I am very concerned for our city. In that our political oversight by council is failing us. I believe the city is making a colossal error in judgment in the most recent votes concerning the proposed income tax increases.
At this point, I have not seen any accurate numbers and with those numbers that have been provided they are not consistence from meeting to meeting.
So here again I think using the 2008 budget numbers it indicates that the finance director is projecting total income tax collections for 2008 at $4,300,000. That is a slight increase over 2007. Pro-rating the credits given to taxpayers that can claim a credit from another city that figure is around $1,300,000.
If we simply separate the two taxpayer groups (those receiving an exemption and those not) we can project what a 2% income tax next year will bring in. Since the city computer system can?’t give a number of taxpayers like some are stating we are left to only work with dollar amounts. Obviously if we say that we give $1.3 million in credits then we can also say that we are receiving $1.3 million from that group. If we subtract that $1.3 M from the $4.3 M then that leaves us with $3 M. The non-credit group currently pays $3 Million to the city. If we double their taxes then the new projected income would be $6 Million. Then if the city gives a 100% credit to the credit group then that $1.3 million goes away. Apparently the city council is finding ways to spend not only the $6 Million but also not allow the credit group to keep their money and the total income if the income tax passes will be $6 M plus the $1.3 M or $7.3 million projected income for 2009 if the increase passes.
Also note: I am using figures projected for 2008. Normally our income taxes collection has increased every year including with a bad economy. So my figure of $7.3 Million for 2009 may be a little low (3 or 4 percent).
On June 3rd the council was expecting to raise around $1.7 Million by going to a 2% income tax and allowing this 75% credit. As I have outlined above that figure is more like $3 Million more each year.
It has been stated in the paper that they are projecting a $6 Million deficit over the next five years. Yet they are happy to work the figures and try to scam the public that they need more.
So let?’s explore some of the additional needs I have heard from various members of council and from the local newspapers.
PAY DOWN OUR DEBT:
This income issue can only be spent on general fund projects and issues. The current debt (at the end of 2008) in the general fund will be: $11,156,205. The only issues of that $11 Million plus that can be paid down early is $3,160,000 in the one year notes.
Why would the taxpayers send the city their money to pay down the City debt when most of us are struggling with our own debt issues along with the daily expenses to feed our family and put gas in our cars?
What guarantee will the taxpayers have if they approve this tax increase that the debt (if that if important to the taxpayers) will be paid down?
By Ted Hackworth
At this point, I have not seen any accurate numbers and with those numbers that have been provided they are not consistence from meeting to meeting.
So here again I think using the 2008 budget numbers it indicates that the finance director is projecting total income tax collections for 2008 at $4,300,000. That is a slight increase over 2007. Pro-rating the credits given to taxpayers that can claim a credit from another city that figure is around $1,300,000.
If we simply separate the two taxpayer groups (those receiving an exemption and those not) we can project what a 2% income tax next year will bring in. Since the city computer system can?’t give a number of taxpayers like some are stating we are left to only work with dollar amounts. Obviously if we say that we give $1.3 million in credits then we can also say that we are receiving $1.3 million from that group. If we subtract that $1.3 M from the $4.3 M then that leaves us with $3 M. The non-credit group currently pays $3 Million to the city. If we double their taxes then the new projected income would be $6 Million. Then if the city gives a 100% credit to the credit group then that $1.3 million goes away. Apparently the city council is finding ways to spend not only the $6 Million but also not allow the credit group to keep their money and the total income if the income tax passes will be $6 M plus the $1.3 M or $7.3 million projected income for 2009 if the increase passes.
Also note: I am using figures projected for 2008. Normally our income taxes collection has increased every year including with a bad economy. So my figure of $7.3 Million for 2009 may be a little low (3 or 4 percent).
On June 3rd the council was expecting to raise around $1.7 Million by going to a 2% income tax and allowing this 75% credit. As I have outlined above that figure is more like $3 Million more each year.
It has been stated in the paper that they are projecting a $6 Million deficit over the next five years. Yet they are happy to work the figures and try to scam the public that they need more.
So let?’s explore some of the additional needs I have heard from various members of council and from the local newspapers.
PAY DOWN OUR DEBT:
This income issue can only be spent on general fund projects and issues. The current debt (at the end of 2008) in the general fund will be: $11,156,205. The only issues of that $11 Million plus that can be paid down early is $3,160,000 in the one year notes.
Why would the taxpayers send the city their money to pay down the City debt when most of us are struggling with our own debt issues along with the daily expenses to feed our family and put gas in our cars?
What guarantee will the taxpayers have if they approve this tax increase that the debt (if that if important to the taxpayers) will be paid down?
By Ted Hackworth