Nevada County Picayune and Gurdon Times Newspaper Archive

Gurdon's Taxes A Necessary Evil

Taxes.

We all have to pay them, and nobody likes them.

But, where does the money go when we pay taxes? How is it used?

Taxes are actually the ways cities, counties, states and the federal government are able to operate and provide services to the public.

Gurdon has a 1.5 percent sales tax. The half-cent goes to pay off a bond for the city's street and fire departments, while the full cent is used to operate them.

And, with the exception of $30,000 annually, none of these funds go to the city's general operating fund.

Several years ago, with the city having problems operating, the people voted to allow this money to be transferred as a quick fix to its fiscal problems.

Nothing was done at the time to increase the tax base for Gurdon, nor have the people done anything yet to increase the city's tax base.

In February, according to City Recorder/Treasurer Tambra Smith, Gurdon received $11,756.30 from its one-cent sales tax, and $5,927.62 from the half-cent tax.

While the street and fire department also get other funding, the city relies primarily on money from franchise taxes -- paid by utility companies like Entergy, Arkla, Southwestern Bell Telephone and TCA Cable. The Street Department gets additional money from state turnback funds, while the fire department gets Act 833 monies, along with funding from the state's insurance companies.

In 1996, Smith said, Gurdon received $97,000 in franchise fees. And, while the city's budget had $300,000 in its general fund, $200,000 went for salaries for the Gurdon Police Department.

She said three departments operate from the city's general fund: the GPD, administration and Parks and Recreation.

The city also receives money from a 5 mill tax and state turnback funds. Last year, Gurdon got about $40,000 from the property tax and $46,000 in turnback money.

Looking at the departments operated out of the general fund, Smith said $74,000 was spent in 1996, with $23,000 going for salaries. This pays the mayor, recorder/treasurer, city council and a maintenance man. The remainder went for maintenance and operation of the building.

Smith said $5,600 was spent from the administration budget for property insurance, with another $5,600 going for legal fees.

A total of $1,200 was spent by the Parks Department for '96, she said. This is because the street department employees provided the labor for many projects at the park.

In discussing the Street Department, Smith said, it received $93,000 in turnback money and $6,000 from property tax. But, she added, the department spent $23,000 for street lights in the city.

The Gurdon Fire Department got $3,000 in turnback money, with another $4,500 for fighting fires outside the city limits.

The GFD also paid out $44,000 for salaries and insurance during 1996 for the firemen, with another $3,500 going for vehicle insurance. Utilities cost the GFD $2,500.

Gurdon's Solid Waste Department receives money from the charge on the water/sewer bill for garbage pickup. In '96, the department collected $78,000, but spent $79,000.

Its budget pays the garbage collectors, the Gurdon Water and Sewer Department for billing and collecting and the City of Arkadelphia for dumping the refuse.

With the half-cent tax, which is for capital improvement, Smith said the Street Department spent $4,000 for new equipment, while the GFD spent $9,300 for new hand-held radios.

The GPD does have a special account, City Fines 2, which is collected from motorists caught driving with no liability insurance.

This, Smith said, is how the department was able to buy its last new car and other supplies. In 1996, this account amounted to $6,000, but the GPD spent $8,800 for supplies.

"We need more money for the GPD," Smith said. "People are talking about animal control, but there's no money to operate one."

A city can only increase its tax base with more people or businesses moving within its corporate limits. Cities receive no tax moneys when people or businesses locate outside the city limits.

Because of budget problems, the city council asked the GPD to trim its budget earlier this year.

The result was a part-time officer being laid off.

And, when the subject of animal control was brought up by the council, it was quickly pointed out the city simply can't afford to hire an animal control officer, along with feeding and housing animals picked up.