By Megan Alley
The Clermont Sun – December 24, 2020
After years of controversy, Amelia’s one percent income has been repealed and is set to end January 1, 2021. The Village Council voted to repeal the income tax during a special meeting held via Zoom, on December 15, 2020.
The approved legislation reads, “An ordinance of the Council of Amelia Village, Ohio repealing the village income tax, effective January 1, 2021, amending the income tax ordinance to remove standing appropriations to the ‘road mainten-ance and repair fund,’ and clarifying the continued effect of the income tax ordinance through December 31, 2020 and declaring an emergency.”
The tax had been a point of contention since it was passed by nearly three years ago. The Council passed the one percent earnings tax, effective July 1, 2018, during a special meeting on February 5, 2018, on people who live or work in the municipality.
At that meeting, the Council voted to suspend the Ohio Revised Code’s three reading rule – intended to give citizens an opportunity to voice their opinions and potential concerns – and passed the earnings tax as an emergency.
Many in the community had not tracked the Council’s actions and found out about the income tax only when they received correspondence from the Regional Income Tax Agency, notifying them of the upcoming tax obligations.
Taking umbrage with the tactics used by the Council to pass the income tax, a couple of citizens groups were formed. – Wake Up!. Amelia resident and former council member Renee Gerber, regularly challenged the council’s actions and ultimately worked to successfully unseat several of the council’s members, including Mayor Todd Hart, in the November 5, 2019.
The members of Free Amelia, led by resident Edward McCoy, also regularly challenged the Council’s actions, but its supporters took a different approach to breaking up the council’s powers: they put forth a November 5, 2019, ballot issue asking voters to decide on whether or not to surrender the corporate powers of the village of Amelia.
On election day, Gerber defeated Hart for the mayor’s seat, and council incumbents Regina Rumpke and Clayton Fite were defeated by challengers Don Gates and Tim Rosser. At the same time, voters decided to surrender the Village’s corporate powers and dissolve.
Many who supported dissolving the Village thought that the income tax would also then go away, but the Ohio Revised Code states that a dissolution “does not affect the power to levy and collect taxes to pay existing obligations.”
When the Village dissolved, it was absorbed into neighboring Pierce and Batavia Townships; about 65% of the village belongs to Pierce Township and remaining 35% to Batavia Township.
Over the next year, Amelia’s assets and debts needed to be assessed and divided. In early 2020, the Townships approved a joint resolution which read, “The parties intend that the income tax and allocated inside millage of the former Village of Amelia shall cease as soon as feasible, as determined by the Auditor of State, to assure the parties that they shall not become obligated to pay the debts of the former Village of Amelia ,” the joint resolution reads.
At the time, the Village’s existing obligations were estimated to be between $3.2 to 3.5 million in debt, with $2.6 million on hand in the Village’s accounts.
Also in early 2020, Dave Thompson, a representative from the State Auditor’s Office who was helping to guide all the local players through the process, said that they received a legal opinion, which was confirmed by the State Auditor’s Office’s legal department, saying that Hart could sign legal documents as mayor, one of three positions that needed to be maintained through the dissolution.
Since corporate powers were surrendered on November 25, 2019, the newly elected mayor and council never officially took office, Thompson explained at the time.
Folks had to wait for the case to make its way through the courts, ruling on who would represent the Village on final matters of the transition – the council seated prior to November 5, that included Hart, Rumpke and Fite, or the council that was voted in on November 5, 2018, which included Gerber, Gates and Rosser.The court case also asked for a declaration regarding the Amelia income tax ordinance. Today, it seems that most of the balls that were up in the air have landed.
On November 10, 2019, Clermont County Court of Common Pleas Judge Anthony Brock ruled that Hart is the holdover Amelia mayor and Rumpke and Fite are holdover Amelia council members.
Brock stated that Amelia Village’s power to seat new office holders ended upon certification of the village’s dissolution on November 25, 2019.
Brock also stated that one of the few remaining powers that a village retains under revised code 703.21 after dissolution is the power to “levy and collect taxes to pay existing obligations,” and that since the village lawfully enacted the income tax, it must continue to collect tax revenue pursuant to that ordinance until all debts and liabilities of the village are satisfied.
Amelia’s financial situation looks a little different than it did at the start of the year.
Amelia Fiscal Officer Bill Gilpin, who was one of several key people, including the village solicitor and mayor/administrator, selected by the Auditor of State to stay on during the transition, said that as of December 11, 2020, Amelia currently has $4.8 million cash on hand in various funds.
“The plan is to have Council act to unrestricted monies in several funds and move the balances to the general fund to assist with early payment of debt. The total principal owed on all items is approximately $2,696,467.00”, Gilpin explained in email that was included in the Council packet for the December 15,2020, meeting. “As you can see we have plenty of money available to retire all debt and settle claims under current circumstances. We will see a reduction in revenue in 2021 until the dissolution is complete.”
He added, “The police and fire levies have been terminated by the county auditor. We will continue to receive real estate in the general (inside millage), local government funds, license plate fees and gas tax revenue as well as interest.”
If there is any cash on hand available after all the debts have been paid off, those remaining funds will be divided between Pierce and Batavia Townships, with Pierce Township set to receive 65% of the remaining funds and Batavia Township set to receive 35% .
The Amelia Village Council will continue to meet as needed in 2021. For meeting dates and times, visit www.ameliavillage.com.
The Village of Amelia purchased this Mid-Maples Mansion thus becoming the official Village office building.