“The City” your Municipal Corporation

 

“The City” is a community of people living together.  As a resident of this community receiving services and paying taxes you are a shareholder.  In effect, "The City" is a "Municipal Corporation" formed to manage the finances of community government.  The policies and priorities of this Corporation are determined by a Board of Directors, the City Council, your elected community representatives.  The intent of the Corporation is to provide services, and a responsibility of the elected Board is to keep the Corporation financially solvent.

 

Taxes and service fees provide the funds required to provide the essential services which can not economically or practically be provided for on an individual basis (i.e., water & sewer infrastructure, road construction and maintenance, fire protection services, police protection services, and the administration required to hold it all together.)

 

As share holders in the "Municipal Corporation" we have the responsibility of funding the construction and maintenance of community buildings and infrastructure.  We elect officials who we believe will promote our interests, and we entrust them to make decisions which best meet the needs of the whole.  The “Municipal Corporation” is a business entity that belongs to the community.  When the community wants a new library, animal shelter, City Hall, Town Center, etc., the Corporation is charged with figuring out how to make it happen.

 

The “Municipal Corporation” requires a secure financial foundation to qualify for the major funding which is required for development.  To qualify for Federal funds, The “Municipal Corporation” is required to provide “matching” funds which provide a good-faith financial commitment to operate and maintain the project after it is completed.

 

When grant and loan revenue sources are used to construct these projects they do not include funds for the operation and maintenance after they are completed.  The operation and maintenance expenses, which continue far beyond the construction of the facility, are the responsibility of “The City ". 

 

The “Municipal Corporation” is just a management tool which provides a mechanism for collecting the funds required to maintain the infrastructure constructed with the supporting vote of the community.  Keep in mind that the only revenue sources available to the “Municipal Corporation” are taxes and service fees.

 

In addition to the expenses incurred by NEW projects, there remain the expenses resulting from the OLD projects.  Additionally, there are the general “cost of doing business” expenses like insurance, staffing, and equipment.  Just as the cost of maintaining a home is increasing, the costs of maintaining the assets of “The City” are increasing.  Just as your fuel prices, insurance premiums and other bills are going up, so are those of “The City” and those employed by “The City”.

 

When you, shareholders in the community, require additional income to maintain your personal lifestyle, it should not be surprising that the “Municipal Corporation” would also need additional income to maintain services.  When the value of properties increases, property taxes can be kept at the same level and still produce an increased natural revenue stream to assist in paying the raising expenses incurred with increasing costs and a growing infrastructure.  Generally speaking, when the value of property is going up, there tends to also be growth taking place, which in itself adds additional service needs and strain on the infrastructure.

 

To ensure the maintenance of the facilities and programs enjoyed by the community, it is the responsibility of the Council to exercise forward thinking and develop the appropriate revenue streams and reserve funds to meet the needs of “The City” today and long into the future.  The success of the “Municipal Corporation” depends on the trust of shareholders in the ability of the elected management (Council) to adequately plan; collect and invest funds to meet the immediate maintenance requirements; and obtain the ultimate future vision for our community.

 

So, the next time you say or think “The City ought to . . . “, look in the mirror and say "we ought to …… ".

 

The Council will be hosting an open forum in the near future to provide further information on the current financial position of your “Municipal Corporation” and to address questions you may have.

 

GET INFORMED AND GET INVOLVED

IT IS YOUR FUTURE!