Our lives begin to end the day we become silent about things that matter.” - Martin Luther King, Jr.

Wednesday, June 11, 2008

On the Rise: Taxes and Elected Officials' Salaries

On the same night that Mooresville commissioners gave a preliminary nod of approval to a three-cent property tax hike, they also gave themselves a pay raise.

In a work session last night, commissioners voted 4-2 to include a three-cent property tax increase in the FY 2009 budget, which would raise the property tax rate to 58 cents per $100 valuation.

Commissioners have not approved the FY 2009 budget, and no "official vote" has been taken on the property tax rate, said Mooresville Finance Director Maia Setzer.

A public hearing on the budget is scheduled for June 23. "After the public hearing, I expect there to be additional discussion," Setzer said. "Only at that time will the tax rate be voted on -- along with a bunch of other items included in the budget. The (property tax rate) is effective with the FY 09 budget year that begins on July 1. The property value that is used for determining the tax 'bill' is from this past January."

Meanwhile, elected officials' annual salaries will increase by $1,500. Town Clerk Janet Pope said the raise will increase commissioners' current annual salaries to $7,583 (up from $6,083); the mayor pro tem's salary to $8,342 (up from $6,842) and the mayor's salary to $11,565 (up from $10,065).

Commissioners Miles Atkins and Chris Carney voted against both the proposed tax rate hike and the salary increases.

Commissioner Mac Herring said he is in favor of a property tax rate increase to help pay the recreation and street bonds that Mooresville voters approved in 2005. As for the pay increase, Herring said that in a study of what similar-sized towns pay their elected officials, Mooresville is very low on the list.

Perhaps surprisingly, commissioners won't hear much of an argument from me there.

Over the past few years, I have watched some of our elected leaders spend countless hours and evenings away from their families and "regular lives" to attend town meetings and other functions, juggle phone calls and e-mails and meet with members of the public.

Some may argue that commissioners knew what they were getting into before they ran for office -- and if they don't like it, they can resign or not seek re-election. And to a point, I agree. But a few of our commissioners often go above and beyond at least what I would expect of them. Ironically, two of the commissioners who likely deserve the pay-raise the most are the very ones who voted against it.

On the other hand, some of our elected officials work hard -- but oftentimes we're left to wonder just who or what they're working for.

As for a property-rate increase, I'm not fully convinced one is needed. And apparently, at least two commissioners agree.

From what I understand, very few cuts have been made in the budget since it was proposed to the town board by Interim Town Manager Erskine Smith. Another concern is that the town is not fully utilizing or maximizing its potential revenue sources.

Me? I'm concerned that commissioners are proposing an increase to the property tax rate when they haven't even addressed the fact that the town is paying up to $49,000 a month in fuel when about half of our police officers with town take-home cars don't live in Mooresville. (See "Should town take-home cars be eliminated as gas prices spike?" June 5, or click here:http://thegattonreport.blogspot.com/2008/06/should-town-take-home-cars-be.html)

Would eliminating take-home cars for out-of-town employees be enough to keep the tax rate steady? Of course not. But if commissioners have not addressed something that simple as a way to potentially save the taxpayers a few thousand dollars a month -- when it clearly points to a systemic problem in our town's fiscal management -- I am concerned that other, and much larger, potential "cuts" are being overlooked.

I've already heard the argument from one or two people that take-home cars are an "incentive" or "perk" for our police officers to make us "more competitive" with other police departments. But with the price of gas climbing to nearly $4 a gallon -- and no relief in sight -- those "perks" clearly need to be re-evaluated. The town's taxpayers simply cannot be expected to subsidize town employees' half-hour commute back and forth to work.

Up next in the Report: If take-home cars are truly being used as an "incentive" or "perk" to retain police officers, it isn't working ...

21 comments:

Anonymous said...

Let me take a wild stab at who proposed the salary increase ..... hang on .... give me a minute .... ....... Frank Rader?

Anonymous said...

Probably gave them selves a raise so that they could afford the high price worthless cable system they have bought. Jamie don't feel sorry for them they get enough perks, trips, meals, and other things. At least one of them need to pay what they owe others.

Anonymous said...

I bet yous are right.Why would Frank Rader take away cars to save us money when he's one of the ones whose driving one?

Anonymous said...

Somebody tie Frank Rader (or is that Raider) down. As long as he's running loose we're all in danger of of him pushing the button higher and higher taxes. I can still hear his 'I can handle big numbers' comment ringing in my ears.

And did I just read that the town is going to pay a 'Lobbist' $76,000 to represent the Town in Washington? Is that right? I thought that's what we elected Senators and Representatives for. And who is our lobbist? Jimmy McKnight? ? ?

Unknown said...

Thank you Miles Atkins and Chris Carney for exercising sound economic judgment by voting against this property tax increase.

Anonymous said...

KUDOS to Carney & Atkins for voting against tax hikes as well as salary increases. I will remember who to campaign for in the future. I am sick & tired of the mayor and others only looking out for #1, what about the town they are SUPPOSED to serve, not the town serving them!!!!!!

Anonymous said...

I hope that you are referring to the council members

Jim said...

Yup...that makes perfect sense....tough economic times..gas is through the roof, which means EVERYTHING else the taxpayer buys is through the roof....so let's vote for a tax increase.....and give ourselves a raise at the same time!

Simply amazing....a new level of arrogance from our elected officials.

Did anyone else get a 15% raise this year...like the one proposed for our Mayor...or a 25% raise like the one proposed for our board members???

As I recall these positions are VOLUNTARY....nobody holds a gun at your head and makes you run for office. YOU make the choice of what your time is worth. You know what it pays when you sign up to run. Did our "temporary" town manager even THINK of options of how to tighten the belt...like real people do in tough times??

Kudos to Carney and Atkins for living in the real world.

This isn't "Race City, USA"....it's "Surreal World".

Anonymous said...

I hope to see many more names on the ballot the next time elections come around because it seems like most of you feel like you would be better suited for the jobs the commissioners hold than the current commissioners themselves. All of your comments.. in this report and in all of the reports... sound like the rantings of arrogant windbags. The argument that we should not have a tax increase because the cost of everything else is going up is ridiculous. People are moving into this area like it is going out of style. The tax increase will help alliviate the pain associated with that and will help to fund the recreation bonds that the citizens of Mooresville passed probably before most of you were even living here. By facilitating the growth of Mooresville with a responsible tax increase now, we are making it possible for everyone to benefit economically in the long term.

Jim said...

9:11...

We don't really have a problem getting names on the ballot. Every time I've voted in the last 10 YEARS of living in Mooresville there have been plenty of choices.

In Charlotte, both the city and the county have manged to resist the urge to raise taxes so far during these tough economic times. Many of the elected officials have cited the downturn in the economy as a reason to "hold the line".

If that argument is difficult for you to understand let me explain it in small words. In tough times, people don't have a lot of money. It's not really time for 25% raises for elected officials. I'm so glad there isn't a dime of non-essential spending in the budget.

Allow me to quote you for a moment:
"By facilitating the growth of Mooresville with a responsible tax increase now, we are making it possible for everyone to benefit economically in the long term."


And I'M an arrogant windbag?

C'MON.....


Jim

Anonymous said...

Dear 9:11; If I understand your logic, it is because everyone wants to move here that taxes are going up to alliviate the pain of the overcrowding.

Quote: "People are moving into this area like it is going out of style. The tax increase will help alliviate the pain associated with that and will help to fund the recreation bonds that the citizens of Mooresville passed probably before most of you were even living here".

Should not development carry its own weight in new taxes? Why should the residents here be burdened by increased taxes because people are moving in? Why should we pay more in water and sewer fees because new development is taking up all of the capacity? Should not the development pay this?

Everyone pays taxes. But when your elected officials continue to make one bad decision after another, reward friends with huge sums of taxpayer money - in the millions (Jimmy McKnight and CH2M Hill) and not be fiscally responsible, yes, we have a right to complain.

Anonymous said...

Ditto!

Anonymous said...

Why does Frank Rader need a pay raise when his grandfather(Julius Abernathy of Newton)placed $1 Million Dollars in a trust account for him the day he was born? He should donate his time, since the interest/dividends he enjoys should be sufficient and his acumen with numbers is his claim to fame. The base citizens should be his focus, not high tax and spend. IDEA: SAVE MONEY, MEANS REDUCED TAX INCREASE/ TRY IT!

Anonymous said...

If more higher taxes are needed to accomodate more growth maybe it's time to break the cycle and hold taxes and services as they are. Maybe this would cool the out of control growth for a while. Maybe we don't need more new people for a while.

Anonymous said...

Maybe voting to give yourself a raise during tough economic times isn't the best idea, and tax increases don't sit to well either, but it doesn't surprise that there is an increase in taxes. It's a part of life. Just like your home budget increased over the past year, the cost of doing town business had to increase as well. As citizens we expect a certain level of service, and that service cost money. Also if you read the proposed budget you will see that the increase is because of "voter" approved recreation and street bonds. A majority of "voters" turned out and voted in favor of bonds that would increase taxes in the years to come. Hey, simply put increased taxes suck, but do you want the town maintained roads to be in worse shape or inadequate recreational facilities for the Town's youth?

Another thing, I won't call the commenters "windbags", there is nothing wrong with a little bit of healthy discussion whether you agree or disagree with a post or a comment, but I would like to see more "applicable" solutions. Fire this person or get rid of this commissioner in some cases is the first step to a solution, but maybe someone in the world of government will read one of our solutions and use it, and be a benefit to all. And if they don't, elections come around every 2 years.

Anonymous said...

I think The Gatton Report does just that, create questions toward solutions. I also think the average person knows about inflation and the increase in the CPI, but what they don't understand is the small town budget coupled with the country club spend mentality. The main issue alot of folks don't agree with is the voicing of opinion by town folks and the contrary actions by town government.(They think average voters who want good, responsible government are for a better word-stupid.) I have no doubt that because of the Gatton Report, there will be turnover in the upcoming elections, I just hope it isn't too late. By the way, you want ideas, park the cars after hours in Mooresville, not at someones house, stop living like you have an unlimited credit line, and vote to save money, not spend it.

Anonymous said...

Hey Jamie
I know you have your plate full with all of the corruption and stupid human tricks in town, but can you clarify who,where, and what area of lobbying the firm we hired does? I just want to know if we are paying more money to a cable lobbyist, so we can add that to the bill. I also want to know if our commissioners are trying to screw us like Union county is having done to them. FYI The Union County voters voted down a ballot question to increase the # of commissioners they currently have,with the new seats, if it had passed, would be appointed by sitting commissioners. This is an attempt to appoint sympathetic commissioners to move developer positions by commissioners who know they are gone in Nov.,. They (the voters)voted it down this past May, so the commissioners "backdoored " the voters by going to the NC legislature trying to get the statute changed, so they can appoint. I don't trust Mr. Rader & Co. as far as I can throw them, and he is spending way too much time in Raleigh, so we need to know. Thank you and keep up the good work.

Jaime Gatton said...

Hey, 10:58! I'll be more than happy to look into that. Thanks for the question!

Anonymous said...

I have heard there are many officers at MPD that hold a ranking position for some reason or other. With a small department of 59 or so, is there really a need for all that rank. With rank comes pay, and substantial pay for some rank.
After serving many years in the public sector as a ranking officer in a small department, I have to ask the question, Why does our town need 5 police captains, 5 police lieutenants-two of which are in investigations.
As stated before, with rank comes pay. Seems like too many cheifs, not enough indians with our town police department. Instead of raising taxes, how about asking if we need that many ranking officers draining our tax base.
Again, another grand decision made on the part of the MPD admin staf

Anonymous said...

Frank Rader seems to have the others fooled (not a hard trick)into doing exactly what he wants.

He doesn't seem to have a clue about what's really going on.

Anonymous said...

I know.. let's all go ask our employers for a 30% pay raise and tell them there's absolutely no place we can cut our spending!