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Council advances amendment to Summit County tax‑sharing memorandum to third reading to raise payroll threshold and add inflation adjustment
Summary
The Tallmadge finance committee moved an ordinance amending the county job‑creation and tax‑sharing memorandum of understanding to raise the payroll threshold triggering revenue sharing from $3.5 million to $4.5 million and to add an annual inflationary adjustment, with the measure advanced to third reading.
Council members in the finance committee discussed an amendment on Sept. 11 to the memorandum of understanding (MOU) among Summit County jurisdictions that governs job creation, retention and income tax revenue sharing. The ordinance would raise the payroll threshold that triggers tax‑sharing from $3.5 million to $4.5 million and add an annual inflationary adjustment.
Finance committee members said the $3.5 million trigger dates to the original agreement and that increasing it to $4.5 million, plus indexing to inflation (the committee discussed using the Consumer Price Index), will reduce the need to revisit the number in future years. The administration said the county will set the updated limit annually and notify member communities.
Councilman Donald Pavlik opened the committee and confirmed the ordinance, sponsored by Mayor Kilway, had been reviewed by the county group and that members agreed the change was ready to go back to member councils for consideration. The committee voted to move Ordinance 2025‑72 to third reading so council can consider final passage at a later meeting.
Committee members also noted a practical benefit of participation in the county MOU unrelated to direct tax sharing: the city receives application points on Ohio Public Works Commission (OPWC) grant applications for regional cooperation, which can improve the city's competitiveness for infrastructure funding.
No final vote on the ordinance occurred at the Sept. 11 meeting; council advanced the measure to third reading for further consideration.
