Typically when we discuss the budget on this site, we are discussing the Capital Budget. The Capital Budget funds things like roads, infrastructure and bridges. The City money that will be used to construct the Streetcar will come from the Capital Budget.
The Operating Budget is the budget that pays for pools, recreation centers, fire, and police. This money will not be used to construct the streetcar.
The sources of funding for the Operating Budget can be broken down into two main groups—City Taxes and Other Sources. The Other Sources includes money from the state, money from investments, and permits and fees. City Taxes make up a much larger portion of the Operating Budget.
Of the City Taxes, in 2008 the Income Tax represented 89% of the total city tax revenue that goes into the Operating Budget; Property Taxes were only 11%.
Almost 9 out of every 10 city tax dollars that go toward police, fire, health services, recreation centers, and garbage collection come from the City’s Income Tax.
Downtown is only 0.8 square miles, but it has 34% of all the jobs in entire City. These jobs also have the highest wages in the entire City. Uptown has 20% of the City’s jobs.
Downtown and Uptown, the two places the streetcar will link together, represent a huge portion of the Income Tax, which accounts for around 90% of the tax revenue used to fund City Services throughout the rest of the City’s 46 neighborhoods. Investing in the Streetcar will help attract additional investment in Uptown and Downtown, generate new jobs in our City’s economic engines, and increase the Income Tax revenues that are vitally important for funding City Services in our neighborhoods.
Strengthen all 52 Neighborhoods—Build the Streetcar.