Proposed Coppell City Tax Increase—Public Input is Part of Process

Editorial: by Lou Duggan

On Aug. 25th the Coppell City Council will meet at City Hall in public hearing for raising city taxes 5 cents. Mayor Jayne Peters has publicly opposed the Council’s proposed tax increase. “In my opinion,” Peters said, “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 in our entire lifetime. Many families and businesses are struggling. We need to demonstrate a compassion and sensitivity to the plight of our residents and businesses.”

Citizen interest in a public hearing appears to be gaining momentum as a result of the Mayor’s opposition. E-mails are flying across the internet. Citizens are questioning the City’s justification for a tax increase. A lingering recession, some folks living on credit cards to make ends meet, more than 7% unemployment in Coppell, homes in foreclosure, layoffs and fear of job losses rippling throughout North Texas—all these factor into this discussion. Now, combine these factors with some previous issues that have created citizen anger and we have an environment rife with emotion. Contrast the above with the Mayor’s assertion that a no-tax-increase budget could actually cover anticipated and budgeted items and still leave a generous General Fund to cover unexpected shortfalls.

The Mayor is taking the tax rate issue to anyone who will listen. “Between now and the final vote on the budget on September 8,” Peters said, “I make the offer to visit with any group or individual who wants to join the discussion. I want to hear from residents, from business owners, from tax payers. I invite our citizens to join the discussion.”

In their defense, the Council has been seeking public input on the budget process for months. Due to a lack of significant public input, the Mayor has taken the issue to the people. Certainly, now that a budget has been officially presented, the Council will welcome such citizen input. “In this representative form of government,” Peters said, “I welcome the dialog, the discussion, the debate, the deliberation that has to occur when we consider moving forward with a decision of this importance. The debate doesn’t have to be divisive or destructive – I contend that reasonable people can disagree respectfully. However, I do believe that the dialog, discussion, debate, deliberation is an essential element of representative government at its best.”

Keep in mind that public input represents a positive aspect of our government. It is the basis of the democratic process at the grass roots level. And, it is this process that our elected officials are sworn to uphold.

However, contributing to public concern is the belief that the City has not done a good job of demonstrating a real need for a tax increase. The City has officially experienced less than 1% property devaluation compared to last year. Thus, Coppell tax revenues will be close to the same as last year while other cities will experience serious revenue declines. There have been no budget cuts, no perceived cost cutting, no reduction of services, no employee layoffs, and no pay reductions. On the contrary, a no-tax-increase City budget—as affirmed by City staff--would still fund a staff salary increase of 2%. And, the Mayor relates that such a budget—with no tax increase—would also cover debt service, a healthy fund balance, and proposed expenses. Also, such a budget would include funding the Northlake debt service commitment with no anticipated affect on the City’s AAA Bond rating.

So, with citizens cutting back and looking for ways to survive this recessionary time, the Council’s actions don’t create confidence in the need for a tax increase. Therein exists the problem: a real need for a tax increase has not been demonstrated by the City or perceived by the public.