Baxter County Friends of the Taxpayers

MEETING NOTES

BAXTER COUNTY FRIENDS OF THE TAXPAYERS

SATURDAY, DECEMBER 16, 2006

BCFT Director Frank Kaye called the meeting to order at 1:03 pm.  Treasurer Ken Blade gave the following report:  as of November 18, our checking account balance was $228.31; since then, one deposit of $17 (Pass-the-Bucket at last meeting); 2 withdrawals ($7.50 for hall rental, $15.85 for flowers & a card for member Lorraine Blade); leaving a balance as of this date of $221.96.

City Committee Meetings:  Still need people to attend the various meetings each month.  For schedule, please see the “Local Government” page on the BCFT website (http://bcfriendsofthetaxpayers.org/) , or call 424-6235.

Water & Sewer – Nothing much to report other than what has appeared in the Baxter Bulletin.  Water & sewer rates will be going up … Frank looked at their numbers and says the departments have been underselling for 8 out of the last 10 years.  The “profit” they show comes from their carryovers, and part of the income on their books includes bond money.  The departments are projected to be in the red again in 2007 if rates are not increased.  Water & sewer funds are co-mingled – these need to be separated to make tracking income & expenses more transparent … they really need to be separate “cost centers.”  Ken brought up the fact that both departments had an unusual amount of “once in a decade” repair/maintenance costs this year, and Frank pointed out that neither of these departments have “contingency” funds to cover such situations.

Ken asked whether Garver Engineering ever provided numbers for the department’s income to debt ratio.  Frank responded that he has learned that it needs to be 1.3 or greater for the department to be considered financially solvent.  New rates will bring the ratio to about 1.4; the department should close out the year with approximately $294,000 profit, and about $800,000 next year.

Terry asked a question about the annual audit.  The Water & Sewer department’s books are audited every year by an independent accountant (lately they’ve been using local CPA firm Ballard & Co.); the results are usually delivered in April or May.  In 2006 the audit was not returned until October, which is why the discussion of rate increase came so late in the year and got rushed through the council.

Terry also asked about the department’s bond indebtedness.  Frank explained that the 1975 bond has been reduced to the point that committee chairman Marshella Norell would like to find a way to pay it off.  To pay down the remaining bonds (which total more than $12.5 million), Marshella would like to have a 1-cent city sales tax passed, with proceeds of approximately $3.9 million per year dedicated to eliminating the debt.  All would be paid off in about 4 years, at which time the tax would be repealed (sunset clause).  Frank said that he is philosophically opposed to this approach because it would require everyone who shops in Mountain Home to pay for these bonds.  He would rather find a way to have those who actually are customers of the system pay for it.

Jim said that in order for any pay-off proposal to work, the city has to get the public involved and hold “real” public meetings.  Frank said that Marshella Norell got part of that point, during the discussions the past couple of months over the water & sewer rate hikes – but not all of it:  the public meeting was held just one day before the City Council was due to vote on the rate hike … everyone knew it was already a done deal, and coming to the meeting to “discuss” it would be pointless.

Airport Commission vs. FBO – the question was raised about what impact this situation has on taxpayers … Frank said that the issues are so entangled (lawsuits & countersuits) that there is little that BCFT can do, other than maybe come up with a list of questions to ask at a future quorum court meeting.  QC member David Lemoine told Frank the best thing to do is go through the commission, but if they don’t resolve the questions, to see him about getting on the agenda.

Kit brought up attendance at city council meetings – said that she and many of our other members can’t hear what’s being said during the meetings, even with the microphones.  Should they come anyway?  Answer?  YES! (and bring a friend!)  (Secretary’s note:  I talked to City Clerk Cindy Wynn after the January 18th council meeting about the volume issue, and she said she would have their technician investigate.)

Jo Anne asked whether Frank had heard yet which city committee(s) he would be on.  Frank explained that committee assignments are the mayor’s choice, and he would find out sometime in January.  His own preference would be for the Water & Sewer and Public Safety committees.

New Business:

Dues – Because there was not a quorum present at this meeting, we were unable to set the dues for the coming year (per the Bylaws, this should be done in December).  The recommendation is to change to $12 per person, rather than $12 per household.  Some discussion was had, too, about raising them to $18-$20 for new members and including a BCFT T-shirt, but keeping renewals to $12 per person per year.  The subject will be carried over to the January meeting.

We will also elect officers for 2007 at the January meeting (if a quorum is present).

Frank notified the group that he had e-mailed State Rep. Johnny Key and State Sen. Shawn Womack the wording for the proposed changes to the state’s Advertising & Promotion tax code.  (Still allow cities and counties to pass an A&P Tax, but before it can be collected, it must be approved by voters at the next general election; also to require that a city or county place the issue on the ballot every 4 years for voters to decide whether to keep it in force.)  Johnny has made a verbal commitment to us that he will get a bill drafted and submitted during this legislative session, which begins January 8^th.  (No promises as to whether it will be passed!)  All we can do is try …..

The Pass-the-Bucket collection was $16 (thanks, everyone!)  This money goes toward our hall rental, postage and copying costs, newspaper ads and other administrative expenses.

Meeting was adjourned (didn’t make a note of the time).  Next meeting is scheduled for Saturday, January 27, 2007, at 1:00 pm at Redeemer Lutheran Church, Hwy 5 North.

Suzan Kaye, Secretary
Monday, January 22, 2007