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Small towns warn distribution changes could 'crush' municipal budgets; EDIT payments flagged
Summary
Officials from small towns including Selma told the task force that modest LIT reductions would substantially harm operations. Participants noted an existing EDIT distribution that provides $50,000 annually to each small municipality and urged the task force to account for those funds and other local obligations.
Representatives from small towns cautioned that redistribution under the new LIT system could sharply reduce revenues for small municipalities whose budgets are already tight.
"Any reduction in what we get, it's going to crush the town of Selma," a Selma official said, describing part‑time staffing and limited revenue capacity. Participants discussed that the county's current EDIT plan provides $50,000 once a year to each of six small towns (a $300,000 total distribution) and asked whether those distributions will continue under the new structure because control of EDIT funds is likely to shift when LIT categories change.
Consultants and county staff urged each town to document current revenue streams, service contracts and debt obligations so scenario modeling can include those commitments. They also noted that some distributions shown in early materials were preliminary and will be validated in future meetings.
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