By Brandi Watters, Herald Bulletin Staff Writer
ALEXANDRIA — One vote to go.
During its council meeting Monday, the Alexandria City Council approved a resolution to increase the count option income tax, or COIT.
It joins Anderson in approving the tax hike, leaving only one body to vote before the tax goes into effect for all Madison County residents paying income tax.
The Madison County Council and the Elwood City Council are both voting next week.
Just one of the two bodies would need to vote in favor of the increase to pass the tax for the entire county.
On Oct. 8, the Anderson City Council unanimously voted in favor of a resolution to increase the COIT to 1.75 percent.
The current COIT is 1.25 percent.
The resolution approved by both councils would rescind the current county economic development income tax, or CEDIT, which was imposed in 2004.
The CEDIT is .25 percent.
After rescinding the CEDIT, the resolution would increase the COIT rate by .50 percent and add an additional .25 percent COIT specifically for public safety.
As Alexandria council members prepared to vote on the tax hike, nearly two dozen firefighters from Alexandria, Elwood, Anderson and a firefighters union representative from Indianapolis filled the small meeting room.
They said little, but stood with hands crossed before them, waiting for a decision.
Local firefighters union president Matt Cole said the passage of the COIT increase is imperative to the survival of area fire departments.
“When your economy goes down, your tax dollars go down ... The first thing people want to cut is public safety.”
In the wake of property tax caps, Madison County municipalities are facing budget cuts. Alexandria was forced to cut $200,000 from its 2009 budget and believes it may have to cut another $400,000 next year.
The County Council must cut $3.8 million from its budget.
Anderson is tasked with a $6.8 million budget shortfall.
Alexandria firefighter and local union president Adam Matson said the 13 members of the Alexandria Fire Department are at risk for layoffs if the tax isn’t increased.
“We can’t afford to lose anybody,” he said.
As tax-paying workers, firefighters would also pay the income tax increase, he said.
Alexandria’s stake in the county COIT vote isn’t a large one.
It takes 51 of 100 votes to pass the COIT for the entire county.
Anderson has 44.8 votes in the matter but Alexandria only has 4.7 votes.
Now that Alexandria has approved the tax hike, Elwood and its 7.3 votes can help seal the income tax increase for the county.
The County Council, which has 31.4 votes, can also impose the tax with a single roll-call vote.
Alexandria’s resolution to increase the COIT passed in a 6-1 vote with the newest council member voicing the only “no” vote.
Carol Walker, who joined the council in August to replace Dr. David Steele, said “nay” when all other council members voted “yay.”
After the meeting, Walker said she believes the COIT increase is unnecessary and worries that it won’t do enough to help the city budget.
“I want to know what we’re going to do next year when this doesn’t meet the needs.”
Walker believes the council could have managed budget deficits without imposing a tax increase.
She’s optimistic about Alexandria’s future and its ability to sustain itself. “I see things turning around.”
Councilman Eric Schmidt said he could find no other solution to the city’s massive budget deficit caused by property tax caps.
“You’ve got to run it like a business ... We can only cut so much.”
“To me, this is the easiest, gentlest way to raise the rate,” he said.
Alexandria Clerk-treasurer Jan Lynch said the city does not stand to gain extra income from the tax. “This is not additional income. It’s just to make up for what we’ve lost.”
As council members voted in favor of the tax increase, council chambers erupted in applause as firefighters and their families rejoiced.
State Rep. Terri Austin, D-Anderson, attended the meeting but said she’d leave opinions about the COIT increase to local officials.
“I think it’s my responsibility to come and listen,” she said.
Schmidt said the tax hike is not popular, but keeps public safety safe from budget cuts.
“When somebody dials 911, they really would like for somebody to show up.”
Contact Brandi Watters: 640-4847, brandi.watters@heraldbulletin.com
Attend the next COIT hearings
County Council: Oct. 26, 7 p.m. Madison County Government Center
Elwood City Council: Oct. 27, 7 p.m. Elwood City Hall
