published Friday, July 11th, 2008

Debate heats up over East Ridge tax increase


by Elizabeth Ryan
Audio clip

Mike Steele

Audio clip

Shirley Crabtree

The East Ridge City Council hasn’t even met to review a first draft of next year’s budget, but the public debate over a possible tax hike already has started.

Reacting to news that the City Council could raise property taxes by as much as 47 cents to fund the $11.5 million budget, residents on both sides came out to the City Council on Thursday night to weigh in on the issue.

“I don’t think a lot of people realize the shape that we’re in,” resident Chuck Mehan said. “If people in this town don’t want a tax increase, I suggest they collect the garbage themselves.

“We can eliminate all the services that our city provides us, but they provide us good services for good dollars,” he said.

About 75 percent of the city’s budget goes to salaries and benefits, according to Mayor Mike Steele, and steadily rising health care costs are putting pressure on the city’s bottom line. Last year, the city borrowed from its emergency surplus to fund its $10.4 million budget.

A tax increase this year is unavoidable to make the city solvent and cover pay increases for police officers, the mayor said.

Many residents, including Shirley Crabtree, expressed frustration at trying to reconcile rising living expenses with a fixed income.

“What are the old people, the senior citizens of East Ridge, on a limited income, what are we supposed to do?” Ms. Crabtree said. “I feel hopeless, and helpless.”

“I do too,” Mr. Steele replied. “I feel hopeless and helpless as to how to find another million dollars.”

Residents over age 65 earning less than $24,000 would be exempted from any possible increase, he added.

The East Ridge City council will meet Saturday to review the budget for the first time. A final vote on the budget is scheduled for Aug. 7.

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