Wednesday, June 28, 2006

IT TAX INCREASE FINAL

Last night the IT council voted and passed with a 3-2 vote in favor of a tax increase for the town. Mr Killough and Helms were the dissenting votes. It unfortunately looks as if they were unwilling to increase taxes at all for any reason. Insisting on burying their heads in the sand and that all would be fine going forward because that is what has happened in the past. Due to the influx of people, housing, traffic and the likes the town can not rest on what has been done in the past. That idea is fiscally irresponsible, outdated, with no forsight into the future. No tax increase that had been discussed this year would have created anything that could have been described as a windfall for the town. Any increase was based on a needs only basis and not loaded with luxury items. The senior members of the council never shared with the council or manager anything other than the belief that a tax increase was not warranted. Never once suggesting ways to cut the proposed buget. I am sorry, Mr. Killough did state that the increase of $50.00 for each council member was a way to save money. (Total= $300.00) The new members of the council, wanting to reach some sort of agreement within the group tried to come up with different ideas that the other two members could go along with, I am guessing however that the upcoming reelection for both played more into their opinions that fact. There is an old saying, Don't confuse me with the facts when my mind is made up. Apparently a mantra Helms and Killough live by. The increase is for .02 cents per $100 valuation, making the new IT tax rate .10 cents per $100 valuation. Basically a break even for most persons in the town. At the same time the council authorized the trash service to be rolled into the tax base thus eliminating the billing for citizens 4 times a year totalling the $60.00 fee. The original .04 cent increase was dismissed as too large and the idea of no increase could have crippled the town. Especially if anything requiring a large cash outlay would have occurred. This puts into question the $1.5 million dollars that the previous council had designated for a new town hall, the land swap contract, road funds, parks, and general infrastructure problems being faced by the town.
This means that a person whose house is valued at $100,000 will pay taxes of $100. a difference of $20.00. That person will not have to worry about writing checks to the town for 60.00 throughout the year. A savings of 40.00 per year.
$200,000 house will pay 200.00 per year instead of the 160.00 previously and the 60.00 garbage fee for a savings of $20.00.
$300,000 house will pay 300.00 per year instead of 240.00 and the 60.00 garbage which is the same. No increase or decrease.
If you itemize your taxes, a percentage of that tax can be deducted.
Mr. Schallenkamp stated last night in a very good way that he believed it was possible to overfund a government but at the same time you can be worse off if you underfund the government. I believe that statement to be 100% correct. The entire council was concerned about raising taxes. No one on that board took the matter lightly. In the end, three of the members had the forward thinking to do what was right for the entire town, not a select few. I believe it is better to have the cash and pay for things without having to tap credit whenever possible, unfortunately, in the future we may not be able to have that option and could pay extreme amounts in the future for not planning today.

If anyone knows me, they know that myself and the Mayor don't seemingly get along. We tend to be at odds more than not. Last night, Mayor Moore was very articulate when she stated her opinion about getting along with each other, the need for roads, town hall, staff, and the likes. The Mayor hated the idea of raising taxes also, but sees a need for the town and understands an increase was needed. I support the mayor in her statement last night. She hit the nail right on the head.

Budget meeting are contentious at best and last night was no exception. Two members chose to not support the tax increase or for that matter participate too much in the process. That is their perogative. Them voting no, was not a no vote for the good of the town as much as I believe a begining to campaign fodder down the road. The tax increase will not create a cash windfall and luxury items will not be purchased. In fact, lets hope we do not incur unexpected expenses for the year because I doubt we will be able to sustain much of a cash hit before reserves are eliminated totally.

Tuesday, June 06, 2006

INDIAN TRAIL TAX INCREASE

June 13th will mark the Indian Trail council meeting that will explain more about the proposed tax increase from .08 to .12 cents on the $100.00. The newspapers have indicated the .04 cent increase will enable the town to do a few things and make it more beneficial to the citizens in the town.
One cent is going for road reserve funds...definitely needed when DOT says you need to have $1 million for this $5 million dollar project.
The other .03 cents distributed among other things new town hall, and other general increases in planning staff, vehickles and the like.
I am unclear but believe that the 60.00 per year garbage service fee would then go away so ulitmately depending on you house value it will cost a little more for normal homes in the area. The more expensive homes will pay more overall.

Main questions facing the town as I see them include but not limited to:

1. Land swap deal. Being reviewed by the attorney unknown if the original contract will hold up or if the town will be held to the contract. Either way a decision will have to be made and action will have to start. Personally, it was a bad idea to swap the land when an outright purchase of the land would seemingly make better sense. What happens if the land deal is null and voided? Then what?

2. New Town Hall. Too many questions and not enough answers. The paper reported that an $8 million dollar tab for the new town hall. Questions include: Is that $8 million for the original 30,000 sq ft structure? Does that include all the furnishings and new technology that will ultimately be needed? How will we finance the remainder (1.5 million sitting in reserve fund)? Depending on the above land swap deal, a decision and construction will have to start very soon due to the conditions of the land swap deal.

3. Police Protection: Reported by the Sheriff that IT needed 2 more officers even if the Walmart hadn't been built. Apparently it was assumed we had 24/7 coverage when in reality we didn't. According to the Sheriff, the 2 additional officers give us the 24/7 coverage. Kind of remarkable, and I asked this question last year....the sheriff had previously stated that the Walmart on Tom Short would require 4 to 6 officers. Why is it that when IT gets a Walmart we apparently need no officers? Sheriff stated IT needed 2 officers even if the Walmart wasn't there due to call volume. I still believe that police coverage is lacking even with the addiitonal 2 officers especially with the Walmart. There was an article in a crime prevention publication stating that a 500 to 1 ratio was optimum citizens to officers. I believe Stallings tries to operate in that realm. That would push us to 39 officers based on a population of 19,500. Even at a 1000 to 1 ratio that would put us at 19 officers. If you go by what the Sheriff says and our 8 officers in effect are like having 75 or so then our numbers I guess are ok. In IT what is the response times for calls? Does anyone know? It might be a good question to ask.

The garbage costs seems to be spiraling out of control. I am glad they are taking steps to control those costs and we should see improvement in the future. Having attended the budget workshop it was my understanding that the garbage fee would have to be increased also to offset the deficit it was creating. I find it difficult to believe that the other 3 cents will offset the garbage costs?

I am just asking the questions. Anyone got other thoughts? If you can attend the June 13th meeting you should to find out for yourself. Also, go online to the IT website and get a copy of the budget for yourself.