ELWOOD — Elwood has the power to implement a countywide income tax increase with a single vote, but the City Council decided to table that vote during Monday’s meeting.

In response to House Bill 1001 and reduced tax revenue projections, Anderson City Council approved a resolution to raise the county option income tax, or COIT, to 1.5 percent during its Aug. 14 meeting.

The resolution would eliminate the current county economic development tax, CEDIT, of .25 percent. It adds .25 percent to the homestead credit percentage and .25 percent in a COIT for public safety.

Anderson alone could not increase the countywide tax. Elwood would need to vote in favor of the measure for it to pass due to its status as the second largest community in the county.

Due to decreased property tax revenue, Elwood must cut $703,912 from its 2009 budget and another $1,038,320 in 2010.

According to Jim Steele, the financial consultant who pitched the COIT idea to Anderson, Elwood would gain $368,216 in 2009 in revenue from COIT.

Revenue from COIT would be placed into the general fund monthly and designated for public safety costs including police and fire salaries and equipment.

A public hearing was held in Elwood Monday night to provide residents a chance to weigh in on the issue, and those attending pulled no punches in questioning the increase.

Elwood resident Bobbi Taylor stood before the council with a simple statement. “I’m dead-set against it.”

“We are not Anderson. We are not Kokomo. We’re Elwood. We can’t afford a tax increase,” Taylor said.

According to Mayor Merrill Taylor, a person earning $40,000 a year would pay an extra $100 annually if the COIT was passed.

“That’s $1.93 a week,” he said.

Elwood resident Lynn King immediately objected to the statement. “There’s people in this town, including myself, who cannot stand to lose another $1.93 a week.”

Councilman David Savage said the city could not afford to vote down the COIT. “Without any tax increase, we’re not going to gain anything, we’re losing. I think Elwood citizens need public safety and we need this tax.”

Councilman Brian Courtney said he recently reviewed the local arrest log in the newspaper and noticed an increase over prior years, saying that public safety was invaluable to the community. “I don’t want another tax either but when I make a call to 911, somebody better be there.”