As the city of Erie ends the year with a budget deficit, city residents and business owners could find themselves paying more next year.
Erie Mayor Joe Schember is presenting a 2019 preliminary budget that proposes increasing the income tax on city residents. That tax rate would go from 1.18% to 1.75%.
Also, businesses within city limits would be required to obtain a new $100 license in order to operate.
Schember says these changes, along with several other fees or tax increases will help the city rid a projected $11 million deficit.
He says, “The last thing you want to do is raise taxes or fees and that sort of thing. Of course, we’re doing all of that. We want to be open, honest and transparent with this. We want people to know what we’re doing, why we’re doing it; and we think by doing this, we can avoid the kind of thing that happened this year. All of a sudden, we’re trying to figure out, ‘where do we get 11 million dollars?'”
The mayor plans to have a final budget ready to present to Erie City Council at their next regular meeting in two weeks.