According to today’s Neosho Daily website, City Manager Jan Blase gave the Economic Development Sales Tax Committee a hint of things to come during their monthly meeting held yesterday at City Hall.
Specifically, Blase commented that he sees a property tax as a solution to help provide the city with a more stable funding base.
During the meeting, Blase also commented on cash flow shortages projected for March and April. (This is mostly likely related to debt payments due by the city in March and April. According to the budget approved by the council in September, the city has just over $1 million in debt payments due by May 1st, 2010. Total debt payments for FY 2010 are just over $1.6 million.)
Blase also cited a 13% reduction in sales tax vs collections two years ago – partially blaming retail and food competition from NW Arkansas and Joplin. He estimated it will take another two years to get back that 13%.
Mr. Blase has until January 15, 2010 to present a plan to the Neosho City Council outlining the steps he will take to start fixing the city’s financial situation.
I support the property tax issue for a number of reasons. My full comments are here. Below is a portion of that post related to property taxes.
5) Move toward a more stable and less-volatile revenue base. Being dependent on sales tax as a sole local source for operating revenues is unwise and was the wrong decision to make years ago. The city must look at a modified revenue base that could include REPLACING some of our sales tax revenue with property-value based taxes that better distribute the costs of operating our city to the ones benefiting from its services. This is especially true for fire protection.
What is sad is the number of employees that are being clued into the "master plan" which is either each department lays people off or they take a 10% paycut. Going to lose alot of good people in a very short time. Oh and that includes police and fire.
ReplyDeleteAs much as I appreciate and sympathize with the fire and police personnel, we are getting the same load of bull we always get....give us more money or you lose fire and police protection...your insurance rates will go up...we'll only have x number of policemen on duty...
ReplyDeleteThis is a threat that goes way back....use these high profile department as something close to blackmail....this was a favorite tactic of a former sheriff...show me you can handle money first
Don't disagree with you a bit. My point is that the employees are being told 10% paycut or layoffs which do you want? As a result of this many people are already looking for other employment leading to Neosho losing some real talent. You are correct, the same old strategy of using fire/police as pawns is accurate and we will soon see Jan in front of the cameras again sobbing about the lack of sales tax and the only way to salvation is through the property tax or we will cut your protection.
ReplyDeleteYes, times are tough and I have spoken with some of the emergency workers. I'm sure many of the folks at Brass Eagle would have gladly taken a 10% cut to stay at work. I hope our men will hang tough and then, when we find someone who can turn this ship around, we are able to reward them...but everyone is taking a hit....I just don't like what I take as a "threat" to squeeze out more money to a city that can't keep accurate books and can't be open and up front.
ReplyDeleteI'm tired of using fire and police as poster boys for the shortcomings of others.
...just don't do it.
Anonymous 7:53 PM
I find it interesting that he gave the ED group a detailed report, something he did not do for the council, his real boss. They get better reports than the council, so what does that tell you?
ReplyDeleteDavid Holley