Friday, March 7, 2014

City Council Meeting

Attended Tuesday night's city council meeting for about an hour but had to leave about eight p.m. From what I have heard, I made a good decision as the meeting drug on until almost 1 a.m., due mainly to local organizations taking advantage of the council's blanket invitation for any group interested to apply to the council for funds.

I am not certain who thought asking more groups to apply for city funding was a good idea, given the budget constraints the city has been operating under for several years now.  Carbondale is looking at a $900,000+ shortfall in its budget, has put in place a requirement that any purchases over $250 must be approved by the city manager (hopefully, he will also look at overtime submitted by city hall staffers) and yet wants groups to come in to ask for already scarce funding.

Council members did advance several proposals to close the budget gap. Among those discussed were raising the package liquor tax, raising the food and beverage tax or approaching properties adjoining the city about annexation. A major problem in any plan to address city funding is the heavy reliance by the city upon the sales tax, rather than property taxes, as a funding source.

Property taxes do not fluctuate in response to the business cycle nearly as rapidly as do sales taxes, ergo they bring in a steadier stream of revenue to fund the city. Sales taxes change more in response to spending patterns but allow the city to shift tax revenues from residents to those who work and shop here, spreading revenue generation to those who use city services while in Carbondale but reside in lower taxed areas outside the city.

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