Setting the record straight about Palmer issues

Here we are again in the political season, and various accusations are being made. A recent letter to the editor (Sept. 3, “Vote wisely Palmer”) has made claims about the city’s “spending spree” and “tax and spend expressway.” As city manager, I believe the facts should be published correctly and truthfully.

The city of Palmer is solvent. Our budget has been balanced for three years without increased sales tax or property tax. Our liquidity position is good, with equal to two months’ expenses in cash in our general fund to cover unanticipated expenses, plus we maintain additional cash reserves in our utility accounts.

The writer of the Sept. 2 letter assumes that all general fund expenditures in the city of Palmer are on the backs of 3,821 voters. The general fund revenues are diverse. Registered voter count is not a legitimate measure, nor is a count of Palmer residents. The city provides services significantly beyond its population of 5,500, and serves a greater population of closer to 25,000. Two examples are the 75 percent of library patrons who live outside the city, and roads and recreation services that are used by thousands of non-residents.

Apparently the writer is not aware that property taxes contribute 12.17 percent of total general fund revenues, while sales tax proceeds contribute 48.67 percent. Tax revenue comes from more than Palmer residents, as everyone who comes to Palmer on business, for recreation, for fuel, shopping or a great meal, contributes to sales tax.

The writer questions if the city allocates general funds toward promoting jobs, businesses and tourism. The functions of a city government are to provide water, sewer, police and fire services, and those things which contribute to clean, safe quality of life. These are the exact areas the City of Palmer has focused on for the last three years.

In 2008, the water system leaked 48 pecent of all water produced into the ground due to leaks and pipe bursts in very old pipe. Today, leakage in the water system has been reduced from 1.4 million gallons to about 700,000 gallons per day. The savings on power alone is estimated to be $50,000 annually.

Operating costs have been significantly reduced at the wastewater treatment plant. This power expense savings is projected to be an additional $50,000 annually.

Visible quality of life in the city of Palmer is increasing, with street banners, beautification projects, flowers and a new Parks and Recreation division manager making a significant difference in upkeep, maintenance and development of city parks. Playground equipment, which had been lying in storage for over 10 years, was recently installed in Daron Drive Park, and is being enjoyed today.

The writer complains that the largest increase in expenditures comes from salaries and benefits. Almost every city in the country, including our state, budgets a majority of general fund monies for salaries and benefits. That is a simple fact. Many cities in the United States are reducing services and furloughing employees due to budget deficits. None of that is happening in Palmer. Unlike Anchorage, we have no budget deficit, no layoffs, and no reduction in services to our residents. That is good news.

The city has made major improvements in its physical wastewater treatment plant and in its vehicle fleet. A necessary major capital outlay of $533,000 was to purchase a dump truck for hauling snow and gravel for capital projects, a loader for snow removal and as a snow blower and a grader for maintaining city roads. These expenditures provide reasonable and reliable equipment and improved service to the public.

The city has replaced almost its entire water distribution system and improved the system’s water-loss rate from 48 percent to 10 percent, paved many city streets, including new streetlights, curbs, and gutters, brought the city administration out of the dark ages of accounting, improved the Department of Public Safety without cost increases, developed an annexation strategy plan and improved the city’s wastewater treatment plant to be in compliance with EPA regulations, all without raising taxes.

During a time of contracting economy as mentioned in the Sept. 3 letter, Palmer’s net worth has been increased approximately $6 million, and it has not cost the taxpayers a dime. I am proud of the accomplishments we have attained. It has not always been easy, but working to prepare Palmer for the future has always been worth the effort.

Bill Allen is the Palmer city manager.