City workers' pay raise good - token tax relief, notsomuch.

I had this link included in the previous post, but as I began to comment on it I thought it would be better as a separate post so I'm shifting it here.

Council votes on real pay raises, token tax cuts.

From this article:

Every Chandler employee will see a fatter paycheck after July 1, thanks to a City Council vote that brings workers' salaries up to standards in other Valley municipalities.

The unanimous decision Monday will cost taxpayers $422,000 in 2006-07. It includes 3.5 percent raises for most of the city's 1,600 workers but bigger increases for police officers and trade union laborers. Police lieutenants will see the highest pay jump - 6.36 percent. Firefighters are getting the smallest raises - 1.68 percent - because their pay in Chandler is close to that of other cities.

The raises are in addition to merit and cost of living increases, and will include employees who are at the top of their pay range, according to city memos.

...The council voted to reduce the municipal secondary property tax rate three cents - from 90 cents per $100 assessed valuation to 87 cents. For the owner of a house valued for tax purposes at $300,000, that's a savings of $9 a year. Mayor Boyd Dunn has said a reduction was necessary to offset skyrocketing home values. Even with the rate decrease, homeowners are likely to see higher property tax bills in 2007 because the city's portion is less than 10 percent of the total property tax bill and values increased so dramatically this year.

"Offset skyrocketing home values!?" Gee, thanks heaps, Mayor Dunn!

In fact, because houses are assessed tax based on a value significantly less than their market value, my house is assessed at $167k. (Anyone can find out this information via the Maricopa County Assessor). Thus, the "tax relief" by this reduction will be, for me, just under five bucks per year. So, Mayor Dunn, I'll be thinking of your great magnanimity when I'm enjoying the Happy Meal™ I bought with the "savings", as I'm looking over the otherwise greatly increased tax payment on my escrow statement this coming year.

I appreciate the gesture, but when it's so obviously negligible to the overall cost, it's easy to believe it's got more to do with politicking than offering real relief. Five bucks per year? Seriously?? I'd just as soon the city keep the money and provide us faster Police response times, if that's the choice we're making. Token tax relief so some politicians can crow about "lowering taxes" and assure their voters they've "done something" about the property tax issue is just a gimmick.

I appreciate any effort to reduce taxes as long as key programs are being adequately supported and spending is being done wisely. So the general idea of receiving even a tiny tax reduction is encouraging (if the other things are in place). So I'm glad, in general, for the Council's vote. But to hear the Mayor suggest that it's in any meaningful way to help "offset" the 60% increase in home valuations over the past two years is a little insulting.

Five bucks per year. Twenty quarters. Indeed, Mayor Dunn.