During its November 27, 2023, regular meeting City Council adopted legislation to pursue an election to consider a proposed new 0.5% earned income tax. This additional earned income tax was presented as a part of the 2024-2028 Five Year Financial Plan discussions.
The goal of the increased permanent earned income tax rate is to move projects into fruition that have long been discussed, or desired, but simply were not justifiable due to financial constraints. As page 72 of the 2024-2028 Five Year Financial Plan illustrates, the city has estimated the proposed earned income tax will generate an average of just over $7.0 million per year. A list of those capital projects that are proposed to be completed with the additional dollars can be found on pages 72-74 of the Five Year Financial Plan. Pages 75-76 outline those requested capital projects that would remain unfunded.
In addition to capital projects, a portion of the available earned income tax dollars will be allocated to employee costs to increase and improve services available to residents.
This proposed 0.5% earned income tax would be in lieu of extending the 0.15% income tax Street Levy which sunsets in December 2024. If passed by voters during the March primary, the new 2.0% earned income tax rate would become effective January 1, 2025.