UPDATE: Is Sioux Falls weathering the recession? Not sure.

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UPDATE: After watching the City Council informational meeting today, I have to clarify this post. According to Eugene ‘Montgomery Burns’ Rowenhorst, the reason the June numbers are so low is that the State Department of Revenue cut tax collection 4 days short of the end of the month (June) and added that revenue to July due to end of the year accounting purposes. Not sure we can make much up in 4 days, but according to Gene, the July numbers are good. He admitted that we are -1% down from last year. In other words we are still not showing any growth this year.

I was afraid of this, and if the numbers continue, we may be in trouble. I have been saying that the recession will hit Sioux Falls late and stay longer. For example, in the early 90’s when the rest of the country was pulling out of the Reaganomics disaster, it took SF until the late 90’s before it starting pulling out. The problem we have with SF is since we all live pretty modest lifestyles it takes us a lot longer to pull out of economic downturns. And I’m not talking about business, I’m talking about the people who pay 90% of the taxes in this city, consumers. The June budget numbers are pretty shocking actually. They are as follows (these are aproximates);

TAX COLLECTION

2009 – $3,785,594

2009 – $7,435,005

We are now down from last year (total budget) by approximately $3.7 million (-7.6%)

And the platting fees and arterial road tax (.08%) don’t look any better (These are as of June);

Tax $1,140,091 (Total 1 cent is at $18 million)

Fees $48,112 (Total platting is at $345,000)

And if you look at July in 2009 the numbers are very high also, so I am assuming that we may see the same thing next month. Of course we had a huge impact from the Soccer tournament (supposedly) so the numbers may be okay – time will only tell.

When I watched Munson’s budget address I think he cut the budget by $60 million from last year, but don’t quote me on that. What is frustrating about this is that Munson squandered our tax dollars over the past 7 years on ‘Legacy’ projects and now he is trying to play catchup with infrastructure in a down economy. We should have stayed on top of it all along. Cities should follow a simple rule, roads and infrastructure maintenance first, playgrounds second.

I feel sorry for the next mayor, they will be working some long hours trying to figure out this mess.

Posted in: Sioux Falls

Miscalculations? Recession? or lies?

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When the city council decided to raise our taxes last Semptember they promised two things. 1) That the extra revenue of .08% would go into a special fund that would only be spent on arterial roads 2) That the developers would be paying 50% of that tab through platting fees. Even with the economy down and the city not being able to raise $10 million for the roads doesn’t mean that developers should be off the hook for their half of the bargain. But it seems like they think they are, and the city isn’t doing a damn thing about it.

In my interview yesterday I reiterated that the night of the increase vote that we told councilors a recession was coming, they didn’t care. It was pretty obvious that night as it is today that the four councilors who voted for the increase, Knudson, Brown, Jamison, Litz and Mayor Munson, were bought and paid for through campaign donations by the developers, one of which I busted cracking jokes about citizens testifying against the increase in the bathroom that night. The same guy who was crying and blaming the recession and the economy last night on the boob tube. Pretty funny now, isn’t it?

Here’s some highlights in the story that seem to prove they knew all along that the developers were not going to pony up;

“There’s a good supply of land platted and until that land becomes to be matured, meaning there is rooftops on it, additional land does not need to be platted,” Cotter said.

So, then, why did we need to increase taxes in 2009 to build roads we may not need until 2010 or 2011?

“We have a million dollars more in the fund today than we would have had before. We can always take the negative approach to everything and it really wouldn’t matter in the long term. We don’t build our company and I don’t think Sioux Falls builds their city, and I don’t think any bona fide business person is going to say, ‘Well, I build my company one year at a time,'” Craig Lloyd of Lloyd Companies said.

Craig’s comment is very revealing. 1) He is right, we have a million in the fund, money we, the citizens, put in the kitty, you know, the same people you belittled that September night while taking a leak. Where is your share? I agree, a city doesn’t build itself one year at a time, but when the city and developers tell us there will be a 50/50 partnership, you better hold up your end of deal, and if you don’t, why should we?

But let’s just look at the figures;

$1,000,0000 – What the city has raised so far

$78,000 – What developers have put in so far ($70,000 was added in June to the fund)

Now lets scenario the economy turns around and those numbers triple by the end of the year;

$3,000,000 – City

$234,000 – Develop

$3,234,000 – Total December 31, 2009

But this is where it gets interesting and the city gets caught up in their lies. The CIP has $5.4 million budgeted for arterial streets next year. Where is that additional money coming from? Most likely us.

$2,166,000 shortfall (that will have to be taken out of the regular CIP fund)

That would mean while taxpayers will have to pony up $5,166,000 for arterial streets next year, developers will only be putting a fraction of that aproximately $234,000, unless of course they win the lottery.

Does that sound like a 50/50 partnership to you? Kind of sounds a bad restroom joke to me.

Posted in: Arterial Roads, Citizens for Reponsible Sales Tax, SF City Council, Sioux Falls

The Retail Tax increase ruse is finally revealed

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salestax

Last year when the Sioux Falls city council voted to raise our retail taxes they said it was for new arterial roads. They argued the extra .08% would raise $5 million for new roads and platting fees paid by developers would pay the other $5 million. A 50/50 partnership, so to speak. In recent months, I assume to downplay our tax petition, the city started to say it was going to be a 40/60 partnership instead, with the developers paying the 60%.

Well the numbers are in, and they ain’t even close to what the city is claiming. Since the tax increase took effect January 1, 2009, the extra .08% in retail taxes has collected about $1 Million dollars. In five months. Obviously it will have to pick up a bit to reach the $4 million dollar goal by the end of the year. But the alarming number is how much the developers have put in the kitty since January 1st. Let’s just say I rewinded the audio three times when finance director Eugene ‘Montgomery Burns’ Rowenhorst mumbled the amount at yesterday’s informational meeting; $8,000 dollars! Nope, you heard right, not $800,000 dollars, $8,000 in five months!  I think the Boy Scouts could raise more than that in just one week selling popcorn.

I said this tax increase was a ruse from the beginning to max out our taxes, it had nothing to do with building those roads. And if the developers are going to chip in 60% to build arterial roads, they better turn it up a notch, because at that rate, they won’t have enough money to build one block let alone several streets.

As usual, Sioux Falls taxpayers will have to pony up 90% of the money for the roads. And as usual, Munson’s administration misled and lied to the public to raise our taxes.

Shameful.

ANOTHER THING THAT WAS BROUGHT UP, in the meeting by Rowenhorst was how much of our Capital Improvement fund goes toward debt service (paying interest and principal on bonds); 22%. Just imagine all the roads we could fix if we weren’t throwing those millions away on interest payments? By rough estimates I’m guessing we pay about $25 million in interest/principal payments a year, just on our CIP projects. Ironically, Eugene bragged that 22% was a good number, he said the city’s credit rating could allow us to be paying 44% out in debt service.

Where do they get these clowns anyway? Oh that’s right Rowenhorst and Munson worked for Citibank, that explains it all.

Posted in: Citizens for Reponsible Sales Tax, Sioux Falls

Tax and Fee increases only hurt growth

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Monday night’s (Sept 15) tax and fee increases were a disappointment to say the least. But there were many things that happened Monday night that have citizens asking even more questions than before the vote.

 

• Councilor Costello’s amendment asking the city to cut $5 million from the budget so we would not have had to increase the sales tax was not only the right thing to do, it was good clean common sense government. Four of the councilors supported the amendment, the rest and the mayor did not. I also want to note that Costello is an accountant and business owner and has an intelligent grasp on economics. Also it is prudent to point out that the four councilors and mayor who voted against the cuts have had their election campaigns funded by special interests who will benefit greatly by the sales tax increase and new roads.

 

• The legal question behind whether the developer platting fees were a tax was a valid one considering the person asking the question, Dr. Kermit Staggers holds a PHD in political science. During the council meeting Councilor Staggers read from SD Codified Law, which clearly stated this was a tax and not a fee (with the exception of one word, in which the city attorney used as his argument against Staggers). And if it was a tax, it needed to be voted on and approved by the people. The city attorney disagreed. Though the city attorney has mountains of law experience, being a former judge and all, he can certainly manipulate his opinion to fit a political agenda. Let’s remember who appointed him to judgeship – Bill Janklow, enough said.

 

• But last but not least, the use of the taxpayer money to lobby for a tax increase using city employees and funds to design and maintain a website is unconscionable. I believe that the citizens deserve a refund. May I suggest the mayor and the four councilors who voted for the increase refund us out of their paychecks?

 

I have heard that some citizens may be weighing their options to stop these increases from being implemented. They won’t take effect until January 1, 2009 so there is some time. What can be done? I’m not sure, but here are some ideas that have been floating around;

 

• Propose a citizen’s Initiative that says the city cannot raise sales tax without citizen’s vote and approval. Also, start buying as many products and services online from other states and countries that don’t charge a sales tax, essentially boycotting the sales tax.

 

• Challenge the fee/tax question and ask the attorney general to render an opinion on it.

 

• Sue the City of Sioux Falls for using taxpayer’s money to lobby for a tax increase.

 

Some may wonder why citizens would want to fight so hard to stop these increases. It’s simple really, now is not the time to raise taxes and fees. I think councilor Staggers said it best during Monday night’s meeting, we need to be a competitive government, that’s what will inspire growth. That means keeping fees and taxes low. It seems some bureaucrats in City Hall think the trickle down economics of Ronald Reagan and both Bushes is the way to go – yeah, that really worked out well for the middle class, didn’t it?

Posted in: Munson, SF City Council, Sioux Falls, Taxes ⋅ Tagged:

The day after the vote

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AFB (American Freedom Press) reporter, Kyl Kwat called Sioux Falls mayor and city councilors Tuesday morning to get their reaction on last night’s sales tax increase.

Councilor Brown was disappointed that Costello wanted to cut funding to the Parks and Rec department to offer an alternative to the sales tax increase.

“I just felt it would really cut into the quality of life the parks bring to our city and I was damned if he was going to stop the construction of our newest park, The Unicorn and Rainbow Gardens. This project has been near and dear to me, and it would just break my heart not to see those unicorns dancing with children in plush fields of butterflies and leprechauns .”

Councilor Costello had this to say about Vernon’s opposition to his alternative funding package;

“Is he still whining about that stupid Unicorn park? That guy really needs pull those rainbow dreams out of his a . . !”

We questioned Mayor Munson as to why he felt it was necessary to gavel a citizen who pointed out that the board of ethics was politically appointed.

Munson: “He’s just flat wrong!”

Kwat: “But they are appointed by you, correct?”

Munson: “Yes.”

Kwat: “and you are a politician that belongs to a political party, correct?”

Munson: “Yes.”

Kwat: “Well wouldn’t that make them political appointees?”

Munson: “POINT OF ORDER! POINT OF ORDER!”

We called councilor Knudson at 11:00 am and apparently woke her up.

“Why are you calling so early? I’m exhausted!” Knudson replied.

We told her it was 11 am, and she apologized, “I’m just out of it, you know that little troll that comes to all the meetings just goes on and on about citizen’s rights, the First Amendment, blah, blah, blah and it gets really tiring. My normal nightly routine is watching a rerun of Golden Girls and hitting the hay at 7:15 pm. You’d think with all the time I put into the meetings I was getting paid to be there or something?”

Kwat: “Aren’t you?”

“Silly boy! $17,000 a year? That barely covers the detailing on my Trans Am convertible for the year!” Exclaimed Knudson.

We called councilor Beninga’s home and got this message from his answering machine: “This is Gerald. Thank You for calling. I voted No. Bye.”

Councilor Litz, though mostly silent through much of the proceedings last night had this to say, “I voted yes on this, because I’m for progress and against citizens, no, I mean, I’m for street closures, no, I mean I’m for new streets, and car lots and, five cars for my kids. You know I buy a lot of groceries . . . and nails, you know? Because I like to eat and build houses.”

Jamison seemed confused why so many citizens were against a tax increase to build new arterial streets. “How else is my family business going to make money?” Greg pronounced, “There is only so much commission my wife makes on selling $895,000 homes! Besides her hobby real estate business hardly helps to make ends meet. Good thing I get that $17,000 a year to serve on the council, them beauty bills from the salons and spas are getting steeper every year. Inflation you know?”

Kermit Staggers still sounded frustrated about the question of whether the platting fees were really a tax. “You have a city attorney, a mayor and unicorn boy who have no regard for the law, or for a citizen’s right to vote on the issue. I had to read them South Dakota codified law during the meeting because I still think they do not understand that it was a tax and not a fee.”

Kwat: “What did you think of their reaction to you reading the law?”

“Reaction?! I think De was asleep, Litz was eating a cookie, and Vernon was day dreaming of licking creamsicles on cotton candy clouds.”

But Anderson’s comments were very telling. “I think sitting on the city of Detroit’s council would be less controversial. At least they have sex, drugs and rock & roll to get them through the day, and that’s just on their Blackberries.”

ON A SIDE NOTE: We also want to recognize that Iraqi immigrant and director of the multi-cultural center, Quadir Aware spoke at the council meeting thanking the councilors and the mayor for cleaning up the SEX in Falls Park.*

*(though most this article is complete bullshit, that statement is not.)

Posted in: SF City Council, Sioux Falls, Taxes ⋅ Tagged: , ,