Saturday, June 28, 2008

Yikes! Sandy Springs' Taxes Have Been Increased!



Don't look now
. . .
but if you own property in Sandy Springs, GA, your 2009 taxes have just been increased. If you don't get involved and present your views in writing, by telephone, or at a City Council meeting you can expect this to be a trend, not just a one-time event. The only dissenting vote was Doug MacGinnitie. You might want to remember his name. He is that small voice that should become the one the others take heed of instead of ignoring. The rest of our elected officials who voted on the matter jumped on the "Raise Your Taxes" bandwagon, thirsty for more. It should be noted that Mayor Eva Galambos opposed the increase, but she only votes in the event of a tie.

I visited a special hearing on the proposed tax increase the morning of June 25, 2008, at 7:30am at Sandy Springs’ City Hall. All of the Council members were in attendance except for the Mayor who is battling a newly diagnosed illness. Tibby DeJulio seemed to be “in charge,” and was virtually the only one who spoke. The others were eerily quiet. In the audience there were only about 5 people with two addressing the Council members expressing their concern over the proposed City of Sandy Springs’ tax increase. Me being one of them.

The first person who spoke was an older gentleman who opposed the tax increase. After the taxpayer stated his case against the increase, Mr. DeJulio proceeded to explain why the tax increase is really not an increase since the City Council is holding the millage rate the same. Mr DeJulio further stated the only reason the Council had to advertise this as a tax increase was because "the State required us to."

If you had been in attendance and are a property owner in Sandy Springs you should have great concern over these Council members’ inability to make sound fiscal decisions and their (non)commitment to contain taxes. They are acting like kids in a candy store spending someone else’s money with an expectation that there is plenty more at their disposal. Even worse they seem to have convinced themselves that the Sandy Springs’ taxpaying electorate is so impressed with their ability to make "good" spending decisions that these newly elected officials believe they have a virtual mandate from their constituents to increase taxes. I believe they are delusional and have been sucked into a dangerous place. Their newfound power (and overwhelming willingness) to tax has the real potential to make Sandy Springs a place to move from instead of a place to move to. The addiction to the drug we’ll call “the power to tax” has taken hold of this Council. It will take some very tough love by those who vote and pay the taxes to break this cycle while the council members are still “high.” No one should wait to act until these Council members begin a cycle of “crashing” on a pathway of “bottoming out.” The risk is that they will take what I see as "the great promise of a great future for Sandy Springs" down with them.

At this special hearing I asked Mr. DeJulio four times if he considered the action of the Council a tax increase. He fumbled some answers like "The State of Georgia requires us to "advertise" this as a tax increase," and "We are not increasing the millage rate at all," finally answering a meek "yes" on the fourth and final stated question of "But Mr. DeJulio, do YOU consider this a tax increase?" He then admonished me to get on with my statement. I was happy to oblige.

What a dangerous precedent this City Council has taken! Below is a response that could be written to any of the sitting Council members with the exception of Doug MacGinnitie and Mayor Galambos . . .

I find it very hard to believe that you are supporting this proposed tax increase. Giving you the benefit of the doubt my assumptions are that you must be under the influence of other council members who, as a group, must have convinced themselves they are operating under some misinterpreted mandate from the city's property owners and voters. Unfortunately you did not muster the courage to oppose them, change your mind, and vote NO to this tax increase. You should have followed the lead of Doug MacGinnitie and Eva Galambos. My preference would have been for you to lead them, not follow, on a path that held this Sandy Springs City Council to even higher standards of fiscal constraint setting new standards other city governments could use as a high integrity template.

Below are answers to flawed arguments presented by City Council members as reasons they voted FOR a tax increase.

1) Why in the world did you budget tax receipts at 92%? Our county tax collector, Arthur Ferdinand, has done a marvelous job and has consistently and significantly exceeded the Sandy Springs City Council's 92% projected collections by collecting in the 99% range over many years . His efforts alone should help keep taxes low - except when out of control City Council members take advantage of his success. Look at his record. Here is a quote from his website . . .

"Since 1997, we [Arthur Ferdinand's office] have increased the collection rate for property taxes in Fulton County from 90 percent to 99 percent today. It is important that the collection rate remains high. Tax revenues are used by governing authorities to provide services that improve the quality of life for the residents of Fulton County. A high collection rate enables the governing authorities to keep Millage rates down, hence keeping taxes lower." Arthur Ferdinand

Did Sandy Springs City Council deliberately set the projection low expecting with almost certainty that there would be a windfall over collection they could spend without budgeting for it?

2) The over collection, using City Council member estimates for 2008, is expected to reach $10.5 million, on top of the 2007 over collection of $5.5 million. How do you consider it responsible government to take that "windfall" and consider it as money to spend outside of your 2008 proposed budget? If there is an over collection it should be mandated that it be returned to the taxpayers - without delay. It should never be used as extra spending money by an out of control City Council. Your new "Non-Binding Resolution" suggesting a tax rollback/refund of 50% of over collections in 2009 is a respectable attempt by Mr. MacGinnitie to hold the Council to some spending limits. But since it was only acceptable to other Council members as a non-binding resolution it really is an impotent attempt to make constituents believe you are actually going to defer good judgment until 2010 when bad judgment has already been applied. You have already demonstrated what you will do if there is any additional money collected . . . You intend to spend it and then find a reason to raise taxes even higher. Mr. DeJulio even stated that the only reason he could vote for the resolution was that it was non-binding!

3) The idea of a "rainy day fund" or "reserve for emergency expenses" should be a budgeted item at reasonable levels, and held to that budgeted amount. Any required (not simply desired) expenses outside budgeted amounts should come from that reserve. The reserve should have very tight constraints on what it can be used for and fiercely guarded limits as to it's fully funded amount. There is very little need for this reserve to grow year over year and it should never . . . never . . . be used for what one Council member refers as "sandbagging."

4) References were given to Fulton County School Board's budgeting process. I don't think Fulton County Schools should be your model for good government in action or be seen as one that the City of Sandy Springs should look to for efficient taxation and government spending. I never thought I'd find a time to say it, but the Atlanta City Council did make a good decision when, on Friday, June 27, 2008, they voted NO to their city's tax increase proposed by their mayor. Hard spending decisions will follow, but hopefully they will be up to the task. If they keep up their diligence on holding taxes down they will be attracting more businesses and more residents - possibly those fleeing from Sandy Springs.

5) If you want businesses and individuals to be attracted to Sandy Springs above all other metro communities your mandate should be to lead the way in keeping taxes low - always low - run an extraordinarily efficient government, and provide an educated workforce. That doesn't seem to be your commitment today, but perhaps that is due to the influence of other council members and, in my opinion, a very few, but targeted voting constituents, not the majority of voters or property owners.

6) It has been mentioned that there is a pending $500,000,000 need for infrastructure items such as sewers, roads, sidewalks, a new City Hall, new Fire/Police headquarters, a new Hammond Park, Morgan Falls Park, etc. The list of items presented is more like a list for Santa Claus to consider as opposed to one that lists alternative options, sets priorities, identifies timetables, and presents a plan for funding. It is also strange that you would list these as reasons to increase taxes by $2.5 million and not give any indication as to how this is going to help a $500 million "problem." Is it a $500 million problem or just a tactic to impress/confuse your constituents? Budget these items IF they are needed along with a plan of action. Don't just throw the numbers around as an excuse for why you raised the taxes this year and spent the money on something unrelated.

To the Sandy Springs' citizen/taxpayer: Do you want the Sandy Springs City Council to increase your taxes or do you want them to conservatively budget, efficiently govern, and hold the line on taxes? Let them know. Here is a list of their names and email addresses.

Click Here to Email the Mayor and All City Council Members Simultaneously


Doug MacGinnitie, City Council, District 1
doug.macginnitie@sandyspringsga.org

Dianne Fries, City Council, District 2
dianne.fries@sandyspringsga.org

Rusty Paul City Council, District 3
rusty.paul@sandyspringsga.org

Ashley Jenkins, City Council, District 4
ashley.jenkins@sandyspringsga.org

Tiberio “Tibby” DeJulio , City Council, District 5
tiberio.dejulio@sandyspringsga.org

Karen Meinzen McEnerny, City Council, District 6
karen.mcenerny@sandyspringsga.org

Eva Galambos, Mayor
eva.galambos@sandyspringsga.org

Click Here to Email the Mayor and All City Council Members Simultaneously


Posted by Jim Buckler, jim.buckler@gmail.com


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