North Canton council sends 0.5% income tax increase to May ballot; outlines plan to protect street paving funding

North Canton City Council on Jan. 27 voted to place a proposed 0.5 percentage-point increase in the city's municipal income tax — from 1.5% to 2% — on the May 6, 2025 primary ballot and adopted a companion resolution saying the council will not seek renewal or replacement of existing street paving, EMS operating and fire levies if voters approve the income-tax change.

The vote followed a detailed finance presentation laying out how the city would preserve and expand residential street paving funding even after the shift from a property-tax funding model to the proposed income-tax model. Ben (staff member) told council the city's current property-levy funding for paving brings in $388,651 and that the proposed income-tax scenario would yield roughly $354,218, a shortfall of about $34,400. He described a four-step approach to close most or all of that gap without adding a new street levy: dedicate funds freed by declining debt service, allocate $1.6 million in unspent 2024 funds for one-time capital paving projects, gradually replace one-time carryover with recurring revenue as debt obligations decline, and rely on future income-tax growth and property sales to sustain the program.

Why it matters: Councilors and speakers said streets are a pressing resident concern and that the ballot measure also aims to stabilize public-safety and municipal operations funding. The city faces decisions about how to fund a long-term plan for roads, emergency services and a new fire station; officials said the income-tax route is politically preferable to asking voters for multiple separate levies.

Details of the plan and discussion Ben summarized the finance math and timeline for council and the public, showing a multi-year glide path that uses an initial $400,000-per-year draw from $1.6 million in unspent 2024 general-fund dollars to boost paving in the near term. "We have a net reduction of $34,400 in our funding for residential streets," Ben said, and explained that an expected $25,000 drop in annual debt service in 2026 would cut that gap nearly in half. He projected that relying on phased debt reductions and property sales would allow the city to phase out one-time carryover by about 2030 and make paving funding sustainable on recurring revenues.

A resident speaker, Holly (resident), urged council to keep street funding central to the debate. "I just wanted to briefly talk on the item on the agenda tonight. I think it's number 7, the tax increase from 1.5 to 2%." She described visible pavement deterioration on her Winston Avenue block and told council residents expect long-term improvement.

Mayor Oliver framed the measure as part of a broader investment plan. "Investing in our streets is, is a matter. Not only a matter of infrastructure, but is a commitment," Mayor Oliver said, praising staff and council for the planning work and urging continued public outreach.

Council concerns and commitments Council members asked how the plan would respond to unexpected emergencies (Ben said separate funds cover water-line emergencies) and whether a pledge not to seek a street levy is enforceable. Staff and council clarified that a council resolution is not legally binding on future councils, though several sitting council members said publicly they would not vote to put a street levy on the ballot for five years if the income-tax measure passes.

What the council voted - Second reading of Ordinance 7-2025 (amending Chapter 192, municipal income tax, to increase the rate from 1.5% to 2% beginning Jan. 1, 2026) ' adopted by voice vote. - Ordinance 8-2025 (resolution directing the board of elections to place the income-tax question on the May 6, 2025 primary ballot) ' adopted by voice vote. - Ordinance 9-2025 (resolution stating the City Council's intention not to seek renewal or replacement of the city's existing street paving, EMS operating and fire suppression levies if voters approve the 0.5% income-tax increase) ' adopted by voice vote.

Next steps and public information Councilors and staff said the city's website will feature calculators and FAQs; staff said they will add a second calculator comparing current household tax burden to the proposed structure, to help residents see how the change would affect different households (Ben noted retirees may see immediate savings). If voters approve the income-tax measure, council indicated it plans to transfer and encumber available one-time funds to the capital paving account and to phase in recurring funding as debt service drops over several years.

Council members and staff emphasized the distinction between discussion and formal action throughout: the ballot placement and the companion resolutions are formal council actions; the planned financing steps are council direction and staff proposals that will require future appropriation and formal allocation decisions.

Votes at the meeting were taken by voice ("aye/oppose"); seven members were present when the measures passed.