Councilwoman Pat Carlisle addressed issues regarding the finance and personnel committee at Shelby City Council meeting earlier this week. Three funds reflected negative balances.
Carlisle explained to council members that the Finance Director expects to have the 2014 budget books completed by the end of February. She said that there were three accounts with balances that displayed concern.
“The Police Pension Fund, the Fire Pension Fund, and the General Fund all have concern. The greatest concern is the General Fund with a negative balance of $44,731. This is a historical low for the General Fund and needs this council’s immediate attention. It is obvious that General Fund revenues and expenditures will need adjusted in 2014,” said Carlisle.
Carlisle shared that the finance and personnel committee discussed two immediate ways to assist the issue. “A five percent across the board 2014 Administration Fee from 18 accounts already instituted at the end of January. Administration Fees transfer funds to the General Fund. This was an increase of $85,952 in January, but the General Fund still ended January with a negative balance,” said Carlisle.
Carlisle also addressed possible legislation that would adjust percentage of transfer from income taxes to the Capital Improvement Fund. “Currently the income tax split is 95 percent to the General Fund and five percent to the Capital Improvements Fund. It was noted in January a decrease of $8,483 transferred into the Capital Improvements Fund. January transfers from income tax to General Fund increased by $5,857,” said Carlisle.
Carlisle also noted that a Committee of the Whole would be necessary to discuss the solutions for the 2014 General Fund. Carlisle sponsored emergency ordinance 4-2014 to the council.
“As a sponsor of this particular piece of legislation, I know why originally I felt it needed to be declared an emergency. Since that point in time, I am not so certain and I will be voting not to suspend the rules and allow this piece of legislation to take its three readings,” said Carlisle.
Councilman Harold Shasky voiced his opinion on the proposed ordinance. “At this time I am not supporting the ordinance as it is written. I feel that any time you impose a tax without our citizens voting on it we are going through the back door on them. I have heard arguments that these citizens living in Shelby and working out of town are not paying for services they receive but I think they do support Shelby through property tax, paying city utilities, and spending money in our community,” said Shasky.
“I also don’t think it is fair that because a portion of our citizens that live here and work out of town will now be double taxed as they will be having taxes come out of their paycheck in the city they work, and if this is passed they will have more tax money come out of their checks going to Shelby. I think this is punishment to them and that they will be paying city taxes twice out of their paycheck and their neighbor who happens to live in our city and work in our city will only pays the city tax out of their paycheck,” said Shasky.
In the proposed ordinance, the tax credit would decrease over the following years. For Shelby residents who live in the city and work out of Shelby would earn a 67 percent tax credit for 2014, 33 percent tax credit for 2015, and zero percent tax credit for 2016.
Council voted to discuss the ordinance further at the budget meeting which will be held on March 7 at 2:30 p.m.
“I also don’t think it is fair that because a portion of our citizens that live here and work out of town will now be double taxed as they will be having taxes come out of their paycheck in the city they work, and if this is passed they will have more tax money come out of their checks going to Shelby,” said Harold Shasky.