The hardest question when helping is whether you are really helping or just enabling and making the situation worse.
Dunsmuir City Council is considering raising two taxes, TOT (lodging tax) and TUT (sales tax). Council recognizes the city is bringing in considerably less than it spends and we are losing reserves fast.
As your treasurer, I have watched every year our revenues increase. For this fiscal year the city manager delivered a balanced budget. One month later council passed a final budget to deficit spend $60,000. Council spent that up to $100,000 deficit. Council just returned from a League of Cities junket trip to Long Beach, they already spent almost their entire budget for training and education of $7,500, instead of conserving, instead of holding off.
I have seen years when good budgeting created the reserves council is now spending. In the year since this council was seated they have spent in deficit over $150,000. They are spending money they don’t have and refuse to cut any non-essential expenses and have actually added several.
TOT and TUT are easy to raise on the people. Council will pass them off as pass-through or out of town taxes, but they are not. Hotels, motels, Airb&b, and merchants collect the tax for city. They are writing the checks and where they support the city’s wellbeing they are hard pressed to see the benefit. Merchants must run their business on balanced budgets. They expect the city to do so as well.
Council needs a five year budget that is balanced and revenue positive. Tell council no to their new taxes this Thursday!
Dunsmuir City Treasurer