XCC Special Session Meeting Minutes, 01/07/10, Page 4 Councilman Caupp noted if the ballot issue is approved, it would free up general operating dollars currently being utilized for police and fire debt service obligations. Mr. Lewis agreed; however, the current budget funding cannot be reduced after passage. 7 o " Me wants to know if he call al 1, he will get a response. He now feels an income tax was the way to go vs. a property tax. Senior citizens would probably support an income tax increase because ieeaaeeaanemeseneneae ‘Mr. Lewis said if the ballot issues are split, he felt it would be difficult to gain support of the other union groups. Mr. Bazelak said in regard to income tax, in a normal economic environment, income tax revenues will gradually increase. With property taxes, that is not the case. Mr. Percival said the 3.5 mill operating levy that is in place now only generates $409,000 [because it is based on 1970°s property values] and that number is capped if the replacement levy had been approved, it would have “reset the bar” and it would have generated approximately $1.5 million [because it would be based on today’s property values). Councilman Caupp asked Assistant Finance Director, Ryan Duke, and Assistant City Manager, Brent Merriman, their opinions, Mr. Duke said he believes the best approach is a .5% income tax increase all inclusive on one ballot, He noted there is growth built in to income tax revenue, Mr. Merriman agreed. If they choose to only present a .25% income tax increase or if two separate .25% income tax increases are presented and only one .25% increase is approved, they will be facing a budget deficit again in two years (2013). He further noted property taxes have been heavily tapped over the last few election cycles, and as mentioned, property tax revenue is capped with no growth. They can present the .5% income tax increase in May, and if it fails, — Vice President Miller entertained additional comments or questions from Council. Councilwoman Felton had no further comments. She did not like the way the information was being presented. Councilwoman Mills said people generally do not like income tax increases, and she feels paying Property taxes would be easier. ‘hapa thc rrtemnarcetmsicobtemmcctn apie, Comeliie ‘maze he fats em its They need to maintain safety services, but they cannot tun a blind c ye to the survey results either. The people want street improvements. They need to do it all Councilman Smith asked if they can promise the citizens of Xenia that they will bring back Parks and Recreation. Vice President Miller said no; they can hope for the best, but they cannot promise anything. Councilman Smith said they are asking citizens for more money, but they are not giving them back what was taken away, which is something they have said is important and something they want, Councilman Louderback said the survey indicated people want streets,