A DISCUSSION TAXES AND FEES
by Bill Lynn, Fifth Ward Alderman

One thing we must do to make Davenport more attractive is to keep taxes and fees at least as low as surrounding cities and towns.  If we don’t, we risk losing residents to these other cities.  I do realize that we may be able to provide more amenities to residents than other cities and towns, but we must understand this alone is not the reason people will decide to live in Davenport.  One problem we have is that anyone living in the area can reach Davenport quickly.  I live in the central city and it probably takes me longer to reach 53rd street than someone from Eldridge.  If we look at items like the baseball team, the art museum, or the casino, it does not require that you live in Davenport to take advantage of them.  I raised this question when I first ran for office.  I made the point that I could live in a surrounding town, take advantage of all Davenport has to offer, and not pay taxes to support it. 

What this means is that using tax money to support these ventures may prove to be counter productive.  For instance, if you look at other cities and towns in our area, you will find that Davenport is not growing as fast as they are.  We added about 1,000 people since the year 2000.  That is a growth rate of about 1%.  The real growth is in surrounding areas like Port Byron, Eldridge, and LeClaire.  This suggests that even though we are spending money to pay for these amenities, it is not adding to the population.  That is the reason we were told we needed to make these investments.  Most of the cities that are growing rapidly have none of these amenities.

Amenities versus Infrastructure
Further, one of the problems with what we have done in Davenport is that it has taken attention away from the important investments like infrastructure.  In a recent article in the Wall Street Journal it was pointed out that many cities have spent money on baseball stadiums and convention centers but are not funding streets and sewers properly.  They point out that the cities that pay attention to the basics are doing better.

The problem with the entire amenity argument is that it ignores the fact someone must pay for it, and usually that is the taxpayers.  This discourages people from living in those cities that have raised taxes and fees to pay for these things.  Below is a table showing property tax rates in communities surrounding Davenport.  You will note we have higher rates than those communities. What politicians do not understand is that these higher tax rates actually force property values down. 

What do we need to do? 
We must work to cut costs and taxes and that we eliminate the storm water fee.  This can be done, contrary to what we have heard.  I outline in another document how to do this.  It requires we go to a new budgeting process. 

Currently our budgeting process is not a process at all.  When I was elected to the council and saw how we made a budget I was appalled.  In essence, what it amounted to was asking departments how much more they needed and then trying to determine where to find it.  No one ever asked if we needed to make the expenditures in the first place.  There is simply too much waste even in our budget and I believe our salaries are out of line with other local organizations.   One problem we had and still have is often we do not have the systems to determine what anything costs.  I now know why I received puzzled stares when I asked what something cost.   In essence we did not know. 

We can cut costs and reduce fees and taxes--I have no doubt about it, but it will take people willing to make those changes and they are difficult.  If we cut fees and taxes and reduce crime, I believe our city can grow again.