HAVERHILL — Next week brings the new year and a new City Council with three new councilors.
And for Mayor James Fiorentini, a new chance push through local meals and hotel taxes that he says are needed to prevent layoffs and public service cuts in what is shaping up to be another tough financial year for the cash-strapped city.
In a letter to councilors outlining his priorities for 2010, Fiorentini said the meals tax would generate $400,000 and must be considered. Adopting a local tax on hotel stays, which was defeated by the council several months ago, would raise another $40,000, he said.
"I have outspokenly advocated that we adopt the local option meals tax in order to preserve jobs and preserve vital services," reads the mayor's letter to councilors.
In an interview, Fiorentini said he intends to contact each councilor individually to gauge their positions on the tax initiatives.
"I'll move on it as soon as I think I have the votes," he said of the meals tax.
Last summer, the state Legislature passed a municipal relief package that gives cities and towns the option of adding a new local meals tax of .75 percent and increasing the local hotel tax from 4 percent to 6 percent. In cities, the mayor and city council must agree to adopt the new taxes.
This year's state budget has already raised the state sales tax from 5 to 6.25 percent on restaurant bills. An additional .75 local meals tax would bring that to 7 percent. In nearby New Hampshire, the meals tax is 9 percent.
Fiorentini said he will propose the new taxes within his overall spending plan for the new fiscal year that begins July 1. He said he will schedule a special meeting with councilors to update them on city finances after Gov. Deval Patrick unveils his preliminary state budget proposal, called House I, late next month.
"At best we're looking at level funding, with the very real possibility our state aid is going to be cut again," Fiorentini said of the governor's budget proposal.
In August, the City Council defeated Fiorentini's hotel tax proposal 6 to 3. At the same August meeting, councilors also indicated their opposition to the meals tax.
This week, Fiorentini said he is hopeful the new councilors will view the meals and hotel tax proposals more favorably, especially given the lingering poor economy and the city's financial plight.
The three new councilors are Sven Amirian, Michael Young and Colin LePage. At least two are open to considering the meals tax.
"It's not off the table, but I need to be convinced there's nowhere else to go" for more revenue, Amirian said. "I'd prefer (the meals tax) over cuts to public safety or teachers."
LePage said he is undecided, but also willing to listen to Fiorentini's argument. Young could not be reached.
City Council President Michael Hart supported the hotel tax increase last summer. "I supported the hotel tax because I don't see it having an impact on residents," Hart said. "It would be paid by visitors."
Hart said he is undecided on the meals tax.
"There's no way to predict how the new council might view (the meals tax) until we get a sense of the new councilors and the budget picture," Hart said. "But if people are going to vote for new taxes and fees, they need to be absolutely convinced that he's (the mayor) done everything else."
Fiorentini acknowledged most restaurant owners oppose the meals tax increase.
"I've told the restaurant owners that if I have to cut DPW who keep streets clean and cops who police the area, that's going to hurt business and downtown's restaurant row a lot more than adding 75 cents to a $100 meal," the mayor said.
After losing the August vote for the hotel tax, Fiorentini fired back at councilors.
"I hear your voices loud and clear," Fiorentini told councilor after they defeated the proposal. "Don't raise taxes. Don't lay off cops. Don't eliminate the conservation officer. Don't close the Bradford fire station. Keep the library open full time. Keep teachers. Don't use our reserves and hurt our bond rating.
"But I don't perform magic," he said. "The money has to come from somewhere."
If the council passes a local meals or hotel tax, it would have to keep it for at least a year, the mayor said.
"The City Council always has the authority at the end of that year to revoke anything that is adopted," Fiorentini said. "I just want councilors to withhold making any definitive comments about the meals tax until they see the full budget picture and what kinds of cuts, layoffs, service reductions we might be looking at."
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