February 18, 2006 Fiscal Planning Lacking in Covina - Letter to the Editor
Tribune
Saturday, 18 February 2006
Tax to spend?
Covina's Mayor Peggy Delach and Councilman Kevin Stapleton have formed a committee to consider which additional taxes, fees, and other revenue-generating actions to pursue. However, Covina's annual audited reports for the last few years say that the city is in good financial condition, with revenue growth exceeding expectations and costs lower than projected. Councilman John King also supports rampant taxation, which is why he was recalled in 1993.
Why would these elected officials want to raise taxes when the city's own documents indicate that it is financially sound? One reason is that they are lazy and do not want to take the time to question whether more taxes are needed because it is easier for them to have blind faith belief in the irrational premise that more taxes will automatically improve the community.
Another reason is that they lack leadership, vision, courage, and competence.
Covina does not have a long-range financial planning document that identifies all of its cost centers and the city's projected expenditure levels for each of them by year for the next five to ten years.
Another problem is that the city does not have a formal, detailed, rational priority list for the expenditure of additional revenues. Consequently, the city has difficulty distinguishing between its needs and its wants.
Covina should prepare a sensible long-range financial plan outlining all of its actual needs. Until that occurs it cannot reasonably determine whether or not anticipated future expenditure requirements will actually exceed projected revenue growth.
Stephen Millard
Covina
Saturday, 18 February 2006
Tax to spend?
Covina's Mayor Peggy Delach and Councilman Kevin Stapleton have formed a committee to consider which additional taxes, fees, and other revenue-generating actions to pursue. However, Covina's annual audited reports for the last few years say that the city is in good financial condition, with revenue growth exceeding expectations and costs lower than projected. Councilman John King also supports rampant taxation, which is why he was recalled in 1993.
Why would these elected officials want to raise taxes when the city's own documents indicate that it is financially sound? One reason is that they are lazy and do not want to take the time to question whether more taxes are needed because it is easier for them to have blind faith belief in the irrational premise that more taxes will automatically improve the community.
Another reason is that they lack leadership, vision, courage, and competence.
Covina does not have a long-range financial planning document that identifies all of its cost centers and the city's projected expenditure levels for each of them by year for the next five to ten years.
Another problem is that the city does not have a formal, detailed, rational priority list for the expenditure of additional revenues. Consequently, the city has difficulty distinguishing between its needs and its wants.
Covina should prepare a sensible long-range financial plan outlining all of its actual needs. Until that occurs it cannot reasonably determine whether or not anticipated future expenditure requirements will actually exceed projected revenue growth.
Stephen Millard
Covina
posted by duff | 8:45 AM
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