Tax increases, new taxes unnecessary
To the editor:
On Feb. 26, an article appeared concerning tax increases or cuts in services. According to Mr. Mason, City Finance director, the city could add the following fees: A public service tax on residents’ gas and electric bills, franchise fees on electric, solid waste and natural gas services, a communications service tax on cable and phone bills, a street lighting district tax, and a fire service assessment.
On Feb. 24, I attended the Cape Coral Civic Association’s meeting in which Mr. Mason sought to explain these new fees/taxes. While I understand the city’s desire to try and stabilize revenue in an economy where property values and assessed values are lower and less taxes will be collected I am convinced that enacting these public service taxes/fees is not the way to go. Individuals will lose the ability to deduct these amounts from their federal income tax returns as they will not be included in the real estate taxes that are currently deductible. These new fees and taxes place a disproportionate hardship upon those that are least able to afford them as little can be done to lower one’s electric bill which is a necessity. The proposed fees/taxes are not based upon the ability to pay the fees/taxes and take a disproportionate share of a poorer individual’s income than that of a wealthier individual. The elderly can not be without air conditioning in the summer time and to tax them on their electric bill which is a necessity is just wrong.
Mr. Mason’s calculations are based upon an average electric bill of $100. No one that I know is fortunate enough to have that low of an electric bill. His calculations are therefore skewed to generate more income than necessary. Mr. Mason states that the proposed public service taxes would replace ad valorem taxes on a dollar-for-dollar basis. When questioned as to whether the city would be willing to accept an amendment limiting the collection of any new public service taxes to the actual revenue that they are currently replacing Mr. Mason said that he would not be willing to recommend this. This would mean that these new proposed fees and taxes would continue to be collected in ever-increasing amounts without action being required by subsequent city councils. It also means that when the real estate market recovers and real estate taxes rebound the city would be faced with an influx of additional revenue above what is needed to operate.
I am convinced that the city of Cape Coral can institute cuts that will not jeopardize fire and police services and that these cuts along with the sale and/or lease of city assets and programs to outside contractors can restore the city to a sound financial condition without tax increases. The city should explore selling the water treatment facilities, waste water and sewer systems or lease them to an outside company. New attempts should be made to lease or sell Sun Splash to an outside company. The Youth Center should be converted to a Boys and Girls Club of America facility and run by the Boys and Girls Club of America. City hall hours should be cut with city hall being closed one morning and one afternoon a week. There should be layoffs in departments and budget cut backs. Instead of taking the road asking for additional revenue the city needs to think out of the box and realize that the citizens of Cape Coral can no longer finance all of the dreams of the city’s administrators and there is a need for them to crawl off the dais and return to the real world. If these things are not done then we will all have to remember this when we go to the polls and elect new city council members this fall.
Robert Robinson
Cape Coral