2 firms qualify for job creation, retention funds

Sylvania council seeks revenue boost

Councilman Doug Haynam, left, says three-quarters of income-tax collections are from nonresidents. Councilman Todd Milner calls for considering adjusting the credit.

Life will be a little easier for two Sylvania businesses that have qualified for job creation and retention grants under a city program.

Pups Paradise, 5725 Walnut Cove Drive, and Mobile Care Group, 5151 South Main St., each is to receive a check from Sylvania for adding jobs to the city's tax base.

The grant money, which is to be paid at the end of the year, is to equal a third of additional employee income taxes remitted to the city. The city's income tax rate is 1.5 percent.

In the case of Pups Paradise, the grant payments are to extend for three years and total $2,625. The new business, which is a cageless dog care and boarding facility, projects a $175,000 payroll and six employees.

Mobile Care Group anticipates a payroll increase of $366,023, according to its filing with the city. Its grant is to be worth $9,150.60 over five years. The firm provides ancillary medical services to nursing homes and assisted-living facilities as well as emergency and nonemergency transportation. It plans a major renovation of its building and to add 25 jobs to its current work force of 80.

In other business, council members discussed the city's finances and options for raising revenues. At current spending rates, the city is expected to dip into reserves to cover a $1.7 million shortfall this year.

The 2012 budget will be further impaired by a loss of $320,000 in state support plus $746,000 in new debt service.

Three possibilities considered were hiking the payroll tax, reducing the dollar-for-dollar income tax credit Sylvania residents get for payroll taxes paid to another municipality, and restoring a 1.5-mill property tax suspension council approved in years when the city's revenue stream was stronger.

Councilman Doug Haynam noted that three-quarters of the city's income tax collections came from nonresidents working in Sylvania, many of whom in turn got a credit from their home municipalities, so they and their communities would pay a disproportionate share of any income tax increase. Also, higher income taxes would not affect businesses.

Mr. Haynam said he would want to let voters decide if they preferred higher taxes or reduced services.

Council President Todd Milner said he believed adjusting the tax credit should be looked at.