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Dick Trail

The Way I Saw It

Opinion

Vote NO on sales tax extension

Tuesday, February 24, 2015

It is the season to increase taxes -- yet another time. The McCook City Council is holding meetings to justify the renewal of McCook's local option sales tax. In a related, but sinister move, they also want to extend the sunset period from 10 to 15 years. Evidently it is inconvenient to have to keep justifying what I see as an unnecessary burdensome tax.

The local option sales tax, one-and-a-half percent at present, is made attractive to McCook voters by the promise to reduce their property tax burden. The perfect tax is, of course the one that the other guy pays and you benefit from. McCook voters doing business within the city have to pay it, but the beauty of the ballot issue is that all who live outside the City limits don't get to vote but have to pay it anyway while getting little or no benefit.

Ah ha you say, "They use our city streets so they benefit." Actually, that argument doesn't wash, because the city receives an allocation of the state collected gas tax to do city streets. This year that allocation amounted to some $814,070 about equal to what Red Willow County receives and totally funds their road department. I suspect that farmers and other shoppers from the surrounding areas travel more miles and therefor pay more gas tax than McCook residents that drive only a few blocks to shop.

Former mayor Dennis Berry recently posted in the Gazette that fewer than two homes have been built in McCook within the past couple of years. A portion of the sales tax will go to the McCook Economic Development Corp., which is presently working with builders in the new developing Clary Addition to secure tax increment financing to help build housing for those 55 years and older. Probably, that won't fulfill the present need for higher end housing for companies trying to attract worker and management personnel to McCook.

One of the advantages of flying and observing the local area is seeing that there are indeed new houses being built in the local area, just not in the city limits. Joe Brick Homes is still building in his Calabria subdivision.

Fly north, south, east and west and one can find new homes, just not within the city limits. The same is happening especially in the area around Kearney. Many little subdivisions have sprung up to the north of that city. All seem to be intent on escaping high city property taxes.

It is a sticky web. Why might persons not want to build within a city's limits?

For one, the city seems to come up with a plethora of rules concerning construction, picky-picky and, of course those rules all cost the builder and therefor the prospective home owner.

Those rules are exactly why developers, under City Manager Bingham's watch, pulled out of a large proposed multi home housing subdivision, in city limits, north of the Fairgrounds.

The real issue, though, is city property tax and that is the direct result of bloated city government. For example, the city police department at present has well over 20 employees and about an equal number of police vehicles. Contrast that with Chief Dutcher's police department of the him and two other individuals with two Hudson "police cruisers" in 1943. At that time the city population was 9500+, swollen by the nearby McCook Army Airbase, while the last McCook census showed a population of almost 8000. Back then the City Fire Department consisted of a paid fire chief, and a largely unpaid volunteer fire department. Kenny Cross, a college student, slept by the single fire truck housed in the basement of the Dodge Divine Building to be ready to respond to a fire call. They also served the surrounding rural area. Ambulance service was provided by the two local mortuaries at no cost to the city.

My point is that the residents of McCook and the surrounding area would be better served if the City Council would concentrate on cutting their budget and attempting to live within the revenue generated by the State Statute directed city property tax. I believe that if City property tax was equal to or less than the surrounding Red Willow County property levy more people would be willing to be annexed and take advantage or city sewer, city water and trash collection and better fire insurance rates. If you want to hear someone whine just listen to rural property owners talk about their recent huge increase in valuation and accompanying property tax increase.

The City could sweeten the pot for builders by installing the required utility lines plus paved streets and alleys built to spec all of which the builder has to do upfront now. The City of course benefits by increased property tax revenue from the new development which would pay off its infrastructure investment.

The City Council should forget the local- option city sales tax and its ever attractive more more more revenue to spend spend spend. We residents can help by voting NO to extend the Sales tax!

That is how I saw it.

Dick Trail

Comments
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  • It sounds and reads just like another McCook grumpy old timer as others in past city/county leadership roles in 60s,70s 80s,90s that said we don't need to ever build or improve schools or city services because nothing is wrong with our crumbling infrastructure and boy was they wrong.

    I am always amazed even at some of my own good friends and family hit a certain overnight it seems they become anti everything to help all areas of your community even though many of the grumpiest are all retired folk are getting social security, Medicaid, military pensions with all cost of living extensions without fail but when many hit a certain grumpy age its no to anything and when ask to pay any fair share to our local community. Now Dick is barking of taxes are to high and ask to forget improvements to city service just like past Washington slick Willy's

    So today Mr Trail now suggest that only city taxpayers should pay for all city services for all out of town folk and visitors of of city ballparks, city pool, senior center, streets, cemetery upkeep, Norris Park, Karrer Park, Barnett Park and many other services to numerous to list and just issue a free pass to no city folks on helping in small way on sales tax for keeping all city services in good shape.

    Its just smart to get longer approval in sales tax money set up from sales taxes so all city council members can plan budgets accordingly. So sounds like good long term planning to me nothing else period.

    Sorry Dick but your falling off your rocker on this sales tax issue and all who use city services need to pay their fair share period regardless of your tax comments on state level so vote yes to keep McCook going foreward.

    -- Posted by Corn Whisperer on Tue, Feb 24, 2015, at 8:29 PM

  • Over two hundred cities/towns in Nebraska have a city sales tax.

    -- Posted by dennis on Tue, Feb 24, 2015, at 10:18 PM

  • So a hundred towns have a sales tax, it doesn't make it right. Well said Dick.

    -- Posted by geewhiz on Wed, Feb 25, 2015, at 10:48 AM

  • Did not say 200 towns have the tax makes it right. What I was trying to say was the majority of people in those towns voted to approve the tax. And just because the majority of folks in Nebraska voted to approve the tax does not make it right either. However, we know the majority felt it was the right thing to do. I do appreciate that Dick believes the city could reduce some non essential services. The big question is what services are non essential. Doubt if Dick thinks the city should not have an airport. Other non essential services are things like parks, the swimming pool, the humane society dog pound, the library, the senior center, ball filelds, the walking trail, city parking lots, street lights, public transportation.....one persons ceiling is another persons floor.

    -- Posted by dennis on Wed, Feb 25, 2015, at 1:04 PM

  • Hate to agree with Trail about anything , but leaning up the government is probably the best bet. Not only local but state and federal as well. All the governments need to be weaned off the "endless funds" mentality.

    -- Posted by bob s on Wed, Feb 25, 2015, at 2:47 PM

  • So Bob what do you think needs cut from the city, county, schools, state,.....it is easy to say cut. Saying what is to be cut is harder. Go to the meetings and tell the city what you want cut.

    -- Posted by dennis on Wed, Feb 25, 2015, at 4:36 PM

  • I agree, we must return to the pre-1950's McCook. Maybe even back to the Sen. Norris days. There is no need for improved streets other than B and Norris streets. We really don't need water and sewage outside west and east 2nd.

    -- Posted by Hugh Jassle on Wed, Feb 25, 2015, at 7:30 PM

  • Here's sort of the problem - answering Dennis. Look at this article from 1949 -- http://www.nber.org/chapters/c3252.pdf --- people in 1949 were worried. 8% to 9% of all workers were government workers. The government was too big. Fast forward to 2010 -- from this gallop poll --- http://www.gallup.com/poll/141785/Gov-Employment-Ranges-Ohio.aspx --- In 2010, 17% of all workers were government workers. There are all kinds of old coots in town -- ask them -- was the government totally deficient in 1949. Were they all lost without the massive government we now have. Did the doubling in the percent of government workers somehow make their lives twice as good? Twice as safe? Was the increase from 8or9% to 17% beneficial or detrimental? The total number of employed people in the USA today is 148,000,000. Of that amount 24,000,000. are government workers. We don't need a government worker for every 5 non-government workers. The government is too big.

    -- Posted by bob s on Wed, Feb 25, 2015, at 7:45 PM

  • If we are going to do as others do, let's put up the solar powered speed signs that tell you what you are doing.THEY WORK. Then get rid of at least two radar cops. That would easily be a savings of $200,000

    -- Posted by hulapopper on Thu, Feb 26, 2015, at 7:29 AM

  • To hulapopper - if you drive through Colorado you can see that a lot of small towns are doing that . It does work.

    -- Posted by bob s on Thu, Feb 26, 2015, at 8:38 AM

  • It will work if used like it is supposed to be and not these other expenses not stated in the meetings. Leave it at the present time schedule and no extensions. We can all vote on it again in the future.

    Dick is not the grumpy old guy falling off his rocker. It's the ones wanting to use the tax funds for other things. It did get used for some funding on the Keystone project which should NOT have been done. Mis-using it is worse than not having it at all.

    If the city wants to change it all around to suit them and a few others, vote it out and not have the tax at all. Just sayin......

    -- Posted by edbru on Thu, Feb 26, 2015, at 2:05 PM

  • Its easy to understand why a life-long government employee would be opposed to cutting anything. That said, government growth comes at a price. So as my life-long government employee friend stated, "one persons ceiling is another persons floor."

    So welcome to advanced civilization where the sole purpose of government is to chose winners and losers. And really government should be doing the choosing since the average elected politician is, on average, 100 IQ points smarter than mother nature.

    -- Posted by shallal on Thu, Feb 26, 2015, at 4:04 PM

  • Shallal if you are referring to my post , I am afraid you do not have your facts correct regarding being a life long government employee. Also you are mistaken on me not wanting to cut any government program. Not sure on your IQ post but know you missed two of two shots.

    -- Posted by dennis on Thu, Feb 26, 2015, at 6:04 PM

  • As is says directly above the box that I am typing in "please be respectful of others and try to stay on topic" This is a topic with diverse opinions and emotions involved. We the people have been and are being taxed at a higher rate than any other time in history. Yet we are taxed less than some other developed countries (i.e., France) as a matter of history our culture is moving from a production economy to a service economy. This in itself is dangerous as a production economy will add value to a product. Whereas a service economy only trades dollars. Cutting taxes in itself is not a solution. Yes it will put more money into circulation in our community, but will also cause sectors of that same community economic hardship. We need to be discussing how to make the production sectors of our current economy more profitable and to expand the opportunity for business and industry to expand into our community. Then we will have a solid tax base to provide "essential" services. Expand the sales tax?/Eliminate the sales tax? This is a moot point. Tax dollars are only recycled money. We need new money. Value added. A production economy. Our community has the skills, facilities, and finances. This idea is well within our abilities. But the road that we are headed down is one of less income and more taxes.

    -- Posted by quick13 on Fri, Feb 27, 2015, at 9:34 AM
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