Council weighs raises, health department exit

The move would result in $61,000 in lost income tax

WARREN -- As council prepares to further consider legislation that would increase the salaries of the mayor, city auditor, law director, safety / service director and members of council, the city's income tax department is preparing for any impact that might be felt upon the departure of the Trumbull County Combined Health District.

The combined health district is at 176 Chestnut Ave. NE, Warren, but the 37-member health district has outgrown its location. Last month, Trumbull County Commissioner Denny Malloy said the health district was in the process of finalizing the purchase of the former Farmers Bank building at 194 W. Main St. in Cortland.

If the health district were to move, the city of Warren could lose about $61,000 in income tax revenue, according to city tax administrator Sue Battison.

"That's a hit, but it's not a huge hit," she said.

The potential departure of the Trumbull County Combined Health District would come as Warren council seeks to adopt legislation that would increase wages in the city by more than $260,145 in 2024.

The $61,000 in income tax revenue the city could lose would be more than the four largest individual salary increases the city has proposed. The mayor, law director, auditor and safety / service director would see their salaries increase by a combined $53,350 at the start of next year.

Warren Treasurer Tom Letson said the potential $61,000 loss was not as significant as some had assumed it might be.

"It's probably not as much as anybody thinks," Letson said. "The people in Warren would still end up paying Warren tax and the people who don't live in Warren probably are not work-sited in Warren even though the building itself is situated in Warren. It's like any of the other county offices or businesses. … Let's say the Warren water treatment plant, where although it comes under the name 'city of Warren,' the people probably actually live in Bazetta and work out of Bazetta."

Warren City Councilman and finance committee chairman Greg Greathouse, D-3rd Ward, said the potential revenue loss will have no impact in terms of how council will consider future legislation.

"The short and sweet answer is no," he said.

Greathouse pointed out how at council's last meeting, Letson noted that income tax revenue was up 5 percent from the previous month. Greathouse also said the treasurer has contracted with a different investment company that has yielded better results than in past years.

"The treasurer has contracted with a different investment company, which is bringing us greater rates of return on the money at any given time," Greathouse said. "Long story short, the investment income is up over last year and income tax collections are up over this time last year."

Greathouse also pointed to future housing unit plans that have been discussed at the historic Trumbull Family Fitness building.

The plan is to have the 110 units -- a mix of studio, one- and two-bedroom apartments -- available for lease in the spring of 2026, Christopher E. Smythe, lead manager with Valley Properties Investments and president / CEO of Smythe Property Advisors, said.

Greathouse said the potential income tax revenue that would come from the housing unit would be a boost to the city.

"They're going to put all those housing units in there. If we get 50 to 60 people coming from that Ultium battery plant downtown buying or renting those properties, they'll be paying income tax to the city," Greathouse said. "I take some small comfort from that."

Greathouse said the finance committee will have a meeting at 4 p.m. Oct. 19 in council chambers to further discuss the proposed salary adjustments in the city.