OFFICE OF THE MAYOR

PRESS RELEASE

FOR IMMEDIATE RELEASE September 22, 2014

STATEMENT BY MAYOR SANDY STIMPSON

- Response to Fiscal Year 2015 Budget and Sales Tax Amendments -

As a normal part of this year’s budget process, I have been reviewing the amendments that the

City Council passed last week and the impact these amendments have on the goals of the

proposed budget and the city as a whole. After considerable deliberation, I will pursue the

following courses of action:

Disapprove of and veto the 38 month extension of the additional 1% sales tax;

Re-introduce an amendment for a two month extension of the additional 1% sales tax to

deliver the capital commitments in the 2015 budget;

Disapprove of and veto the $2,500,000 transfer to the health plan; and,

Call for a 2015 Strategic Visioning Session with the City Council.

Additional 1 % Sales Tax

From my first day in office, we have been working on getting our fiscal house in order. As we

work to improve our quality of life, grow the city and generate more revenue – Mobile will

realize the Cycle of Positive Change and continue moving down the path of becoming the safest,

most business and family-friendly city in America by 2020. My Administration has consistently

stated that:

As stewards of the people’s money, focused on pro-growth policies and identifying

efficiencies -- we must begin to wean the city off of its dependency on such a tax.

The City of Mobile cannot sustain one of the highest sales tax rates in the State and Country.

A year-by-year assessment of the city’s fiscal needs and productivity will help identify if a

full or partial 1% is even necessary.

To deliver the capital commitments in the 2015 budget, I call on the City Council to extend

for two months the temporary 1% sales tax through September 30, 2015 (end of FY 2015).

The citizens of Mobile need to have their voice heard regarding the long-term future of any

additional sales tax. If the citizens support such a tax, I ask that the City Council commit to

working with the Administration to identify the capital expenditure plan for the tax.

For the reasons stated above, a 38 month extension of this sales tax is not in the best interest of

the city’s commitment to fiscal transparency. Therefore, I disapprove of and will veto the

amendment to the sales tax ordinance.

I will re-introduce my original amendment to the ordinance that extends the additional 1% sales

tax through September 30, 2015, in order to deliver the capital commitments in this budget.

Gregory Amendment: $2,500,000 Transfer from Public Safety Capital to Health Plan

The proposed 2015 budget addressed the greatest needs of our city while adhering to funding the

core functions of city government – public safety, public works, city finance, strategic planning

and economic development. Overall, the City Council embraced this premise, but I believe we

fell short in one particular area that cannot be compromised, public safety.

I disapprove of and will veto the amendment sponsored by Councilwoman Gina Gregory that

transferred $2,500,000 towards the health plan. This money is being taken away from

desperately needed police and fire-rescue equipment. Public safety is a fundamental tenet and

responsibility of government that cannot be sacrificed.

Because this veto affects city retirees, the intended beneficiaries of the amendment, I remain

committed to evaluating the city’s new health plan cost-sharing model and coming to a fair and

balanced outcome that will continue to take good care of those who have served this community

for decades.

Rich Amendment: $1,500,000 for Soccer Complex

I publicly stated my preference is for the city to remedy what is already broken within our parks

rather than commit resources to building a new park. Councilwoman Bess Rich sponsored an

amendment to earmark $1,500,000 out of capital improvements for parks for this project. Since

there remain many questions about this soccer complex, I will reserve further comment and

action until we know the following:

Will the County Commission approve the funding for this complex?

What are the fixed costs for construction, operations and long-term maintenance?

What are the results from a bona fide economic impact study?

Is this the best possible location for such a complex?

Will the city be asked for additional funding throughout the life cycle of this project?

2015 Strategic Visioning Session

Lastly, I remain committed to working closely with the City Council as we continue to move

Mobile forward. Therefore, I am calling for a 2015 Strategic Visioning Session between me, my

executive staff and the City Council. This session will promote a candid exchange of ideas about

the Administration’s plans for FY 2015 and how we can partner with the Council in producing

tangible results for all of our citizens.

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