How the City Council Might Deliver a Tax Cut

Jordan Green broke the story earlier today that the Greensboro City Council may be delivering a tax cut to citizens.

How would it be happening?  The bulk of the economies would be achieved as follows:

1. Cutting subsidies to non-profits

2. Lowering the monetary reserves the city holds

3. Reducing the number of unfilled positions previously funded within departmental budgets

4. Reducing the frequency of bulk (sanitation) pick-ups

In addition, there will be increased revenues planned through certain user fees increased or levied for the first time (for instance, at libraries for out-of-city users).

There will be no cuts to leaf collections, no lakes closed and no police officers cut under this scenario.  Not one city employee would lose his or her job.

In addition, some bond spending authorized by the voters would be preserved-- $75 million over two years.  Imagine what we could do to reduce property taxes were it not for the burdens associated with bond-related spending.

In any event, it was previously almost unimaginable that local residents would ever enjoy a property tax cut.  But we elected a couple of additional conservatives to the Greensboro City Council; and it appears a tax cut might now happen with limited pain to city residents.  We will learn more about the fine print and additional details as the budget process unfolds.  Let's hope it turns out to be as good as it appears to be.

Comments

[Joe Killian]

This was reported months ago.

http://www.news-record.com/content/2010/03/17/article/city_council_considers_cut_in_tax_rate

It's been what's expected to happen tomorrow for quite a while.

[Joe Guarino]

Joe, I agree that this has been on the radar screen. The big question was whether a plan would materialize that could get five votes, and that could survive the budget process, particularly in the environment of declining revenues. There was a question as to what cuts would be required, and whether they would be politically possible. But it appears that, barring the unforeseen, those hurdles may have been overcome.

This also puts the recent debate on Mayor Knight's invocation in a different light. Some commenters have expressed concern that the prayer issue would somehow interfere with the ability of the city council to do its proper business, and for instance to tackle the budget. But it appears the preparations for the budget process have already been addressed. The hope is that five votes will be there, when push comes to shove. But the institution of an invocation did not prevent those preliminary discussions and preparations from taking place.