The Journal Star reported Thursday that Second District Councilwoman Barbara Van Auken has an alternative plan to a property tax increase:
Another option for raising revenue comes from Van Auken, who wants to replace the $6-a-month garbage fee with both a 5 percent utility tax and 5 percent franchise fee on water bills.
“My goal in this budget is to get adequate police and fire protection for the 2nd District and to replace the garbage tax with a source that is more fair and equitable,” Van Auken said. “I want to see where my colleagues are on it. The mayor and I have discussed it, and he has spoken favorably of the idea because it spreads the cost throughout the community – not just the residents who pay the garbage tax and not just the residential and commercial, as it is with the property tax.”
I appreciate “outside-the-box” thinking as much as the next guy, but honestly, I can’t think of a worse time to suggest this revenue-raising idea. Surely Van Auken is aware that electricity rates are going up 55% in January. Is proposing the city tack on another 5% a good idea right now?
I’m going to guess that the logic behind this is that, since it would apply to not-for-profits, businesses, and residents, the cost would be spread out more and thus, coupled with the 5% franchise fee on water bills, this whole plan would be cheaper for residents than the current $6 per month garbage fee. Maybe, but I’m not buying it until I see the numbers — with and without not-for-profits included.
Why without not-for-profits? Because we all know the chances of a tax on not-for-profits passing are about 10,000 to 1. Every health-care provider, every church, every fine arts organization, every college and university, and every charity — to name just a few of the institutions affected — will be out in force to put the kibosh on that idea. Of course, there will be exceptions, but I predict if this idea starts being pushed, the push-back will be enormous and the city will back down.
I’ve e-mailed Ms. Van Auken asking for clarification on her plan; when she writes back, I’ll post her response as a follow-up to this post.