Given the city of Aberdeen’s financial problems — it’s about $3 million in debt — city staff and city councilors are trying to come up with ways to save the city money, or potentially add funding to bridge that large gap.

One way is raising a cable television services and utility tax. The tax is specifically for water, stormwater and sewer. The tax would bring in an estimated $968,300 to the general fund, according to city documents.

Stan Sidor, Aberdeen’s Finance Committee chair, gave the first reading for an ordinance that would approve such a raise.

“An ordinance amending sections of (Aberdeen Municipal Code) 3.76 to increase the tax on cable television services by 1.5% and utility tax by 5%, effective Jan. 1, 2025,” Sidor said. “I move we approve the first read of this ordinance.”

The current rate is 4.5% for water, stormwater and sewer.

“We’re going to increase it to 9.5%, so it is technically, actually it’s just over doubling it,” Sidor said.

Sidor explained why he thinks it’s needed. The base fee increase would be approximately $6.

“I know they’re not something that everyone jumps up and down for joy for,” Sidor said. “We have considered some other (taxes) earlier this year. The (emergency medical services) did not get approved. I know some other council members have suggested maybe we consider and look at the 5% utility tax rate increase, maybe doing it over a couple years, Maybe 2.5% to 3% the first year, then maybe 2.5% the second year.”

But, there’s an issue with that.

“While I was initially open to the idea and thinking about it, I realized input that was provided from the finance staff and the city administrator was the tax is actually going to bring in close to $1 million to the city,” Sidor said. “That would go so far in dealing with the deficit that we’ve been dealing with. And again it seems like every time we have been trying to consider moving forward with any kind of a tax increase, it always gets kicked down the road. We can’t keep kicking things down the road. The costs every year just keep going up. As we get into the budget and deal into that more, I think you’re gonna see that it may be painful for some citizens. Maybe we can work out a program where if they’re low-income or other means tested we could help them in some way. But otherwise it’s just a fact of life. We’re just going to have to bite the bullet and deal with it.”

Aberdeen City Councilor Kacey Ann Morrison isn’t for it. She wasn’t for it when it was brought up as an idea earlier this year, either.

“It’s just the nature of the way the world is right now, people cannot absorb this, they just can’t,” Morrison said. “So I’m going to vote no. I know this is going to go through and I know the reasoning why. But I do hope that, speaking to Stan’s point, that we can look into some kind of program to mitigate the cost for those that are really low-income and just can’t absorb this.”

Deb Hodgkin, Aberdeen City Councilor, raised a point about people on fixed incomes.

“I’m also concerned because people’s social security has not gone up …” Hodgkin said before referring to the consumer prices that have raised through the years. “So I am really concerned for elderly people. They get very cold. And so that concerns me.”

Hodgkin said she’d like to discuss the ordinance with Coastal Community Action Program and some other local organizations to see about help for people who can’t afford that.

“There are a lot of low-income people here,” Hodgkin said.

David Gakin, Aberdeen City Councilor, asked if the 5% tax could be for new customers, and then use a “tier” system for existing customers. Sidor said that probably wouldn’t make “much of an impact.”

“I don’t know how many new customers we get on an average monthly basis,” Sidor said.

Ruth Clemens, Aberdeen’s City Administrator also weighed in.

“I think also from an accounting perspective that would be tough to track as opposed to a blanketed (rate),” Clemens said. “I think we also provided in the last time Tara (Dunford) had presented, for your base fees for water, sewer and stormwater, for base fees it was about a $6 increase.”

The vote passed 6-4 with Aberdeen City Councilors David Lawrence, Melvin Taylor, Gakin and Morrison voting no.

Contact Reporter Matthew N. Wells at matthew.wells@thedailyworld.com.