For those of you interested in attending, the Searcy City Council will have a special meeting Tuesday night (9/27) at 7 P.M. at city hall. Mayor David Morris and our aldermen will discuss how to raise the remaining $3 million in local funds for the Highway 13 expansion project. $6 million in local matching funds is required to secure the Federal funding, and White County has pledged $3 million.
Previously, the city had planned to use funds from the White County sales tax proposal to cover the other $3 million in matching funds. However, the tax, which was projected to pull $18 million out of the local economy in 21 months, also funded a variety of other things including nebulous "economic development," and it was rejected by White County voters September 13.
Seating is limited, so show up a little early to hear Mayor David Morris and our aldermen discuss their plans to fund the Searcy bypass.
Monday, September 26, 2011
Wednesday, September 14, 2011
Funding for the Searcy Bypass
Today, News Talk 99.1 is reporting that Searcy Mayor David Morris is disappointed that the White County 1 percent sales tax increase didn't win voter approval yesterday. The tax, which was estimated to collect $18 million from taxpayers over 21 months, would have sent approximately $5.3 million to Searcy, and $3 million of that money could be used to cover the matching funds White County decided the city had to pay to fund the Highway 13 bypass project.Leaving aside the fact that White County has the money to pay the full $6 million in matching funds for the Highway 13 extension, how can Searcy raise half the matching funds for the bypass?
Mayor Morris inherited a tough financial situation from the previous mayor. From January 2009 to December 2010, the cash assets of the city dwindled from $2.27 million to a little more than $500,000 due to deficit spending. In fact, Searcy's city budget for 2011 had cuts across the board to try to stabilize the city's financial situation. As a result, from December 2010 to August 2011, the city has accumulated a total of $1,049,609.57 money available in the Cash-General Fund and in the bank. While this is a healthier financial situation, it is still not enough to pay the $3 million White County wants the city to match.
Raising sales taxes to bring in the money has proven unpopular lately. Our country is facing tough economic times, and we've heard the drumbeat for higher local taxes for many years. If Mayor Morris were to try to build consensus on a brief sales tax increase, the most conservative, responsible proposal would be a short, focused tax to raise the $3 million that sunsets when the needed funds have been collected. An examination of the city's monthly sales tax report for August shows that the city's 1/2 percent sales tax brings in about $3 million per year. That means a city sales tax increase of 1 percent for six months or 1/2 percent for one year should raise $3 million. To follow the example of the fire station tax, the proposal would need to clearly allocate the money to the Highway 13 expansion, and it shouldn't include additional provisions like the White County sales tax or other Searcy sales taxes voted down during the past four years. Furthermore, following the pattern of the fire station tax might help Mayor Morris rebuild the city government's credibility on tax issues.
Mayor Morris inherited a tough financial situation from the previous mayor. From January 2009 to December 2010, the cash assets of the city dwindled from $2.27 million to a little more than $500,000 due to deficit spending. In fact, Searcy's city budget for 2011 had cuts across the board to try to stabilize the city's financial situation. As a result, from December 2010 to August 2011, the city has accumulated a total of $1,049,609.57 money available in the Cash-General Fund and in the bank. While this is a healthier financial situation, it is still not enough to pay the $3 million White County wants the city to match.
Raising sales taxes to bring in the money has proven unpopular lately. Our country is facing tough economic times, and we've heard the drumbeat for higher local taxes for many years. If Mayor Morris were to try to build consensus on a brief sales tax increase, the most conservative, responsible proposal would be a short, focused tax to raise the $3 million that sunsets when the needed funds have been collected. An examination of the city's monthly sales tax report for August shows that the city's 1/2 percent sales tax brings in about $3 million per year. That means a city sales tax increase of 1 percent for six months or 1/2 percent for one year should raise $3 million. To follow the example of the fire station tax, the proposal would need to clearly allocate the money to the Highway 13 expansion, and it shouldn't include additional provisions like the White County sales tax or other Searcy sales taxes voted down during the past four years. Furthermore, following the pattern of the fire station tax might help Mayor Morris rebuild the city government's credibility on tax issues.
Subscribe to:
Posts (Atom)