Avon Lake officials to give community presentation on proposed income tax

02/17/2026 – Avon Lake, Ohio – Avon Lake Mayor Mark Spaetzel and Finance Director Beth Krosse will give an informational community presentation on the City’s proposed additional 0.4% municipal income tax at Avon Lake Public Library’s Waugaman Gallery located at 32649 Electric Boulevard, on Wednesday, March 11 at 7:00 p.m. This event is open to the public and will offer residents opportunities to ask questions.

At its meeting held on Monday, January 26, 2026, Avon Lake City Council voted unanimously to place an additional five-year 0.4% municipal income tax 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 increase is expected to generate approximately $6.6 million in revenue annually during its five-year period, which will go into a dedicated Roads and Capital Improvements Fund. Per legislation passed by City Council, 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 City’s existing 1.5% income tax rate has not changed since 1992, despite significant population growth and increased demand for City services. These rising costs mean there is less funding available in the City’s General Fund to address roads and other capital improvements.

Approximately 75% of Avon Lake residents work and pay income taxes in other cities. Avon Lake's 1.5% income tax credit allows those residents to reduce or eliminate the income tax owed to their city of residence based on taxes already paid to their city of employment. Those dollars do not come back to Avon Lake. If the proposed additional income tax is approved, the 1.5% tax credit will remain in place, and the additional 0.4% tax would apply to earned income for ALL residents, regardless of where they work. The revenue from the additional 0.4% will go into a dedicated Roads and Capital Improvements Fund to support the infrastructure that all Avon Lake residents use.

In addition, the City would cease collection of its existing 1.5-mill property tax levy contingent upon passage of the additional 0.4% income tax. The 1.5-mill property tax goes into 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 additional municipal income tax would bring in $5.5 million in net revenue.

For more information about the proposed additional 0.4% municipal income tax, visit the City of Avon Lake website at avonlake.org.