The ins and outs of Bellevue's income tax issue

BELLEVUE — Bellevue's leading city official made his case for why voters should increase the income tax rate.This fall, through a ballot issue, voters need to decide if the rate should rise by one-half of 1 percent. If approved, it would jump from 1.5 percent to 2 percent.Bellevue Mayor Kevin Strecker outlined his campaign to convince voters why they should side on supporting this issue:• "I have an overriding responsibility to the citizens of Bellevue to make sure their government is solvent and sustainable. It is that responsibility that has caused me great concern for our general fund balance that has decreased every year since 2012."• "We are at a crossroads for our hometown, and we must keep moving forward. We need to maintain the confidence of our business community to not only secure our employment numbers but to increase them."• "This is an income tax based on income earned. The only type of income tax that would be subject to the tax would be W-2 income from an employer or scheduled income from a small business (Schedule C) or rental property (Schedule E). No social security or retirement income (pensions) are taxable."• "Increasing the tax one-half of 1 percent will bring in (about) an additional $ 1.48 million over a three-year span. Our municipal tax has remained constant at around $3.9 million for the last three years."• "Raising the tax one-half of 1 percent will increase the collections to approximately $5 million by 2019."• "For an example, a person making $40,000 a year will pay an extra $200 a year, or $ 7.70 a pay, based on 26 pays a year."• "The tax increase would be so our city will be able to move toward the future. There has not been a tax increase in Bellevue since the 1980s, and there is no longer a rainy day fund."• "Our general fund is now under $1 million, and if we had a disaster, like six years ago with the tornado, we would have nothing to draw from to clean up our city. Since 2012, Bellevue has lost, on average, $ 225,000 a year out of the general fund balance."• "I hate to earmark funds, but I would like to add to our police force to reopen the detective bureau. Presently, we have 11 officers on duty, we have two employees in the street department, and this is no way to run a city."• "A certain percentage would be set aside to build our general fund carryover back to a respectable amount. I feel comfortable with our accounts being around the $2 million balance."• "You should also know that our water and sewer accounts are in fairly good shape at the present time, but those balances are not permitted to be transferred into the general fund by federal law."• "Presently we are at 1.5 percent income tax (with) 1 percent of that tax is permanent. The other one-half of 1 percent is voted on every five years. It is very hard to budget when one-half of 1 percent could be taken away every 5 years."• "Like most cities, Bellevue has a 1.5 percent tax credit for people that live in Bellevue but work outside of Bellevue. That way the person does not pay tax in both cities."• "If this new income tax passes, the rate will be 2 percent permanent and will give us a better idea of the revenue coming in yearly."Reach reporter Andy Ouriel at ouriel@sanduskyregister.com and follow him on Twitter @AndyOuriel.Bellevue Mayor Kevin Strecker