So the city of Corpus Christi held a budget forum Thursday. This forum was open to the public and many actually attended. The city council, along with city staff, are discussing how to balance a budget that is facing an 11.5 million dollar shortfall.
As expected, many citizens showed up to the forum to express their opinions about where the budget cuts are coming from. It seems to be that the majority of the budget cuts are coming from the police and fire departments, but also from reducing staff and hours at our senor centers. An estimated 1 million dollars will be cut from the parks department, which includes the care of the senor centers. The police department is estimated to cut approximately 1.4 million dollars from their budget. The fire department is expected to cut somewhere close to 2 million dollars.
Now none of that is new to anyone. These cuts have been talked about and reported on for sometime now.
So lets take a new look a this balancing of the budget problem and how we are attempting to fix it.
So in just over one month in his new position, our city manager Ron Olson, has balanced our budget. This is something that our two previous city managers couldn't do. This is something that our past two city councils couldn't do. But in less then two full months on the job Mr. Olson has accomplished it.
How you ask? Mr. Olson suggests that our city should go with the effective tax rate. With that rate the city will make up approximately 4 million dollars. Another 5.8 million dollars will be cut from city services, predominately from police and fire and the senor centers. There will also be closings of city pools and libraries. Then Mr. Olson would like the city to borrow 2 million dollars from the city's reserve fund to finally balance the budget. And there you have it, just made up 11.5 million dollar shortfall. Yes he did but at what cost? (We will discuss this at a later time).
Now I understand that in order to balance a city budget, there may have to be some cuts made to certain programs. We have already stated here that we disagree with the city manager's decision to cut so much from the public safety sector. Now that Mr. Olson has seemingly been able to do something that our previous city managers and city councils could not, he is looked upon by the current council as "THE ANSWER".
The citizens of Corpus Christi did not pose the question as to where and how many jobs must be cut in order to balance a budget. The citizens of Corpus Christi did not pose the question as to how high we must increase our taxes in order to balance a budget. The citizens of Corpus Christi did not ask how many school, libraries, senor centers to close in order to balance a budget. The citizens of Corpus Christi have been asking for many years for our city leaders to give us development, job opportunities, new businesses, and ways to keep our children here after college. To those questions Mr. Olson has not yet answered.
There are many different ways to balance a budget. One way is to cut spending, lay off hundreds of people, decrease the public safety sector, and to raise taxes. Absolutely, that way is proven to balance a budget, but it is also proven to hurt a cities economical infrastructure.
Here's an idea. How about increasing revenue, not from taxes paid by our citizens, but from new businesses being brought to the area. Where are all of the luxury hotels that a tourist city, like we say we are, located? We have few and far between of them. Drive down our main artery, highway 358 or otherwise known as S.P.I.D., and count how many luxury hotels we have? Now count how many restaurants we have. Hmm tourist city maybe not, fattest city we have been. Head further east on S.P.I.D. , that's right towards our main attraction here in Corpus Christi, the beach. How many resorts do you see? How many luxury hotels are located in the Flour Bluff area, as well as on the island? Few, very few if any.
My point is this, the city is missing out on revenue, generated not by taxing its citizens but by generating business for the city. Cities like San Antonio and Houston have hotel taxes at 16.76 and 17%. The revenue generated from these taxes are in the millions. So many of you are saying we already have a hotel tax and that doesn't help. We do have a hotel tax here in Corpus Christi and it is at 9% right now. One of the problems is that we need more hotels here. More luxury hotel and resorts, not your pay by the hour motels.
Has anyone ever considered they idea of raising the current hotel tax here in Corpus Christi? If we went from 9% to 12% our city revenue would increase by millions without making cuts and without raising taxes. Don't believe me?
The city of New York is considering raising its hotel tax from 5.8% to 6%, which would raise an estimated 30 million dollars of revenue a year. This would also help fund New York tourist attractions, cultural institutions, and save fire companies and teachers jobs. How would this affect the hotel guest? Very little actually. The increase to their overnight tab - A $.60 increase on a 300 dollar per night room.
In 2004 the city of San Diego, Ca. raised its hotel tax from 10.5% to 13%. That would generate an estimated 28.5 million dollars of revenue a year. The city of San Diego used this newly generated revenue to strengthen its public safety sector.
That is why we need Schlitterbahn and other companies that bring with them hotels and resorts. They generate the city millions in revenue and saves the citizens from having their taxes raised or even having their jobs cut.
It may be to late because the "ANSWER" has made up his mind. But maybe not.
Something to think about.
Tell us what you think.
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