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City of Midlothian

Financial  Blunders

 

 

  • Midlothian is $157,338,000 in debt.  With 7,480 citizens, that's a debt of $21,034.49 for each man, woman, and child in Midlothian.  (BRB Local Government Debt Database;  City website)
     

  • The City of Midlothian has wasted $150,000 of taxpayer money to pursue annexing two sections of Midlothian.  (Mayor Whatley, The Dallas Morning News, 11/18/2007)
     

  • Even more taxes:  Navarro College reported it was considering revenue bonds or a maintenance tax to help pay for Ellis County facilities.  Mayor Whatley's response:  “I assure you the city of Midlothian is behind you.”  (The Corsicana Daily Sun, 05/18/2007)


 

Sales tax revenue down --

City may give abatements

(Tax burden pushed to homeowners)

 

Company Tax Years Abatement Tax Years Abatement
American National Power 1 - 2 60% 3 - 8 35%
Toys R Us 1 - 2 100% 3 - 9 25%
Target 1 - 4 100% 5 - 10 60%

Ennis Business Forms

1 - 8

80%

 

 

 

Abatements are often used to entice a company to come to town.  Ideal enticements would be for companies who will provide local jobs, as well as a product/service that will benefit not only the city, but would attract shoppers from other cities.  This can also be used to allow a business to expand, which could mean more jobs and higher taxes in the future.  This can be a very good thing.

 

So what's wrong with this plan?  It's not guaranteed;  it's "gut feel."  It's the city saying, "Build now, pay me later."  Who pays "now?"  The residents, of course.  They have to make up the difference.

 

The Minyard's shopping center in Cedar Hill is a good example of abatements.  Although Minyard's came in and stayed, others did not.  The shopping center has had an occupancy problem since inception.

 

Some large companies have been accused of negotiating abatements and then intentionally leaving town when they're up -- to go somewhere else where they'll get one.  A major Arkansas "box store" is known for negotiating abatements to get their store into town.  They then find a landlord and sign a lease -- generally about 5 years, which will be the time of the abatement.  When the abatement expires, the box store moves to another location and leaves the landlord with an empty building and full taxes.  They often go under, the old store is a blight to the town, the city gets no taxes because the landlord is bankrupt, and the retailer finds another sucker -- er, landlord -- and may move out of town, or just a block or so.  If you think about it, you can think of box stores in our area who have moved (one moved from Duncanville to Cedar Hill;  one such store moved across the highway).

 

Abatements need to be given very carefully, and with a tremendous about of research.

 


 

The Cost of going to the Park is about to go up up up!!!!!

 

 

What do you think it would cost you to spend a evening in the park in Midlothian?  Lets say “Movie Night in the Park?”  Not counting the cost of keeping up all the parks in town, now the Parks Dept. wants to buy a mobile stage at a cost of $127,000.00, plus the cost of a place to store it, which could cost thousands of dollars and would need to be built out of brick unless the city gives themselves a variance!

 

Let private groups raise the money or don’t do it!  Same thing with the Lighting Prediction and Warning System for three parks at a cost of $10,000.00 each.   If you were a member of a car club, a church, or sports club you could have a “warm fuzzy” about yourself for a long time, knowing you help raise money to help save lives.  Just watch, they're about to raise taxes!!!!

 

 

 

Copyright 2007 © by Citizens For A Responsible Government