To the editor: The injustice of it all


Editor’s Note: The following is the text of former Henderson City Council member Bobby Gupton’s remarks to the Henderson City Council during the public comments period of Monday night’s meeting. It was presented to us for publication as a letter to the editor.

Mayor, Mr. Wyatt, City Council:

The current tax rate for the city of Henderson is 67 cents.

Approximately 17 cents goes for interest on the city’s debt of over $33 million dollars. Another 26 cents is needed to support the city’s share of the so-called joint ventures. This leaves 24 cents to support the other needs of the city.

The joint ventures are funded by the city and county governments, some 50-50 and others 55 city and 45 county. I have asked how this came to be in the past and the answer was “If we had not done it this way we would not have had it.”

What would have been wrong with funding all the joint ventures so that all the citizens of Vance County are taxed equally to support the ventures? Were they asked, if so when and with whom did the city talk ?

The contracts with the County on Joint Ventures have a clause that read:

This Agreement may be amended in writing at any time by mutual consent of both governing bodies; and in addition may be terminated by either the City or County upon written notice to the other party delivered by April 1 of any year; said termination to be effective at midnight on the following June 30th.

I don’t advocate terminating any of the agreements but the above does give our elected officials the opportunity to modify the agreements to rectify the taxing injustice. Our leaders need the fortitude to correct injustices wherever found.

In a recent intergovernmental meeting with the county, the city was asked by the county what it was building downtown in reference to the library, they had not been asked to be involved in any way with the construction. I realize the question was posed in jest, but it does point out the city did not involve the county government at all in construction of the new library, and still they were unjustly very critical, of the past council for not involving the county in negotiating the yearly maintenance cost of the library and other ventures. What has happened since the new direction took office? It has been 5 months and you have not met to discuss joint ventures.

If the information I received is correct you did request the county to support 75 percent of the library and called it a win/win for everyone. Don’t you realize that due to the double taxation on the city taxpayer that the city taxpayer will still be funding 66 percent of the total? You should know by now that the only fair way is for the city taxpayer to pay an amount equal to the county taxpayer. When will everyone realize that the city is in the county and pays county taxes equal to every county only taxpayer? City taxes should provide benefits to residents and not for the benefit for all citizens of the county.

Currently the city taxpayer supports 80-85 percent of all the joint ventures. We share the facilities equally with all county citizens and should be taxed equally.

Some of the reasons I have heard are:

  • The city doesn’t necessarily use ad-valorem taxes.
  • If the city didn’t intend to fund the ventures it would have not been put in the budget. Putting it in the budget created the need for 26.3 cents on the property tax and if you take it out, that need would be eliminated.
  • The funds are not earmarked.
  • None of the funds are earmarked with the exception of the Powell Bill Funds that are used for streets, sidewalks, etc. This is not a valid reason at all, and you should know it.

    During the last election Mayor Young asked me if I intended to run again to which I replied Yes, I feel like the job is half done on the tax issue. His response was I hope you are not successful because I am the architect of what you are trying to change.
    I would not be proud of putting this amount of tax on the citizens of Henderson for years and years to come. This tax has made Henderson one of the highest taxed cities of its size in the state.

    Mayor Seifert hit the nail on the head when he said, “You are right Mr. Gupton, but no one cares.”

    I have to believe that when every city taxpayer understands the injustice of it all and that 40 percent of their city taxes are used for joint ventures as compared to 8.5 percent of the county taxes, then they will care.

    To rectify the taxing injustice I would suggest one of two things:

    1. Fund all the ventures that we all enjoy fully through county taxes that we all have to pay to a level agreed upon by a committee of city and county citizens.

    2. Establish a separate tax for ventures to be paid by all the county taxpayers. Fund to a level that has been agreed upon by representatives of the city and county.

    The savings of $1,700,000 will enable the city to give a long overdue increase to all city employees. There have been several rate studies over the last few years and never funded nor implemented due to financing. Make a new rate study and $750,000 will fund a 10 percent increase to every city employee where warranted. This amount is less than half the of the double taxation amount and the balance can be given back to the city taxpayer and bring Henderson’s tax rate in line with other cities it’s size.

    To get all I want to say out to the public, it bothers me that in Vance County we have people on various boards that make the laws and levy taxes that do not own property or own property and do not pay their taxes. I think to feel the pain of the city taxpayer; you must owe and pay taxes. My taxes are $507 per year more than someone living in the county in an identical house.

    To quote from the Dispatch “The fewer the words,” said Martin Luther, “the better the prayer.”

    I have attempted to keep this presentation as short as possible and I earnestly hope you will keep the taxpayers that put you in office in mind when you are preparing the budget. We do not need a tax increase under the present economic climate. We need a tax cut.