Friday, August 29, 2008

Win One for the Gipper, Lose Six for Responsible Government

The City Council voted to not increase property taxes. Reagan would be
proud!

However, the City budget is still on a spending binge.
They seem obsessed with increasing personnel costs.
The $22,250 Mercer Salary Report suggested that several employees were
underpaid and several were overpaid. But this report is fundamentally
flawed because it fails to adjust for differences in community
populations. Eagle is not Boise. The community-size adjusted result is
that almost all Eagle city employee salaries are too high.

Ignoring the obvious defects of the report, the council voted to
increases salaries and also give a 3% cost of living adjustment.
The council was silent on the issue of overpaid employees.
Only Al Shoushtarian voted to be responsible with spending under our
current difficult economic conditions. Unfortunately he was a lone man
in the wilderness.

The Carry-Over account will still be $1 million less at the end of
next year. Lesson: Don't give teenagers credit cards.

The council voted to put some of the hypothetical savings into an
account but refused to create a specific account to buy the city hall
building. Mr. Guerber proposed making this account a general slush
fund with no restrictions on rewarding politically-connected friends

The first duty of leadership is to stop pretending. Recent figures
indicate that new construction in Eagle is still down 50% from last
year. Why are we still spending on the Planning and Building
Departments as if nothing has changed? Reality is knocking but nobody
wants to answer the door. We could save a million dollars this year
with no loss in service. Instead we'll spend money so people can look
busy.

As property values continue to slide, assessed values must be adjusted
downward. This means that property tax revenue will decline, unless
the levy rate is increased dramatically. Are you ready to see your
home equity disappear and your property taxes not go down?

We need a Transparency and Accountability Ordinance now. Taxpayers
should be able to see exactly where our money is being spent. Norm and
Al are working on getting this into the city code, so citizens can
look at the city check register online. Encourage them to move forward
on this worthy project.

The bottom line is this budget still invades our savings so spending
on bureaucracy can grow. Tip O'Neal would be proud.

Time to Downsize Eagle City Government

Eagle City Government has almost doubled in size in the last five
years. This was due in large part to new construction activity. Now
that new development is at a standstill it's time for the Eagle City
government to downsize.

According to the 2008 Budget Report, the P&Z Department is spending
$773,225 on their ten employees. The Building Department is spending
another $468,777 for their seven employees. This made sense when Eagle
was adding new subdivisions and 500 homes a year. We'll be lucky to
break 100 in 2008.

Everyone has had to tighten their belts in these difficult economic
times. Government should not exempt itself from reality at taxpayer
expense. It's time for Mayor Bandy to be fiscally responsible and put
this obese budget on a diet. An 85 percent drop in new development
should correspond with a similar drop in city P&Z and Building
Departments staff. If things get going again, the City can always
staff up. In the mean time, the City should try to save the taxpayers
some money and pay down debts. Otherwise there won't be enough money
to provide basic services.

Bandy Should Spend His Own Money

The latest brainchild of Eagle Mayor Bandy and Co. is to spend $3,000
a month of our tax dollars to tell us what a great job they are doing.
This is part of their ongoing effort to improve “communication” at
Eagle City Hall.

While the Mayor is free to highlight his accomplishments, he should
pay for it from his own campaign funds, not our taxes. This is clearly
political advertising not informational.

Eagle is served by three newspapers, four television stations, two
local magazines, a number of radio stations, and its own website.
Local media practically begs the Mayor to explain what is going on.
Instead, the City wants it’s own Pravda to insure the public gets the
party line.

The Mayor feels that the city’s recent failure to impose a $7.2
million tax on citizens was a “communications” failure. There was no
communication failure; there was a listening failure. Citizens were
loud and clear: No new taxes without a bond election.

If you think the city should spend our tax dollars on legitimate
government functions instead of promoting itself, please call 939-6813
an tell the mayor to spend his own money if he wants to advertise himself.

Repeal the Eagle Property Tax Increase

Recently the Eagle City Council split 2-2 on raising property taxes.
Al Shoushtarian and Norm Semanko voted to not increase the taxes,
while Michael Huffaker and Steve Grueber voted for the increase. Mayor
Phil Bandy broke the tie with a vote in favor of the tax increase.

Now is not the time to be increasing taxes on Eagle families and
businesses. Eagle City government has been growing at 30 percent a
year for the last four years. At the same time, population grew at
only 5 percent a year.

The City Council must repeal this tax increase and put the obese
budget on a diet. The swing vote is Councilman Michael Huffaker. Many
hoped that he would help bring fiscal responsibility to the City when
he campaigned for office. He appeared to understand the history of
excessive spending, taxing, and borrowing. We hoped he would challenge
the status quo. If your family needs the money more than enlarging the
city bureaucracy, call Michael Huffaker at 938-4704 and ask him to
reconsider his vote and repeal the property tax increase.

City of Eagle Accountability and Transparency Ordinance

Many Eagle citizens frequently ask, "Where does the city government
spend my money?" Taxpayers should be able to get answers quickly and
conveniently. This is especially true since the Internet makes
accessing information easier than ever.

The city should demonstrate a commitment to transparency and follow
the example of the federal and many state and local governments by
providing a free easy-to-use website where citizens can get quick
answers to their questions.

Last year the federal government enacted the Federal Funding
Accountability and Transparency Act. This new law was co-sponsored by
senators Tom Coburn (R-OK) and Barack Obama (D-IL) and passed Congress
unanimously. The act provides a roadmap for states, counties, and
cities on how to allow citizens to find out about government spending.

Eagle City Government can take a step in creating trust by adopting an
Open Book policy. This total transparency package would create a new
online database on the City's website and include:

Check Register - This database would provide amount, date, payor,
and purpose.

Credit Card Statements - This database would provide copies of the
detailed monthly statements for all city credit cards.

Contracts - This database would provide a record for each contract
that would include the purpose of the contract,
the amount, the winning bidder, and a list of the qualified bidders.

Grants - This database would provide a record of each grant, the
amount, and the purpose.

All of the databases would be online, fully searchable, updated daily,
and be downloadable into spreadsheet format.

Thomas Jefferson knew that transparency was important long before the
advent of the Internet. In 1802 he wrote, "We might hope to see the
finances of the Union as clear and intelligible as a merchant's books,
so that every member of Congress and every man of any mind in the
Union should be able to comprehend them, to investigate abuses, and
consequently to control them."

Enacting a comprehensive searchable budget website would also help to
fulfill the expectation of the people expressed by the preamble to our
state's open government law: "The people of the state of Idaho in
creating the instruments of government that serve them, do not yield
their sovereignty to the agencies so created." (Title 67-2340).

This policy would go a long way toward preventing waste and fraud,
improving government performance, and building public trust. Time for
the City of Eagle to move forward with an open book and open access
policy.

Only 8 Percent of Library Budget goes to Books

The Eagle Public Library 08/09 Proposed Budget is $1,222,256. This is
a 17 percent increase from last year. Personnel Costs are estimated to
increase 27 percent. Of the total budget, $84,337, or less than 8
percent is budgeted for books. Eagle has around 22,000 residents. On a
per capita basis the library costs around $55.55, with books costing
$3.82 per person.

City of Eagle Accountability and Transparency Ordinance

Having records online would actually save taxpayers money.
Fewer public requests for information will generate
savings because every such request now requires a government employee
to take time from other duties to complete the request. Further,
instead of using their valuable time to complete such requests,
government employees can simply refer citizens to the website, thereby
dramatically reducing costs.

Now He Wants to Spend Our Savings Too

The budget carry over drops from $1,437,643 to $377,118.
Looks like the Mayor not only wants to raise property taxes but also
wants to spend $1,060,525 of our savings.

Mr. Huffaker is the key in the budget vote.
Email him at huffakerpc6@...
or leave a message for him at 938-4704

Ask him to vote with Norm and Al to stop this irresponsible spending.

Eagle Mayor Salary 51% Above Market

The following are current population and salaries for mayors in the area:

Boise 214,490 $91,229
Nampa 81,840 $74,432
Meridian 73,040 $63,669
Caldwell 42,640 $64,671
Kuna 14,830 $30,000


Eagle population is 21,090. The Mayor is paid $74,000.
A regression analysis of the five other communities suggests a strong correlation between population and mayor's salary.
The data suggests that Eagle's Mayor should be paid around $48,885.
This would indicate that his current salary is 51% above the market.

Data Source: Compass Planning and City Code Ordinances

Re: Eagle Salary Report Gets a D-

While I agree that the number of employees is a function of
population, the issue is the salary paid to the department heads.

The salaries of the worker bees appear to be at market. The department
heads, however, appear to be significantly overpaid.

On the Mayor's salary, this 76% increase was done quietly and quickly
last August. The city council rules were suspended so this could
happen under the radar.

Once again, I think the Mayor needs to ask for a refund on the study.
As an alternative, he should have the data reanalyzed and maybe add
his position into the survey to see where he stands.

Why is the Mayor of Meridian paid $65,000, and Eagle's mayor paid
$74,000? Meridian is three times larger. How does this make sense?

Eagle Salary Report Gets a D-

The City of Eagle recently spent $22,250 for a study to determine if
its employees were being paid enough. Mayor Bandy frequently referred
to this report in arguing for increasing city employee's salaries.
However, he refused to release the full report to the public. The City
Council ultimately had to vote to require the study to be made
available. Surprise, the study suggests that several employees are
dramatically overpaid.

Perhaps the much deeper problem with the report is the selection of
comparable cities. Should the City of Eagle be compared to the City of
Boise? Boise population is around nine times larger than Eagle. This
would be like comparing a 2,000 square foot house to an 18,000 square
foot house. Using Boise as a comparable might make sense if the
salaries were first adjusted for population differences. This
adjustment was not done in the Mercer report. The report also used
Meridian and Nampa without making size adjustments. By using cities much
larger than Eagle, and failing to make size difference adjustments,
the conclusion is not credible. A regression analysis showing the
relationship of salaries and population should have been used to
establish the basis for making location adjustments.

If the comparable cities are adjusted for population size, the results
are much different. For example, the P&Z Director is paid $82,500. The
population-adjusted survey average is $56,145. This suggests 47% above
the market. The City Clerk is paid $72,646. The population-adjusted
survey average is $49,500. This also suggests 47% above the market.

The Mayor should ask the Mercer Group to refund the $22,250. Or, ask
them to go back and pick cities that are more comparable in size, make
adjustments for population differences, and see what the revised
findings suggest. I'll bet a penny that more City of Eagle employees
are found to be overpaid.

Mercer Report Defects

The City of Eagle has published a redacted version of the $22,250
Mercer Compensation Survey. The report analyzed 21 positions using
data from 21 other cities and public organizations. The conclusions
suggest that several positions are underpaid and several are overpaid.

Perhaps the much deeper problem with the report is the selection of
comparable cities. Should the City of Eagle be compared to the City of
Boise? Boise population is around nine times larger than Eagle. This
would be like comparing a 2,000 square foot house to an 18,000 square
foot house. Using Boise as a comparable might make sense if the
salaries were first adjusted for population differences. This
adjustment was not done in the Mercer report. The report also used
Meridian and Nampa without making size adjustments.

It may have been more appropriate to identify cities with 20,000 to
25,000 people and similar demographics. One would expect cities much
larger than Eagle to pay their employees more. By using cities much
larger than Eagle, and failing to make size difference adjustments,
the conclusion is not credible.

For $22,250, the Mayor should ask the Mercer Group to go back and pick
cities that are more comparable in size and see what the revised
findings suggest. I'll bet a penny that more City of Eagle employees
are found to be overpaid.

Asking the Mayor to Mug your Neighbor for a "Good" Cause

At the recent City of Eagle Budget Hearing, a number of well-meaning
city employees, grant recipients, and their family members lined up to
testify on behalf of increasing the size of local government programs.
The Mayor and Council members listened intently to their emotional
reasoning.

I waited for the Mayor and City Council to open up their own wallets
and make donations. Hell is still uncomfortably warm. These budget
hearings are like two coyotes and a sheep voting on what to eat for
dinner.

Don't be confused. Almost everyone is in favor of parks, and
libraries, and art, and museums. The issue is not the value of these
programs; the issue is how they are funded.

These well-meaning benefactors of government largess are asking the
Mayor to use the police power of government to take this money from
their friends and neighbors by force. If you think threatening your
neighbor with a gun in order to fund these programs is immoral, why is
it legitimate for the government to do it on your behalf?

The Mayor and the members of the City Council are free to donate their
own money. They can even deduct the donation from their taxable
income. As H. L. Mencken said, "Every election is a sort of advance
auction sale of stolen goods."

The next time you hear all the good that public programs provide,
don't forget all the good things that people cannot do for their
families because the government has taken their money and spent it on
a coyote's good cause.

More taxes = more civilization? Wrong

They said I live in a wonderful country and should pay my taxes with a smile. I tried that but they insisted on cash.
- Mel Narvey.

Those in favor of increasing taxes for their favorite program love to quote Oliver Wendell Homes, "Taxes are the price we pay for civilized society." These words also happen to be carved in stone above the portal of the Internal Revenue Service headquarters in Washington DC.

Taxes are actually the price we pay because we are not entirely civilized. When a politician equates taxation with civilization, the logical follow-on is that more taxation must equal more civilization. Equating taxes with civilization is a 180-degree view of reality.

"Taxes are, in fact, a reflection of our failure to achieve a fully civilized society," observes the Cato Institute's David Boaz in his book The Politics of Freedom. "Civilized people get what they want by voluntary means, through persuasion or exchange. The use of force to acquire property is uncivilized, and the history of civilization is the history of limitations on the use of force."

Beyond simply taxing to civilize us, policy-makers assume the authority to define "civilization." Instead of securing and protecting individual rights, those who equate taxes with civilization use the power of government to tax the liberties they are charged to defend. The irony is that LuvEagle seems to believe that is civilized behavior.

Property Tax Levy Rates - Only Half the Story

According to the City Clerk, from 2006 to 2007
the general fund levy rate for the City of Eagle fell 5 percent from
.0423524% to .0402533%. But talking about tax levy rates is only
telling half the story. The other half is assessed values. The City
clerk reports that assessed values increased 67 percent from
$1,720,540,418 to $2,882,087,154 during this same period.

As we all know property taxes are calculated by multiplying the levy
rate by the assessed value. This resulted in a 59 percent increase in
property taxes from $728,690 to $1,160,135.

The question for Eagle is what is going to happen to the levy rate
when assessed values drop by 25 percent? Will Mayor Bandy promise not
to increase the current levy rate? Or will it push the rate up so it
can continue the spend spree? Home equity evaporates while taxes stay
the same. Welcome to Eagle.

Impact Fees for Politicians

LuvEagle wrote," while we have an impact fee program to help build
parks, we have not adopted an impact fee yet for pathways. Maybe now
is the time."

Impact Fees are taxes. They are not adopted, they are imposed. There
is no vote of the citizens to approve of these new taxes. Parks
provide a general benefit, but we impose the burden on new residents.
We certainly don't need new taxes to fund pet-projects for the
politically-connected friends of the Mayor.

The Idaho legislature has wisely limited the taxing power of local
politicians who want to build parks with other people's money and
property and then name them after themselves.

Parks do add value to our community, but they should be funded with
general bonds after a vote of the citizens. It is not fair to extort
this money from a few individuals to create shush funds for
professional politicians.

Mayor Orders Three Bacon Double Cheeseburgers (and a Diet Coke)

Why do professional politicians and career bureaucrats always threaten
to harm your children when someone questions their schemes to raise
taxes? At a recent City of Eagle budget hearing a "friend" of the
library suggested that those who were troubled with a 27 percent
increase in the Library budget wanted to, "burn a house down to save
money on utility bills." This argument actually supports keeping these
kind of "friends" away from the library, especially when the children
are there. Here is their real logic: If you don't give me the spending
increases I want, I will burn down the library.

Fortunately the council voted not to increase property taxes. The
Statesman reported that this will save the taxpayers $61,000. However,
this is only part of the story. Property taxes were originally
scheduled to increase $431,402. Now they are only going up $370,402.
This is a 10.5 percent increase over last year. When it comes to
taxes, saving means not losing as much as you expected. Good news
honey, I only lost $500 at the racetrack, not the $700 I was expecting.

We were supposed to start this new fiscal year with $1,437,643 in
carry-over savings. It has now surfaced that this money was too much
of a temptation for the Mayor and Councilman Guerber. They spent over
$1 million on the bicycle racing track. This was way way over what was
budgeted. In order to do this, they raided our carry-over savings
account when nobody was looking. While we all love parks, is this
really a priority given our difficult economic conditions?

We need a Transparency Ordinance now. Citizens need to be able to
watch the spending in real-time. We don't need these spending
surprises at the end of the year after our money is all gone. A
Transparency Ordinance will put city spending online so we can see
everyday how much they are consuming. We need to put a video camera in
the kitchen so we can see who is sneaking in for snacks after
midnight. Maybe this will stop the cheating on the budget diet.

Cost Does Not Equal Value

Would you rather pay two dollars or four dollars for a gallon of gas? Based on the logic of some Eagle politicians and bureaucrats, you should feel much better paying the higher price.

Eagle will spend $1,092,413 on the Planning Department next year. So how do we know if this is a good value or not? One way to find out is to put the function out to bid. The Mayor needs to issue a Request for Proposal to see what kind of proposition we could get. Maybe its time we expose planning to a little constructive capitalism.

With new construction and development activity down by 50 percent, it would seem reasonable that things at the city’s planning department would be rather slow. Yet any suggestion of downsizing the department is met with cries that Eagle will suffer irreparable harm. This argument is not based in fact or logic. Now is actually an excellent time to considering downsizing and outsourcing.

The City of Eagle outsources its engineering, police, legal, and other services. Why shouldn’t we consider an outside firm to provide our planning functions?

There are literally thousands of planning firms in the country. Instead of relying on an in-house staff with limited expertise, we would benefit from a large firm with deep experience and broad perspectives. More importantly, these firms compete with each other to provide the best value to their clients.

Instead of focusing on maximize the size and budget of the planning department, the Mayor should be looking to maximize value for our community and tax dollars. Don’t confuse how much we spend with what its worth. Outsourcing could be an excellent value for Eagle.