07-21-1975 - Laserfiche WebLink

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PUBLIC HEARING Mayor Garthe declared BUDGET FUNDING PROPOSALS the Public Hearing open regarding the proposed Ordinances establishing a utility users' tax and raising the property tax to fund the City's 1975-1976 Budget. Mr. Charles Wheeler, 802 French Street, asked where the money for the adopted budget was coming from; and stated that Councilmen should learn to live on $76 per week. Raymond Johnson, 3118 South Townsend, stated that he was opposed to new taxes and would prefer an increase in the property tax rather than a utility users' tax; and that the Police Department is a fine one and needs more men and he would fund the additional staff with an increased prop- erty tax. Tom McMichael of the East Orange County Board of Realtors said he had attended the budget sessions; that he would like to see further cuts in the budget in order to fund the police safety program; that the Board of Realtors would rather see taxes spread on as broad a base as possible and would prefer a 3% utility users' tax to cut down on the increase in the property tax. Carl Brandl, 1130 Douglas, said that a citizen has to do without anything he cannot afford to buy whereas the City passes a budget and turns around and taxes to raise the funds; that he wants the Police protection, but urges a further cut in the budget. Art Weaver, Vice President, B J Fibers, said that industries in the community support the budget; that the economic stability of the city depends upon industry; that industry will pass on a utility users' tax to the customer who will have to pay for it in either case; and that if the Council passes the utility users' tax, it will be making a big mistake for the future of this community. Tom Brown, 3801 South Harbor, representing AMF Voit, opposed the utility users' tax as a source of additional revenue; he said that a 1% utility users' tax is equivalent to a 20¢ increase in the property tax; that there will probably be a 20% increase in the cost of utilities in 1976; that a 3% increase in the cost of utilities must be offset by a 5% increase in sales in order for a business to remain in com- petition. Rhoads MarZin, Chairman, Industrial Development Committee of the Chamber of Commerce, opposed the establishment of a new tax; that a utility users' tax redistributes the tax base and doesn't make much difference to the average homeowner; but that it would increase the effective tax on a small or medium size industry by 280% making a tremendous impact on its business. Wayne Rash, 522 East First, suggested that the Council consider raising the property tax 31 cents and a further 5 cent increase in 1976 if it is necessary; that because of a relationship be- tween comsumption of alcoholic beverages and the crime rate, an effort should be made to get approval of a City's tippler's tax through the State legislature; and that the City negotiate with employees for a salary increase in 1976 less than the 8% that has been budgeted. John Gilchrist, ITT Cannon, stated that the need for an additional source of revenue had not been sufficiently CITY COUNCIL MINUTES 325 JULY 21, 1975