Increased income tax revenue helps Maumee tackle deficit - News, Weather, Sports, Toledo, OH

Increased income tax revenue helps Maumee tackle deficit

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MAUMEE, OH (Toledo News Now) -

The City of Maumee is operating with close to a $1 million deficit, but they recently got some good news: The cash flow into the city is increasing.

Income tax revenue is on the rise in Maumee, and the mayor credits that to all the new small businesses that have moved to town.

"This year, we are up about $565,000 more through Sept. 30 than we were through Sept. 30 of last year," said Mayor Rich Carr.

That is an increase of almost 5 percent from last year. According to Mayor Carr, in September alone, the city collected more than $200,000, which is a 17 percent increase over September of last year.

"It's been great for us, because there have been a number of small businesses coming in, and that's where you're going to sustain that growth over a period of time," Carr said.

The mayor says Maumee has very affordable housing, a strong police presence, and an excellent school system – all reasons he says small businesses choose to move in.

"We have Kroger coming in with about 200 new jobs. We have a medical clinic coming to town," he said. "So we're seeing some sustainable businesses coming to town that will generate some additional taxes."

Despite the increase, the city is operating with a deficit. Carr says the city takes up the entire deficit of the Maumee Municipal Court, which is close to $1 million. To address it, the city has reduced spending and will use money from the income tax increase.

"What we've done is looked at where we can reduce our spending, so this additional growth helps us to erode some of that deficit," Carr said.

Mobile users, click on the "Video" button in the app to watch this story. Download our app here.

Copyright 2013 Toledo News Now. All rights reserved.

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