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Wellington commiserates over budget shortfall

By MICHAEL OVERSON
Sun Advocate reporter

The Wellington City council met on Jan. 22 to discuss the city's budget shortfall.

Ken Powell the city recorder presented to the council the expected shortfalls this year. Based upon 2008's numbers the city is expecting to lose almost half of their sales tax revenue.

This decrease in revenues is due to Senate Bill 223 which was passed during the 2007 general session of the state legislature. The legislation exempted companies from paying sales tax on certain mining equipment. At least one major mining equipment company is within Wellingtons tax boundaries. These taxes were a big part of Wellington's basic operating budget.

General sales tax and highway sales tax are intricately related. The highway allotment is a quarter percent of the general sales tax amount according to Ken Powell.

It is expected that the city will be $129,000 short this year. That averages out to around $10,000 a month.

After that discussion the council went into a closed executive session to talk about individual city personnel with relation to the budget and budget shortfalls.




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