July 21, 2010
WILLIAMS FORECAST: ONE ON ONE
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Another countdown continues on the tax reform package proposed by Huntington City Council. Following an amendment during first reading that removes the upper cap on the occupation tax, no council members have expressed their support for it.
The Herald Dispatch in an editorial countered [to the administration and council] that you have not kept your promises. Citizens translate that to the abrupt paving program halt until 2011, due to decrease in the amount of user fee collections. The Huntington Regional Chamber of Commerce opposes the tax with or without a cap. Those working in Huntington but living outside the city have been particularly outspoken.
A concept of “investing in the city” to help it grow (and offer more services and jobs) comes during a particularly ugly deep, deep recession that still spurs media analysis of a double dip recession.
However, former House of Delegate member, Steve Williams, who is also a former city manager of Huntington, supports a capped occupation tax. He believes that it would encourage investment and entrepreneurial development, which in turn, raises the pay of individuals. Rather than a class warfare standoff, Williams views the stakes as an opportunity for the number of jobs and the pay rate to climb through the opening of new business.
But, he believes that an UNCAPPED occupation tax will discourage business and defeat the purposes for which it has been envisioned.
After the Monday, July 19, finance committee meeting, he sat down one-on-one to explore some of his ideas with us.
***
HNN: During the Finance Committee meeting, I sensed strong vibrations of the potential for a worsening of city finances.
WILLIAMS: Yes, it is bleak. The recession has beat the daylights out of the city. The question is can we keep on ticking? I believe there needs to be a freeze put on everything, not on essential services, but a freeze. I have not had a chance to talk with the Mayor and I do not know what his thoughts are.
I do think that this committee has the wherewithal to come back to council with a recommendation --- to put a freeze on spending, a freeze on hiring, and tighten things until revenue start loosening up.
It disturbs me to no end that we saw this coming and did not act on it. I didn’t press harder [because ] I didn’t want to create acrimony.
HNN: You are suggesting 2011 could be worse than 2010?
WILLIAMS: Absolutely. Given the revenue projections and the revenue sources we have right now. By not taking some kind of action, we are about to hurt the recession more than the recession.
HNN: What was your reaction to the HD Editorial?
WILLIAMS: I read the headline as the ordinance in its present form (without a cap) would do more harm than good. I had an opportunity to talk to some business leaders who said, ‘we know we need to pay something.’ In my mind, I ask, ‘what is a fair price to pay?’ Not more than $1,000.
We keep forgetting that someone making $50,000 will not pay $1,000. They would pay $500.
Is it a fair share to pay $156 as required in the user fee? I think that its worth it to all of us to pay more than $156.
I said in one of the first hearing, when people question the cost of something , they are truly questioning the value. We have to make sure the streets are paved, the streets are clean, the neighborhoods are safe.
The problem is because of this recession people are saying, we would have been just fine if we had a paving schedule. But, we go to a four day work week, we do not have a paving schedule [until Spring 2011], [City Hall is closed Fridays], as hard as we try, we end up hurting ourselves.
HNN: One of the thrusts of the editorial related to “trust” in the City complying with its, for instance, promises for services, such as paving.
WILLIAMS: I wholeheartedly agree. It’s up to us to get this thing [tax reform] done , that we hold our money really tight, and that we take care of public improvements, so the people see us out doing things…
We are being judged by the sins of our fathers. The Mayor took the lead on pension reform. The council before us took some aggressive steps to curb health care costs. I though Brian Chambers laid out that fairly accurately.
But this is a national phenomena with which we are dealing.
The burden is on us. If we put a cap on and have an occupation tax and proceed forward with the reductions in B & O. I think the sales tax helps us to reduce B & O that much more.
We are at a delicate spot. The strength of this deal is tempered by the fire. We are being tempered right now.
{Referring to after the Monday, July 12 council meeting, Williams admitted that he was caught by surprise by the passage of Scott Caserta’s amendment to remove the cap on the Occupation Tax, Williams stated he did not sleep that night. ]
HNN: What would happen if Bates amendment 0.75 for city residents was expanded to everyone? Would it be more palatable?
WILLIAMS: When I talked to Steel of WV, they said that 0.75 does not take care of them. It’s 0.50.
HNN: That’s the break even on abolishing the user fee? Is there any compromise?
WILLIAMS: Yes. In conversation with other companies, one company called me the morning after (the cap was lifted). They just moved their offices into Downtown. They were looking at property downtown and property on Route 60. They decided it would be nice to be part of the atmosphere downtown. But one person told me, “If we had known that the cap would be lifted, there would have been no way in Hades we would have moved our offices here. That’s 20 jobs. [Rather, than comparing a working class to an upper class, Williams inserted a less recognizable one --- business owners]
Business owners look at the overall expense of my operation. If we can limit that expense --- is it $1000? $750? --- A business owner is looking at it as a cost to the employees, if it doesn’t go more than this we can make a go of it. I’ve dealt with people for the last 28 years in economic development and a lot of business owners, this is NOT a class warfare debate. This is purely an economic development debate. I’m not looking to stick it to the working class, I’m looking for is getting an opportunity for the working class to be able to pay more . I see an entrepreneurial sense in the city . If that person is now making $50,000, they will have an opportunity to make $60,000. That means we will pay more. But a rising tide will lift all ships. There is a cost that is worth the price of admission. What is that price of admission? Maybe if I pay a little more, its worth a little more. That’s the kind of show I want to go see.
That’s what the editorial was saying. We’ve got to prove it. I have broad shoulders and I am perfectly willing to shoulder that burden.
People say this is political suicide. Maybe so. I have a prosperous and other things planned. I’m not looking at a political career. I’m looking at finally to do something to turn the city around. If there’s a legacy, it’s this group has shouldered the burden and been willing to make the tough decisions.
We’ll see
***
Although Mayor Kim Wolfe has received criticism for an occasional insertion of a spiritual element to government (tithing ), Williams recalled a passage from Jerimiah that has at least a symbolic throught for readers: "Seek first the welfare of the city where I have sent you, for in it's welfare, you will find your welfare."
"That's what we are trying to do," Williams explained. "A rising tide will lift all ships. If we approach not on what we are paying but what we are investing to make our community better, then , I think we can get past this acromony and find a way to get some things done.
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WILLIAMS FORECAST: ONE ON ONE
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Another countdown continues on the tax reform package proposed by Huntington City Council. Following an amendment during first reading that removes the upper cap on the occupation tax, no council members have expressed their support for it.
The Herald Dispatch in an editorial countered [to the administration and council] that you have not kept your promises. Citizens translate that to the abrupt paving program halt until 2011, due to decrease in the amount of user fee collections. The Huntington Regional Chamber of Commerce opposes the tax with or without a cap. Those working in Huntington but living outside the city have been particularly outspoken.
A concept of “investing in the city” to help it grow (and offer more services and jobs) comes during a particularly ugly deep, deep recession that still spurs media analysis of a double dip recession.
However, former House of Delegate member, Steve Williams, who is also a former city manager of Huntington, supports a capped occupation tax. He believes that it would encourage investment and entrepreneurial development, which in turn, raises the pay of individuals. Rather than a class warfare standoff, Williams views the stakes as an opportunity for the number of jobs and the pay rate to climb through the opening of new business.
But, he believes that an UNCAPPED occupation tax will discourage business and defeat the purposes for which it has been envisioned.
After the Monday, July 19, finance committee meeting, he sat down one-on-one to explore some of his ideas with us.
***
HNN: During the Finance Committee meeting, I sensed strong vibrations of the potential for a worsening of city finances.
WILLIAMS: Yes, it is bleak. The recession has beat the daylights out of the city. The question is can we keep on ticking? I believe there needs to be a freeze put on everything, not on essential services, but a freeze. I have not had a chance to talk with the Mayor and I do not know what his thoughts are.
I do think that this committee has the wherewithal to come back to council with a recommendation --- to put a freeze on spending, a freeze on hiring, and tighten things until revenue start loosening up.
It disturbs me to no end that we saw this coming and did not act on it. I didn’t press harder [because ] I didn’t want to create acrimony.
HNN: You are suggesting 2011 could be worse than 2010?
WILLIAMS: Absolutely. Given the revenue projections and the revenue sources we have right now. By not taking some kind of action, we are about to hurt the recession more than the recession.
HNN: What was your reaction to the HD Editorial?
WILLIAMS: I read the headline as the ordinance in its present form (without a cap) would do more harm than good. I had an opportunity to talk to some business leaders who said, ‘we know we need to pay something.’ In my mind, I ask, ‘what is a fair price to pay?’ Not more than $1,000.
We keep forgetting that someone making $50,000 will not pay $1,000. They would pay $500.
Is it a fair share to pay $156 as required in the user fee? I think that its worth it to all of us to pay more than $156.
I said in one of the first hearing, when people question the cost of something , they are truly questioning the value. We have to make sure the streets are paved, the streets are clean, the neighborhoods are safe.
The problem is because of this recession people are saying, we would have been just fine if we had a paving schedule. But, we go to a four day work week, we do not have a paving schedule [until Spring 2011], [City Hall is closed Fridays], as hard as we try, we end up hurting ourselves.
HNN: One of the thrusts of the editorial related to “trust” in the City complying with its, for instance, promises for services, such as paving.
WILLIAMS: I wholeheartedly agree. It’s up to us to get this thing [tax reform] done , that we hold our money really tight, and that we take care of public improvements, so the people see us out doing things…
We are being judged by the sins of our fathers. The Mayor took the lead on pension reform. The council before us took some aggressive steps to curb health care costs. I though Brian Chambers laid out that fairly accurately.
But this is a national phenomena with which we are dealing.
The burden is on us. If we put a cap on and have an occupation tax and proceed forward with the reductions in B & O. I think the sales tax helps us to reduce B & O that much more.
We are at a delicate spot. The strength of this deal is tempered by the fire. We are being tempered right now.
{Referring to after the Monday, July 12 council meeting, Williams admitted that he was caught by surprise by the passage of Scott Caserta’s amendment to remove the cap on the Occupation Tax, Williams stated he did not sleep that night. ]
HNN: What would happen if Bates amendment 0.75 for city residents was expanded to everyone? Would it be more palatable?
WILLIAMS: When I talked to Steel of WV, they said that 0.75 does not take care of them. It’s 0.50.
HNN: That’s the break even on abolishing the user fee? Is there any compromise?
WILLIAMS: Yes. In conversation with other companies, one company called me the morning after (the cap was lifted). They just moved their offices into Downtown. They were looking at property downtown and property on Route 60. They decided it would be nice to be part of the atmosphere downtown. But one person told me, “If we had known that the cap would be lifted, there would have been no way in Hades we would have moved our offices here. That’s 20 jobs. [Rather, than comparing a working class to an upper class, Williams inserted a less recognizable one --- business owners]
Business owners look at the overall expense of my operation. If we can limit that expense --- is it $1000? $750? --- A business owner is looking at it as a cost to the employees, if it doesn’t go more than this we can make a go of it. I’ve dealt with people for the last 28 years in economic development and a lot of business owners, this is NOT a class warfare debate. This is purely an economic development debate. I’m not looking to stick it to the working class, I’m looking for is getting an opportunity for the working class to be able to pay more . I see an entrepreneurial sense in the city . If that person is now making $50,000, they will have an opportunity to make $60,000. That means we will pay more. But a rising tide will lift all ships. There is a cost that is worth the price of admission. What is that price of admission? Maybe if I pay a little more, its worth a little more. That’s the kind of show I want to go see.
That’s what the editorial was saying. We’ve got to prove it. I have broad shoulders and I am perfectly willing to shoulder that burden.
People say this is political suicide. Maybe so. I have a prosperous and other things planned. I’m not looking at a political career. I’m looking at finally to do something to turn the city around. If there’s a legacy, it’s this group has shouldered the burden and been willing to make the tough decisions.
We’ll see
***
Although Mayor Kim Wolfe has received criticism for an occasional insertion of a spiritual element to government (tithing ), Williams recalled a passage from Jerimiah that has at least a symbolic throught for readers: "Seek first the welfare of the city where I have sent you, for in it's welfare, you will find your welfare."
"That's what we are trying to do," Williams explained. "A rising tide will lift all ships. If we approach not on what we are paying but what we are investing to make our community better, then , I think we can get past this acromony and find a way to get some things done.
Share This Story:
Make HNN Your Homepage (IE Users Only)
