Middletown income tax to increase: What comes next?

Street improvements to begin in 2021
A Middletown street crew work on paving a local street last summer. Voters on Tuesday approved a 10-year, 0.25% increase in the city income tax for a bond issue to do more than $31 million in street improvements to be done in 2021 and 2022. CONTRIBUTED/CITY OF MIDDLETOWN

A Middletown street crew work on paving a local street last summer. Voters on Tuesday approved a 10-year, 0.25% increase in the city income tax for a bond issue to do more than $31 million in street improvements to be done in 2021 and 2022. CONTRIBUTED/CITY OF MIDDLETOWN
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By Ed Richter
Nov 5, 2020
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Middletown voters who have long complained about local streets should see some improvement starting next year after approving more funds.

City voters approved a 10-year, 0.25% income tax increase whose revenues of $3.13 million a year that will be solely dedicated to the improvement of Middletown streets, according to unofficial vote totals in Butler and Warren counties.

The issue was passing 57% to 43% between Butler County and Warren counties Tuesday night. The vote raises the city income tax from 1.75% to 2% for 10 years.

ExploreMiddletown income tax increase passing with strong support

City Manager Jim Palenick said a fund will be established for the income tax revenues so citizens can keep Middletown City Council and city officials accountable.

The additional 0.25% would generate about $3.13 million a year to leverage a bond issue for a massive $31.3 million comprehensive street improvement/paving project in 2021 and 2022, paving about 137 lane miles of streets. Officials had stressed the community benefit for the income tax increase, which would be the city’s first since 2007.

ExploreWill taxes go up in Middletown? Voters to decide whether to fund street repairs

Palenick said the fact there was no opposition “spoke volumes on the real need."

“We’re committed to getting this done by the end of 2022,” Palenick said.

Councilman Joe Mulligan said he appreciates the investment Middletown voters are putting into their roads.

“Now it’s up to council and staff to make sure it gets done and do it in an efficient manner,” he said.

Rick Pearce, president/CEO of The Chamber of Commerce Serving Middletown, Monroe and Trenton, said his group was “ecstatic” that residents passed the issue.

"This infrastructure project begins the process of our re-development,” Pearce said. “It is a project that all residents and businesses can get excited about.”

ExploreResidents group advocating for Middletown income tax increase: What to know

Casey Purnhagen, a member of the citizen’s group that promoted the grassroots effort for passage of the income tax increase, said the benefit will be obvious.

“In two to three years, they (residents) will see a big difference in their streets,” she said. “They are literally going to feel the change on a day to day basis (when construction starts).

ExploreWhat they’re saying: Middletown places income tax increase issue on November ballot

Purnhagen said, "voters felt that it was time and I think voters were ready.”

“This shows what can happen when a group of people see a need to fix something, roll up their sleeves, put in their time and treasure to make their corner of the world better,” Purnhagen said. “People can make things happen at the local level. Citizens hold the heaviest lever of power to make change. That’s how the system is designed to work.”

Now that the income tax increase has passed, Purnhagen said the committee will work to make sure the work gets done as promised.

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Ed Richter has been a working journalist for 38 years, with the last 34 years working in various capacities covering Butler and Warren counties as a reporter and an editor. Richter covers local news and governments in Warren County focusing on Springboro, Lebanon, Franklin, Carlisle and Waynesville.