Butler officials must build upon first steps targeted at fiscal crisis
Last week's Butler City Council actions aimed at addressing the municipality's financial crisis are a positive step. However, there must be many more substantive decisions regarding city operations and the pursuit of additional money, if the financial rescue is to be successful.
The council was right in reducing tax abatements, effective Jan. 1, for new businesses that move into the city, despite the fact that the change makes the tax abatements less attractive from new businesses' perspective. Regardless, the abatements will remain a bargain. During the first year, new businesses will be required to pay only 50 percent of the amount of taxes that normally would be due, while in the second year that percentage will increase to 75.
The council is reasonable in its plan to ask businesses that already have received abatements under the current abatement schedule to make a contribution to the city in lieu of taxes. Those businesses, like others that pay their full tax load, benefit from the full range of city services.
Likewise, the city should actively seek contributions from churches and other tax-exempts and publicly acknowledge all that come forward with help. If every person working in the city - resident and non-resident - gave just a paltry $5 toward city deficit reduction via money-raising campaigns within their respective companies, they could make a meaningful dent in the city's money woes.
Meanwhile, the action reducing city officials' salaries by 50 percent, effective Jan. 1, 2006, makes a statement about the necessity for all city workers to join in helping their municipality avoid bankruptcy and state fiscally distressed status. Councilman James Kraus was right in pointing out that the pay action was to a degree symbolic because of the amount of money involved, but the city is in need of every dollar it can get, so savings big and small will be helpful.
Councilman Joseph Bratkovich announced he would donate half of his current $5,000 councilman's salary for the remainder of his term. His decision is commendable.
The council's actions last week toward ending the budget crisis give cause for hope. At this juncture, no one can predict exactly where the city will stand financially at the close of business on Dec. 31. There have been estimates that the city could be saddled with a deficit of $140,000 to $320,000.
Those estimates will be high if the newly initiated money-raising efforts are successful. Coming weeks will show whether that "if" is attainable, or whether it will be rejected because of failure or unwillingness to understand the full scope of the city's plight.
- J.R.K.
