The village of Pemberville will again ask voters for a half-percent increase in income taxes on May 6. It would take the current rate of one percent to 1.5 percent.
It is the same levy that failed to pass in November.
Pemberville mayor Carol Bailey said that village’s general fund is not in a deficit, but that it is dwindling, or dipping into the reserves to the tune of approximately $35,000 to $50,000 each year.
“Each year it gets worse because things haven't gone down in price, they've only gone up,” Bailey said. “And when the general fund suffers, things like road repairs just can’t get done.”
Matching grants
With the village’s increased ability to get grants over the past few years, the levy increase is also a way to guarantee matching funds for those opportunities.
When a grant is written and awarded, it often requires matching funds from the local entity, which comes from the general fund. That typically requires 25 percent of the project’s total cost, and being able to match allows for more grant applications and opportunities.
With the use of grants, Bailey said that Pemberville is building a new $2.3 million water tower for only $600,000 out of the town’s monies.
She said they are going to be replacing the Bridge Street bridge, which is a $2.7 million project for $384,000 at most. Another grant, which they are waiting to hear back on, could even drive that cost down to $110,000 out of pocket.
“To do the kind of capital projects like a water tower or a bridge replacement without having to go to the residents for any additional money, bonds or anything is pretty, pretty incredible,” Bailey said.
Bailey also said Pemberville has received many park grants, such as new doors with timers on the restrooms at a $6,000 cost savings, as well as body worn cameras for the police department.
The village also got a grant for the basketball court, which was 49 percent grant money with the rest donated through a benefactor.
There’s also other grant projects, such as a couple waterline loops and a new sewer line that was installed all the way out to the sanitary plant last year.
Without the ability to match, Bailey said there’s no sense in writing a grant that they’ll just have to turn down.
What if it fails?
Bailey said they are hoping to generate $300,000 with the levy increase, which will go into the income tax fund and be split into the general fund and permanent improvements from there.
Should the levy fail, Bailey said they will go back to the voters again.
“Voting it down isn't going to change the trajectory of the general fund at all,” she said. “If anything, it's just going to get worse. Voting it down is not going to take care of the issue. It's just going to delay it.”
Police, pool cuts are possible
In addition to the decrease in grants, there would also be cuts if the levy fails.
The police budget currently uses approximately one half of the total tax collected, and Pemberville officials said that it is underfunded in comparison to similar communities around the state.
The 2025 budget for the police department is $287,000, and the amount collected annually would cover the cost of the department.
“Police would probably be our biggest cut,” Bailey said. “I would assume one of our officers would probably be cut down to part-time, if not entirely.”
Bailey said it’s too early to tell, but the police cuts could come by early fall.
The other issue is the pool typically needs an infusion of cash around the end of July. They may have to shut down the pool without the additional money.
“We all know pools really aren't a moneymaker for the village, they’re an amenity,” Bailey said. “They're something that is wonderful for a village, but most small towns have lost their pools because they can't afford to keep them running.
“It's a possibility, a very real possibility that when that time came, we’d just have to shut the pool down.”
Town hall on levy
The village council hosted a town hall meeting on April 22 for citizens to raise questions and concerns. Bailey said it was attended by approximately 25-30 people.
“It wasn’t attended as I think we’d all like to see, but it went fine.”
The bottom line
If you make $60,000 per year, the 0.5 percent increase will cost an additional $300 per year, or $25 per month. In other words, your property tax bill would go from $50 to $75 per month in that scenario.
“We're just trying to keep the village a viable, wonderful place to live and raise your kids,” Bailey said. “To keep the services, keep Pemberville what Pemberville has always been, which is a really lovely town with lovely amenities.
“We’re just trying to preserve what we've got here in Pemberville, which we think is a pretty good thing.”