Note: Hales claims the tax numbers are from May. Not all these taxes are. This year the City notes on the report how many months are reflected. Last year they didn’t. See the original document at the link below for more information.
By: Diane Benjamin
From the August 10, 2015 City Council meeting – Watch at 1:55:22
City Manager David Hales proclaimed Sales Tax receipts for MAY-JUNE are up 2.4% over last year. Is that the truth?
I understand that I LIKE numbers, but not everybody does. I’m going to attempt to make this easy to understand. This year’s numbers come from the July 2015 City Manger’s report: http://www.cityblm.org/Modules/ShowDocument.aspx?documentid=9060 Page 40. Last year’s numbers come from the July 2014 City Manger’s report: http://www.cityblm.org/Modules/ShowDocument.aspx?documentid=7306 Page 39.
Before I show you the actual receipts as reported by David Hales in HIS City Manager’s report, I found something much more interesting. Remember how Tari proclaims Bloomington is growing? He claims 1000 people a year move here. Tari and others on the Council also claimed somewhere between 20,000 and 80,000 (the number kept changing) tourists were going to visit the new Route 66 Visitors Center in downtown Bloomington.
If tourists are falling from the sky and Bloomington has a vibrant economy, why are tax receipts for this year projected to be LOWER than last year? Even with the new taxes passed last year, Projected Tax Receipts are DOWN. The increased Utility Tax last year wipes out the minimal increase.
Why is projected Food & Beverage plus Hotel & Motel Tax projections down? All those tourists were expected to not spend money here?
Now the actual receipts, this fiscal year is starting off with almost with $1 Million deficit when compared to last year!
I already know what the City response will be: Taxes are received at different times. David Hales proclaimed on August 10th Sales Tax was up 2.4% over last year. His July report was just posted. Where’s the 2.4% David? Maybe it will appear on the next City Managers report, I will be watching!
The new taxes passed last year are close to filling the decrease in other taxes. The City admitted that tax receipts are going down when they complied the projections. When were they planning on telling citizens?
Instead, the City is planning on raising more taxes!
Renner’s Budget Task Force cutting anything?
(stop laughing now)
Tax receipts will continue to decrease as people have less money to spend AND people move out of Bloomington!
Based on his skewed figures, he pushed through (in the Consent Agenda of August 24) a budget amendment to increase expenses by $188,00. More additions to the structural deficit!
I am curious as per the information used to project 2016, particularly the building permits expected to more than double while auto rental goes in the opposite direction at less than half. As the sales taxes are predicted to be half, then I cannot help but think that Hales has pulled these numbers from a rear cavity. Maybe the communications director will clear this up for us. Nora?
We already buy almost everything online. Since I have 3 (soon to be 4) kids, we go out to eat and buy new clothes pretty much never (yeah for garage sales). So a sales tax increase won’t hit us too much. Contrast that with low income who buy everything in the city. They will be hit hard.
Over 16% of the population of Bloomington is living in poverty — more than 5 times the number of people surveyed for the new comprehensive plan which cost the City $65K. Sadly, the working poor’s “food desert” is in their own home. You won’t find that information in the City’s Economic Development brochures or the City Manager’s Monthly report.