Just some eye candy tax comparisons

*  **  The 5/8 Cent tax attachment  is a line graph showing the major taxes now collected LR City Hall and putting in visual perspective the proposed new tax relative to existing categories of tax collections.  This is no small decision.  This

$31 million / year sales tax will grow every year (see 18 year history back 1995). It is 35% larger (after inflation) than the 1/2 cent sales tax levied in 1994.

Please note also that these major taxes grow each year with very, very minor exceptions.  It is true the 2008 downturn had its revenue effects.  At the same time, an economic reversal affects all sectors of the state and nation and the LR city treasury should not behave as if it is to be perpetually protected.  No wage earner or family in LR has such immunity from losing their jobs, falling behind in their mortgage and losing their home, etc.

 **  The 3/8 cent attachment is a column chart showing the capital project packages executed by LR City Hall since 1965.  Note that the "G.O. Bonds" label apply to most  --  that is, voter-approved property taxes from added millage set up the revenue stream to finance these initiatives.  (All dollar amounts shown are adjusted for

inflation so we can straightforwardly compare these expenditures to today's over-the-top proposal for $195 million.)

The $195 million proposal for the 3/8 cent is 131% larger (after adjustments for inflated dollars) than the previous largest capital projects package in 2004.  It seems we just cannot offer enough money to City Hall, ever.

Note the 1998 "revenue bond" packages.  These initiatives were not approved by voters but instead set up inside the General Fund and revenues earmarked from the General Fund to pay off these bonds.  One package is the Clinton Library real estate purchase in 1998.  There was a second street and drainage initiative in 1998  --  I am still puzzled 13 years later why these capital improvements

were financed this way.  Very unusual.   In any event, the upshot is that these three revenue bond projects (the third in 2009 by Mayor Stodola) cumulatively cost the General Fund EACH YEAR $2.8 million in principal and interest payments.  The Clinton bonds are payable through 2021 ($739,637 paid in 2010 from the General Fund; see pages 22 and 83 of the City's 2010 Comprehensive Annual Finance Report).

The point is  --  the City Board elected not to seek voter approval of these previous initiatives and thus devise a separate revenue stream to pay off the debt (bonds).   Instead City leaders burdened the General Fund (which also pays Police, Fire, Parks salaries, etc., etc) which now, according to City Hall, is grievously short of money ($8 million).  Cause and effect, perhaps?

Vote "NO" for both ballot items on Sept. 13th!!!