The chickens are coming home to roost
Ah, I told you so. It seems I have been beating my head against the wall over the past two years trying to inform the public about the reckless abandon the Munson administration spends money.
Councilman Pat Costello, who introduced the unsuccessful amendment, said the budget is based on an unrealistic projected sales tax revenue increase of 9.6 percent in the next 16 months.
BAHAHAHAHA! 9.6 percent increase during a freaking recession? Give me a break.
Councilman Kermit Staggers said he is worried about the message the city is sending by increasing spending during tough times. “The city is not setting a good example for the citizens of Sioux Falls.”
Well, Kermit, I have never gone to the city for an example on spending priorities. But I think this exchange speaks for itself;
For more than an hour, council and administration discussed an amendment proposed to decrease the general fund by 1.5 percent or $1.84 million based on the sluggish economic climate.
The debate became heated when Mayor Dave Munson asked department heads to outline what will have to be cut if the amendment passes.
“It is some ploy to bring up the fire chief and the police chief to come up and say all these bad things are going to happen to our city when I asked you for help,” Costello said, noting that he asked Munson twice for help to trim the proposed budget but was turned down.
“I said, ‘This is our budget we submitted it’s in your hands now, you make the decision’,” Munson said. “I think we have every right to ask every director what impact it has on them.”
“And that’s fine and we can hear how the world is going to come to an end tonight. But the reality is that these monies can be moved around at a later date and it’s not the intention to take this out, to have public safety in our community to suffer,” Costello responded.
“When do we balance the budget then?” Munson asked.
Costello answered: “Whenever your administration wants to get engaged on coming up with reasonable cuts.”
“I don’t have any cuts,” Munson said.
We know Dave, that’s the problem, you can’t stop spending, you are addicted to it.
Costello’s concerns come from the budget relying on sales tax revenue to increase by 2 percent by the end of the year and an additional 4 percent increase by the end of 2010. As of the end of August this year, sales tax revenue was down 3.6 percent.
Finance Director Eugene Rowenhorst, whose office formulated the projections, said the 3.6 percent drop doesn’t include this year’s school and Christmas spending. He stands behind the prediction.
“That’s the same logic that brought us to what you projected in 2009 at 6.5 percent growth,” Costello told Rowenhorst, whose office has since adjusted revenue growth to 2 percent for this year.
Once again Eugene ‘Montgomery Burns’ Rowenhorst uses the ‘Christmas toys haven’t been bought for Billy and Dolly yet’ excuse. Gene, that song and dance is getting old and I am glad Pat called you out on it.
After 70 minutes of discussion, the amendment failed.
Councilman Greg Jamison voted down the amendment, stating that the council must trust city employees. “Let them fix the problem later if it becomes a problem,” he said.
And that action and statement tells us all we need to know about how fiscally irresponsible our city council and mayor are. Their spending priorities are screwy to say the least. As for trusting the city employees, that is what got us to where we are at currently, in a bind. If anything it is time to start questioning our city employees more.
The video is well worth the viewing (the fireworks start at about 1 Hour 20 Minutes)
And I see the Rapid City council gets it, you don’t raise taxes during a recession.
Rapid City will not take the optional property tax increase in 2010, reversing an earlier decision after a heated debate in special session Monday.
With the council’s action, the city will give up $369,224 in additional revenue, saving someone who owns a $150,000 house about $13 in city property taxes.