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City needs to tighten the budget

| June 7, 2007 11:00 PM

Please consider the following information, check out the facts for yourself, slow down spending and help establish city council/city manager accountability.

Just like you, I am busy with work, family and daily life. Just like you, I am too busy to get involved in City Hall. When I have been involved, I have found that laws are being implemented which restrict my rights and create more taxes. Such is the case with the impact fees.

The recent articles in the Pilot and Daily Inter Lake indicate that city council has adopted a capital improvement budget of $73.2 million based upon a hired consultant study.

Most of you realize that often consultants tell you just what you want to hear. I can assure you the study was not independent and only provided the answers requested.

This budget is based upon the city manager's estimates of growth when in fact, his own estimated number of residential construction is actually down 45 percent, student enrollment has declined, existing development unit-sales have declined, much of the nation is facing a severe residential-home sales decline, and the city is recommending a policy that favors infill rather than growth.

Last month the city manager presented a preliminary budget overview. This overview justified higher salaries, new equipment and a spend, spend, spend attitude.

The population growth estimates and the comparisons used in the overview and in the capital improvement budget are suspect. It should be scrutinized by a truly independent professional.

The following are details about impact fees as confirmed by Gary Marks and some of the city council members:

? The state of Montana recently enacted laws which allow cities to impose impact fees.

? City council can legally impose impact fees without citizen vote; however, citizen voting is also an option.

? The city manager has hired a consultant to establish impact fees, and they are directing city council on the details of this taxation and implementation.

? Specific details of what is taxed and how taxes have yet to been made public — even to city council members.

However, a five-member Impact Fee Advisory Committee has been formed.

The Impact Fee Advisory Committee has been rumored to be a "watch-dog" committee and (for appearance, as a technically competent committee) one person is required to be a CPA.

Do not be lulled into thinking for one second that this committee is a "watch-dog" committee.

"The purpose, powers and duties are to serve only as advisors to city council and nothing shall be construed to empower the committee to authorize or prohibit the use of public funds. The committee shall have no supervisory control and shall not direct city staff in the performance of their official duties."

The committee is made up of the city assistant to the city manager, one city council member and three citizens of Whitefish (one of these to be a CPA). This committee is formed to appear to legitimize the process but is only a rubber stamp.

Please consider the following:

? On the surface, this looks like a way of slowing development and would only be a burden to developers. However, it may be a burden to any of us that have property.

? The proposed impact fees will be assessed on projects and developments in the zoning jurisdiction of Whitefish and will be imposed on citizens that can not vote because they live outside Whitefish city limits, i.e. taxation without representation.

? These taxes are completely contrary to bringing affordable housing to Whitefish because they make property even more expensive than it is now.

? There are already impact fees in the form of sewer and water hook-up fees, which are collected from development companies and single-home owners. These funds are significant but not known by the public as to amount or use.

I think it is obvious to everyone that the Whitefish budget has grown large enough to pay for new vehicles, huge salaries and large numbers of staff. This money comes from the good citizens of Whitefish. I think city council should spend time on cost reduction, not more taxes.

The key message here is that unless we become active, the citizens of the zoning jurisdiction of Whitefish will have a new tax forced on them. The funds will be used to pay for the new City Hall, add staff, more vehicles, increased salaries and anything city council may decide needs to be increased as a result of your project, business or use of your property.

Something this important to each of us needs to be debated in open forum and voted upon before being implemented.

Peter F. Elespuru is a CPA in Whitefish.