According to Cottonwood City Manager Doug Bartosh, a sales tax increase is not planned to cover expenditures in the 2017 budget.
“There is no sales tax increase being proposed or considered,” Bartosh stated via email on Thursday, May 12.
This statement appears to contradict information provided to the public by the Cottonwood Journal Extra [May 4 Page 1A, “City previews tough budget”]. City of Cottonwood Administrative Services General Manager Rudy Rodriguez said he anticipated a nearly 1 percent sales tax increase next year — an amount that would be “just about enough to cover expenditures.”
Rodriguez did not give a specific percentage.
Asked to clarify this statement, Bartosh explained that, “Rudy was merely stating a possible need for future budgets, but he has no authority or ability to commit to or enact a tax increase. Those decisions are made by the City Council and I am not aware of any council member proposing such an increase.”
Other city officials confirmed Bartosh’s statement that a tax increase is not currently on the table.
“As far as I know, there is no increase being sought at this time,” Councilman Terence Pratt stated May 12. “I do believe we’ll get some public input before we approve anything.”
“No one on the City Council mentioned raising sales taxes during the budget discussions,” Mayor Diane Joens stated May 13. “Our finance director did not recommend a tax increase. Not a single council member has approached me or mentioned to me any need to raise sales taxes, or requested an agenda item to discuss raising sales taxes …. We have a balanced budget for 2016-17 based on projected revenues, not a projected tax increase.”
In January, however, Rodriguez presented several options for increasing revenue to cover debt expenditures: A property tax, a sales tax increase and a restaurant and bar tax increase. Under a list of possible options to help alleviate financial concerns in the Jan. 12 document, “FY 2017 Budget Series Revenue Update & Fiscal Status,” Rodriguez showed what revenue would be generated with 0.25, 0.50, 0.65 and 1 percent sales tax and restaurant and bar tax increases.
During the same January council meeting, Councilman Jesse Dowling said that half of the money necessary to balance the budget could come through a tax increase and half through cuts to departments.
On May 16, Councilman Timothy Elinski offered his perspective on the news that the city would not seek a sales tax increase, but lamented the cost at which it came.
“I’m pleased to see that Cottonwood leadership has decided to not implement a tax increase to close the budget shortfall, as I believe this would be an unwelcome burden on our community,” Elinski stated. “There were cuts made in the police department and across the board to make this possible.
“However, we can expect to see many departments, such as the library, remain underfunded or understaffed this coming fiscal year.”
