July 22, 2008 09:57 am
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By TESA CULLI
tesa.culli@register-news.com
MT. VERNON — The City Council passed three tax increases by a 3-2 vote Monday, creating a 1 percent restaurant/beverage tax; a 2 cent per gallon diesel fuel tax and increasing the telecommunications tax from 1 percent to 2 percent.
“I have great respect and have great admiration for all the people up here,” Councilwoman Mary Burgan said. “This council isn’t a divided council, we just have a difference of opinion.”
Three people from the audience asked to be heard on the issues before the council voted, with Emily Ward-Nixon saying that with gas prices and food prices at their highest rates ever, the housing market in decline and a credit crunch, this wasn’t the time for the increased taxes.
“The economic factors are very real,” Ward-Nixon said. “The council should be very prudent in considering the vote here. ... I believe it’s relevant that Merle Hollmann, the finance director, has expressed that he can live with this and that the mayor is against the increase in taxes. ... I believe when people see Mt. Vernon increasing taxes, they may go on down the road and stop at a different place.”
Resident Randy Wynn asked for clarification on the three taxes and what they meant for residents, stating he isn’t for or against the taxes but wanted more information.
Edward Percy Atkinson spoke of how difficult it is to “balance income from out go.”
“The government actually owns nothing,” Atkinson said. “If it promises to give something, it must first take something. ... Many are convinced the government is rich, but it only has what the people give. ... Before you make an affirmative vote to take something from people, make sure what you are spending it on is worth more than what the people you’re taking it from have in need.”
All four council members and Mayor Mary Jane Chesley took time to give their opinions on the taxes, with Councilwoman Shirilyn Holt starting the conversation.
“I’m just going to speak for what it means to me,” Holt said. “People will say things to you to your face that aren’t nice, ... things like people who accept money from the government should stop, they should pull themselves up by the bootstraps. ... I submit to you today, that’s what I want this town to do. .. I want us to progress. ... I don’t want these taxes. ... This is a tax for me as well. ... I’m not voting on something that’s not going to hit me just like everyone else. ... Sometimes we have to make hard decisions, unpopular decisions, one’s that make people unhappy.”
Burgan said she also took a look at how the three taxes would affect her and her business.
“I’m affected by all three of these taxes,” Burgan said. “I sat down and figured how much it would be taking out of my pocket.”
Burgan said the restaurant/beverage tax and telecommunications tax would amount to about an extra $3 per month, and the diesel tax — with the five trucks operated from her business — an extra $165 per month.
“That’s just not enough to hurt me enough to stop the progress of this incredible town,” Burgan said. “And for the arguments of those who say they would just go to Ina to get fuel, I don’t believe it. ... It would cost an additional $19 just to go to Ina, before the purchase of diesel, not to mention the half-hour in manpower. That makes it a very expensive 2 cents to go down the road.”
Councilman David Wood said the taxes weren’t about “opening new parks or creating new services, or even holding on to the services we have.”
“The city has been delaying maintenance and improvements to it’s infrastructure,” Wood said. “That’s just a fancy word to describe streets, sewer lines and water lines — the things we do every day. ... In this budget there are 3.2 million in improvements to our existing infrastructure that we need to find a way to pay for or continue to delay them yet again.”
Wood said he also believes the taxes are needed to fully open the second interchange and “take full advantage of the opportunity when it opens.”
“How can we expect a business to invest in Mt. Vernon if we don’t invest in Mt. Vernon ourselves,” Wood asked. “We need the funding to execute the comprehensive plan. Without the means to bring it about, it’s just a dream, not a plan.”
Walker said he also respects the members of the council, but he has a “difference in philosophy” with those who voted for the taxes.
“Not a night goes by that you don’t hear on the news that the economy is in the dumps,” Walker said. “In your own household, you look at ways to cut expenses. ... Now is not the time for this. Thomas Jefferson said that the government that governs best governs least.”
Councilman Mike Walker went on to say some of the infrastructure costs could be passed on to developers, and counting on state money for the extension of Veterans Memorial Drive behind Wal-Mart will have to wait. He also said there may be funding options through grants that haven’t been explored.
“Without the state money, it’s all for naught,” Walker said. “This is not the time. ... We don’t know if the state has any money for us. ... It doesn’t hurt for us to sit and wait a year to see what happens.”
Chesley said she believes the overpass/interchange as a golden opportunity for the city, and that the city budget has taken several “big hits” in the past few years.
“I believe if you’re going to take money out of the taxpayers pocket, they have a right to vote on it,” Chesley said. “Yes, we have Home Rule and have the ability to raise the taxes, but is it the right thing to do? I don’t think so. ... As Councilman Walker discussed, there are other sources of funding out there and I believe there will be other sources available. We’ve got to get out there and do some old-fashioned hustle.”
“This interchange is an economic opportunity not just for us, but for the region, the state and the Midwest,” Chesley continued. “Should we have this burden alone? I don’t think so. ... I’m not anti-growth, I just think voters should have the right to vote on it.”
The three taxes passed with Burgan, Holt and Wood voting in favor and Walker and Chesley voting in opposition.
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