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Fayette's taxes
No easy way out for council

Ten years ago, Fayette’s 1.5 percent income tax—with more than a thousand workers paying taxes—made the money collected from the community’s 2.9-mill general operating levy negligible. This is likely why voters hadn’t bothered to bring it up to date since 1968.

Then Fayette Tubular Products closed, 700 jobs left town, and the amount collected through income taxes more than halved. It couldn’t have happened at a worse time. The sewage treatment plant already had capacity issues and the water treatment plant was aging quickly—both costly projects.

Now the the village relies on the general levy for much of its income, but it’s just not pulling its weight.

Based on today’s prices, the 2.9-mill levy is effectively a 0.9-mill levy, says county auditor Nancy Yackee. When levies are continually renewed, collection rates aren’t adjusted for inflation.

According to Yackee’s figures, replacing the 2.9-mill levy—instead of renewing it—after it expires in 2007 could bring in as much as $40,000 in additional revenue for the village.

Council is in a pickle. Fayette residents already pay more in property taxes than any other Fulton County community, but only a small slice of the sum—about seven percent—goes to the village, while 68 percent goes to the school.

At a meeting Thursday, council discussed putting a new levy on the May 2007 ballot, before the current levy expires. Some members voiced concern about getting the levy passed before the school asks for more money.

At this time, the school board has announced no intention to do so.

We encourage council to tread lightly in this arena. As desperate as the village is for money, nobody wins in a conflict between the village and the school system.

After all, the village is still too early in the search for sewer and water grants to be rash.

– Jeff Pickell, Aug. 16, 2006 
 
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