Pursuing Non-Tax Revenue Enhancement Opportunities

Newton is heavily reliant on property tax revenue to pay for local services. Under Proposition 2 1/2, property tax revenue increases are limited to 2.5 percent plus new development growth. In Newton, this has amounted to total property tax revenue increases of 3-3.5 percent annually. With many costs rising at faster rates, services have been cut. Other communities, when faced with similar budget constraints have sought out creative new non-tax sources of revenue. Newton is well-positioned to pursue many of these revenue-enhancement strategies that have met with success in other communities.

We propose the following initiatives to generate new revenue to support our local services:

1) Developing a Payment-In-Lieu-of-Taxes (PILOT) Program;

2) Pursuing available grant funds;

3) Creating opportunities for private support for municipal projects, using naming rights and other incentives;

4) Using impact fees to allow flexible development options;

5) Forming a municipal power company; and

6) Developing and implementing a sustainable growth strategy