Laserfiche WebLink
October 30,2002 <br /> BOO Tax:Taxes on the gross receipts of business income am the <br /> third largest source of City revenues.They are also the mast volatile,with <br /> annual fluctuations measured in the millions of dollars.We anticipate that <br /> BOO taxes will have diminished from a 1999 high of$18 million to a law of <br /> about$11 million next year,end we anticipate that they will remain flat <br /> through at least 2005. <br /> BOO Taxes and Boeing:When we discuss BOO taxes,we cannot <br /> ignore the impact of Boeing and the world's airline markets.Since the <br /> tragic events of September 11,2001,we read and hear every day about <br /> the challenging airline market environment.That affects us all right here at <br /> home.Sales and subsequent deliveries of Boeing aircraft reflect a <br /> dramatic decrease and are forecast to continue a steep decline for two or <br /> three more years.Additionally,the levels of manufacturing employment <br /> continue to decrease in large numbers every month.These factors have <br /> had a severe adverse impact on the economic climate of the City and <br /> corresponding revenue collections. <br /> Other Revenues:To illustrate the relative importance of other <br /> revenues,note that the"big three"—property tax,sales tax,and BOO tax <br /> constitute 65%of the total general govemment Income.We are <br /> pleased to report that all other revenues seem to be holding steady or <br /> growing slightly,with nothing to signify a material change in direction.The <br /> major sources of other income include utility taxes on natural gas, <br /> electricity,telephones,and cable TV. <br /> EXPENSES <br /> General Outlook: In times of revenue limitations,governments <br /> often respond by seeking higher tax rets,fees,and charges In order to <br /> sustain services and programs.With the exception of modest utility <br /> increases,wre proposing no increase in general tax rates or user fees <br /> and charg se Our approach in developing this budget has been to live <br /> within our income constraints and look for expense reductions to bring the <br /> budget back Into balance,just like the residents and businesses of our • <br /> City must do in difficult times. <br /> Keep in mind that many of our expenses are the result of contracts <br /> or interlocal agreements.Annual increases in these areas are contractual • <br /> 359 <br />