Thinking trapped in the box

[Plane]

http://www.msnbc.msn.com/id/27559981/


"Raising taxes has emerged as this politically radioactive move," said Sujit Canagaretna, senior fiscal analyst with the Council of State Governments, "so what do you do in turn? You end up borrowing."

[BT]

Or you start charging higher user fees

[Plane]

So trimming spending is no option?

[BT]

So trimming spending is no option?

Sure it is. But a lot of local spending has to do with maintaining infrastructure and providing improvements that can only be delayed for so long.

A lot of cities live and die by the variables involved with sales tax even though that provides about 30% of a towns revenue, franchise fees provide about 20% and property taxes should provide the rest.

If sales taxes drop big time, towns need to get creative real quick.

[Plane]

So trimming spending is no option?

Sure it is. But a lot of local spending has to do with maintaining infrastructure and providing improvements that can only be delayed for so long.

A lot of cities live and die by the variables involved with sales tax even though that provides about 30% of a towns revenue, franchise fees provide about 20% and property taxes should provide the rest.

If sales taxes drop big time, towns need to get creative real quick.

Hmmmm...

So you don't like the "borrowing " option as well as the fees?

[BT]

So you don't like the "borrowing " option as well as the fees?

In Georgia borrowing for small towns is limited.

There is a short term loan known as a tax anticipation note, that pledges up to 85% of next years property taxes for an advance this year. Interest is minimal but it's kinda like paying your mortgage with a credit card. It's hard to break the cycle.

The types of user fees we either have in place or are planning to bring on board include rentals of the civic building, green and gazebo for weddings , craft fairs and music events. We are looking at movies on the green for spring summer and early fall as well as dive in movies at the pool. We started renting out the pool for after hour night swims. We are looking at day passes for lake activities like fishing. We have temporary parking passes that allows for hassle free on street parking. We have a Pavillion the lake that can be reserved for picnics and cookouts for a small fee. All these offset the expense of maintaining these same assets. We anticipate that the revenue from these sources could be the equivalent of one of two mills on property taxes and the majority would come from non residents of the town.

[Plane]

So you don't like the "borrowing " option as well as the fees?

In Georgia borrowing for small towns is limited.

There is a short term loan known as a tax anticipation note, that pledges up to 85% of next years property taxes for an advance this year. Interest is minimal but it's kinda like paying your mortgage with a credit card. It's hard to break the cycle.

The types of user fees we either have in place or are planning to bring on board include rentals of the civic building, green and gazebo for weddings , craft fairs and music events. We are looking at movies on the green for spring summer and early fall as well as dive in movies at the pool. We started renting out the pool for after hour night swims. We are looking at day passes for lake activities like fishing. We have temporary parking passes that allows for hassle free on street parking. We have a Pavillion the lake that can be reserved for picnics and cookouts for a small fee. All these offset the expense of maintaining these same assets. We anticipate that the revenue from these sources could be the equivalent of one of two mills on property taxes and the majority would come from non residents of the town.

As long as the fees are low I like the idea.

Can the fees become high enough to present an obsticle to poor citizens?

[BT]

The fees are reasonable. Temporary parking passes are $5. A ticket will cost you $50.

A day pass costs $3. Parking at state parks can be more.

The pool rental is $150 including a lifeguard. Skating parties can cost more.

[Michael Tee]

The fees are reasonable. Temporary parking passes are $5. A ticket will cost you $50.

A day pass costs $3. Parking at state parks can be more.

The pool rental is $150 including a lifeguard. Skating parties can cost more.

===============================================================

The fees start low.  They always do.  Where they end up is another matter.

It's human nature - - once you've got a money-making asset instead of a public trust, there's a vicious circle of improvements/spending and user fee hikes.

[Plane]

A self supporting park might be a lot more availible and well maintained than one that rund down , runs out of money and closes.

The origional problem was a drop in some Citys revenue , if tax income goes down for some reason should the parks be closed , or sell the trees?


BTW some trees produce lumber at about $1000 per tree , can a city plant its back lot with Walnut and Cherry to produce a harvest for money twentyfive years hence?

[kimba1]

it depend on the city`s ability to maintain it`s workers
here in my town our budget changes so much our understaffed tree tenders are years behind in maintaining the tree which translate to millions or dollars in liability.
last year a lady died from a falling branch ,which the tree was already marked as a safety hazard.
so if the  city is unlike mine and has enough money to maintain the tree farm for 25 years than it shouldn`t be a problem

[Plane]

I spent a few months in San Fransisco in 1978 , I was impressed with the beauty of the city .


What does the city do to maintain the streets and pay for the maintence?

[kimba1]

still beautiful as long you stay away from market street
but steet maintainence is a tricky thing since it`s always understaffed and truthfully money shouldn`t be an issue but since the people incharge has no understanding how to manage money it`s get underfunded due to higher priorty project gettting the money.
I say this because it`s been proven S.F. does generate a massive amount of money but it also spend a great deal more with no understanding how to control spending.
the mayor himself has stated this and doesn`t help the people incharge are still asking to spend more money.
it`s a great place to live if you like to spend money and never save any.

[BT]

The fees start low.  They always do.  Where they end up is another matter.

The other option is to raise property taxes.

Pick you poison.