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Clinton City FY13 Budget Unbalanced; Utility Tax increase Proposed

The Clinton City Council has put the Fiscal Year 2013 Budget on File to be approved at their next meeting.

The budget for FY 13 is not a balanced budget, and Clinton Mayor Carolyn Peters notes the past three budgets the City has had have not been balanced budgets, and they have been forced to dip into their savings. Mayor Peters says this current year's budget does not have quite the deficit they were expecting thanks to a payment from Ameren because of a new agreement with them.

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The City has been dipping into their reserves dwindling those funds each year little by little. According to Clinton Treasurer, Clint Lichtenwalter, the City has tried to maintain a reserve of six to twelve months cash on hand for emergency cases. Mayor Peters explains the current year's budget proposal has the City dipping into those funds so much so that it will take their reserves to about seven months worth of cash reserves.

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Over the past several years, Clinton City officials have worked to find ways to cut costs and increase revenues to help balance the budget. The City has reduced staff significantly and increased costs in other areas , such as water rates and other rates and fees. Mayor Peters says some costs or fees have not been increased since 2001. Some of those are going to be considered at the next meeting.

One area the City will look towards to increase revenues will be utilities. Mayor Peters says a utility tax increase will be implemented because the City is quite limited in where they increase taxes. Because so many taxes have limitations, the utility tax increase appeared to be the best option.

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Sales tax is another revenue source for the City, however, Mayor Peters notes that tax is inconsistent because of variables that effect the City's sales.

 Electricity costs are a per usage rate and gas is five-percent of gross receipts. One thing the Council is also considering is a senior citizen tax rebate. Mayor Peters says the estimated revenue from the tax increase would be around a half-million dollars.

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