Pay now … or pay later

Amarillo city commissioners are about to welcome in the new fiscal year (on Thursday) with a tax rate that stays essentially the same.

Homeowners — such as me — will be happy that their city tax rate won’t increase this year. But what about the following year, or the year after that?

The city has been rightfully proud of its low tax rate. But the city was thinking of increasing that rate just a little to pay for more police officers and municipal court staff. Three members of the City Commission at first favored such an increase, which would have paid for seemingly politically popular programs. Who in their right mind in the Panhandle opposes more money for the local criminal justice system? Then they backed off. They don’t want to increase taxes during this down economic time. I get that.

But another government entity once held to the same hold-the-line-no-matter-what view of tax policy. Randall County resisted, and resisted and resisted increasing taxes. Then the bill came due about a decade ago to pay for infrastructure improvements required by the growth in the county. County commissioners raised taxes beyond the 8 percent rollback limit. Taxpayers revolted, called for a rollback election — and won. The tax rate receded, reducing the revenue flow, which forced the county to cut services.

Might the city be facing a similar situation if it keeps the lid on its own tax rate?

The city might be able to pay for additional police and court staff if sales revenue picks up sufficiently. Commissioners no doubt are hoping that the economy picks up steam — in a major hurry.