Local News

Clinton City Council Shoots Down Utility Tax Increase

The Clinton City Council faced a loaded agenda Monday evening, including the city's Fiscal Year 2013 budget.

There are many aspects to the FY13 budget needing approval Monday evening, and the proposed utility tax increase garnered the most discussion and debate Monday. The city faces dipping into their reserves below a six to twelve month threshold they have tried to maintain. Clinton City Treasurer Clint Lichtenwalter explains the amended budget brought before the Council Monday dips into the reserves by over $280-thousand.

[audio:fy13budget1.mp3] [/audio]

Clinton Mayor Carolyn Peters says when a family at home cannot or struggles to make ends meet, they are forced to find another job. She says with the city, they need to find ways to bring in extra revenue. And City officials felt a utility tax increase was the best option to bring that in.

[audio:fy13budget2.mp3] [/audio]

Commissioner of Accounts and Finances Tom Edumonds does not like the fact the utility tax will be assessed to a basic necessity. He feels the tax is going to effect the low income population too much.

[audio:fy13budget3.mp3] [/audio]

Commissioner Edmunds feels there are enough increases in other areas being implemented. It was recently announced water rates in Clinton will be increasing. Residents will soon see an increase in property taxes to subsidize an ambulance service in DeWitt County. Commissioner Edmunds says those factors on top of the City not being in any financial danger of defaulting on bills or running out of money is reason enough to hold off on the tax increase.

[audio:fy13budget4.mp3] [/audio]

Mayor Peters feels the utility tax would benefit the city in a couple ways. She first points out low income families in many cases are being supported in their electric bill by the city. And second, a utility tax would effect those who rent in Clinton.

[audio:fy13budget5.mp3] [/audio]

Commissioner Nan Crang wants to be optimistic when it comes to the financial future of the city. She points to the Magill Home on the square as an area of town improving. She is hopeful with the everyday work and improvement of the area they can have a developer in there by next year and that may bring some added revenue to the Clinton budget.

[audio:fy13budget6.mp3] [/audio]

The utility tax measure failed by a vote of 4-1, with Mayor Peters being the only yes vote.

In other business from Monday's City Council meeting:

> The Council approved the pre-application for a $1.5-million dollar USDA Rural Development loan.

> The Council put on file a revised parking ordinance.

> The Council approved the Motor Fuel Tax projects for this summer.

Townhall Top of the Hour News

Local Weather - Sponsored By:

CLINTON WEATHER

Local News

DeWittDN on Facebook