danville tax revenue impact isn't as stated

from letters to the editor - Danville advocate news

Tax revenue from alcohol sales doesn't have the impact stated
Comments 3 45
4:25 p.m. EDT, August 11, 2012
Recently there have been several opinions published in The Advocate-Messenger giving credit to expanded alcohol sales for a large portion of the city’s year-end budget surplus. The most recent article was published Aug. 5 by Ben Nelson for Danville-Boyle County Chamber of Commerce. The article argues that the $960,000 in revenue from alcohol sales since June 2010 contributed heavily to the city of Danville’s $1.8 million surplus. This is like the employee who shows up for the last five minutes of his or her work shift and attempts to takes credit for the production above the shift’s daily goal. Somebody is being slighted credit for their work.

The real contributors to the surplus should be recognized as our local entrepreneurs, property owners, industries, employers, and employees who stake their livelihood on our local economy. The city simply cannot provide the essential services demanded by our citizens without their willing payment of local property taxes, the employee’s occupational taxes collected, and insurance tax. It’s their money that operates the city and provides the public infrastructure used by festival vendors and attendees.

Did the chamber bother to see if the vendors obtained a business license before writing their letter to the editor and asking the question “why even bother” in reference to the festival fee? I suggest you ask your “why even bother” question to the people who actually made the budget surplus. I specifically recommend you ask the local restaurant owners and employees who were denied participation by the festival organizers.

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Festive Events It is easy to see that tax revenue from alcohol sales does not have the impact as stated by the chamber when you realize that the revenue figure used was gross receipts for a two-year period compared to a net surplus for the year ending June 30, 2012.

A fair comparison would have deducted from the $960,000 gross revenue the significant cost of additional law enforcement and administrative costs expended by the city in the licensing, inspecting, and enforcement procedures and the significant other expenses incurred during the start-up period and in publishing the city alcohol ordinance. Keep in mind the city’s gross alcohol revenue is projected to be less than 2 percent of the current budget.

Therefore, it cannot be stated without a detailed study that any portion of the 2011-12 budget surpluses was attributable to the alcohol revenue.

Bernie Hunstad

Danville mayor

This would not have mattered in the vote. People were going to pass it regardless of a huge amount of money coming in or just a little. The thing is if you add alcohol sales to a city that hasn't had any legal ones in years it's going to increase. By how much is the question. I guess we will find out later next year.

Ummm.....are you aware you posted an EDITORIAL as a "source"?

Danville is still twice the town better than scumerset. Its just the way I feel. Maybe the next couple of years will change my mind. Hope so.

JumperJuice wrote:

Ummm.....are you aware you posted an EDITORIAL as a "source"?

um, did YOU notice from WHOM the editorial was written? the FREAKIN' MAYOR of the town! who should know the scoop better?

ok heres this wrote:

<quoted text>
um, did YOU notice from WHOM the editorial was written? the FREAKIN' MAYOR of the town! who should know the scoop better?

No....I did not bother to read the second one when I read the first one to be an editorial ....sorry. That being said, it reads to me that they can't really tell where the surplus came from. Therefore, sounds like NO ONE has the scoop in danville. It's just as safe to say that alcohol did contribute to the surplus as it is to say it hasn't. Sounds like maybe some officials are wanting to take credit for doing things that maybe they did or didn't do. How many of, and HOW SOON are these jokers coming up for election? THAT is the question. I never trust ANY politicians or their bought and paid for "newspeople".

The point is not the amount of tax revenue it adds to the city. The amount of that Somerset will see from alcohol sales will be negligible compared with the city's budget. That's not the point. The point is the overall effect on the economy, which is very different. Somerset's economy is larger than Danville's and tourism is nearly double that of Danville. I believe we will see higher alcohol sales than they do but even if they are the same, we are adding around $50 million to the local economy even if we are adding only a little less than $1 million to the city's intake.

In my opinion, this vote will solidify Somerset's position as the primary economic hub in Southern KY which fills the vacuum between Knoxville and Lexington. It was already in progress before the vote but the vote was just the icing on the cake since it made Pulaski an island of package alcohol sales with no wet counties adjacent to it. Take a look at the businesses which are opening up, businesses which are not opening in Danville or any other city between here and the Lexington area or Knoxville (Hobby Lobby, TJ Maxx, Dunkin Donuts, etc).

Take a look at the businesses which are opening up, businesses which are not opening in Danville or any other city between here and the Lexington area or Knoxville (Hobby Lobby, TJ Maxx, Dunkin Donuts, etc).

You have to be kidding, they were here before the vote, except DD

look at the extra officers, vehicles, benefits, abc team etc. that the city will have to get, it wil not be all peaches and cream, it will help, but will not be a cure all for the city and besides somerset was better off than any city in the state before the vote, we had a huge surplus.

dionysio wrote:

The point is not the amount of tax revenue it adds to the city. The amount of that Somerset will see from alcohol sales will be negligible compared with the city's budget. That's not the point. The point is the overall effect on the economy, which is very different. Somerset's economy is larger than Danville's and tourism is nearly double that of Danville. I believe we will see higher alcohol sales than they do but even if they are the same, we are adding around $50 million to the local economy even if we are adding only a little less than $1 million to the city's intake.
In my opinion, this vote will solidify Somerset's position as the primary economic hub in Southern KY which fills the vacuum between Knoxville and Lexington. It was already in progress before the vote but the vote was just the icing on the cake since it made Pulaski an island of package alcohol sales with no wet counties adjacent to it. Take a look at the businesses which are opening up, businesses which are not opening in Danville or any other city between here and the Lexington area or Knoxville (Hobby Lobby, TJ Maxx, Dunkin Donuts, etc).

Good points.....

Since the mayor's opinion piece surfaced, I started reading up on what's going on in Danville and am getting a sense that there is an ongoing power struggle between the mayor, the county chamber of commerce and their equivalent of our downtown development organization and wonder if this could have influenced his comments. As the mayor states, there has been no objective study done to verify how much increased city services have offset the $960,000 in revenue from the sale of alcohol. Perhaps that's why his comments appear on the opinion page and are not the subject of an article per se. At this point, his comments have no more or less validity than those made by the Boyle County Chamber of Commerce that the sale of alcohol contributed significantly to the $1.8 million surplus.

That said, Somerset is a very different animal as others have very eloquently pointed out. Although there will undoubtedly be some growing pains, I do see good things ahead.

Tough Love wrote:

Since the mayor's opinion piece surfaced, I started reading up on what's going on in Danville and am getting a sense that there is an ongoing power struggle between the mayor, the county chamber of commerce and their equivalent of our downtown development organization and wonder if this could have influenced his comments. As the mayor states, there has been no objective study done to verify how much increased city services have offset the $960,000 in revenue from the sale of alcohol. Perhaps that's why his comments appear on the opinion page and are not the subject of an article per se. At this point, his comments have no more or less validity than those made by the Boyle County Chamber of Commerce that the sale of alcohol contributed significantly to the $1.8 million surplus.
That said, Somerset is a very different animal as others have very eloquently pointed out. Although there will undoubtedly be some growing pains, I do see good things ahead.

Kinda what it sounded like to me....that, or a hair brained ploy to raise votes.

Tough Love wrote:

Since the mayor's opinion piece surfaced, I started reading up on what's going on in Danville and am getting a sense that there is an ongoing power struggle between the mayor, the county chamber of commerce and their equivalent of our downtown development organization and wonder if this could have influenced his comments.

Very true. I work close to Danville, the first thing the mayor did after getting elected was fire the city manager.

That led to all kinds of political infighting and lawsuits. The Danville Advocate website probably still has a lot of the stories up if anyone is interested in reading them.

dionysio wrote:

The point is not the amount of tax revenue it adds to the city. The amount of that Somerset will see from alcohol sales will be negligible compared with the city's budget. That's not the point. The point is the overall effect on the economy, which is very different. Somerset's economy is larger than Danville's and tourism is nearly double that of Danville. I believe we will see higher alcohol sales than they do but even if they are the same, we are adding around $50 million to the local economy even if we are adding only a little less than $1 million to the city's intake.
In my opinion, this vote will solidify Somerset's position as the primary economic hub in Southern KY which fills the vacuum between Knoxville and Lexington. It was already in progress before the vote but the vote was just the icing on the cake since it made Pulaski an island of package alcohol sales with no wet counties adjacent to it. Take a look at the businesses which are opening up, businesses which are not opening in Danville or any other city between here and the Lexington area or Knoxville (Hobby Lobby, TJ Maxx, Dunkin Donuts, etc).

i think the london/corbin/wmsburg area have already done this. somerset's too far from I-75.

I don't agree and I don't think the people in those towns would agree either, certainly not London or Williamsburg. It's funny because when I lived in Lexington, it was a constant refrain that Lexington was too far from the interstate as well, which it is. It has grown out to the interstate now but downtown, the airport, all of that is pretty far out there. It certainly frustrates the hell out of people from other cities that the interstate doesn't run straight through the most populated areas like it does anywhere else.

Regardless, Corbin is a bit more forward thinking than the others but it is in the middle of a high poverty area and is far smaller than Somerset, about half the size. The arena they built is in serious economic trouble and local politics are worse there than here. Somerset has a much more diverse and healthy economy and is the only city in the region attracting these businesses. I think we will all be pleased at how it plays out over the next few years as new businesses, previously only available in large urban areas, move into town.

Somerset will never be much more than it is right now, relative to the rest of the state. There are historic reasons why some areas developed more than others and most of that history is set.

Barring alot of major manufacturing industries moving in and staying, the growth will continue at more or less the same rate, depending on the national and state economies.

There seems to be alot of size envy here. Keep in mind most people that moved here from larger cities like it the way it is. I live here but make my living out of town and seldom leave the county. Make your own financial successes and stop believing that being able to buy beer at 7-11 is going to cure everyones economic woes. That tale may have helped sway the wet/dry vote, but the reality will be far less dramatic. Keep in mind there are little one horse towns all over this country that have been wet for years.
In the mean time, dream on.

old dawg wrote:

<quoted text>
i think the london/corbin/wmsburg area have already done this. somerset's too far from I-75.

It will be accessed much easier from I-75 once the US27 connector is complete.

high hopes wrote:

Somerset will never be much more than it is right now, relative to the rest of the state. There are historic reasons why some areas developed more than others and most of that history is set.
Barring alot of major manufacturing industries moving in and staying, the growth will continue at more or less the same rate, depending on the national and state economies.
There seems to be alot of size envy here. Keep in mind most people that moved here from larger cities like it the way it is. I live here but make my living out of town and seldom leave the county. Make your own financial successes and stop believing that being able to buy beer at 7-11 is going to cure everyones economic woes. That tale may have helped sway the wet/dry vote, but the reality will be far less dramatic. Keep in mind there are little one horse towns all over this country that have been wet for years.
In the mean time, dream on.

When I first got out of Highschool Somerset / Pulaski County was the fastest growing area in Kentucky. If we had better officials I see no reason that we couldn't be that again. The only thing holding us back according to a lot of people is that there is no "Interstate" connectivity and the fact we were dry. The roads we have right now are some of the best in the state. We are roughly 35-40 minutes from I-75 so I see no problems with this.
I honestly believe that we will be on the fast track again. And I do not see why we can't be one of the fastest growing areas again. The biggest draw back is the lack of an industrial backbone. That is what we need to work on most now. If these current officials in charge aren't willing to do something about it we need to find some who can.

DaGasssMan wrote:

<quoted text>
When I first got out of Highschool Somerset / Pulaski County was the fastest growing area in Kentucky. If we had better officials I see no reason that we couldn't be that again. The only thing holding us back according to a lot of people is that there is no "Interstate" connectivity and the fact we were dry. The roads we have right now are some of the best in the state. We are roughly 35-40 minutes from I-75 so I see no problems with this.
I honestly believe that we will be on the fast track again. And I do not see why we can't be one of the fastest growing areas again. The biggest draw back is the lack of an industrial backbone. That is what we need to work on most now. If these current officials in charge aren't willing to do something about it we need to find some who can.

I hear ya man, when I would come home from college for a few years there, I wouldn't even know where the hell I was! The first time I went down Monticello Street after a couple of years....I was lost. My mind was nearly blown when I tired to go down Cedar Grove! LOL!

JumperJuice wrote:

<quoted text> I hear ya man, when I would come home from college for a few years there, I wouldn't even know where the hell I was! The first time I went down Monticello Street after a couple of years....I was lost. My mind was nearly blown when I tired to go down Cedar Grove! LOL!

914 once it is completed will be our version of Lexington's New Circle Rd. The road system we have here really is top notch now. I remember growing up when all we had was basically gravel roads. I don't even think they make those anymore. LOL.

Most people retire and move here to get away from the new circle roads and hassles of the bigger cities. I am fine with it the way it is, the big city is not for me, if or when somerset grows to be like lexington then I will move and take my taxes to the county. I live here because of the small town feel, if I wanted somewhere like the bigger cities, then I would move to a larger city, I really don't think this will have the impact that most people seen to think it will have, sure it will help, but just how much, no one knows.