LETTER TO THE EDITOR

The city administration and the city council are reviewing expected 2020 revenue losses residual of the Covid-19 virus shutdown.

The audit/finance committee met May 7 to discuss this topic, particularly impacting general fund reductions, the largest of which by far is the 2.75% city sales tax.

The sales tax represents roughly 57% of general fund receipts. Total sales tax in April was 5.2% below 2019 and 0.7% year-to-date less than 2019.

This impacts general fund expenditures, so certainly appropriated monies must be cut. Where? The city distributed a proposed list of such cuts. It is not my purpose here to review those suggested reductions, but it is noted that the police department is proposed to take a large hit. Before that is done, I strongly suggest we await the May sales tax figures, which we'll know in early June.

Page 24 of the city's 2020 operating budget summarizes the annual budgetary process timeline. Note that this yearly cycle begins in June.

Of the city's 18 funds, eight are enterprise and seven are special revenue. The other three are debt service, retained risk (internal service), and the big dog, the general fund. These are on page 4 of the operating budget.

Page 31 of said budget highlights all revenues by source and fund. My concern is that only seven of the 27 major employers in our area are not a governmental body, a casino or a health-care facility, per page 15. More importantly, only 10.076% of all jobs on that page fall outside those three broad categories.

The many governmental units add to 33,563 jobs, health care 14,056, and casinos 8,063, leaving only 6,239 other jobs. That, mes amis, is an issue.

Respectfully submitted,

Kenneth J. Krefft
 

THIS ARTICLE WAS PUBLISHED IN THE May 15 ISSUE OF FOCUS SB - THE INQUISITOR.