Income Tax Boost Comes Thanks To Mill Opening in Mingo Junction
Income tax collections in Mingo Junction through August have increased by $74,702 compared to last year, mainly due to the opening of the ACERO Junction steel mill.
The village clerk’s office reported that is slightly more than a 10-percent increase over last year. Based on those figures, the village could realize an additional $100,000 for the entire year. The 2-percent income tax generates about $800,000 a year for Mingo Junction.
ACERO Junction has become the village’s largest employer, according to the village clerk’s office.
The Frontier Group of Companies in December announced the sale of a section of the steel plant in the village to ACERO Junction, which restarted the 80-inch rolling mill.
Council earlier this year approved a general fund budget totaling $1,383,303.
Mayor Ed Fithen said the village is pleased to be getting the additional money and hopes it continues.
The future of the mill is looking better, including talk of the electric arc furnace restarting, Fithen said, noting the arc furnace will allow the mill to produce its own steel, instead of buying slabs of steel.
“They are paying their fair share and that is a plus,” Fithen said.
Village Clerk Jim Huggins said the village needs the extra income. He noted if the electric arc furnace becomes operational, it likely would bring in additional income tax revenue due to more employees working.
Councilman Michael Herrick said the increase in income tax collections shows that people are back to work at the mill.
He noted one of the major needs of the village is to begin repaving roads. Village crews have been using hot-patch asphalt to fix potholes, and officials haven’t used village funds for years to pave roads. A federal Community Development Block Grant was secured several years ago to pave the section of Commercial Street past Logan Avenue going toward the Ohio 7 north entrance ramp.
“Our roads are in dire need of repair,” Herrick said.
Herrick added village officials could look to hire a couple of workers. The village is down to five workers in the service department who are picking up garbage, cutting grass and other maintenance work.
“We need more workers in the service department to get the work done,” he said.
Councilman George Irvin said the village is starting to see an increase in revenue, but he cautioned the village must exercise fiscal responsibility.
“Our village, after withstanding years of lower and lower revenue, is finally starting to see increase,” Irvin said. “This increase may be the first of many revenue increases. … This revenue increase is assuredly welcomed but it is neither a license for haste nor a pardon for free spending,” Irvin said.