Our title was taken from the headline in an article from the March 1 Explorer.
Reading through the article, it suggests ways of increasing revenue.
The key word is "TAXES."
We have a better idea.
Perhaps it's time to FINALLY listen to our friend and Oro Valley citizen John Musolf. John has a wealth of financial knowledge gained during and after his career in finance.
There have been many postings on this blog where John has offered his expertise to the town. For the most part, there are those in our government; mainly the Mayor and Council majority who think they're smarter than John Musolf, and therefore his valuable insight is of no interest.
Sure--- these individuals can impose higher Utility Taxes, initiate a Property Tax, and increase the sales tax, but wouldn't it make more sense to listen to John, and a few others, including Council Member, Bill Garner, and look at the multitude of expenditures that could and should be reduced.
Maybe we citizens should pay more attention, so we don't look up one day and say, "since when do we have a property tax, or since when did the sales tax increase, or since when did the tax on our gas, water & electricity, go up?
Don't say you weren't warned!
Here's The Explorer article.
http://explorernews.com/news/oro_valley/article_7efb0b20-444d-11e0-806e-001cc4c03286.html
11 comments:
This Mayor and Council's majority will do anything they want. The residents must stand up and be heard! John and Councilmember Garner have some good ideas.
Wasn't Oro Valley Marketplace supposed to solve all of this town's financial problems? What? You mean that hasn't happened?
I told you so...
Need to do some cutting before any tax increase.
There are plenty of places to cut. The problem is the "love affair" between some on the council and some on the work force.
Who will win: the citizens or the employees? That's the BIG question.
"Officials predict shortfalls coming in local sales tax collection this year, which are on track to come in at $1.3 million less than expected.
"Another area that’s lagging is licensing and permitting fees, which look to bring in $350,000 less than what was budgeted."
Does this include the $1M "incentive" that council gave to Roche last fall?
I'm expected to pay higher taxes and fees so that one of the largest pharma companies in the world can give even bigger salaries and bonuses to its execs??
Ann, Very Good Point. I hope someone asks this question at the next council meeting?
Maybe I am to simply-minded, but it appears to me that the $3 million shortfall is about 3% of the total budget and that the council should direct the towm manager to have each department come back with a budget 3-5% less than originally submitted.
SIMPLE, EASY, TO THE POINT, NOT MUCH WIGGLE ROOM
February 23, 2011 Budget Work Session
Agenda Item One
FY 2010/2011 Discussion of Current Budget Deficits (Stacy Lemos)
General Fund - Remaining Deficit of 1.2 Million
• 900,000 (Solar Project) will come from cash reserves (contingency fund one time expenditure)
• 300,000+ will come from departmental cuts for last 3 months of current FY2010/2011 (Slide 10 in Item 1 Attachment)
o Cuts were presented by department at the request of Council
Each department head verbally defended their cuts
• Police example – Loss of high paid officers and Loss of some clerks and some reduction of copy and ammo costs as well as travel training. (remember last 3 months of current year)
• General Administration – Lower Steam Pump costs by $50,000, Annexation Costs by $20,000, coffee service by $5000, Recycling by $3000 (remember last 3 months of current year - $78,000 exceeds $72,000 on slide?)
• DIS – Cut custodial to 2 days - $18,000, Fleet Maintenance reduced overtime by transferring back to police department - $3000???
• You can listen to other departments by viewing video of meeting ( it starts about 20 minutes into the video)
Each department should be required to submit a detailed written accounting of these cuts not just a verbal and vague discussion of these cuts.
Highway Fund – Remaining Deficit of 1 Million
• $130,000 in savings already identified (Slide 12) No Detail
• No further reductions recommended – Why?
• Assumes spending full $747,000 on pavement preservation ( really need minimum of 1.2 Million per year to preserve pavement)
Agenda Item 5
FY 2011/2012 Discussion of Next Year Budget Deficits (Stacy Lemos)
• Slide 1 The Problem
o FY2011/2012 – General Fund Deficit – 3 Million
o FY2011/2012 – Highway Fund Deficit – 1 Million
o Future Deficits projected next 4 years
• Slide 8 - Suggested Employee Bonus – Add dollars ( $208,000 or $417,000) to FY2011/2012 Deficit of 3 Million.
• Slide 6 – Deficit Closing Options FY2011/2012 – General Fund Deficit – 3 Million.
Every Option has increased taxes to solve part of problem (none have to be approved by voters) No detailed discussion of how the town will achieve the remaining deficits for any Option.
o Option A – 2% utility tax (1.3 Million) Cuts/Fees (1.7Million)
o Option B – 1% utility tax (650,000) Cuts/Fees (2.4 Million)
o Option C – 2% utility tax (1.3 Million) 2% Commercial Rent Tax (900,000) Cuts/Fees (800,000)
o Option D – 2% utility tax (1.3 Million) .25% Local Tax Increase (800,000) Cuts/Fees (1 Million)
o Option E - .50% Local Tax Increase (1.8 Million) Cuts/Fees (1.2 Million)
• Slide 7 – Deficit Closing Options FY2011/2012 – Highway Fund Deficit – 1 Million.
Every Option has taxes to solve part of problem (none have to be approved by voters)
Are the highway taxes independent of the general fund taxes or added to them?
o Option A - .25% Local Tax Increase (800,000) Cuts (200,000)
o Option B – 1% Utility Tax Increase (650,000) Cuts (350,000)
o Option C – 2% Commercial Rent Tax (900,000) Cuts (100,000)
"Suggested Employee Bonus – Add dollars ( $208,000 or $417,000) to FY2011/2012 Deficit of 3 Million."
Who suggested the employee bonus?? So we're not just paying extra taxes so that large pharma execs can get bigger salaries--we're also going to pay more so that town employees can get bonuses?? Aren't other cities doing layoffs, furloughs, and pay reductions???
Ann--- A very astute Oro Valley resident recently told me that the way our government should run, is as follows:
The Town Manager works for the Mayor & Town Council, who, in turn, work for the citizens.
Sadly, as a result of our last election, it doesn't work that way.
THIS Mayor, his appointed Council Member, and a few of the others,obviously believe the Town Manager should dictate policy.
As such, these issues, such as employee bonuses, should come as no surprise.
The people voted,and the people "got what they got." Too bad for ALL of us!
Chuck Davis...
Well said.
Here's the message to town council: Cut spending to reach meet expected revenues. No more taxes.
That is the end of the story.
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