Council seeks to cover $45,000 deficit

QUINCY — The Quincy City Council increased utility taxes Tuesday night in an effort to rescue the city's current expense budget from a $45,000 deficit.

Money from the budget funds the Quincy Police Department, the city's parks and road maintenance and repair.

The utility tax on water, electricity, garbage and sewer will change from 4 percent to 5 percent, starting Jan. 1, 2006. The increased rate will sunset on Dec. 31, 2006. The city council will review the increase at the end of the year and decide whether or not to continue with the change the following year, City Administrator Tim Snead said.

The Law Enforcement Officers' and Firefighters' Retirement Plan 1, an old comprehensive retirement plan where the city absorbs nursing home and healthcare costs, continues to be costly and contributed to the budget deficit, Snead said.

"That's had quite a negative impact," he said.

Current employees are not eligible for the retirement plan, but four former employees remain eligible, he said.

Higher insurance costs along with increased wages and benefits for current city employees contributed to the deficit.

On the revenue side, the city lost property tax income after Quincy Foods LLC and Conagra Foods-Lamb Weston saw their property values drop, Snead said.

The city was faced with either cutting expenses or raising taxes.

"We either lay off a police officer or close down a park," Snead said.

The increased utility tax will generate about $45,000, which is exactly what the city needs to balance the budget, he said.

Taxes on both cable TV and telephone service will remain at 6 percent, he said, and the tax on natural gas will stay at 4 percent.

In addition to the utility tax increase, the council passed an increase for curbside garbage pickup during Tuesday night's meeting. The refuse rate will now be increased by 5 percent to cover higher fees being charged by the county, Snead said.

Homeowners using a 60-gallon refuse container will see their rates rise from about $7.75 to $8.15 per month, he said.