SHELBY – The fate of roadways and sidewalks in Shelby may soon be in the hands of voters as a result of legislation introduced at Shelby City Council on Monday.
Council unanimously passed the first reading of an ordinance to continue the 0.2 percent income tax levy in Shelby that maintains roadway and sidewalk improvements and repairs. The ordinance would place the income tax continuation on the ballot for Shelby voters on May 8, 2018.
The city has used proceeds from the initial levy to pave major roadways in Shelby, but the continuation levy would pay for improvements in residential areas. A continuation of the income tax levy would mean Shelby residents would continue paying the same tax amount they currently pay.
“We’ve heard it loud and clear that the secondary and side streets need to be the main focus, so that’s what we’ll be doing,” said Project Coordinator Joe Gies. “We need to continue on and get the side streets done.”
Voters in Shelby initially approved the 0.2 percent income tax levy in 2013 for the purpose of roadway improvements and sidewalk replacements. Gies explained the initial levy paved the way for two major projects in partnership with the Ohio Department of Transportation (ODOT).
“We use that money extensively,” Gies stated. “We were able to repave Mansfield Avenue and our state routes.”
The ODOT Urban Paving Program outlined an 80/20 fund allocation for each municipality. ODOT provides 80 percent of the paving funds, while the municipalities must provide a 20 percent match.
Of the $4.4 million total for both projects, the city of Shelby will only owe $995,618 – roughly 23 percent of the total cost. This advantage is largely because the passing of the initial five-year, 0.2 percent income tax levy allowed the city to leverage for much more money through grants and federal dollars.
“It’s a tremendous amount of money that we would otherwise never have,” Gies said.
The current 0.2 percent income tax levy will be collected through the end of 2018. If the income tax continuation is approved by Shelby voters, it would continue for a period of another five years from Jan. 1, 2019 through Dec. 31, 2023.
“We have May and November to get it passed while it’s still a renewal,” Gies explained.
Of the income tax collected, 97 percent would be used for roadway improvements and repairs and three percent towards sidewalk replacements.
Gies added he is planning a detailed presentation outlining the proposed income tax continuation at the Dec. 18 meeting of Shelby council.
