Avon Lake City Council votes to send income tax increase to the May 5, 2026 ballot

01/27/2026 – Avon Lake, Ohio – At its meeting held on Monday, January 26, 2026, Avon Lake City Council voted unanimously to place a five-year 0.4% municipal income tax increase on the May 5, 2026, ballot. If approved, the municipal income tax rate would change from 1.5% to 1.9%, commencing January 1, 2027. The proposed 0.4% income tax increase would apply to earned income only and would not apply to Social Security, pensions, or annuities. For a household earning $100,000 in taxable wages, the proposed increase would equal approximately $400 per year, or $33 per month. The increase is expected to generate approximately $6.6 million in revenue annually during its five-year period. Under the proposal, a dedicated fund would be created and 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 current income tax credit of up to 1.5% will remain in place for residents who work and pay taxes in other communities. If the proposed income tax increase is approved, the additional 0.4% tax would apply to earned income for all residents, regardless of where they work.

Passage of the income tax increase would result in a decrease in property taxes for all residents, as the City would eliminate its existing 1.5-mill operating property tax, which goes to the City’s general fund. By setting aside the revenue generated by the 0.4% income tax increase for road and capital improvement projects, the City can rely less on the general fund to cover those costs. After accounting for reduced property taxes, the income tax increase would bring in $5.5 million in net revenue.

“The City’s income tax rate has not changed since 1992 despite more than three decades of growth and rising demand for services,” said Avon Lake Mayor Mark Spaetzel. “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.”

In 2025, replacement of just one mile of road cost approximately $4.1 million.

“This proposal 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,” said Mayor Spaetzel. “Approximately 75% of Avon Lake residents work and pay income taxes in other cities under the 1.5% tax credit. Those dollars do not come back to Avon Lake, and the cost of road repairs will only continue to rise. To fix and maintain our aging roads, manage stormwater, and maintain our services effectively, we need to align our revenue with today’s costs.”