In a recent article in this publication authored by a guest columnist, also a candidate for the position I currently hold, it was written that Erlanger passed a budget that will spend $1.8 million more than last year. The article also implies that Erlanger is scaring off businesses with high taxes. While these comments may seem sensational they actually show how little the author understands about municipal governance and budgeting. The truth is that the budget that took effect July 1 reflects merely a 1.8% increase in expenses from last fiscal year’s actual operational expenses. This is in line with estimates of the cost of living increase established by reputable sources. City government is very labor-intensive because it is primarily engaged in people providing services to the public. Payroll is 45% of the operational budget and employee benefits are another 28% of the operational budget, and most of these are statutorily mandated (meaning the city has little control over these expenses.) Total staffing costs are 73% of the general fund budget. In order to continue and improve upon the quality of the services provided by the city, Erlanger must remain a competitive employer. Therefore, salaries are adjusted as needed to meet the needs of staff and to attract quality, prospective employees. What the author fails to recognize is that capital expenditures (road and street repair, construction projects, real estate acquisitions, building repairs, vehicle purchases, etc.) were separated from the operational budget years ago and are funded by the .5% payroll tax increase (the first increase in 17 years for that revenue source) enacted by Council four years ago. City Council made it very clear that revenues from this change were dedicated to capital expenditures. Readers may have noticed some of the projects funded by this change: the McAlpin – Garvey realignment, streetscape improvements on Commonwealth near the interstate and on the Dixie, acquisition and demolition of the old, messy concrete plant near the entrance to the former Showcase cinema site - all projects to improve the city and make it more attractive to potential businesses and residents. The direction taken by the city is working. Among the businesses that have chosen to locate in Erlanger or expand current operations are Signature Hardware, McD Concrete, St. Elizabeth Medical Center, Sterling Cut Glass, Salvadore’s, Chipotle, just to name a few. Toyota is actively marketing their world-class facility so that when they leave our area in 2016 a new business will likely fill the void. While we are all sorry that Toyota made a corporate decision to move some operations from California and our area to a central location in Texas, all of the revenues received by the city from that business location will not disappear. In addition, while we know nothing for certain, there is activity in the development of the Showcase site. Obviously, Erlanger tax rates are not in any way scaring off businesses. In summary, Erlanger is attracting businesses and the residents are pleased with the quality of the police, fire, life support and infrastructure improvement that their city government currently provides. Erlanger’s tax rates sit squarely in the middle of the pack of all northern Kentucky communities. The ‘playbook’ Erlanger uses is, like its football analogy, always under review and is changed when appropriate. I thank you for your time and attention.
Posted on: Wed, 23 Jul 2014 13:15:39 +0000
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