Published: February 04, 2009 07:15 am      

Dobbs concerned about tax rift

Taking occupational tax from county could effect Ferguson

Ferguson Mayor Allen Dobbs is concerned about the possible effects for his city if occupational tax money is taken from Pulaski County.

Pulaski County currently collects the tax. But Somerset Mayor Eddie Girdler has said that if need be he would look into the option of enacting Somerset’s own occupational tax, which would take much of the county’s occupational tax money away from the county.

Along with some of the occupational tax money going into the county’s general fund, the county distributes the money and it is used for the jail fund, ambulance service, 911 dispatch, the county road fund, industrial development and the five cities located within the county all receive some of the money.

The money distributed between the five cities is 30 percent of the occupational tax and it is distributed on a per capital basis.

Dobbs said Ferguson would be devastated should the county lose that money.

“If the occupational tax is pulled (by Somerset) it would affect our fiscal year budget tremendously,” Dobbs told the council at Monday night’s city council meeting.

“Ferguson would definitely be effected badly,” he added.

Dobbs told the council that they need to be thinking of any other methods to generate revenue other than “taxing people to death.” Dobbs also asked City Attorney Heidi Powers to look into the situation.

Following the meeting, Dobbs said, the occupational tax money they receive goes for daily operations of the city, not extra items the city might want to add.

The City of Ferguson received $79,902.32 from the 2007-2008 occupational tax.

While this year’s budget is much larger because of the $1 million scattered housing grant the city received, Dobbs said the city budget would have been $174,900 for the fiscal year and if the occupational tax money was taken away that would be almost 40 percent of their normal year’s budget.

“We don’t have the alcohol tax or a lot of businesses to depend upon (for money),” said Dobbs, referring to the cities of Burnside and Somerset.

And though the city does have some money saved in an account, Dobbs said, if the City of Ferguson lost 40 percent of its budget that money would have to be used for daily expenses and soon the city wouldn’t have that money to help operate the city.

“My biggest concern is that Ferguson depends on it,” added Dobbs.