The increase in sales tax, even with a lower property tax rate, is expected to generate an additional $967,000 for the city. While that certainly gives the city some financial breathing room, it does not give the city permission to spend willy-nilly. As city officials explained, the increase is needed to pay for such things as rising fuel costs, increased workers' compensation costs and higher contributions to the Public Employees Retirement System. None of those are glitzy items; they're just part of the cost of doing business as a city.
Since voters agreed to the higher sales tax, one of the first things city officials should do is lift the hiring freeze that's been in place as a cost-savings measure. It's hard to run a city efficiently when employees are frustrated, tired and burned out. Let's not let that happen.
The best thing about increasing the sales tax rate and decreasing the property tax rate is that it spreads the cost of running the city to more users. It's not just the folks who live within the city limits who benefit from such things as well-maintained roads, well-funded and well-trained public safety departments, and programs run by such beloved organizations as the Pratt Museum and Community School. Anyone who works, visits or plays in Homer enjoys the benefits the city provides, and it's fair they should help pay for them.
This week's special election and its results provide proof that Homer residents want to maintain their quality of life and are willing to pay more for the services to which they have become accustomed. Credit for this week's "yes" vote goes to city officials who clearly explained if an increase in the sales tax rate was not approved, then city residents could expect a loss of services.
Voters got the message.
City officials now need to be frugal with the increased revenue they will receive from the higher sales tax, and if the situation changes to the extent that the increase is not needed they should move to lower taxes appropriately.
It's ironic that Homer's economy can be healthy and growing, while the city's finances are bleak. But revenue that the city had come to depend on from the state has been eliminated and not replaced with new sources of revenue.
We applaud voters' foresight by approving the sales tax rate increase. As has been said numerous times before, no one likes taxes or more taxes, but a decrease in the community's quality of life — which residents have worked hard over the years to achieve — would be a far more painful price to pay.
Hats off to all those who took the time to vote — and to vote "yes." The vote shows that residents realize they are responsible for the quality of life in the place they call home.
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