High Gas Prices Help Elk Grove

When you get pinched at the pump, consider it a civic duty.

In the next several Elk Grove City Council meetings one of the biggest items affecting the city will be discussed that will make most people's eye glaze over - the city budget. In the next several weeks we will be looking at the city's 2012 budget with an eye forward to our new budget for fiscal year 2013.

Today we will take a look at how higher gas prices help the city.
One of the most obvious benefits for Elk Grove of higher gas prices is that ridership on the city's e-tran system should increase. This will benefit the city and the region by reducing the number of cars on the road, reducing pollution, and perhaps most importantly, at least from the city's budget prospective, increased tax revenues.

After perusing the last year's budget and other documentation, we came across an interesting report prepared for the city about tax revenues. The third quarter sales tax document states "higher fuel and usage increased receipts from fuel and service stations."

According to the same report service station represent the second largest group of sales tax generators in Elk Grove through the third quarter. They generated $493,300 in tax revenue, which was an increase of 19.7 percent. Of the top 25 sales tax revenues generators in the city, seven, or 28 percent were gas stations.

Clearly there is money for the city in promoting sprawl and selling gas.

So as we move into a new budget year, it would not be surprising to see more easy access freeway gas stations pop up in Elk Grove. At least when you feel the pinch at the pump, you can rest in ease knowing that you are helping your city's budget.

In fact here's an idea to solve two problems - maybe the Elk Grove Promenade could be converted into a gigantic truck stop. Not only will it generate tremendous tax revenues for the city, all that extra tax revenue could be used replenish the quickly depleting general fund.