Fostoria recovery plan to layoff dozen employees if levy fails

March 29--FOSTORIA -- A commission tasked with overseeing Fostoria's finances approved a financial recovery plan today that calls for the layoff of more than a dozen employees if a 6-mill property tax levy fails in November.

The five-year plan is the city's second attempt, as the financial planning and supervision commission rejected its first iteration in January, in part because of its heavy reliance on tax increases. That version called for both a quarter-percent income tax increase and the 6-mill property tax levy.

The financial recovery plan is needed because the city was placed in fiscal emergency in May by State Auditor Dave Yost.

The plan approved today includes nearly $3.2 million in cuts over the five years, an increase from the last plan's $1.2 million in budget reductions, said Belinda Miller, chief project manager for the Auditor of State's office.

"For anyone who thinks they didn't make cuts, they just weren't listening," she said.

Built into the plan are two actions by council in recent months: one that is already increasing revenue, and another that would if approved by residents. Council in December approved the phase out of income tax reciprocity -- meaning residents who work outside Fostoria won't be credited for paying income tax elsewhere and will instead pay the tax to the city where they work and the one where they live.

Contact Nolan Rosenkrans at: [email protected] or 419-724-6086, or on Twitter @NolanRosenkrans.

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