Question

CASE

You are the city manager of Yorkville City. Yorkville City has a council-manager form of government with the city manager implementing the policies/programs established by the elected city council. In Yorkville City, the city manager is appointed by the city council which consists of seven members elected to two year terms. In Yorkville City, city managers serve two year contracts and have to be reappointed by the city council to successive contracts.

In the last year, Yorkville City ran a budget deficit of $650,000. To close that deficit, the City Council recently passed a proposal that would implement a new 1% income tax on city residents. This new tax would generate over $1 million dollars in new revenue each year. However, according to the City’s charter, the residents of the city have to vote on any new tax increase. Consequently, the council’s new tax proposal will be voted upon by city residents in the next election.

To help solicit support for this new tax proposal, the city council asks you to go door-to-door around the city to advocate for the tax increase. You are to hand out flyers that support the tax increase.

As city manager, do you agree to advocate for the tax increase? Why or why not

Answer 1

As a city manager, I do advocate for the tax increase because in the last year, Yorkville City ran a budget deficit of $650,000. There is no other way to compensate for this budget deficit than by raising it through tax increase of 1%. This will ensure financial stability being maintained in city operations and cash flow being generated as well. If the city residents also do not have any issues with the tax increase, then it is not a bad move to recover the budget decifit and also generate surplus amount.