So...what do other cities do in this case???

Well we have an example of what other AR cities are doing during this downturn in some articles I found in the AR Dem Gazette last week...

Siloam Springs axes 5 city administrators
By BENTON COUNTY DAILY RECORD

SILOAM SPRINGS -- SILOAM SPRINGS — Five mid- to upper-level city administrators have been laid off in a move to save $600,000 annually.

HUUUUM....600K, isn't that just about the same amount as our franchise fee shortfall???

Well here is a novel thought...let's thin out the bloated administrative levels of LR city hall. According to our COC guys we could never say that about LR city hall, even though their administrative salaries are 20% higher than those of most national averages of similar positions. Then there is that little issue of we now pay 2 guys $160K + a year to do the same job we use to pay only one to do. Finally, lets not mention that the top salaries at city hall far exceed those of the top state administrators (guv...etc.), not any excessive cost there...RIGHT????

Then there is this Fayetteville sales tax issue, more on the jump...

Fayetteville stands above budget, Investments slow, but city sees bump in revenue from taxes
By JOEL WALSH NORTHWEST ARKANSAS TIMES

FAYETTEVILLE -- FAYETTEVILLE — In a year likely to be remembered most for its economic turmoil, Fayetteville’s budget through the first half of 2011 has shown better-than-expected increases.

So lets do some apples to apples comparison. I do not think Fayetteville has a city manager, I also read that the new mayor refused the pay raise that came with his position. Responsible management by responsible people.

Now...on to that higher city sales tax...lets take a gander at this part of the story...

Nearly two-thirds of general-fund revenue — $19.5 million — was expected to come from the city’s 1 percent sales tax and a portion of Washington County’s 1 percent sales tax distributed to cities based on population.

Sales tax collection from all sources was up $538,000, or 4.2 percent, over budget, but 40 percent was earmarked for capital expenses. Only $384,000 went into the general fund.

 

What's that last part?????? The part where it says that 40% of their sales taxes are dedicated to capital expenses and are NOT part of general fund revenue. So doesn't that mean in real general fund revenue generation that they only have an ~ 0.6% or so tax. REALLY....and we have been told that we are just a bunch of losers because we do not have at least a 1% tax, like them, generating general fund revenue and now we find out their actual revenue tax is not that much more than ours!!!!

Then there is this comment in the story...

Department heads have been working to draft budgets for the past several weeks based on instructions from the mayor and Becker that there likely will be no new programs in 2012.

 

What's that....Fayetville, knowing things are tough for everyone, with an ACTUAL sales tax close to ours is not talking about raising their taxes by $500 million but about letting everyone know there will be NO new programs or frills...etc. Novel idea, as far as LRCH is concerned.

Then there is this one from a previous post covering Pulaski county finances, which are very solid now, quoting a county finance official...


“The key is to be conservative,” Hutchens said. “To say that the market and economy is volatile right now is an understatement. I’m not taking shots at anybody, but I don’t know how anybody could’ve projected an increase in sales tax based on the indicators we saw.”

So for the last 2 years LRCH has been telling us they expect sales tax revenue rates to increase, over objections from the audience, and now they tell us that they have discovered they are, in fact, flat to declining!!!! Does not instill a great deal of confidence in the money guys at LRCH...but lets just fix this by giving them $500 million more in taxes to spend!!

 I have a simpler solution, vote "NO" tax increases on Sept. 13th.