MOUNT VERNON — The city faces some tough decisions in the next year, as declining revenue meets the need for increasing expenditures.
Mayor Richard Mavis, in a message he also delivered to the Kiwanis Club Monday and will give to Rotary today, described how, since 2010, the city has lost $350,000 in estate tax revenue; along with $800,000 in Local Government Fund money in 2012, 2013 and 2014; and about $127,000 in personal property tax revenue in 2008 and 2009.
At the same time, income tax revenue fell short of expectations in 2016, mostly due to reductions in income taxes paid by businesses.
The police department cost $3,415,452 to operate in 2016 and the Fire Department $5,019,169.31, or a total of $8,434,621.31. But the 1/2 percent income tax passed in 1983 to pay for police and fire brings in only about $3.9 million, or less than half of what is needed.