From the Fort Wayne News Sentinel:
Revising a presentation they made last month, two City Council members today repeated their insistence that Fort Wayne's budget woes can be solved without raising income taxes – and without further depleting its “Legacy” fund.
In a briefing for reporters, Russ Jehl, R-2nd, and Mitch Harper, R-4th, were expected to outline how they believe $30 million can be found to address $24.8 million in budget challenges without increasing the local option income tax as proposed by Mayor Tom Henry's Fiscal Policy Group.
Jehl said there is agreement with the administration on the need to close a $7.1 million structural deficit, $3.2 million in additional spending and to address $14.5 million in additional capital needs. But that much and more is possible though spending cuts identified by the policy group, lower interest payments because of expiring debt, additional property taxes due to increases in the value of homes, projected increases in other revenues and an additional $2.1 million in state funding.
In fact, Jehl and Harper said, if the city made use of all available solutions, including increasing the property tax levy and additional use of Legacy funds generated by the sale of the old City Light utility, it could generate more than $39 million in total budget solutions – without increasing income taxes.
The city could increase the levy – the amount of property taxes collected – by $3 million, generate another $600,000 through annexation, tap Legacy principle and interest for $2.6 million and generate $3 million through structural reforms, they said. But that is not necessary to higher income taxes, Harper and Jehl said.
The proposed income tax increase would generate about $15.9 million per year, but Harper and Jehl said the administration's critique of their plan indicates the city would have a $9.1 million annual surplus after the tax increase, “underscoring it is not necessary.”
Harper and Jehl said the city's cash reserve can be boosted to the desired 7 percent of its annual budget simply by making a one-time transfer of $3.5 million from the city's county economic development income tax balance.
“This is a simpler proposal than we gave earlier,” they said.
Jehl said that, counter to administration claims, the proposal he crafted with Harper is sustainable into the future.
Public hearings on the city's budget proposals were scheduled to begin today.
...
http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20130611/NEWS/130619923/0/SEARCH
