Stung by loss, Middletown meets tonight

Jennifer Baker reports:

Middletown City Council is expected to meet tonight to discuss what’s next after voters overwhelmingly rejected increasing the city’s earnings tax from 1.5 percent to 2.25 percent.

Voters rejected the increase 60 percent to 40 percent.

The tax rate, which raises about $18 million a year, hasn’t been increased since 1968.

The increase would have generated an additional $9 million a year to spend on roads, sewers, police, parks, and a rainy-day fund. City Manager Bill Becker had predicted the higher tax also would have spurred economic development.

Middletown has been struggling since the AK Steel lockout began in February.