The Newton Board of Aldermen are looking to find new ways to raise revenue to replace money lost by declining sales tax.
While the city’s budget, which was introduced last week at a recessed board meeting projected an increase in overall revenue from $3.2 million to just under $3.3 million, Mayor Murray Weems delivered a report showing city sales tax collections for 2018 are trending about $26,000 less than 2017 starting with Jan. 1 over the same months.
“We have to look at ways to raise revenue, or we’re going to have to cut city services,” Weems said.
One of Weems’ suggestions was to increase city fees on its monthly utility bills. He suggested adding a couple of dollars to the bills every month to offset the loss of sales tax revenue.
“Putting it on the water bills is a fairer way to do it because we have such a high percentage of renters in the city,” Weems said. “If we try to raise taxes, only the landowners are paying for city services and not everyone.”
Aldermen Michael Hillie and Eric McCalphia and Alderwoman Linda Wash didn’t express support for higher fees due to the fact that the city already raised water rates this year. They expressed support for trying to add liquor sales. Since the city’s population falls under the state required 5,000 to have a local option election, the city would have to get legislation passed to create a resort area in town that could sell alcohol.
“Alcohol sales make sense,” Hillie said. “We’re already losing that revenue to Meridian, so let’s try to keep that money here. And that will help lead to attracting hotels and restaurants.”
Alderman Bob Bridges said he would rather increase fees before the expansion of alcohol sales.
“I’d support raising fees to keep alcohol out of Newton,” Bridges said.
One other avenue discussed including its plans for annexation, but Weems said the city would have to spend money up front, and it could take up to a few years for those revenue gains to be seen.
No action was taken on any of the options at the meeting on Aug. 28, but Weems encouraged the Aldermen to consider ways to increase revenue before it becomes a larger problem than it is, as several major expenses loom, such as the purchase of a new fire truck in two years and necessary equipment upgrades for the city’s emergency services.
