Salem Council makes moves to tighten spending at beginning of ’09

SALEM — City council voted to at least temporarily tighten its belt into the start of 2009.

That included rejecting a small rebate to city sewer customers.

Council voted tonight to switch its income tax revenue split from 75 percent for general operations and 25 percent for capital improvements. The new division will be 85 percent for operations and the rest for capital improvements.

Justin Palmer, the chairman of council’s finance committee, said the shift may last only into the early part of 2009 if the national economy rebounds.

The city is mostly funded with a 1 percent income tax but its revenue has dropped recently.

For the complete story, see Wednesday’s Vindicator and Vindy.com.