Columbus City Council will have its first vote this week on whether to raise one of the city’s tax rates.
The council will meet at 6 p.m. on Wednesday, as city hall will be closed Tuesday due to the primary. One of the items on the agenda is the first reading of an ordinance to reestablish the city’s cumulative capital fund.
The ordinance states that the cumulative capital fund rate has “trended below the maximum allowable by state law,” with the 2022 rate currently at $0.0465 per $100 of assessed value. City officials are proposing that the cumulative capital fund be re-established, with the rate set at $0.05 per $100 of assessed value.
“Said tax rate will be levied beginning with taxes for 2022 payable 2023,” the ordinance states.
Ordinances must be passed on two readings to be fully approved. The council’s next meeting is scheduled for May 17.
“The way the state has the cum-cap development fund set up is even though you can establish the rate at 5 cents, over a period of time, that shrinks,” explained Director of Finance, Operations and Risk Jamie Brinegar. “… We use the cum-cap development fund for our public safety capital purchases.”
For example, as part of the 2022 capital budget, there was $1.3 million expected in revenues from the fund. This is being used to purchase police vehicles, vests, radios, in-car cameras, computers, bodycams, Tasers and firefighting equipment, said Brinegar.
Assuming the council votes to raise the cumulative capital fund rate, taxpayers would be affected starting in 2023. Brinegar added that the impact will be “minimal,” as the rate is only going up slightly.
“We did this back in 2016 or ‘17 as well,” he said. “And that time, we made the commitment to the council that we would use those funds strictly for public safety purchases, and we’ve stayed with that commitment.”
City council raised the rate in June of 2017, voting 5-2 for an increase from $0.0316 to $0.05. Councilman Frank Miller and then-councilwoman Laurie Booher voted against the measure. Several local residents also opposed the decision due to its impact on taxpayers.
Brinegar said at the time that the city hoped to target decreases among other tax rates so as to offset the increase from the cumulative capital fund, thereby keeping the overall tax rate steady or lower than before.
City officials had sought the rate increase to cover capital costs for the police and fire departments over the following five years.
