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What if Everyone Did That? Options
Michael Nichols
Posted: Tuesday, August 19, 2008 12:39:33 AM

Rank: New Member
Groups: Member

Joined: 6/15/2008
Posts: 7
Location: Lettered Streets, Bellingham
Though I rarely post, I do try to read most of the ideas here. Here is an idea I had:

What if Everyone Did That?
Michael G. Nichols

What if everyone did that? In a complicated world, this may seem too simple a question, but I find it worthy of much thought. In my consumptions, my contributions, my actions, and my acceptances, I try to ask myself that simple question: What if everyone did, or did not do, that?

It has to be qualified, of course. Sometimes it is “everyone on the planet” (what if none of us drove, or all of us did?) Other times it is “everyone in my neighborhood” (what if we all mowed our lawn at 8pm on weeknights? What if we all rode our bikes to work every day in the summer?) Sometimes it is “everyone in my house” – (what if everyone in my household forgot to take out the trash, or was not bothered by the dandelions in the lawn?)

I enjoy this question because it leads me to do things I think are right, without having to research every nuance or aspect of a decision. It keeps decisions simple for me, without turning me into a simple person. Sometimes, this question saves me time, trouble, and money; sometimes it leads me to extra thought, extra work, and extra expense. Always, though, I feel better for answering the question.

Recently, I read in the Bellingham Herald that the City of Bellingham projected a $2 million budget shortfall, due mostly to the unpredicted (and unpredictable) tax shortages caused by a softening economy. This worried me, as I am in favor of the general direction our city is heading. Few citizens are satisfied or supportive of every project or decision their city government undertakes or makes, but I am generally happy with the way our government is operating. Furthermore, I cannot fault this or past administrations for the national economic downturn which seems the cause of Bellingham’s trouble.

My suggestion is that we, as citizens, voluntarily contribute the funds needed to make up the shortfall, in order to sustain the projects, programs, and maintenance to which we have become accustomed. The amount each person or household contributes should be based on that simple question: What if everyone does as I do?

According to the City’s website, there are 39,244 Bellingham citizens between the ages of 21 and 64. I am sure many of these folks are not in a position to contribute at all, while some might be able to contribute more than others. I hope some businesses will contribute as they are able, and this should help offset those which cannot. For my own part, I am certainly not wealthy; nor am I struggling to make it each month. My contribution would be an average one: $2,000,000 / 39,244 = $50.96.

This is meant to be a voluntary and positive action. Not a tax, tithe, duty, or fee, but simply a one-time donation. I dropped a check at City Hall last week. What if everyone did that?
DJGray
Posted: Tuesday, August 19, 2008 8:03:57 AM

Rank: Administration
Groups: Administrator , Member

Joined: 1/11/2008
Posts: 256
Location: Bellingham, WA
Michael,

For starters, I want to commend you in two areas.

First off, even though the administration of this site works hard to keep the discussions and debates respectful, that was a gutsy post. You have posted a challenge that goes against the grain of most of this site's participants and in so doing, opened yourself up to being on the receiving end of some pretty strong criticism. I applaud the decision to post your challenge, and trust the users of this site to respectfully debate your ideas.

Secondly, I applaud you because in my experience, most liberals have "great ideas" like this, but they are great ideas for other people. You have quite literally put your money where your mouth is, and are walking your talk. While I may vehemently disagree with the challenge you have thrown out, I deeply respect the integrity of what you have said and done.

Now, let me encourage you to consider that perhaps not everything the city says is true. There is a projected $2million shortfall. While I do so wish we could just take every man and every woman at their word, we cannot. This city is swimming in money. For the city to say, "We're out of money," is like my wife looking at three closets full of clothing and saying, "I have nothing to wear."

Just last week, I spent a little over two hours listening to a gentleman, one on one, as he presented on the city budget. This man has spent months, and I have no clue how many hundred hours meticulously combing through the Bellingham Comprehensive Annual Financial Report. His findings are stunning! The problem is not that the City of Bellingham doesn't have enough funding available. The problem is, they don't want to trim spending.

Statements made by politicians and by government bureaucrats have to be parsed. Whenever such statements are made, one must always ask, "What do they want me to believe?" "What did they literally say?" "What are they really saying?" and "What are they not telling me?" There is much the city is not telling you when they speak of the projected $2 million shortfall.

What they want us to believe: The city is out of money, and may need to raise taxes to make ends meet.
What they literally said: We're $2 million short (projected) for next year's budget.
What they are really saying: We won't have enough money to spend on all the things we want to spend on.
What they are not telling us: The City of Bellingham's profit margin (when looking at the financials as any other business does) is 47 percent. Most businesses are happy with and target 5 percent profit margin.

I tip my hat to you, and applaud your integrity for making the donation, but trust me, it was not necessary.




Mark Twain wrote:

A lie can travel halfway around the world while the truth is putting its shoes on.

  • Mark Twain


  • Baron Miller wrote:

    Grace ruins the idea that you are fully in charge.

  • Baron Miller



  • Brat
    Posted: Tuesday, August 19, 2008 10:17:33 AM

    Rank: New Member
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    Joined: 2/1/2008
    Posts: 32
    Location: Bellingham
    Interesting thought. Here's another one. I have my own business and as the City has customers (taxpayers) I have customers. The City's customers support the city business by taxes, some required, some not (i.e., sales tax and the choice to purchase items). My customers support my business by purchasing products from me (and then I pass on the taxes I collected). So, we both have an income to support our business. Then comes management of that income to expenses. You indicate that since the City is coming up short in this economically challenged time we should drop off a check. So...if my business is coming up short...can I expect a check too? Or am I supposed to do what business people do...manage your expenses against your income and anticipated income and if the anticipated income falls short, tighten the purse strings without compromising customer service and weather the storm.

    Like it or not, the City is a business and we (the taxpayers) elect the CEO to run it. I have some great ideas for my business and would love to invest more money into those ideas, but I'm a smart enough CEO to know now is not the time. Those ideas will have to wait and some that I've already started may have to be placed on hold until the storm is over...unless of course...I get that check.
    Poindexter Prometheus Parkenfarker
    Posted: Tuesday, August 19, 2008 3:22:25 PM

    Rank: New Member
    Groups: Member

    Joined: 1/9/2008
    Posts: 139
    Location: Zeta Reticuli
    Since I live in the county, but occasionally use a city street, could I pay my share with Humpies?
    That's pink salmon for you cityboyz.Twisted Evil Nyehehehee...

    Then again, instead of folks who already are taxed, tithe to their churches, donate to youth groups, volunteer in fire districts, youth groups, and other organizations, how 'bout the city actually sticking to a budget.

    I'm not going to donate any of my money to a bunch of fiscally irresponsible collectivists.

    I give too much already and I'm a dirty rotten selfish son of a #@$%&*!Hammer time Frustration Point and laugh!

    You better laugh at yourself,
    Everyone else is.

    www.parkenfarkergroup.blogspot.com
    Bellinghammer
    Posted: Tuesday, August 19, 2008 4:24:47 PM
    Rank: New Member
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    Joined: 7/14/2008
    Posts: 15
    Location: Bellingham, WA
    I'll tell you what would happen if everyone did what you did.

    Everyone would celebrate that the budget crisis was adverted... until next year. The next year the city budget deficit would be even larger because they didn't take any steps to reign in spending and worse yet they would depend on everyone to step up and donate again or else face an even larger budget shortfall.
    Michael Nichols
    Posted: Wednesday, August 20, 2008 7:43:16 AM

    Rank: New Member
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    Joined: 6/15/2008
    Posts: 7
    Location: Lettered Streets, Bellingham
    Thanks for the replies.
    Andy Stimkin
    Posted: Wednesday, August 20, 2008 4:55:01 PM

    Rank: New Member
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    Joined: 4/25/2008
    Posts: 30
    Location: Bellingham
    Thumbs down. Thumbs down. Thumbs down. Thumbs down. Thumbs down. Thumbs down. Thumbs down.

    This is so bizarre, I don't know how to respond without breaking the "be civil" rules of this website.Ouch! Slap!

    I guess I'll just say, I missed my checks FROM the city during the "surplus years".
    Stan Snapp
    Posted: Thursday, August 21, 2008 9:31:59 PM

    Rank: New Member
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    Joined: 1/9/2008
    Posts: 51
    Location: Bellingham
    Damon,
    I read Michael's post then went on to yours until this statement stuck in my craw, or is it kraw? You know, it's that place in a chicken's neck were stuff gets worked over. One more thing before the one that got stuck.
    You don't say who the friend is that "presents on the city budget". I am impressed with anyone that can digest and understand, or even claim to understand, the CAFR, the COB report that is written "after" the budget year that is supposed to explain what was actually spent. It's not written so lay folks or even past staffers like me that spent 17 years managing a piece of the COB budget can readily understand. I have to admit to being a skeptic when someone tells me they can read the CAFR and understand it....but, I tend to be a bit skeptical. Back to the statement you made that troubles me:

    DJGray wrote:
    "What they are really saying: We won't have enough money to spend on all the things we want to spend on.
    What they are not telling us: The City of Bellingham's profit margin (when looking at the financials as any other business does) is 47 percent. Most businesses are happy with and target 5 percent profit margin."


    I wish I could bold it or set it aside as it's hard for folks to know what part is my paste of your quote.

    Anyway, how can you make a statement about "what they are really saying" without identifying who "they" is so we can ask them what they are really saying. I've managed a big chunk of the fire department budget through very lean years and believe me that was not what I was saying. I was cursing because the folks that told me to cut the budget couldn't tell me specifically where and I had wage increases, fuel price increases, utility increases and medical premiums through the roof and other costs that were fixed. We were running minimum staffing so I couldn't just lay off fire fighters. I wouldn't allow the crews to stop training or inspecting or going on emergency calls. We couldn't shut off the lights or the heat or the engine heaters. We could decide to put off buying replacement equipment but you can't do that year after year. When eighty some percent of your costs are personnel that you can't do without there aren't places to make these huge cuts. The Mayor had dictated that departments will cut 3% out of their budgets for this year and not have increases next year. Frankly, I don't know how they will accomplish that. It's easy to say, "just cut the fat" or other silly platitudes which I read a lot here and on the Herald Blogs. Some travel can be cut, some equipment can be made to last beyond it's useful life.
    What makes people here think that government is like a business? Businesses go broke, governments don't have that option. Businesses often make a profit which they use to expand and then cut back in lean times or go broke if things get really bad. We can't just stop having fire departments and police departments and public works can't stop replacing stop signs and fixing potholes. When roads crack they have to be filled or repaved, or you will be tearing up your tires and blaming government. Lot's of city work is required by law. City does what private either doesn't want to do or isn't appropriate to do. City also manages lot's of private work that creates jobs that help people pay taxes that keeps our government afloat. Where do you get that government makes a profit of 40%? We can't make a profit by law. We have auditors from the state that make sure we don't make a profit. Your 5% needs explaining also. At City Club some time back Mr. Nardi from the Herald cried that they were struggling and subscriptions are down, etc. When asked what his profit margin was he said, 20% and was told that most businesses would love to have that level of profit.

    Seriously, Council will be receiving a draft budget from the Mayor's office in the next little while and we'll spend most of a couple of months deciding what to approve and how to address the concerns that we hear from you or find for ourselves as we pour over a very large document. Right now we have a large number of annexation proposals before us and most of them will not generate anywhere near enough funding in the short term to justify our taking the territory in. On the other hand we need land to help us accommodate the growth that we know is coming. So, how do we annex but not provide the expected services because we can't afford to build an new fire station and a new engine and hire fifteen firefighters to staff it. Sorry, we can't annex without providing urban level services at least not over the long haul. Everyone that pays taxes expects city level of services for their tax dollars. If you want to get a ten minute or longer fire response then live in a rural area, but if you want city level services, ideally four minutes or less, then live in the city. It's not all that complicated.

    ADMIN EDIT: Quoted above for Stan.


    New Vision
    Posted: Friday, August 22, 2008 8:09:07 AM

    Rank: New Member
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    Joined: 1/3/2008
    Posts: 13
    There is an extreme disconnect between Bellingham’s decision makers and Bellingham citizens and taxpayers when it comes to paying for the costs associated with growth. Confused

    In the city’s most recent “Customer Satisfaction Survey”, when Bellingham registered voters were asked if they agreed with the statement that “Bellingham is growing too fast and is losing its character”, 71% agreed. But, but! (Source: 2006 survey, question 61 @ http://www.cob.org/documents/mayor/2006-customer-satisfaction-survey.pdf)

    Presumably, if you asked voters and taxpayers whether they would agree to subsidize even more growth, a similar percentage would oppose such a subsidy. Crazy

    Here’s the disconnect: The same Bellingham taxpayers who believe the city is growing too fast and is losing its character are currently picking up the tab for the majority of the costs associated with growth. Even though the Growth Management Act (GMA) authorizes the city to collect up to 99% of these costs from those who create the need to expand the city’s transportation, park, school, and fire protection systems, it is estimated that the city collects only 30% or so. Taxpayers are funding the lion’s share, amounting to an estimated $15,000 subsidy for every new home, regardless of price (including a $15,000 taxpayer subsidy for the $1.7 million new condos overlooking Boulevard Park). Sad

    Now that the city’s expenses have exceeded revenues, what will the city do? Shocked

    Will they ask taxpayers to cough up some more dough? Talk to the hand!

    Or will they resolve this disconnect and require those who create these additional financial burdens to pay for them by properly raising growth impact fees? Clapping

    Politics is a game of least-resistance. Hammer time As long as taxpayers remain silent and provide little resistance or pressure to assess appropriate impact fees, it’s not likely our elected officials will do so. Now that we have a budget deficit, perhaps additional pressure will be applied. USA Flag
    Poindexter Prometheus Parkenfarker
    Posted: Friday, August 22, 2008 8:41:40 AM

    Rank: New Member
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    Joined: 1/9/2008
    Posts: 139
    Location: Zeta Reticuli
    New vision:
    Under the Washington State constitution, Impact fees are an unconstitutional tax, singling out one usergroup, and laying a double layer of taxes on this group.Thumbs down.

    Maybe you can prove me wrong, but most folks that start Shouting for Impact fees, want the gate closed now that they have their home and xenophobically want "no new outsiders", and want these newcomers to pay for all new infrastructure.Thumbs down.

    Usually these same folks, then rail about affordable housing and the lack thereof, without realizing how expensive these unconstitutional double taxation schemes called fees are in pricing new homes. You are not subsidizing new construction.
    If you were paying them not to build, that might be a more correct usage of the word subsidize.Loooseeehhhr!

    ...and in no way am I suggesting to do that.Hammer time

    You better laugh at yourself,
    Everyone else is.

    www.parkenfarkergroup.blogspot.com
    Poindexter Prometheus Parkenfarker
    Posted: Friday, August 22, 2008 8:43:47 AM

    Rank: New Member
    Groups: Member

    Joined: 1/9/2008
    Posts: 139
    Location: Zeta Reticuli
    by the way, Stann, that's your gizzard, not your craw...and if you ate more gravel, neither food nor ideas would get stuck there...Nyehehehee...

    You better laugh at yourself,
    Everyone else is.

    www.parkenfarkergroup.blogspot.com
    New Vision
    Posted: Friday, August 22, 2008 9:13:40 AM

    Rank: New Member
    Groups: Member

    Joined: 1/3/2008
    Posts: 13
    3P,

    I have found that when people stoop to making personal attacks, their arguments generally don’t hold any water. As my friend recently explained to me, “If you have the facts on your side, pound the facts; if you have the law on your side, pound the law; if you have neither, pound the table” (and start hurling insults). Ouch! Slap!

    I have already pounded the facts. Here’s the law regarding impact fees: RCW 82.02.050 @ http://apps.leg.wa.gov/RCW/default.aspx?cite=82.02.050. Point and laugh!

    Perhaps you’ll share your reference whereby this law has been stricken from the Revised Code of Washington. Hehehe...

    To Bellingham taxpayers: Wake up and stop subsidizing new construction! Uncle Peace!
    Poindexter Prometheus Parkenfarker
    Posted: Friday, August 22, 2008 9:56:33 AM

    Rank: New Member
    Groups: Member

    Joined: 1/9/2008
    Posts: 139
    Location: Zeta Reticuli
    keep pounding...Hammer time

    Thanks for the link, New Vision. I usually can't be encumbered with facts...

    I'm looking through Article VII of the State Constitution, I'm sure you can find it quicker than I can.

    I seem to remember something about taxation districts not being permitted to have both a tax and fees for the same district.

    In all the decades that I've lived here, no one yet has been able to educate me as to why growth is bad.

    Growth is a sign of a healthy economy, which in turn creates a stronger economy.
    Most folks that I know who are anti -growth seem to have hostile attitudes toward newcomers and appear to want to use impact fees as a means to punish them for coming to our little piece of heaven...

    Skyscrapers for Ferndale!USA Flag

    You better laugh at yourself,
    Everyone else is.

    www.parkenfarkergroup.blogspot.com
    New Vision
    Posted: Friday, August 22, 2008 10:33:12 AM

    Rank: New Member
    Groups: Member

    Joined: 1/3/2008
    Posts: 13
    3P,

    It is natural to categorize people as anti-this or pro-that; however, not everyone that disagrees with you is anti-growth. Personally, I'm pro growth-paying-its-own-way. Thumbs up! Since most people like to describe others as anti-something, you can say I'm anti growth-subsidy. Thumbs down.

    It is clear that there are costs associated with growth. Why should taxpayers who already live here have to pay for these new costs? Many growing cities throughout the country are being bankrupted. Is that what you want for Bellingham? Doh!
    Poindexter Prometheus Parkenfarker
    Posted: Friday, August 22, 2008 10:43:27 AM

    Rank: New Member
    Groups: Member

    Joined: 1/9/2008
    Posts: 139
    Location: Zeta Reticuli
    I think that those of us who already live here will be using this infrastructure as well as the new folks will.
    Often times, when Infrastructure is extended, the existing systems are upgraded at the same time.

    The cities that are being bankrupted is not because of growth, but appears in most cases to be poor management and lack of supervision of spending, compounded by spending priorities being out of order, with an unwillingness to cut programs that are not essentials.


    I'm glad your anti-something, as I am anti-gravitySnicker...

    You better laugh at yourself,
    Everyone else is.

    www.parkenfarkergroup.blogspot.com
    New Vision
    Posted: Friday, August 22, 2008 3:30:15 PM

    Rank: New Member
    Groups: Member

    Joined: 1/3/2008
    Posts: 13
    3P, I have a friend who likes to use the term “sculpting fog”. Having a serious debate with you is a lot like sculpting fog because you make wide-ranging assertions that lack any substance. Hushed!

    Your statement, “I think that those of us who already live here will be using this infrastructure as well as the new folks” is not relevant to the conversation about impact fees because cities can only assess impact fees for the portion of the improvements that relate directly to the new development. There must be a nexus of direct benefit to assess growth impact fees.

    Your assertion, “The cities that are being bankrupted is not because of growth” ignores the obvious: Cities work their tails off to maintain certain levels of service as they relate to their roads, parks, schools and fire protection services. As growth occurs, cities must make large capital expenditures to maintain these levels of service. If growth did not occur, many of these expenditures would not be required. The fact is, growth impact fees collected by cities cover only a small fraction of these significant costs. The balance is paid by taxpayers, either through specific levies (e.g., Greenway levies, school bonds, etc.) or through general fund tax revenues. However, like any subsidy-created bubble, the growth bubble will burst and tax revenues will eventually fail to cover these deficiencies. To claim that growth does not significantly impact the financial status (and potential bankruptcy) of cities ignores the facts.

    I understand that is it fun to sculpt fog, and I’m not recommending that you stop doing so; however, when you’re ready for a serious debate, please let me know. Old skool dance

    BTW – I did not say I was anti-anything. I said that I am pro growth-paying-its-own-way; however, since most people like to describe others as anti-something, you can say I’m anti growth-subsidy. I prefer being pro-something. Two thumbs up!
    DJGray
    Posted: Friday, August 22, 2008 4:29:07 PM

    Rank: Administration
    Groups: Administrator , Member

    Joined: 1/11/2008
    Posts: 256
    Location: Bellingham, WA
    Stan Snapp wrote:
    until this statement stuck in my craw, or is it kraw?


    Very Happy You were right the first time. It's "craw."

    Stan Snapp wrote:
    You don't say who the friend is that "presents on the city budget". I am impressed with anyone that can digest and understand, or even claim to understand, the CAFR,


    It would be more accurate to say he was presenting on the CAFR, but we talked a lot about budget issues. I should have been more precise.

    But, you're correct. I'm very protective of people's identities, of information that is confidential, private conversations that are intended to stay private, meetings in executive session, etc. I've extended that courtesy to you in these forums before, waiting until you were ready to say here what you indicated to me via email that you wanted to post. I suspect this gentleman will weigh in here eventually. He works a tough schedule.

    But, yes, he did work through the entire CAFR, and using the city's own numbers, came up with what I, in my exceedingly limited understanding, said above. This man has a gift for numbers, the way Michael Phelps has a gift for swimming. We had a spreadsheet roughly 10' by 4' with 8 point type on it, spread out all over my living room floor, and he moved over it with grace and comfort. I understand your skepticism, but after having him walk me through this for 2.5 hours, I was completely impressed with his work, and confident that he knows what he is talking about.

    Stan Snapp wrote:
    It's not written so lay folks or even past staffers like me that spent 17 years managing a piece of the COB budget can readily understand.


    Indeed. With my current level of understanding, I would not try something like that on my own.

    Stan Snapp wrote:
    I wish I could bold it or set it aside as it's hard for folks to know what part is my paste of your quote.


    I sent you a PM with instructions how to do that, but it may have gotten lost. I'll send you an email with images, so hopefully it will make sense.

    Stan Snapp wrote:
    Anyway, how can you make a statement about "what they are really saying" without identifying who "they" is so we can ask them what they are really saying.


    That's fair.

    In this case, it is specifically the mayor, and by extension staff that advises him and feeds him data.

    Sam Taylor, Aug 5 wrote:
    The city is facing as much as a $2 million budget shortfall in the next budget cycle, and sluggish revenues are signaling a shortfall this year, too, Mayor Dan Pike said.


    Here is the full article.

    Stan Snapp wrote:
    I was cursing because the folks that told me to cut the budget couldn't tell me specifically where


    I understand that frustration. It's a valid concern, and a good parallel. Businesses face this. Private families face it, and government faces it. Where the difference comes in, and the resentments arise, is that the government has the power (and uses it) to just raise taxes, or fees. I cannot go to my employer, cry him a song, and mandate a raise in pay.

    A business can raise prices to offset costs, but they run the risk of losing customers. Just off the top of my head, I'll offer two examples. I used to make a regular trip to Haggen's food court to get their rice bowl with General's and Honey Glazed chicken. I probably gained 20 lbs. from eating those things. They were $4. Now, they are $6.50 - $7.00, and I rarely buy them. The same with the $5 Hot -n- Ready from Little Caesar's. My son and I had a routine wherein every Thursday after guitar lessons, we would pick one or two up and woof `em down together. We no longer do that, because now they are $6.99 each.

    Those may seem like silly, or insignificant examples, but the point is, when prices go up to offset the cost of doing business, customers often make the choice to cut back on purchases. When taxes go up, consumers must make decisions on whether or not to spend, and that affects revenues for the city.

    Stan Snapp wrote:
    It's easy to say, "just cut the fat" or other silly platitudes which I read a lot here and on the Herald Blogs.


    What makes it silly? The fact that you don't like it? Stan, this is the job you signed on for. I have to believe you knew these sorts of challenges would be in front of you. While "just cut the fat" is not a phrase I've ever used, I wouldn't say "just" cut it. I'd say "CUT it!!" Saying "just" cut it makes it sound easy and painless. Such is simply not the case. It takes guts and courage to take the knife and carve the waste out, or the spending that is not necessary.

    What waste? What unnecessary spending?

    The first one that comes to my mind is this new museum being built downtown. I can already hear the outcry at my heartlessness, and I dismiss it. You laid out a great list of "essential public services." Police, Fire, Roads. Somehow, I believe if any thinking man or woman really weighs fire protection against a children's museum, the fire protection is going to win. That's a whopping lot of money being poured into that museum. Is it going to be a nice facility? No doubt about it. Is it essential? Not even close.

    Sometimes you have to add up a lot of small costs to find a large savings. So, let me offer one of those. Consider the cost of these many mosaic crosswalks throughout downtown and out at Cordata (and wherever else I've not seen them). Compare the cost of something like that against the simplicity of the plain white double-stripe crosswalk. The former are clearly more attractive, but both will do the job, and one represents a significant cost savings.

    There are definitely others, and probably better ones, but these are just a couple of simple examples off the top of my head that represent the type of extravagance some in Bellingham have come to expect, and I would argue, is the kind of extravagance we cannot afford, and which has led to the statement by the Mayor of Bellingham, that we are headed for a $2 million shortfall.


    Stan Snapp wrote:
    What makes people here think that government is like a business? Businesses go broke, governments don't have that option.


    I would point to the former Soviet Union as an example of a government that no longer exists, precisely because it went broke.

    But on your question, as to why people "here" think that government should be run like a business:

    I'm not sure where "here" is. Bellingham? This forum? The Pacific Northwest? The U.S.? You talked above about how businesses can go broke, but governments don't have that option. Indeed, to survive, businesses must be diligent to make sure they are run efficiently and effectively. They cannot waste money, and they must make good on their deliverables. Competition is ever-present and spurs businesses to deliver better products at lower costs.

    Conversely, government bureaucracies are inherently inefficient and have no objective incentive to improve efficiency or reduce costs. It can be effectively argued that public provision of goods and services is a monopoly, and without competition, the public is trapped into using one service. In the private (business) sector costs must sometimes be contained through workforce reduction, whereas civil service protections make this difficult, if not impossible, in the public sector.


    Stan Snapp wrote:
    Lot's of city work is required by law.


    I suspect neither of us is a big fan of unfunded mandates.

    Stan Snapp wrote:
    Where do you get that government makes a profit of 40%?


    From spending 2 1/2 hours with this gentleman going over the CAFR numbers. The figure is actually 47%, and it comes from the city's own numbers.

    Stan Snapp wrote:
    Your 5% needs explaining also.


    Okay. What would you like explained about it? Most successful businesses pull about a 5% profit. I just did a quick query and found recent net profit margins for HP at 5% while Dell is slightly higher at 6.5%. British Airways was at 4% while Southwest Airlines is smiling all the way to the bank at 11%.

    Stan Snapp wrote:
    At City Club some time back Mr. Nardi from the Herald cried that they were struggling and subscriptions are down, etc. When asked what his profit margin was he said, 20% and was told that most businesses would love to have that level of profit.


    Heck yeah! That's a great number, even if it is gross profit, which I suspect is the case. If that's net profit (which I doubt), then Nardi should be the next mayor! Wink


    Mark Twain wrote:

    A lie can travel halfway around the world while the truth is putting its shoes on.

  • Mark Twain


  • Baron Miller wrote:

    Grace ruins the idea that you are fully in charge.

  • Baron Miller



  • mrneighbor
    Posted: Saturday, August 23, 2008 4:12:25 AM

    Rank: New Member
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    Joined: 5/2/2008
    Posts: 5
    Location: Bellingham
    Michael, the question is: What if only four did this?

    The City website reports total 2008 General Fund expenditures of $71,534,020. The projected shortfall for 2009 is $2,000,000, only 2.8% of current General Fund expenses.

    What if only four did this: cut Department expenses by 2.8%. With about 800 employees, this amounts to only $6.85/per day for the year (two lattes per day).

    Who are the four to do this?
    Four City Council members.

    This is a lot simplier than collecting a check from every Bellingham adult as you proposed. Perhaps you will get a thank you note from some City Council member for letting them off the hook. Stan can be the first to sign the card, that would be easier than understanding the City CAFR or budget.




    It's a beautiful day in the Neighborhood,
    Mr. Neighbor
    Michael Nichols
    Posted: Saturday, August 23, 2008 2:08:34 PM

    Rank: New Member
    Groups: Member

    Joined: 6/15/2008
    Posts: 7
    Location: Lettered Streets, Bellingham
    Damon,
    Thank you for the kind words. I appreciate that we can agree on almost nothing except that civility and courtesy are valuable commodities. I do wish you would not call me a "liberal", though. I have a lot of opinions, and plenty of them would upset people who call themselves liberals. Maybe as much as this idea has upset some folks on this forum!


    ******** *********** **********

    Regarding the main theme in arguing against what I did: I do not have a great deal of facts or statisticts to quote, or a complicated platform to which I can refer. It is more a feeling of weariness and fatigue at reading or listening to recurring problems and recurring arguments, always suggesting that the problem is someone else's fault, and the solution is for someone else to make a sacrifice (whether it be financial, political, or whatever). I am sure that any one of us could balance the budget retroactively (and in the future) if we had no constituents to please, no political enemies to fear, and nothing to consider but what *we* think is a good idea. Under those conditions I could do it in an hour. Hand me a pen and turn your back, please. It will only hurt a moment... or maybe a year.

    I am not convinced that my idea is a real solution -- I aknowledge it is more of an exercise in serindipitous civic pride and inspiration -- but I thought of it myself, and have not heard of anyone else suggesting or doing something like it. As long as I have followed politics and as long as I have tried to pay attention, I have heard people blame others, tell other people what they should do(often while not being willing to do it themselves), and devise progressively more complicated systems. My idea does not lay blame, it doesn't ask anyone to do anything I haven't done, and it is very simple. Most importantly, it is not a reworking of the same arguments and accusations.











    New Vision
    Posted: Saturday, August 23, 2008 3:17:32 PM

    Rank: New Member
    Groups: Member

    Joined: 1/3/2008
    Posts: 13
    Michael,

    I commend you for advancing your idea and for taking action, and I respect you for sharing your point of view with others. Civility and courtesy are certainly valuable commodities, even more so when they are reciprocated. I believe you have gotten more than $51 of value from your donation to the city.

    By sharing your truth, you gave each of us an opportunity to discover our own. I tend to agree with Bellinghammer and Damon that your approach, noble as it is, is merely a band-aid where the services of a skilled surgeon are called for. Bailing the city out of the current budget crisis only ensures that we’ll experience many more. A bail-out simply enables the same behavior to continue without the necessary corrective action.

    I appreciate that your preference is for collaboration; for everyone to pull together. Unfortunately, collaboration requires everyone to pull together, including our elected and appointed officials who run the city. While I agree with others who have commented here and on the Herald’s website that the city could be managed more efficiently and could re-prioritize its capital expenses, my truth is slightly different.

    I believe the city has unintentionally found itself in the middle of a pyramid scheme in which the city’s tax revenues are based on a certain level of continuing and constant growth. The city has known for some time that residential growth does not pay its own way and creates a financial burden on existing and future taxpayers. As long as residential growth continues, it appears as if funds are available today to pay current expenses; however, in reality, current revenues will be needed to pay for the future expansion of the city’s infrastructure caused by today’s growth. Instead, these funds are currently used to pay for expansion that was created years ago, but were never adequately funded. Like all pyramid schemes, the city’s financial model is unsustainable.

    Although your suggestion is certainly well-intentioned, it only enables the pyramid scheme to continue. A similar situation is occurring on a much larger scale throughout the State of Florida, as discussed in the July 10, 2008 article by Michael Grunwald, Is Florida the Sunset State? (click here). The corrective action needed is to ensure that today's growth pays for itself, today.

    I appreciate your honorable gesture and your courage to let us all know about it. I believe it has helped the rest of us determine our own truth about the city’s budget crisis and will hopefully lead to a permanent cure. I hope you will continue to share your ideas on this forum and others. Thank you.

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