For Release 9a.m., CDT
August 17, 2009
August 17, 2009: Coppell TX - The Coppell City Council is facing organized citizen opposition over a proposed five cent tax rate increase for the 2009-10 fiscal year. On August 11, 2009, the City Council voted unanimously to move forward with the tax rate increase, despite mounting opposition from their residents. The state-mandated public hearing on the city budget and proposed tax rate were set for August 25 at the regularly scheduled Council Meeting, and for a Special Meeting of the Council on September 1. Final adoption of the budget and tax rate is scheduled for a vote at the regularly scheduled Council Meeting on September 8.
Coppell Mayor Jayne Peters expressed her solid opposition to the tax rate increase stating, "In my opinion, this is not the time for a tax rate increase in the City of Coppell. These are the worst economic conditions that we've faced i our entire lifetime. Many families and businesses are struggling and we need to demonstrate a compassion and sensitivity to the plight of our residents and businesses. While I understand Councilmembers assertions that the citizens voted in 2006 to purchase the Northlake property, I contend that based on our fund balance (savings account), you've already paid the debt service payment for Northlake for this year, and possibly longer."
"A unified citizen coalition is strongly opposed to this tax rate increase," said Barb Schmidt, spokeswoman for the opposition. Ms. Schmidt addressed the Council saying, "This amount represents nearly an 8% increase in our current ad valorem tax. In my opinion this is extremely ill conceived given the fact that we are in the midst of the largest economic recession since the Depression." Ms. Schmidt provided the Council with a tax rate comparison of cities that demonstrated that Coppell's proposed .6986 tax rate will make it one of the highest in the Metroplex. Ms. Schmidt also pointed to the city's $37,000,000 fund balance (savings account) as evidence that the tax rate increase is not necessary.
Long-time Coppell resident Biz Haddock presented each councilmembers with copies of over 120 letters of opposition from Coppell residents. "In light of the strong opposition, we were shocked that the Council chose to move forward with the tax rate increase." Since the Council meeting, Ms. Haddock says that "letters continue to pour in on a daily basis, and we hope the council listens and is responsive to their constituents."
Bob Cleavenger, another long-time Coppell resident who is often in attendance at Council meetings and budget workshops, addressed the Council saying that he felt compelled to express his opposition to the tax rate based on current economic conditions, and after reviewing the proposed budget.
Former Mayor Candy Sheehan has questioned the need for a tax rate increase by noting, "There is $37,000,000 in the General Fund Balance and at least $16,000,000 in the undesignated or unallocated fund balance. The debt payment on the Northlake proerty is approximately $2,800,000, so if the Council already has at least $16,000,000 "extra" of our money sitting in the bank, then why the overwhelming push to raise the tax rate next year? On top of that there is a $1,000,000 Tax Stabilization Fund that the council is refusing to use. If not now, then when?"
Former Mayor Lou Duggan said, "There is no financial justification for a tax increase this year. Coppell's real estate valuations have officially declined less than 1% over last year. So, there is no real budget shortfall. No budget cuts have been proposed and the budget (without tax increase) will cover the Northlake financial commitment. In the worst case, our property taxes have generously funded a 87% reserve fund for any unexpected financial short fall."
Please contact Barbara Schmidt at (214) 502-4467 (bschmidt@txi.com) for further information.
For further information:
Blog: http://concernedcitizen75019.blogspot.com/
Twitter: http://www.twitter.com/concerncoppell
Facebook Group: http://www.facebook.com/group.php?gid=14536321191
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