A Budgetary framework for the future of the city

We are all reading and digesting Sudane's proposals on the Neualtenburg economy. I intend to chip in my 2 cents at some point, but I'd like to address the specific issue of the city budget.

Right now, we have a survival level monthly budget that looks something like this (all figures in US dollars, and rounded considerably for simplicity):

Income

-- $210 Land fees

Expense

-- $195 Tier to Linden Labs
-- $15 Transaction and exchange fees


I'm ignoring land sales funds and considering only recurring income.


If the city government is going to function-- not expand, but function -- I think the expense side needs to look like this as an absolute minimum. Note that this doesn't address Sudane's very valid ideas like a professional marketing budget.


Proposed expense
-- $195 tier to LL
-- $15 fees
-- $20 web site/election system maintenance and upgrades

Note this has nothing to do with the current difference of opinion. Ulrika is doing these things now , as well as paying hosting for the site. I would also suggest that, as a courtesy and protection against dire circumstance ( What if Ulrika gets hit by a bus, heaven forbid) she grant full website access to the Gildemeister or some member of the government
-- $15 city improvements
--$10 debt retirement/reserve/expansion fund

This would bring our monthly expenditures to $255 . Of course, the current level of recurring revenue won't support this. I'll do the revenue proposals in part 2......

Now. How could we pay for this.

Option 1 - Franchises

The DPU platform proposed city/private partnerships where the city , in exchange for a percentage of revenue, would reduce land fees for commercial interests. I proposed this because the city would then share the risk of the venture and could benefit if an enterprise were wildly successful.

Sudane has come out against sales taxes, which this would certainly be, in her proposals. I believe it's sound, but there's always.....


Option 2- Raise land fees across the board

Assuming an stable occupancy rate of 75 to 80 percent-- equal to what we have now (this seems plausible given the presence of less desireable lots and resident/lot turnover), funding my minimal budget proposed above would require a 22% increase in land fees. I imagine this will go over as well as a Tringo parlor with camping chairs on the Platz My land fee would go up 56 cents a month, which I'd gladly pay. On the other hand, Kendra would be out an additional $9.88 per month and might be a bit less enthusiastic.

The third way

Right now we have two land fee rates, .77 cents per square meter in the city proper and .58 cents per square meter in the valley. This is quite egalitarian, but is it good economics? If the lots off the Platz are the prime commercial space everyone says they are, and we aren't going to charge sales tax; why not expect a significantly higher monthly fee (or land tax, to use Sudane's term) for this choice real estate?

This may be related to Sudane's proposal for reassessment. I'm a little confused as to how reassessment would work, since to do it you need a measure of market value. Since the sales prices of land that residents sell (Dianne Mechanique's Sale to Bond Harrington is just one recent example) are not public information, on what market value will the reassessments be based?

There it is, another proposal. Fire away

Claude, your confusion about how this would work is *totally* valid. I have not been able to formulate the exact process by which one area is assessed at a higher tax rate than another.

The closest I can come up with right now is to analyze the City by regions, and to somehow track the revenue flow by region. Thus, one might have the Platz, the Altenburg section, Talenstrasse South, Talenstrasse North, the NE corner, and Gwynethstrasse. Each might be equipped with vendors which might report on revenue flow non-specifically, aggregating the reports for that section. Then assessments might be based on the section.

The idea is a kludge. We're not there yet. I'd only like to lay a framework for connecting the profitability of the merchants of the City with the revenue stream the City needs for its budgeted expenses.

I wholeheartedly welcome your process here, and your line of reasoning. This is exactly what we need to bring a budget to the RA for approval.

Thank you!


Sudane