Council discusses ways to raise revenue

Published 7:23 pm Wednesday, December 7, 2016

The Selma City Council held a work session Tuesday to discuss ways to increase the city’s revenue.

While no decisions were made, several ideas were discussed as the city looks for a way to fund public safety and other parts of government.

“The whole gist of this meeting is how can we generate additional revenue streams,” said Council President Corey Bowie.

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The city’s police and fire departments were given a 10 percent raise in October. That cost, approximately $530,000, was paid for this year by the one-time savings from refinancing 2011 bonds.

City Treasurer Ronita Wade has told the council multiple times that additional revenue will be needed to shore up this year’s budget and especially next year’s.

The council discussed increasing sales or property taxes.

“Right now, we are in a place of urgency. I keep recommending sales tax because we get immediate results,” Wade said.

However, there wasn’t much will to increase sales tax as a one-cent increase would give Selma the highest sales tax in the state at 11 percent.

Bowie said a sales tax increase would “have a catastrophic effect on small businesses.”

Councilwoman Angela Benjamin said she couldn’t support a sales tax increase and asked anyone who would to raise their hand. No hands went up.

The city also discussed increasing property taxes. Any increase there would have to be approved by a vote of the people.

“I’m against dipping into the hands of the poor man and when you talk about sales tax. That’s what you are doing,” said Councilman Johnny Leashore.

Wade said she favors a sales tax increase because the council can pass that, and it would have an immediate impact. However, she said she would research property taxes.

The council also discussed taxes on alcohol and cigarettes, business licenses, hotel lodging taxes, vendor fees, city building fees and more.

Bowie said more than $16,000 in city building fees were waived last year.

“That may not sound like that much, but when you are in a tight budget, you need to make every penny count,” Bowie said.

Bowie said once decisions are made, the public needs to be shown why the money is needed and how it will be spent.

“Let the people know we are in need of additional funding and also display what it’s going to be for. We need to engage citizens and get input from them,” Bowie said.

Councilman Carl Bowline said citizens may question how their tax money is being used currently. He said it might be a hard sell to people who don’t feel safe outside their own home at night.

“You want more money from me for what? We really need to think carefully how we proceed with this,” Bowline said.