2009-2010 Budgets

[Don Haddix]

Currently, the prevailing thought is no tax increase for 2009 and depending on the economy a potential up to 1.5 millage increase for 2010.

Any tax increase for 2010 is something we must vigorously work to avoid in this economic environment. DAPC is working to find and bring assets to PTC. Numerous cut backs and delays have been enacted for expenditures, eliminating certain tax burdens by privatizing is a goal for some on Council and direct cuts in service, mainly recreation, are being researched and considered.

We are actively working with Staff to develop a survey for the tax payers covering questions such as do you want to cut services and if so which in what priority order, do you want to increase taxes with no service cuts or do you want a combination of both service cuts and tax increases?

There will be educational releases to show the tax payers what is at stake and information vital to properly answering the survey.

Sequence is to be educate - survey - act.

Hopefully things will come together so we don't need to cut or do any tax increase. But we have to be prepared just in case.

Reality is we are now a mature community, so the easy one time incomes from new growth are drying up. The future will hold some new growth but a lot of redevelopment and renovation. We will be far more dependent on recurring income, such as property and sales tax.

As any household must do, we have to live within our means and plan for the lean times in the good times. We are in the lean times and do not know when they will end.

PTC is a great city with great people. We must pull together to keep it that way. We are in far better shape than many cities, so we must be wise in our goals and efforts.

Your input on these issues is always welcome.

[Don Haddix]

Some issues I believe have to be resolved beginning now:


Double taxation - the past practices of what PTC pays taxes on to the County and collects for PTC, again, resulting in the County treating our expenditures as if the County can legislate as if our funds are their funds has to end. Examples are:

Senior Services:

PTC spends about $200,000 which includes the Gathering Place and other services which PTC and County can both utilize.
The Senior Center in Fayetteville services Fayetteville, by default of location. They contribute $17,000.00.
PTC, Tyrone, etc. have no transportation provisions for enabling the rest of the county seniors to get there. When I asked about I was told a program is in development and if Seniors can get to the Gathering Place they can get to Fayetteville. Really? Long golf cart ride.
PTC gives extra money to Meals on Wheels, an extremely worthy cause.
When I proposed all funding for Meals on Wheels and like programs come from County, since it is legally a County function, instead of County plus cities, it was not well received.
Note: There is no mention of cutting any services here. Just a reallocation of funding sources to the appropriate government level. Sure, County can have a lower budget and millage rate if the cities are picking up portions of the tab on top of what their citizens pay in County taxes.


Recreation:

The total County budget is a little over $1 million.
PTC has over $4 million budgeted.
PTC has 73.75% of all Fayette Rec facilities.
PTC has about 35% of the population.
All County residents get equal access to PTC facilities as PTC residents, for which the County budgets $150,000 to us as compensation.
Including non County facilities Fayette is in the green for Rec needs.
Excluding PTC facilities Fayette is in the red for Rec needs.
County feels we are getting an equitable funding allowance.
The options I stated were not received well at County. Those being get more money from County, charge County residents at the same rates as non County and up the fees to cover costs and/or reduction of facilities to give full coverage to PTC resident usage and send all County residents to County to get their services. My underlining point was something has to change, we cannot be paying for a significant part of Fayette County any longer.
Note: I am not trying to be Scrooge here, but there has been far too much taking PTC tax dollars supporting County functions for granted in the past. Yes, PTC allowed it to happen and needs to take the blame, but that does not mean we cannot or do not need to change our ways now.




Tennis Center:

Between loans, use of Hotel/Motel Tax and operating losses, the combined expenditures, with the Fred and Tourism is at least $900,000 a year.
Selling this facility:

Would allow a private entity to operate it.
Place the facility in the Tax Digest for income to PTC.
Retain the facility as an asset to PTC. It does not have to be owned by PTC to be an asset.
Allow some of the Hotel/Motel tax to be used elsewhere with the Rec budget.
Remove significant annual operating costs and debt management from the PTC budget.
Allow for more efficient operations. Government has time and time again proven to be poor at for profit business.





Just a few issues I believe would go a long way to allowing PTC to be more fiscally sound.