Councilmembers tackle heavy-duty agenda. Budget, tax measures on the city's plate

It was in December that councilmembers directed staff members to return a pair of options for adopting a sales tax, whether a general or specific sales tax option.  Councilmembers will have two resolutions to consider eventually, one a special tax for public safety and the second a general tax.

The difference?

A general tax is intended to raise general-purpose revenues, which the city’s leaders can use for any lawful public purpose. A majority of voters (51 percent) must approve the tax measure to impose, increase or extend a general tax. Such a levy takes a public election approval when a city council seat is up for election, that is unless the council – by a unanimous vote – declares an emergency.

A special tax is imposed for a specific purpose. For example, such a tax if passed, could be used strictly for public safety. Revenues from a special tax can be used only for that purpose. Two-thirds of voters must approve to enact, increase or extend a special tax.

Special tax funds are deposited into a special fund, and the city must collect revenue, spend it and publish an annual report.

City officials are talking about a one percent sales tax hike, which if enacted would generate an additional $1.900,000 per year.

Approving a general tax increase soon could place a measure on the November 2018 ballot. A special tax would have to likely be done at a later date.

City officials will also consider the 2018-19 budget during its study session. In May city staff presented the budget where councilmembers and staff offered additional insight or changes. However, members failed to find a consensus on how to proceed on several items:

1. Forgoing the ordinance review until the fiscal year 2019-2020 saving the city some $14,000

2. Addition of a financial software system, an increase of $8,000

3. Including CrisCom, an economic development organization into the city manager’s budget, about $45,000