Council acting too quickly to impose a tax on Fairhope residents

By Debra Green
Posted 4/28/09

An open letter to Councilman Kingrea:

I am completely baffled, confused and totally disappointed by your justification and rationale regarding the proposed implementation of the 2 percent sales tax. I will not go so far as to state emphatically …

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Council acting too quickly to impose a tax on Fairhope residents

Posted

An open letter to Councilman Kingrea:

I am completely baffled, confused and totally disappointed by your justification and rationale regarding the proposed implementation of the 2 percent sales tax. I will not go so far as to state emphatically we do not need the funds; however, it seems it is simply easier to ask John Q. Public to make sacrifice after sacrifice in order to promote government satis quo and fiscal unaccountability. With this type of mindset, it might as well be 200 percent.

1. Budget cuts take time and we don’t have time? Nothing happens quickly in government except when taxpayer dollars are “desperately” needed. The city could actually save a great deal of money through a bid process in purchasing the plantings instead of buying them, transferring them into very expensive soils and fertilizers and rotating them. Yes, this may eliminate some city workers who perform this task. However, it would save the city tens of thousands of dollars per year and offer the private sector the opportunity to provide a created product devoid of the government’s so called “job creation” scenario through employment/service funded by taxpayer dollars.

2. “Typically” an outside audit is done if there is suspicion of criminal activity. This is not typical in the private sector. If an independent company, not a government entity, is suffering economic stress, yes, immediately all areas are audited, especially when a new board of directors, such as new council members as Dean Mosher equated, are associated with the enterprise. It is your duty to inspect all sources of funding and expenditures with a fine tooth comb and give a full accounting of same. Again, it is simply easier to shift the financial burden onto the taxpayer without accountability.

In addition to Hand Arendall, numerous high-priced legal firms are on retainer with the city; travel expenses are not justified; the budget, as presented for public view at the library, is impossible to interpret; the mayor has a discretionary limit of $1,000 per invoice with no yearly cap; in areas of our utilities, administrative/collection fees are equal to or more than salaries; contractors have been able to “skip out” on paying utilities only to turn around and be allowed to reconnect. These are only a few questionable and justifiable reasons for an audit. $50,000 is nothing compared with the $1.35 million, at the taxpayer’s expense, in order to provide city workers free health care, not just for themselves, but extended to their families.

3. Water and sewer rates have been increased to play catchup? Will this utilities “surcharge” be eliminated with the implementation of a 2 percent sales tax?

4. Should a sales tax be implemented, sell the utilities, period. Originally, one reason for the establishment of the municipal utilities was to support the city. We have outgrown every aspect of a city-run utility. Sell, pay off debt. Further, I reiterate, with contractors allowed to “skip out” on payment of utilities, then allowed to reconnect, there is, indeed, justification for an audit. I have witnessed individuals actually counting pennies at City Hall in order to have their power turned on. I find this disparity appalling.

Mobile Gas recently reduced its rates by 3 percent and several months ago, rates were reduced in New Orleans by 4 percent. Perhaps it would be less expensive to have an outside service instead of continually bearing the burden of upkeep. Yes, we may be spoiled by on-the-spot repairs, but transformers and substations are not cheap.

5. The City Council has been asked for years to discontinue free services outside of the city limits. It will not happen as long as certain people are in office and plan to run for reelection. We all know this will never come to fruition, particularly with the Grand Hotel supposedly supporting Downtown Fairhope. Actually, a survey was done about 18 months ago and it was found those hotel guests were more frequently patronizing Orange Beach and Gulf Shores rather than Fairhope. I can provide documentation if you are interested.

6. I must agree with your comments regarding the Single Tax.

7. A sales tax will not hurt downtown, agreed. However, downtown is suffering from the stress of the current economic conditions. Truth be told, most businesses are barely managing to make ends meet if not closing, even after drastic cuts in overhead and expenses. At the Greeno Road business district, I hear that one anchor store will close soon and another may close their doors in the fall. Will Publix and WalMart support Fairhope?

8. You cannot justify approving the 4 percent employee raise. That was done through intimidation and just because money is budgeted, doesn’t mean it must be spent. Sometimes emergencies, such as a recession, prohibit expenditures as anticipated.

9. Not only is the city top heavy on employees, it insults the rest of us when we realize our tax dollars are keeping people in a position, complete with a raise, while some Fairhopians are losing theirs.

$1.35 million can be cut quickly, sir. Make employees pay for their health care just as those of us in the private sector do. This is probably the biggest insult of all.

The city of Atlanta has 7,200 employees. All but non-essential, non-salaried employees are on a four-day work week. They pay a portion of all their benefits, which are not extended to family members for free. Atlanta’s city planner makes approximately $160,000 per year; that municipality has a population of 430,000. Our city planner makes approximately $85-90,000 per year in addition to 45 percent in benefits. This brings those two salaried positions very close. Fairhope has a population of 16-17,000 and employs 350. Something is wrong with this scenario, sir. This should be looked into immediately. No one wants to cut jobs, but it’s not popular so it will not be done.

All of us in our personal lives and private businesses have had to cut to the bare bone. This includes our own salaries, our own health care, every expense imaginable including renegotiating all service providing contracts. Unfortunately as well, we have been forced to make the hard decision to temporarily lay off employees. We live in the real world.

Again, nothing happens quickly in politics except when you want our money. Taking our money is easier than doing your job or facing reality. Perhaps a temporary, short-term line of credit could be secured in order to perform a full investigation and make the tough decisions internally instead of placing yet more of a burden on the public. It is my hope you will reconsider your position.

Fairhope