Artesia News

City considers ballot measures to meet budget concerns

In the November election, voters will have an opportunity to choose a Transient Occupancy Tax rate increase (hotel bed tax), and a Business License Tax increase (rates and formulas).

The City Council has considered a resolution to continue the current fiscal year 2008-2009 budgets into fiscal year 2009-2010 and authorized expenditures and appropriations related thereto on July 1, 2009.

Artesia is challenged with a compound of factors that affect the ingredients for a balanced budget during 2009-2010. The City is monitoring every expense with even more zeal than ever before. However, as many citizens and business partners know, we cannot continue our current progressive move forward with stagnant and state confiscated and borrowed revenues.

Our capital improvements are currently funded by grants that do not affect the General Fund. It has been a work in progress of the City Council and administrative staff to evaluate and fairly assess revenue enhancement and cost cutting proposals city-wide. During August 2009, the City Council will have met to consider proposals presented and adopt a 2009-2010 fiscal year budget. This budget will set Artesia on a track that responsibly provides for the safety and quality of life the public has endorsed. Furthermore, it will appropriately and fairly estimate the resources needed to continue the city’s method of revenue recovery (fees assessed) and operating expense reductions.

Items for discussion considering increases within the proposed budget for 2009-2010 include the following:

User fees (i.e..planning fees and parks program fees)

Facility User fees (i.e..recreation facility fees for building and field use)

Transient Occupancy Tax rate increase (hotel bed tax) City is currently 6% See November 2009 ballot measure

Business License Tax increase (rates and formulas) See November 2009 ballot measure

Potential decreases:

Personnel, benefits, and operations

Contractual consultants

Please do not hesitate to contact the Finance Department for questions on any of the foregoing. Once the new fiscal year budget is adopted, it will be posted on the City’s website.