Mentor City Council 2022

Mentor City Council passed a resolution Tuesday night encouraging Lake County Board of Commissioners to rescind a resolution which increased the sales tax rate on goods and services in Lake County by an additional half-percent.

Several members of Mentor City Council and Administration attended a public hearing on December 27th to express their concerns about the economic impact of the sales tax increase. Mentor City Council President Matthew E. Donovan spoke on behalf the city’s interests.

“This is of particular concern to our city as the sixth largest retail center in Ohio. When sales decrease, jobs are lost, and municipalities dependent on income taxes suffer the consequences,” said Donovan, “And let’s be clear that this is exactly the wrong time. Families throughout Lake County are suffering from the highest inflation we’ve seen in decades. Do we really want to place an additional half-percent on goods and services that they are already struggling to afford?”

Donovan credited the board for the current fiscal health of the County which currently enjoys a $38 million general fund surplus carried over from the previous year. Sales tax revenues increased 13% from $40 million in 2020 to $45 million in 2021.

Donovan also quoted Lake County’s 2021 audited statement that “county balances remain healthy while the county continues to provide the services that residents expect. While maintaining the cost of providing these services, Lake County’s economy has been resilient in contrast to other counties in the state of Ohio who are facing significant financial hardships and budget reductions.”

“One has to ask, what is so pressing that we need to further raise the cost of living at the worst possible time?” said Donovan.

On January 12th the board passed the sales tax increase by a tally of 2 to 1 with Commissioners John R. Hamercheck and Richard J. Regovich voting in favor and Commissioner John Plecnik remaining opposed.

The increase raised the sales tax rate in Lake County to 7.75%, leaving only Cuyahoga (8.0%) and Hamilton (7.8%) counties with higher sales tax rates in the state of Ohio.

During Tuesday night’s city council meeting, Vice-President of Council Scott J. Marn introduced a resolution on behalf of Mentor City Council to ask Lake County Board of Commissioners to rescind the increase. Marn encouraged other communities to follow Mentor’s lead and express their displeasure as well as adopt similar resolutions.

After the reading, several members of Council strongly voiced their concerns over the negative impact the tax increase would have on those who live and do business in Lake County, particularly in Mentor. Members of Council also noted the timing of the hearing process and the vote, which occurred around the holidays, and questioned if the intent was to avoid public scrutiny.

“Two commissioners ignored our concerns approving the tax increase by a vote of 2 to 1, making Lake County’s sales tax the third highest in the state of Ohio,” said Councilperson-at-Large Ray Kirchner, “In our country’s current recessionary climate, Mentor residents and our business will unfortunately carry the additional financial burden created from a poor understanding of fiscal management by our elected county commissioners.”

Kirchner commended Commissioner Plecnik for his opposition to the tax increase – a stance echoed by other members of council.

Councilperson-at-Large Janet A. Dowling said that she received a number of calls from concerned residents and affirmed her opposition to the increase as well. She further explained that although fifty cents on every hundred dollars may not sound like a lot, it would result in millions of dollars going to a government entity and not being spent in the community.

“My heart goes out to the people in this county whose plights have been ignored”, said Ward 1 Councilperson Sean P. Blake, “[the increase] doesn’t sound like a lot but you add it up to everything that you purchase over the course of a year and it’s significant…year, after year, after year.”

“Our senior citizens on fixed incomes just can’t absorb this,” added Blake, “I do hope that the commissioners have a moment where they come to their senses.”

Ward 4 Councilperson, John Krueger addressed the Commissioners’ assertion that the tax increase is in the interest of improving public safety in Lake County. Krueger noted that most of the County is covered by municipal police agencies and read off a list of communities in Lake County with their own police forces.  Only the remaining communities of Leroy Township, Concord Township, Painesville Township, and Perry Township, rely on the Lake County Sherriff as their primary law enforcement agency.

Krueger added that the County has $38 million set aside with an additional $9 million in employee stabilization available on hand, and that the county currently holds over $100 million in investments.

The condition of the Lake County Jail and the county’s need for a new facility has been well documented over the past several years but the reason for the sales tax increase has been attributed to the interest of public safety.

“They will not tell you this is for the jail, because if they tell you it’s for the jail, it has to go on the ballot,” said Ward 4 Councilperson, John Krueger.

All expressed the concern that Mentor will bear the burden of this tax increase. The city of Mentor ranks sixth in the state of Ohio in retail sales volume with an average of $1.5 billion in annual sales. The city ranks seventh in the state with over 300 manufacturers which realize over $2.5 billion in annual manufacturer shipments.

“There is a breaking point when you say enough is enough,” added Krueger, “You don’t encourage economic development within the county by raising the sales tax.”

Mentor’s resolution was passed 6-0 with an abstention from Donovan due to a conflict with his employment status with the county.

Mentor residents wishing to express their concerns with the sales tax increase voted by the  Lake County Board of Commissioners may do so by visiting their web page.

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