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Published: Feb 26, 2008 12:11 PM
Modified: Feb 26, 2008 12:11 PM

A frank assessment in Clayton
 
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One can’t help but admire Clayton Town Manager Steve Biggs for his positive thinking. He is hopeful that growth in the tax base will allow Clayton to repay $4 million in recreation bonds without raising property taxes.

But when he says that, Mr. Biggs is also acknowledging that property taxes will go up if they have to. That’s the kind of honesty taxpayers deserve to hear from Town Hall.

Unlike Smithfield, which isn’t growing, Clayton can ill-afford to spend electricity profits on other needs. It needs those profits to expand the electric system as the town adds new homes and businesses.

Neither can the town rely on recreation revenue to pay back the borrowing. Towns can and do raise water and sewer rates to retire debt on water and sewer projects. But no one could afford recreation in Clayton if fees were high enough to pay back $4 million for new and improved parks.

Finally, the town has no outside source of revenue to repay the recreation debt. To pay back street-improvement bonds, the town can use Powell Bill dollars, money it receives every year from the state. Unfortunately, no such state money flows to Clayton for recreation.

That leaves property taxes.

We happen to share Mr. Biggs’ optimism that growth in Clayton’s tax base will allow it to repay the recreation bonds without a tax increase. But if not, like Mr. Biggs, we think Clayton citizens ought to know that.

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