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I can guarantee you that inflation and rising costs are a huge reason for a tax increase. I can also guarantee you that private consultants / contractors are another source of high spending that can be cut down. Privatization of services would thus be contradictory to a reduction in private sector utilization.
A MUD tax is an interesting idea, but I'm not sure if something like that already exists.
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I disagree that it would be contradictory. I believe you are looking at the scope incorrectly. High costs are associated to use private consultants and contractors as these individuals are contractors are functioning within a monopoly. They are already working within a poor work model.
Set quality standards and open services up to tender. Competition will drive the costs down. Garbage pick-up, street repair, the list is endless.