DELAWARE, Ohio (WSYX) — City of Delaware residents may soon have higher income tax rates due to inflation and city growth.

On Monday, the city council was presented with a proposal from the finance committee based on months of studies and research.

Delaware currently has an income tax rate of 1.85% which brings in $37.8 million dollars for the city.

Based on the new proposal, the city’s income tax rate would increase to 2.25% and would bring in $46 million dollars. The last time the city saw an income tax rate increase was 13 years ago.

“Delaware offers wonderful services to residents despite not having a very high tax rate currently,” said Lee Yoakum with the City of Delaware.

According to the council, street and road projects are the top priority.

“About 60% of the new money would go towards roads. Also, to parks and recreation. Also, to economic development. All will help to improve Delaware.” added Yoakum.

Despite the need for improvements, council members debated on whether putting a term on the tax hike rather than making it permanent would help get more residents to vote in favor.

Delaware Mayor Carolyn Kay Riggle referenced a permanent levee proposal in 2016 that failed.

“It scares me because the previous permanent levee failed. People don’t trust the government. I’m just putting it out there. Doesn’t mean it’s us. It starts at the top and makes its way down. I kind of agree that we need to prove ourselves. If we say we are going to do this, we need to do it,” said Mayor Riggle.

No decision was made by the city council. However, if the council decides to move forward with the proposal, community input would be next.

From there, the proposal would be placed on the ballot for a vote in the spring of 2024.

Visit www.delawareohio.net/ for updates in the coming months.