Avon Lake is a community people are proud to call home. Our neighborhoods, city services, and Lake Erie location contribute to a high quality of life for residents. As one of the fastest-growing communities in Lorain County, we face opportunities and challenges that require thoughtful action.

The City’s income tax rate has not changed since 1992, despite more than three decades of growth and rising demand for services. We have taken action to manage costs and limit the need for new revenue by reducing operating budgets, limiting overtime, pursuing grants and other external funding sources, and initiating steps to reduce healthcare costs. However, these efforts alone cannot keep pace with the rising costs of capital improvements, and the City faces a growing backlog of road repairs and capital needs as our infrastructure ages. In 2025, the estimated cost to replace just one mile of roadway was approximately $4.1 million.

At our January 26 meeting, City Council voted to place a proposed 0.4% municipal income tax increase on the May 5, 2026, ballot. This action reflects the City’s review of current service demands, capital needs, and long-term financial planning. If approved by voters, the municipal income tax rate would change from 1.5% to 1.9% for a five-year period. For a household earning $100,000 in taxable wages, the proposed income tax increase would equal approximately $400 per year, or about $33 per month.

The increase is estimated to generate approximately $6.6 million in annual revenue during its five-year period. This revenue would go into a dedicated Roads and Capital Improvements Fund. A minimum of 65% of the revenue would be specifically designated for road improvements and associated debt, and a maximum of 35% designated to stormwater management projects, capital equipment, and payments on capital-related debt.

The proposed tax is focused on wage-earners contributing to the infrastructure we all use and will not increase the tax burden for residents on fixed retirement incomes. The tax does not apply to Social Security income, pensions, or annuities. Approximately 75% of City residents work and pay income taxes in other cities under our current 1.5% tax credit. Those dollars do not come back to Avon Lake. The 1.5% tax credit will remain in place, but the additional 0.4% tax would apply to earned income for ALL residents, regardless of where they work.

If voters approve the income tax increase, the City will eliminate the existing 1.5-mill operating property tax for all residents. By setting aside specific funds for roads and capital projects, we can rely less on the general fund to cover these costs. After accounting for reduced property taxes, the income tax will bring in $5.5 million in net revenue.

Avon Lake’s success is built on strong neighborhoods, careful planning, and a shared commitment to the future. I encourage residents to explore the information provided on our website, ask questions, and participate in the voting process.