Tuesday, February 4, 2014

Council Streets Committee Deliberations


As reported in an article in the Saturday, 2/1/14 News Journal the Mayor and committee members voiced their views and concerns about the street maintenance and repair budget.
The Mayor stated that it would cost $1 million per year to maintain the streets. This year's budget includes $886,000 for the streets department,,leaving a $115,000 shortfall.

The option of increasing the income (earnings) tax, as was discussed, would generate an estimated $2 million and require a ballot issue. A household earning $60,000 a year would have to pay $25 per month in increased taxes.
The other option mentioned was placing a property tax levy on the ballot. This writer has been pushing this option since 2008 when R&L trucking moved their vehicle registration out of state taking $700,000 street and bridge money with them. A two mill tax would generate an estimated $473,000 per year based on 2012 total property values. The levy would cost homeowners $6 per month for each $100,000 of home value, Qualified (born before 1949) senior homeowners would pay just $4.38 per month.

It was reported that the Mayor has been lobbying the state to change commercial registration policies in order bring R&L back to Oho registration. Two years ago the legislature did just that but R&L has not changed. In any event, even if the company did return, no new dollars would flow to the city.
Research indicates that the city had been receiving the R&L registration money in error going back to when the company moved from its original location on Ludovic St. in the city to county locations.

Breakdown of 2013 streets funding sources:
Gasoline tax: $356,396 (city auditor)
Transfer from taxpayer's general fund $372,253 (2014 $469,527)
Minus $108,000 for new street construction bond payment.

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