05/18/05 Budget Study - Laserfiche WebLink

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Budget Study Session May 18, 2005 Norfleet responded that the amount is the sum of “General Fund” and “Library” or about $3.1 million plus $1.3 million, or $4.4 million dollars. He commented upon the surplus for this year, noting it should be substantial, and asking if there need be a bond issue or a tax increase from the public. The response was no, not for the budget for 2005-2006, but there will be some fee increases. For the year 2006-2007, the City Manager predicted the need to use the sales tax and the need to ask the voters to do this. Mr. McCarthy asked if “something was coming off” or if more revenue was needed. The answer was that the revenue remains flat, the economic growth has not yet occurred. A year from now, cost-of-living increases may necessitate a sales tax revenue, but it will have to go to the voters. Joe Passanise, 7901 Delmar Boulevard, asked about the economic downturn and said it cannot be based upon residential sales, because residential evaluation and sales have risen remarkably this year. Where is the economic downturn, he asked, and the response was that it is in sales. Mayor Adams explained that with property tax, more revenue cannot be generated if the property values increase, due to the “roll-back.” Big revenue sources with growth include sales taxes. The economy is flat, Congress does not tax internet sales, and shopping centers are not built in University City. Mr. Wagner commented that telephone tax is also lost, due to the General Assembly. The utility tax also has growth, and is expected to increase. Mr. Passanise asked that if utility taxes must be increased, please make it the one for last resort. Mr. Wagner said it was not a tax, it is a license fee. The telephone revenue has been halved recently. Cell telephones have been reclassified as “radios” and revenue is lost there, too. Courts recently reversed this decision. The City Manager commented that the City Council’s philosophy relating to various City services, has been to adjust fees so that the general tax payer does not need to subsidize these services. Fees are set to cover costs, so that sales taxes do not have to subsidize the inability to do so. Mr. Passanise’s next question was about C-6, number of new employees hired, and asked if they were replacing previous employees or if it was adding new employees, and was advised for the most part it is replacements, but there are some new positions. Some are by attrition. He suggested that additional information be added to explain the additional employees. As for C-28, the police, he commented upon the number of burglaries and murders and the police performance in response to these. He would like to have this information provided. The solution rate is high, but the City Manager promised to provide him with additional breakdown information. As for the library, he asked if University City could “share the responsibility of the library with the St. Louis County Library system”, as the library in Clayton does. University City determined to maintain its own library, apart from the St. Louis County system, which has a slightly lower tax rate. The citizens prefer it this way and have expressed this Page 15