Al Bradley is not the mayor in Orange Beach. He is not even on the city council. He is, however, on a very important committee, especially during these difficult economic times, and at last weeks’ committee of the whole meeting, he did his best to …
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Al Bradley is not the mayor in Orange Beach. He is not even on the city council. He is, however, on a very important committee, especially during these difficult economic times, and at last weeks’ committee of the whole meeting, he did his best to give “just the facts” regarding the up-coming Sept. 28 referendum to increase the local property tax 2 mills.
As chairman of the Orange Beach Citizens Finance Committee, Bradley’s 20-minute power point presentation covered the “Myths and Facts” related to the tax increase which, if passed, could mean a $1.2 million boost to the municipality and possiblY keep the city from having to cut services.
“What we have tried to do is put together strictly facts,” Bradley told the council. “We are not trying to sell anybody to vote for or against this referendum, we just want everyone to understand what is going on with the city finances so that they can make an informed decision.”
Myth No 1: - We don’t need new taxes, just cut the fat.
Fact: The fat has been cut.
Bradley explained that while this seems like an easy solution, cutting the fat is what has been done during the past two years.
When the current council took office in 2008, the city was spending roughly $25 million per year. In two years, spending had dropped to just more than $20 million per year.
“In the two years that this administration has been in office, personnel costs have dropped $3.2 million, which is 19 percent of our workforce,” Bradley said.
There were 290 city employees in 2008, Presently there are 223 employees, a decrease of 67 positions, and Bradley says, without cutting services, there is nothing else to cut.
“Even with the loss of all of those people, we still have the same city services that we had before, but cutting more people will mean cutting services.”
Myth No. 2: This is just a way to raise city revenues to spend more money.
Fact: The revenue generated will only maintain the current level, not increase the total city revenue.
In 2008, the projected annual revenue was more than $28 million, but actual revenue was $24 million. Projections were better in 2009 when actual revenue exceeded the projected figures, however revenue was still down.
According to the finance committee, if the referendum does not pass, cutting city services is likely the only option.
“If we pass the tax, we are projecting our 2012 revenues to be just under $22 million dollars, if we don’t pass the tax they will be about $1.2 million dollars less. Bottom line is, if we don’t raise that $1.2 million and can’t find any other place to raise it, we are going to have to cut city services.”
Myth No. 3: I can vote “no” and it really doesn’t matter.
Fact: A “no” vote will reduce city services.
Bradley said that while it is not his place to decide how a person should vote, the fact remains that a no vote will affect the services provided by the city.
“This is a decision that the citizens are going to have to make. Is it worth the money to maintain our city services?”
Bradley said that the $1.1 million spent on administration, $557,000 spent on court and corrections, and the $565,000 for finance, cannot be cut.
“If you look at community development, what they do for the budgeted amount they get every year is unbelievable,” said Bradley. “According to insurance ratings we have a building code rating of 3, the lowest of any municipality along the Gulf Coast of Louisiana, Mississippi and Alabama. Everybody else is 4 our higher.”
Bradley said cutting services from that department would likely mean a dramatic increase in insurance rates.
In the area of public works, Bradley said the city could possibly get by cutting 10 percent of that budget, but that citizens would not like the way the city would look, since grass along city roads and in parks would not be cut and streets would not be cleaned.
While the police department is down from 43 to 31 officers, the response time is still around five minutes. According to the FBI, during summer months, the city should have around 100 officers.
Bradley mentioned that the night of the Jimmy Buffet concert, the city only had three officers on duty.
According to figures, if the Parks and Rec department along with the library were both completely done away with, their combined budgeted figures would still not save the city the $1.2 million they will be down without the tax increase.
Myth No. 4: Taxes are already too high. I can’t afford any more.
Fact: Your property taxes will decrease from the high level of 2007.
“If you have a house today that is valued at $150,000, it was valued at more than $250,000 in 2007. If you project forward to 2012, the revenue commissioner is telling us he thinks between 10 and 15 percent will be reduced again next year, so you will have saved $217 on your ad valorem tax since 2007 and that is if this tax increase is voted on. If it is not, you will save another $22 dollars.”
Bradley said that the bottom line is, if the tax increase passes, it will allow the city to maintain its present services, but if it fails, services will have to be cut.
“I would suggest that if anybody votes no, they should send a letter to the council informing them which services they want cut.”