Minutes 04/23/1991 - Laserfiche WebLink

Home Browse Search

.~!~i~=~ ........ ~!~.-~.7!!,~ii, TUESDAY, APRIL 23, 1991' FY92'93 budget. Councilman Oakes moved that the meals tax be eliminated from the budget. This motion was seconded by Councilman Adams. Vice-Mayor Groden stated that he did not feel that cities should operate off of income that might not reoccur and that, by using surpluses to operate the City, the City was ~"living off of its bank accounts"and not returning anything to them. Vice' Mayor Groden stated that private industries use profits to fund capital needs, and that the City was not setting aside anything for such needs. Vice-Mayor Groden stated that he felt that, by foregoing new sources of revenue for yet another year, large tax increases would be needed in future years. Vice-Mayor Groden said that he did not believe that the citizens, as customers of the City, should be subjected to such large tax increases because the City had been operating off of surpluses for many years. Councilman Oakes stated that, it was obvious that the General Fund would lose revenue in future years due to the inability to transfer monies from the. Water and Sewer Funds, but that he could not support the meals tax when the City was raising water and sewer rates and when the property tax was being increased as a result ofthe 1991 Reassessment. Councilman Oakes stated that he~was very worried about the City "living off of its surpluses" but that he favored considering new revenues when a program which the'new revenues would fund has been clearly identified. Councilman Williams stated that he could not support the meals tax during a time in which the economy is failing. Upon~unanimous vote, Council deleted the meals tax from the proposed budget.TM Councilman Adams asked the City Manager to provide Council with'a list of those businesses which would collect the meals tax. and to~ detail ~the administrative procedures for collecting the tax if and when the proposal is brought before Council again.