If You Got ‘Em, Spend ‘Em, Taxes That Is

In yesterday’s post I mentioned how there were many “Closet Tea Partyers” at the annual Sturbridge Town Meeting. Unfortunately for the taxpayers there weren’t enough of them.
Here are a few of the spending articles which were discussed where these people showed their colors by making excellent points about fiscal responsibility and smaller government.

Article 6

This article dealt with funding the water department for the year. For the record we have an outside company which runs this and the sewer department. There were two articles dealing with the water department needs, the other was Article 14, which was for Capital Improvements. The difference between the funding for the water department and capital improvements, is where the money comes from. The water department comes from the people who have town water while capital improvements are funded through property taxes through free cash (now there is a misnomer).

One of the items in the capital improvements was a “DPW Water 1 – ton Utility Truck” for $40,177. The question was raised as to why should all the tax payers pay for the water departments truck when in theory, it is only used for water department use. I say in theory because it is sometimes used for other duties as well, plowing was mentioned for example, but the majority of it’s use is water related. This certainly made sense to me and shows fiscal responsibility to the ALL the taxpayers. This one passed.

Articles 11 and 12

Both of these articles dealt with money received from the Hotel/Motel tax. The “Sturbridge Tourist Association” uses their money for marketing and other “tourists” related expenses such as the “Welcome Center”. The “Betterment Committee” can use the money for:

“Betterment Committee funds are utilized for public safety, recreation and the beauty of the community”.
The Hotel/Motel tax is 6% and two thirds goes to the town’s general fund and one third is split equally to the STA and Betterment. In the discussion on these articles, it was brought up that there were some items which maybe should have been in other budgets, such as a new radar gun for the police department etc. These items came to about $52,000. The reason these items are not part of the budget is somewhat “fuzzy” for lack of a better term. Historically in Sturbridge this is where the Fire Department, Police Department and others could receive the money for the “nice things to have but not necessarily needed” items. This is what lead to a good part of the discussion.

Just because we have the money do we need to spend it? If the money isn’t spent it stays in the “bank” or wherever this tax money is held, a virtual lock box perhaps? One point which was made was if these items were really needed they should be in the specific departments budget and then they would have to mange their money more effectively. For example let’s take one of the items, a fire department air compressor costing $3,899. I admit I didn’t ask exactly what this compressor is, I am assuming it is for filling the Scott bottles and I am also assuming it is either in addition to or replacing the existing one which is almost 30 years old.

So the question is why we wouldn’t but this in the Fire Department’s budget? Wouldn’t the department then be forced to tighten their budget up in other places? Let’s jump ahead, to another argument which was made in the discussion. If we didn’t spend this money on items which should be in other budgets couldn’t we then lower the Hotel/Motel tax drawing more tourists? (and yes, you know there is a blog post coming regarding whether we are a tourist destination or not)

I agree with this position. There are some things which can and should be funded through this money. Plantings in the flower barrels I can agree with, landscaping at the Senior Center is a good use and tree maintenance around the Town Common is a good use. Police Overtime for special events, a new radar gun and an air compressor, not so much. Nothing against the Police and Fire Department but these should be included in their budgets. An air compressor or and evidence bar-code system, while perfectly allowable with this money aren’t really tourist related.

I know I am running a little long so I’ll wrap this one up with this. We would be better off lowering the Hotel/Motel tax rate, maybe attracting more visitors which, now I know there are many on the left who won’t agree with this, generating more revenue in the long run. Generating business by lowering taxes actually increases revenue. It was even mentioned at the meeting that the hotels and motels had great years because of the disaster, the tornado and October snow. Let’s assume and hope this won’t be the case every year, which means we should try to increase our guests.

But then, I know the thinking, the money is there we need to spend it. It’s that free money thing again, it isn’t our money it comes from the tourists.

To be continued…