Nearly twice as much money for Iola’s general fund last year came from utility reserve transfers than did from property tax revenues.
That bit of perspective helped shape talks Tuesday for Iola City Council members, who met in a work session to discuss Iola’s 2013 budget planning.
For years, the city has supplemented its general fund with utility transfers, which has allowed Iola’s ad valorem tax levy to remain relatively flat for several years.
From 1985 to 2004, the city’s property tax levy never varied from 31 to 28 mills. The number crept up nominally from 2004 to 2007, from 34 to 37 mills, where it has remained.
City Administrator Carl Slaugh’s question was whether that practice should continue. In 2011, he said, the city transferred $2,368,750 from its utility funds, while only $1,227,253 came from property taxes.
Slaugh noted the city also brings in more on sales taxes — about $1.4 million annually — than property taxes.
Councilman Ken Rowe said the transfer issue could be looked at two ways — higher utility bills or sales taxes are considered by some as disproportionally affecting poorer families, however relying on those two revenue streams spreads the burden of funding city operations across a broader spectrum.
“I think we should look at both aspects,” Rowe said. “We just need to make sure we’re doing it fairly and equitably, without unfairly burdening one particular group.”
COMMENTS FROM seven council members in attendance — Steve French was unable to attend — showed that each favored seeing the city focus its highest budget priorities on infrastructure improvements and maintenance.
The city’s infrastructure needs highlighted Councilman Kendall Callahan’s contention that recent years of “budget savings” was a misnomer.
Those “savings” were based on a false economy because the city was shorting itself in terms of maintaining its infrastructure, Callahan said.
“We didn’t get here overnight, and we’re not gonna solve it overnight,” Callahan said.
Callahan and Rowe both repeated comments they’ve voice earlier: while the city looks at increasing revenue, it should also look at ways to rein in costs.
By making employees more productive, the city may be able to eventually downsize its workforce, Callahan said.
Callahan suggested council members determine dollar figures on various services — twice weekly trash service, for example — to determine if Iolans would favor such services if they knew the true costs.
COUNCILMAN Jim Kilby said budget planners have done a good job at keeping spending in line.
