sr., didn’t think another levy after the current school levy, in its first year, would be good to put in front of taxpayers. “I would oppose putting a levy on at this time,” Kosar said.

Tieche pointed to the city spending over their budget last year and are projected to spend $1.5 million this year with only $1.25 million in revenue expected to come in.

Council president Steve Rogers then talked about the idea of raising the income tax rate, which councilman Chuck Tieche said the city hasn’t raised their income tax rate from one percent since the city incepted. “Council can approve a tax increase of one percent without a [taxpayer] vote,” said Tieche.

Rogers proposed looking at a rate increase of 0.5 percent, to a total of 1.5 percent. The tax increase would help fill a revenue gap that has been falling, as council has been paying the difference in a water increase over the past eight years instead of passing it onto customers. That will change, with city officials deciding to have something in council that would pass the rate increase to customers effective July 1.


1INTEL(62 comments)posted 2 years, 2 months ago

Here we go again... If you dont have the money to run the city... why did you refuse to let Masternick build his nursing home and pay taxes... plus the 75 people he would employ.. BUT we can continue to pay for the White Elephant out on Leffingwell Road that some bird brain councilman said to purchase for 2 millon dollars.. just think of how many homes he could have insulated ... So the Canfield residents still have to pay for that... and it cannot even be annexed into the city... or township.. go figure..Now we need a car for the Dog to ride in... WOW or Bow Wow...

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2INTEL(62 comments)posted 2 years, 2 months ago

They spent over 2 million dollars to buy a farm and land out there... and thought they could annex it in the future.. comes out there is no way in heck they can annex it.. I feel the people who made that decision should be held accountable and dealt with accordlingly ... it was all about person gains for some...The city owes more on the property than what the land is worth..

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3mspiggy(23 comments)posted 2 years, 2 months ago

Let the taxpayers pick up the expense because of the morons that run the city!!
Maybe they should be looking at ways to bring money into the city by way of more business coming into the city. Instead we buy more police cruisers with hemi's in them, WHY? Red gate farm what a joke that is $2.5 mill for what and we still owe over $800,000.00 on land that you don't even have the mineral rights for. The nursing home over off rt 446 because the city and township have egos. Again at the tax payers expense if we have some other type of revenue sources it would be a win for the city and schools. It is 2014 need to change the attitude about having more commerical properties in Canfield the citizens just can keep getting taxed more everytime the city or schools need money we just don't have it.

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4walter_sobchak(2672 comments)posted 2 years, 2 months ago

As I recall the nursing home deal, the city insisted on annexation of the land in exchange for water and sewer service extension. That way, the city gets the 1% income tax from all employees of the home, not just the few that may work there and live in Canfield. One possible solution to increasing tax revenues would be to reduce or eliminate the .5% income tax credit extended to taxpayers that pay income taxes to another municipality like Youngstown. IMHO, what you pay to another city does not pay for the services provided by Canfield which are very good. Leaf pick-up, bush pick-up, clean streets in the winter, well-maintained infrastructure, very safe community...love it.

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5DontBanThisDrone(1036 comments)posted 2 years, 2 months ago

How about putting the existing taxes that The People pay towards what it's supposed to go for, and putting a Payroll Levy on the ballot?


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6DontBanThisDrone(1036 comments)posted 2 years, 2 months ago

Is that Bernie Kosar's dad?


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7JoeFromHubbard(1768 comments)posted 2 years, 2 months ago

Walter, what are you saying?
Raise taxes?
That is a one way street, up only.
They'll never come back down.

Eliminating that .5% credit to other municipalities is a tax increase as you know.

It was done here in Hubbard and the spending went through the roof. And the city still doesn't have enough revenue.

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