FAIRVIEW – “A lot of people aren’t here today because it’s not a good political move to be here.” That boldly honest statement from Cullman County Commissioner Garry Marchman came around the middle of this weekend’s tax discussion, sometimes debate, at Fairview High School.
Organizer and community activist Ron Stone has been making the rounds all summer at municipal city and town hall meetings, spreading the word about the discussion, the topic of which was Stone’s proposed overhaul of the current tax distribution structure in Cullman.
As the city of Cullman continues to see explosive retail growth and millions in industrial investments and expansion, enjoying the benefits of a robust and thriving economy, and one of the best school systems in Alabama, the disparity between the city and the county is growing starker by the day, according to some, with the county residents paying the price.
Only 27 people were at Saturday’s event; however, they were a small but vocal bunch. In addition to Marchman, Rep. Randall Shedd, R-Fairview, West Point Mayor Kenneth Kilgo, Holly Pond Mayor Herman Nail and Cullman City Clerk Wesley Moore were there to listen and to offer their ideas.
“We’re not here to bash anybody,” said Kilgo. “These are complicated issues.”
Currently, Cullman’s tax distribution is 40 percent to the City of Cullman, 40 percent to the County (Commission, unincorporated towns) and 20 percent to county municipalities, while according to 2010 census numbers provided by Stone, Cullman County’s population is 80,406, with 55,729 of these people living outside of any municipality and 24,677 living in municipalities (including Cullman). The total population of all other municipalities, excluding Cullman, is 9,902.
Stone’s proposed new tax plan, serving as the talking points for the weekend’s meeting, is as follows:
- No new County-wide sales tax. Instead, change the current tax distribution structure to a more equitable 50/50 plan, with 50 percent going to the County (Commission, unincorporated towns) and 50 percent going to Cities/Towns (all incorporated cities and towns, including the City of Cullman)
- No taxes going to Cullman Regional Medical Center (CRMC), a private corporation. Instead, redistribute the $400,000 that goes to CRMC each year to all Cullman County and City classrooms
- Beer and wine taxes- 1 cent per can of beer and 5 cents per bottle of wine or whiskey should go the Cullman County Sheriff’s Office (CCSO), Cullman City Police Department and Hanceville Police Department
- Hard liquor tax of 5 cents to go directly to the CCSO
- Two cent per gallon of gasoline/diesel fuel tax to go to roads in Cullman County. The tax should be split based on miles of roads in County and Cities/Towns, who are responsible for the road miles in their areas.
- Check on Blue Line Water Tax going into Smith lake. Alabama Power, a private corporation, sells Cullman water and pays Cullman County nothing for it
- All changes would be put on a ballot to be voted on by Cullman voters.
Saturday’s meeting was run like a forum. Stone spoke first, and then each of the panelists took his turn, followed by a question and answer session with the audience.
A common sentiment among all of the participants was how well the City and County governments work together in Cullman County.
“We are really blessed in Cullman County,” said Kilgo, mentioning how much better off Cullman is than some of the surrounding counties.
“These are complicated issues,” he continued. “But the biggest need, right now, in increasing tax revenue, is the Cullman County Commission.”
About Cullman’s current 40/40/20 tax distribution scale, Kilgo remarked, “It is the most unique tax structure in the state.”
Shedd agreed, but also carefully pointed out that “I came to listen.” One part of Stone’s plan that Shedd was pointed about was the hospital. “I don’t see us taking that money away from Cullman Regional Medical Center,” he said.
“The county is the only one who loses from this system,” said Marchman. “I think this system has outgrown itself and needs to be looked at.
“People need to educate themselves,” he continued. “Where do your taxes go?”
What about having a 2 cent tax across the county, and then having each municipality set their own tax rate, he mused, but “some towns can’t support themselves.”
Marchman went so far as to suggest that an outside agency should be brought in to evaluate the tax distribution scale in place. Someone, he said, that would have a “neutral opinion.”
“A lot of people aren’t here today because it’s not a good political move to be here,” he said honestly. “I don’t care about that. The only person I have to look at in the mirror is Garry Marchman.”
The relatively low turnout for the meeting was something brought up numerous times.
The heart of Nail’s remarks was that people should care enough to be involved and show up.
Perhaps the most contentious part of the afternoon was when Jones Chapel resident Mike Eddy took to the podium and delivered a fiery talk about how he thinks the City is taking advantage of the County. He also took issue with the “politicians” he said could fix the system, but they didn’t show up.
“If you owned the golden goose, would you sell it? The City has everything. It’s known through the state and country for having the best schools, new industries. They have $10 million to build a new high school, $55 million to pay for the Duck River Dam, money to build a new fire department. Money. Money. Money. Everywhere, Cullman has money. Meanwhile, you could take anything that has Cullman County on it and add broke to the end, and that’s us. The Cullman County Road Department is broke. The Cullman County Board of Education is broke. The reason we’re broke is because the whole county has been taken advantage of, maybe not intentionally. But it’s because of the way things have happened over time. Let’s change the tax system. Look at the whole thing.”
Stone, who was acting as moderator, repeatedly gave Eddy the ‘time-out’ signal when he felt Eddy was crossing the line.
Moore followed, reminding everyone that “75 percent of Cullman’s total countywide tax revenue is generated in the City of Cullman.” He reasoned that the City has to pay for the upkeep of all of that infrastructure that everyone in Cullman County enjoys, meaning roads, parking, etc. for all of the businesses that draw people to the city.
In the audience, a couple of county residents said that a lot of that 75 percent came from county residents spending money in the city, with one asking Moore to tell her what percentage of that 75 percent was generated by folks living outside the city limits. Moore said he did not have that specific number and that it would be very hard to calculate.
“Well, what if everyone in Holly Pond boycotted and shopped somewhere else?” she asked.
In the hot seat, Moore was interrupted by Eddy, who asked why Cullman Mayor Max Townson was not at the forum. Stone quickly pointed out that Townson had another meeting at the same time.
“Under the 40-40-20 split, everyone does prosper. Some may prosper more than others. We can debate how fair and equitable it is, but the system we have works well,” Moore contended. “If we went to a ‘what you generate’ distribution system, that would be much more detrimental to those small municipalities. I’m afraid they would shut down, and I would hate to see that.”
A county resident who spoke said that an increase in property taxes should also be considered, not just the redistribution of sales tax.
In the end, the only two parts of Stone’s plan that all of the attendees seemed to think were fair were the alcohol taxes and two cent gasoline tax. But “only if it stays in the County,” Kilgo said of the latter.
Wrapping up, Shedd said, “There were a lot of things talked about today that would require state changes (referring to the particulars of liquor taxation).” Likening the event to being in Montgomery, he reminded the audience that “legislation takes consensus. I’d like to ask the Cullman County Commission to vote and give us a proposal.”
Residents who would like to know more should check with their local town or city hall. Stone has said that more meetings will take place.
View the full discussion here:
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