Friday, May 19, 2017

City of Dillingham Math Summary Example…



If retailers in Dillingham sell a million gallons of fuel they have to act as Agents of the City of Dillingham and collect a 6% sales tax on the dollar amount of those sales and forward that amount to the City of Dillingham.  This is what the sales tax revenue looks like at several recent past price per gallon levels:




As one can see… just the revenue as related to fuel sales collected by the CoD has been dramatically reduced due to lower consumer prices.  During these uncertain fiscal times, We need to encourage the Dillingham City Council to be extra-diligent in their spending.  As part of that effort, We have to pretty much tell them to stop expanding any currently offered ‘services’ or seeking any more capitol project grant funds.  Alaska is slowly but surely descending into a recession unlike any that We’ve seen before and We have to accept the fact that all government functions will need to ‘tighten their belts’.  This fiscal fact is expected of responsible households and should be the standard for Our Governments as well.