Friday, November 9, 2007

Riding the Roller Coaster

The Tribune is reporting that sales tax revenue is down and its impacting Mesa's budget. So far, it looks like they can handle it, but who knows what the future holds. The article tries to link the bond issue to the drop in budget. We have been in tough economic shape for awhile. The sales tax slowdown isn't what put the city in this hole.

Having bonds with a secondary property tax to pay for infrastructure is a more steady approach to getting some needs met. Mesa went out for the whole enchilada a while back with the primary property tax and was roundly rejected. Perhaps they will be able to make the case for specific projects. Its the difference between trusting the council with the blank check and sending them to the grocery store with a certain amount of money and a shopping list. Perhaps the voters will be a bit more trusting.

The only thing that troubles me is this line:

"And the tax assessments could go up because of ongoing costs to maintain facilities and pay salaries tied to the bond package. "

I don't think that these bonds should pay for M&O. The city needs to find away to take care of that with their regular budget. Otherwise, we are putting ourselves into a perpetual obligation, because once we get that staff in place, you know that it would be darn near impossible to remove them. No one has the political will to lower the number of police and fire workers that they have in the city.

No comments: