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March 23, 2008 - 8:14PM
Gilbert seeks solution to budget crisis
Comments | RecommendChris Markham, Tribune
Public safety may be the only Gilbert service safe from budget cuts next year. The Gilbert Town Council is set to hold two special meetings, beginning with the first one Thursday, to decide where to cut town services and possibly increase sales taxes to fill an anticipated $58 million budget gap over the next five years.
Town Councilwoman Joan Krueger said the key for town leaders will be to "not overreact" as they look for ways to cut departmental budgets or increase the town's revenue.
"I think it's going to be hard," she said. "I think it's going to be very hard."
No departments are entirely safe from possible cuts, though council members contacted by the Tribune indicated public safety would be a priority.
"I will not sacrifice or jeopardize our safety," Krueger said.
But even the town's police and fire departments have been suggested by town staff.
"Nothing is really off the table, even public safety," Councilman Don Skousen said. "But that would be the last thing for me."
The town council already voted earlier this month to eliminate 21 positions in the town and nine employees have already been laid off.
Also at stake are capital projects such as new parks, parking lots, public safety facilities and equipment that could be delayed several years. Other cuts would come in services, such as public pools and library hours.
And if cuts don't completely fill the gap, a sales tax increase may be in order, officials said.
"I'm not in favor of any tax increase," Skousen said. "But that's the only tax increase I would be interested in discussing if we have to go down that road."
Skousen said a sales tax increase is the only way to spread out the cost over the widest population.
To Krueger, such an increase could be justified if it would not "profoundly and negatively impact residents' lives."
"I don't happen to think a small increase would be a huge burden to residents," she said, pointing out it's been eight years since Gilbert has increased its sales tax rate.
The town's budget problems are the aftermath of a Valleywide housing slump that has drastically cut into development fees collected by the town. The slumping market has also meant a decrease in construction-related sales tax collections.
That drain on taxes, combined with the slower-than-expected development of major retail projects, such as SanTan Village and the Santan Motorplex auto mall, have been blamed for the town's budget woes.
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