Arbor District Position on Proposed Taxes and Privatization of City Assets and Services
The Arbor District Neighborhood Association Board met Wednesday, Dec. 2, and resolved 1) to oppose the sale of the City's water and sewer system; and 2) to support reinstitution of the property tax and a .25 percent sales tax with a sundown of two or three years. Our rationale was as follows:
Regarding sale of the water and sewer system: We believe that sale of assets, particularly our water system which provides a basic necessity and is a natural monopoly, would be shortsighted and irresponsible. Through the proposed sale, the city would lose control forever of this vital necessity. We urge the Council to seek a way to assure that the City's water and sewer system can never be sold to a private interest, such as putting it in a Trust.
Regarding the property tax: The proposed tax would be slightly more than the current tax for Logan College. For homeowners, that runs a bit more than $100 a year per $100,000 assessed valuation. We are businesspeople and homeowners and realize that business properties do not have the homeowner's exemption. We believe that income earning property should share the burden of supplying city services, along with consumers. We strongly seek redevelopment of blighted properties and areas, which the Mayor suggested in his Budget Planning Discussion document might be hindered by an increase in property tax. However, income-producing property has historically been viewed as the foundation for government funding. Further, most business property in Carbondale is rental property. The rental units require considerable amounts of city services -- police, fire, and so forth -- that are funded through the General Fund.
To encourage investment in these properties, we urge the Council to establish a property tax abatement policy for property owners who significantly upgrade their properties.
Regarding the sales tax: We judge that a one-half percent sales tax increase significantly reduces Carbondale's competitive advantage both in relation to neighboring cities and the internet. We encourage business development in the city, and think that increasing the sales tax is unwise. If necessary to bridge the period between collection of the property tax and to replenish the General Fund that was drawn down by the May 8 storm, we believe a 1/4 percent sales tax increase might be justified. It should, however, have a near-term sunset.
Regarding sale or contracting of the City's refuse and recycling services: We anticipate that a private provider or providers would not provide the level of service we now have. Living in the Arbor District, we are acutely aware that the young people who live among us often pile large amounts of trash on the curb -- when they move in and move out, after parties, and so forth. Our trash collectors are very good about picking up these piles, leaving little if any debris on the ground. Current private trash collectors do no clean up around the dumpsters they service. The City Public Service Department also makes special runs during the August moving week, picking up unsightly mounds of trash almost as soon as they are placed on the curb. We anticipate that private services would continue not this necessary service. Further, the refuse and recycling programs are entirely paid for through billing customers, including a portion of the City’s administrative and operating expenses. No action should be taken without a careful study to see whether citizens could obtain less expensive service from private contractors, and whether the city would save any money from privatizing this service.
We believe there may be additional revenues possible from fees, and urge the City to carefully study the fee structure for all relevant units.
We urge residents of the Arbor District, and Carbondale citizens in general, to contact the City Council members to voice their opinion on these very important issues.
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