Tuesday, December 15, 2009
City Faces School Tax Hike
Posted by Mary Cashiola on Tue, Dec 15, 2009 at 4:00 PM
City budget hearings generally happen in the spring.
But, facing a possible property tax hike for city schools, the City Council will begin special budget hearings Thursday, December 17th.
After being presented with four options to cover a $54 million settlement for the city schools —Â including a 45 cent tax increase —Â council members opted to look for cuts first.
"In June of last year, we had these exact same conversations. I think we made the wrong choice back in June when we gave a 3 percent raise, when we didn't cut travel budgets or eliminate vacant positions," said Council member Jim Strickland.
Mayor A C Wharton's preference was an option that would use $16 million from the city's reserves and then levy a 31-cent school tax.
Several council members advocated using a larger chunk of the city's $99 million reserve fund, but finance director Roland McElrath cautioned against doing so because it would effect the city's bond rating. Other council members wanted to try budget cuts.
"First, let's look at the budget and see where we can start cutting," said Reid Hedgepeth. "Let's look at any option ... before we give the citizens a tax increase."
"We need to consider all the options," council member Myron Lowery said. "A budget hearing on the 17th would look at reductions and, this is a major decision so I'm inclined to support it."
Administration staff are being asked to prepare a list of possible cuts, but McElrath said it would be difficult to find money in the current budget.
"Given that we're halfway through the fiscal year, we'd have to take pretty drastic action to the service levels that we're providing currently," McElrath said.
If it is going to levy a tax increase, the council needs to do it before property values are re-assessed.
"It's no secret it's a tough economic cycle," said current chief administrative officer Jack Sammons. "Real estate values will drop after January 1st according to the trustee. Your tax rate may have to be higher based on property values.
Tonight's full council meeting will be recessed until December 29th to finalize the possible tax increase.
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Memphis government at it's best.NOT. I have cut my personal budget to the bone.And it looks like more cuts are needed.I no longer buy meat or have cable TV. Why can't our Government live within their means. How many more must move away?
"Given that we are halfway through the fiscal year...." .uh? I will be sure to tell MLGW that my estimated revenue gains were offset by an unexpected settlement. Although my reserves for an expected increase in fuel cost were largely untouched, this gain was not fully realized because of higher than expected maintenance cost due to the increased age of my transportation fleet.
Why don't the cuts ever start at city hall? I'm sure that there is plenty of fat to trim with all of the various appointees, high level special assistants, and money sucking leaches such as the RDC, et al. The "leadership" (and I use that term very loosely) always seem to go straight for services when there is plenty of waste within the confines of city hall itself. Hell I'll volunteer my time to help audit and purge city hall of waste.
Oh wait...that may cause too much transparency. Can't have the citizens having too much control or knowledge.
Brilliant!!!
Everyone on the council knew that the courts would order the city to pay that money back to the schools. Every single one of them is culpable in this $54 million fiasco. Finding the money should start with them. Granted we couldn't sell the lot of them for more than about $10, unless we could get a per pound price, in which case we might do pretty well!
Anyway, my point is the council members, at the urging of WW put themselves, and therefor the taxpayers, in this predicament. I say fire them all.
Sorry, got a little pissed off.
Hey,
Remember all those pay raises AC gave to those appointed positions? Just a reminder...
mad merc, no apology required.
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