One way or another, we will pay
Last Modified: Friday, July 11, 2008 at 6:26 a.m.
On the Board of Commissioners' decision Monday to put a .25 cent sales tax referendum on the November ballot, we say good luck with all that.
Considering the defeat of same measure by a 2-1 margin in May, and the demise of a deed transfer tax increase last fall, the measure has about as much chance of passing as we do of seeing a July snowstorm. Nevertheless, voters should carefully consider it because one way or another, we will have to pay.
We can't blame commissioners for trying to find another way, besides raising property taxes, to pay for $3.67 million in debt service on new schools and services residents say they want. The only way the county avoided a property tax increase this year was tapping $2.4 million in reserves.
As anyone on a household budget knows, you can't keep dipping into savings each month to pay living expenses without bankrupting your savings account. Still, voters are unlikely to choose to tax themselves in the fall when fuel prices will be who knows how high.
One commissioner, Chuck McGrady, voted against putting the sales tax on the ballot again. He said voters are not likely to choose to tax themselves based on a threat that property taxes will go up.
"Frankly, I don't think people will believe that," McGrady said. "We said that before and property taxes didn't go up."
If voters believe county leaders are crying wolf this time they will likely find out otherwise when budget time rolls around next year. County Manager Steve Wyatt is skilled at cutting budgets, but he can only pull so many rabbits out of hats before he comes up empty handed. Even if commissioners next year adopt a four-day work week, as he recommended this year, those savings will likely be wiped out by energy costs that have already almost doubled since last year.
Whatever savings or budget cuts the county is able to make next year, it will still have to pay millions more in debt service for the new Mills River and Hillandale elementary schools. These are costs that have been put off for more than a decade since voters rejected a bond referendum back in 1997.
Once again this fall, voters will face the question of pay now or pay later. The sales tax option does have some benefits over the property tax that voters should seriously consider.
Commissioner Mark Williams, who supported putting the measure on the ballot, said the .25 percent sales tax would tax people $25 for every $10,000 they spend.
"That is really not a lot," he said.
Unlike the property tax, which comes due all at once, the sales tax is something people would pay throughout the year. And it would spread the tax burden to tourists, illegal aliens and other non-residents rather than putting it mostly on homeowners.
Fletcher resident Dennis Justice told commissioners voters will not support a tax increase without a specific plan for how the money will be spent. Justice said he would, for instance, support a bond referendum to fund a specific project such as increasing the county's recreation facilities.
That is one idea worth considering. But a bond referendum has to be carefully structured and promoted to the public to have a chance of passing. Voters defeated a $46.5 million bond for public schools and an $8 million bond for Blue Ridge Community College by margins of more than 2-1 on complaints the project list was bloated and would saddle the county with debt. The county was able to finance most of those projects incrementally and has finally gotten around to replacing Mills River and Hillandale.
A few lessons from the past are worth voters' consideration. Building costs, like everything else, will continue to rise. And putting off needed projects today only makes it more painful when the bill eventually and inevitably comes due.
One way or another, we'll pay
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