Nicky Boyette – Monday evening Mayor Butch Berry presented city council with a preliminary plan to jumpstart the local economy by proposing re-initiating a two percent sales tax on retail purchases in the city. He projected the tax could bring as much as $1.2 million annually based on calculations from finance director Lonnie Clark. The tax would have to be approved by the voters, and Berry said he hoped to work out details so the issue could be on the ballot in November.
Berry emphasized that revenue would not be for city operations, but for specific unmet maintenance needs that have been neglected for too long. He projected $200,000 of the revenue could be dedicated to refurbishing and maintaining the Auditorium, which has a list of unmet problems from the roof on down. As much as $900,000 would go toward repairing and expanding the city’s water and sewer infrastructure, and $100,000 annually could go into a reserve fund which the city has been draining for several years to supplement expenses for water, sewer, the Auditorium, and other responsibilities.
Berry stated he would recommend putting a 10-year sunset on the tax, so voters could then decide whether it was still needed.
He made the case that the city has been “robbing Peter to pay Paul” for too long. The city has overspent its budget in an attempt to deal with its aging infrastructure, broken pipes need fixing, and sewer lines still don’t extend to certain parts of town. The city is making payments on its bonds, but not meeting requirements of the bonds and not catching up.
He said having a water testing facility would pay for itself in a few years, but the city doesn’t have money to build the facility. There are grants that could help with repairing water and sewer pipes, for example, but they’re matching grants and the city can’t make the match.
Berry claimed budgets in city departments are as tight as possible, and he’s looked for other ways to raise revenue, but the city can’t wait any longer. He advocated a proactive approach, and hoped council would support him. “We’ve had our heads in the dirt for too many years,” he said, and with extra steady revenue the city could begin to accomplish what has been left undone.
Berry pointed out the city will get a rush of visitors this weekend, and they will impact the infrastructure. It is only fair they pay their fair share in rebuilding it. In fact, he pointed out, visitors will pay for most of it.
Alderman Terry McClung agreed there has not been enough work done to protect the city’s reserves, but was skeptical the two-percent tax would generate as much as Berry hoped for.
Other aldermen asked for more clarity about Berry’s plan. Alderman Joyce Zeller was unsure what items Berry’s plan would tax, which led to the question of who would be collecting the tax. Important other particulars percolated and contrary opinions flew back and forth across the table until alderman James DeVito observed council needed more information.
Berry said he would check into legalities regarding the tax and address some of the details before the next meeting, but just wanted council to know where his thinking was headed.
Alderman David Mitchell urged consideration of Berry’s ideas because council has already cut expenses as much as they are comfortable with, so the next step would be to increase revenue in the fairest way possible.
DeVito said he applauded Berry for taking on this daunting task. “You’re doing something that is necessary. If there were a better way of doing it, I’m sure you would have found it.”