Turn You Inside Out

When Biddeford City Manager James Bennett first unveiled his proposed FY 2025 municipal budget last week, he made a point of reminding the city council and the public that the city is not operated like a business.

Bennett’s remarks were likely intended to get ahead of a frequent refrain often heard from beleaguered and stressed taxpayers. Almost like clockwork, municipal officials hear the same mantra: that the city should be run like a business.

Bennett says comparing the city to a privately operated business is not comparing apples to apples.

For the most part, I agree with him.

A business is incorporated to make profit and provide a steady revenue stream to its shareholders.

In the private sector, businesses do not face several restrictions and other obligations that must be endured by public sector operations such as local and state governments.

For example, if an annoying reporter like me wants a printed copy of some internal inter-office memo within city government, then the government must accommodate my request for that information. I do not, however, have the same access to inter-office memos generated by companies such as Boeing, General Dynamics or even Pizza by Alex.

Those businesses are allowed to keep and defend trade secrets, whether it’s the design of a new landing gear or a new recipe for making calzones. They are not accountable to the media.

If the city chooses to build a new piece of infrastructure, such as a new road, bridge or sewer connection, it must jump through several hoops in order to ensure transparency and strict adherence to state and local laws. Every member of the public (property taxpayers and non-property taxpayers) gets to have a say in the plan. There must be ample public input and advertised public hearings.

Although the private sector cannot simply do whatever it wants, they can make things happen more efficiently because they are not hamstrung by all sorts of obligations in the public sector.

During his presentation, Bennett also pointed out that city is facing the very same inflationary pressures that are being faced by you, me and every other consumer.

I am paying more for heating oil. I am paying more for water, electricity and even internet service. My grocery bills have exploded even though our household consumption remains somewhat flat (unlike my stomach)

I understand that we are in an election year, but the economy is still a concern for many people, especially when it comes to soaring housing costs and people on fixed incomes, lying awake at night, wondering if they are going to lose their homes.

Well guess what? If you’re paying more to fill your gas tank, the city is paying more to fill its tank. If you’re paying more for electricity, the city is paying more for its electricity. If you’re paying more for toilet paper, ink cartridges or lightbulbs, the city is also paying more for those things.

Now I know some of you are saying the economy is not that bad. In fact, unemployment numbers are near record lows. While that’s mostly a good economic sign, it’s not very good news for the city.

Private employers throughout southern Maine are scrambling for workers. Help wanted signs are all over the place, forcing employers to add more incentives and higher pay scales for their employees.

The city is not immune from this problem. We have to be creative in figuring out strategies to attract and retain qualified employees.

Lack of affordable housing also presents a challenge for the city. If a young teacher right out of college is looking for a new job – or a new police officer right out of the academy is looking for a job, they have to consider how much it’s going to cost to either live in or commute to the city.

The city cannot magically drop housing costs. The same problem is affecting communities throughout the southern Maine area. It’s not just a Biddeford problem.

Running to Stand Still

So how do we get a handle on ever increasing property taxes?

In the private sector, we can reduce services. For example, Laura and I had a wonderful lunch at the Muddy Rudder Restaurant in Yarmouth on Monday. That restaurant is now closed on Tuesdays and Wednesdays.

Many other businesses are following suit. The private sector is also looking to technology to reduce overhead. Self-checkout cashier options, automated payment services and much longer wait times for customer service are becoming the norm.

Taxpayers want and demand municipal services. You want a qualified team of EMTs or paramedics to be available 24/7. You want your road plowed. You want that pothole to be fixed. You want police and a fire department that can respond within just a few minutes.

There’s nothing wrong with taxpayers demanding services to be provided by the city they support.

So where does that leave us?

Frankly, between a rock and a hard place.

But there is a flipside to this coin. If the Seaver Family Pizzeria decides to raise its prices by 20 percent, you can choose to either go someplace else or make your own pizza for a fraction of the cost.

In the private sector, you – – as a consumer – – have a choice. In the private sector, Seaver’s Pizzeria must be competitive with other businesses, such as Pizza By Alex. We can’t just arbitrarily jack our prices without probably losing customers (revenue).

Now where does the city get its revenue? Every dollar the city uses comes from your back pocket. The city does not produce a product. The city relies solely on taxpayer revenues, whether it’s state funding or revenue sharing, a federal grant, excise taxes, permit fees, etc., etc.

All the money comes from you and me. Period.

And guess what? We really can’t take our business anywhere else. I can refuse to shop at Walmart if I don’t like how they operate their store.

But when it comes to the city, you either pay your taxes or the city takes your home. Sure, there are a lot of legal steps that the city must follow in taking your property, but they will do it.

If you don’t believe me, just ask Dorothy LaFortune. (Read This).

As Jon Hamm’s character, Special Agent Frawley, said in the movie The Town, “this is the not the fucking around crew.”

Sure, you can fight City Hall, but ultimately, it’s quite likely that you will lose everything you own.

Bennett is pretty much right. The city is not a business.

The city does not have to be competitive for its consumers, like a private business. The city does not have to worry about losing its customers like a private business. The city, unlike a business, has a guaranteed revenue stream regardless of what happens with the economy.

So, is there any good news? Any shimmer of light on the horizon?

Yup. It’s you and your neighbors.

The city is ultimately controlled by its residents who choose to vote and participate in their government.

If you just sit back and bitch and whine on Facebook, don’t expect much of a change. It’s easy to find out who represents you on the council. Go to a council meeting or participate online.

Raise your voice. Do your part. Get involved. Reach out to your specific city councilor and the at-large representatives on the council. You can find their contact info here.

Don’t expect your neighbors to pick up your slack. Don’t expect me to keep you informed. You are a shareholder in this organization. It’s your responsibility to question how the city is operated.

The first public hearing on the city’s proposed FY 2025 budget takes place on March 26 at City Hall. If you can’t make it, reach out to your councilor in advance.

What Jim Bennett is recommending is another six percent budget increase, which includes a nine percent increase in municipal spending. If you’re good with that, just sit back, relax and enjoy a bowl of popcorn.

Otherwise, make your voice heard.

Note: If you’re having a hard time finding contact information or details about the city’s proposed budget, you can contact me for assistance.

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