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City budget talks get heated; Johnson says budget seemed ‘rubber-stamped’
by Gregory R. Norfleet · News · February 04, 2009


An argument over funding Main Street West Branch turned heated Monday before the City Council approved a draft of a $2.9 million 2009-10 budget.
Council member David Johnson started the discussion when he suggested asking downtown businesses to create a self-imposed property tax to generate $15,000 in revenue that is now paid by the city.

The special tax would require 25 percent of the assessed value of businesses in a targeted area to agree.

“I’m not convinced that (MSWB) is worth it to ordinary citizens ... (though) there are business owners who find value in it,” he said. “For me that would be a real litmus test: If you couldn’t get 25 percent of the assessed value of business owners to sign on to this, that tells me they don’t have a lot of confidence in the Main Street program. If, however, you do get that amount, then our problem for funding Main Street is solved.”

Main Street’s Audrey Kofoed said that downtown businesses, as well as individuals, already donate money to MSWB, so she did not think that they would want to impose a tax on themselves, also. The $15,000 from the city amounts to about 38 percent of MSWB’s budget; the remainder comes from business and individual donations.

Council member Mark Worrell said he was not sure if there would be enough sales to generate the necessary funding.

“It’s almost triple taxing,” he said, asking businesses to pay their normal taxes, donate to MSWB and then the additional tax.

The conversation grew more tense after Johnson said that, even if it causes businesses to lower their donations because of higher taxes, “it puts the onus on the businesses that benefit the most” from MSWB.

“Those business owners need to have a serious sit-down and think about: ‘Is the Main Street program so beneficial that it’s going to counter the cost of these taxes?’” Johnson said. “Should private citizens be expected to help fund the betterment of a private enterprise? ... Surely we can all see that business owners will reap the rewards more than anybody else.”

MSWB President Becky Frederick stressed that MSWB is a non-profit organization.

“Main Street ... is for the benefit of every living, breathing human being that ever comes in the borders, whether you’re from California, Yugoslavia or Springdale,” she said. “The citizens benefit from the betterment of a community — a place to shop, a place to recreate, and all the programs that are involved in this city. It is not self-serving for the businesses alone.”

Mayor Sandy Hatfield said that downtown businesses are constantly asked to donate to schools and sports and other things, “and they do.”

Council member Tom Dean said that businesses that do not donate to local events suffer when word spreads.

“These people are hit over and over and over again to do things in this community,” he said. “I just don’t want to tax them any more.”

Dean added that the citizens benefit from a vibrant downtown.

The argument got heated when Johnson reworded his question to: “Why is it that you’re opposed to allowing the businesses to do a self-imposed tax versus a mandatory tax on private citizens? Which do you find more offensive?”

Dean answered.

“What I find offensive is you saying, ‘If they don’t want it, that shows you what they think of Main Street and we’re not going to fund it.’” he said. “I don’t see any Wal-Marts down the street. I don’t see any big-box business that can afford that tax. ... If we impose another tax, that might close a place.”

Worrell said a self-imposed tax is not a good measure of worth for a program.

“I don’t know of a business owner in his right mind who would self-impose a tax on himself,” he said. “I just think it’s ludicrous to think about that.”

Hatfield tried to wrap up the discussion with a light comment: “Have we beat this, officially, enough?”

Council member Todd Stoolman chuckled as he added: “Animal cruelty, I believe.”

But the tension increased once more when Johnson added that he was not satisfied with the budget and felt that, after listening to a recording of the work session, there was not a lot of “diverse opinion” or time spent at Saturday’s work session since he and council member Ken Peplow missed the meeting.

“I would point out that it took you folks 109 minutes to balance a $3.1 million budget — that’s about 27.5 grand a minute,” he said. “It seemed like a real rubber-stamping.”

Dean interrupted.

“That is your opinion, David, that is, you know. And you weren’t here, and we were,” he said. “That’s 109 minutes that we did do of research. The week before we had research and we had a budget meeting the Saturday before. And again, did you hear the part where I said ‘I don’t take spending our constituents’ money lightly’? Did you hear that part?”

“I did,” Johnson said.

“Yeah, and I don’t. I take it very, very seriously,” Dean said. “And I think what we’re getting here is services to sustain what we have and to look to the future. And if you can’t see that, that’s too bad.”

Worrell said this was the most time he can remember spending on a city budget.