Dear Editor, In response to the letter from Sandy Keating: 1. The statement that the City organization will receive “about one million dollars more yearly” by eliminating the sales tax revenue given to the CDC and moving it into the City’s income does not understand the situation. First, the sales tax revenue received by the CDC has only exceeded one million dollars a year since 2023. It is not something that can be dependent on. Sales tax revenue is determined by how much people spend on taxable items. For it to continue to increase, it must be supported by more business growth and development. Second, Councilman Toof and City Manager Adams have both said that if the referendum passes, the Council will determine how much of that revenue will be given to City operations and how much will be given to the City’s planned economic development department, including the new proposed positions. Right now, CDC pays for their own employees, not the City. Manager Adams has stated that the City organization will maintain all the fiduciary obligations the CDC now has. Also, a viable economic development program must have money in the bank to fund new projects as they present themselves. How much does the City organization plan to budget for those projects? If the Council does not fund economic development, it will not materialize. The “about one million dollars” piece of the pie the City organization plans to get from this referendum is getting smaller, indeed.
2. The City’s income comes from property tax, sales tax revenue, utility fees, and miscellaneous fees established by City Council. The City organization also routinely applies for federal and state grants, usually matching grants, i.e., to help pay for fire department equip - ment, police equipment, water and sewer infrastructure and streets. It is the City Council who determine how this revenue is to be spent when they
36 set their annual budget.
