The City of South Bend has dropped the proposed Utility Rate Excise Tax to 2% amounting to roughly $4 per month according to South Bend City Treasurer Dee Roberts. The new rate would extend to 3 years instead of the 5% for 2 years.
The previous tax proposal would have raised the Utility Rate Excise Tax 5% for 2 years costing a household approximately $120 per year.
Currently, the city is operating in the red which means there isn't enough revenue to cover the city's expenses. Without a tax the city runs the risk of losing precious services that are covered by the current budget such as the Police Department, Fire Department, Parks Department, Street Department, and most importantly employees.
Residents began contacting the mayor and council after learning of the proposal to express their opposition with many calling for the city to contract services out. Several council members became weary of the increase after hearing residents comments.
When asked if the city has looked into contracting any services out Roberts commented, "The city has numerous times and I hope that it never comes to that. But, it may take something drastic like that for citizens to see how vital those services are to our community. We've already made some cuts and it'll be some time before we know how much that will help. I am not sure 2% will really work, but at this point we'll let it ride."
Councilwoman Jan Davis is still weary of the proposed tax even though the percentage has went down. "Well, it's better, but I can't say I'm happy," she stated. "I think we need to meet with the department heads and see where we could make some cuts."
The first reading of the ordinance is scheduled for the July 9 South Bend City Council Meeting at 5:30 p.m.