Seagle presents own economic stimulus plan

District 6 Commissioner Keith Seagle took an hour Thursday to present his Economic Stimulus Plan for Dothan.

Bearing the official seal of the city, the 38-page document, Seagle said, is based upon the principles of President Barack Obama’s American Recovery and Reinvestment Act of 2009.

Only the commissioner’s package is not based upon spending new dollars, but cutting existing revenue during a time when city coffers are down more than $2 million.

The always-popular tax cut is the foundation of Seagle’s keys to recovery. He is proposing removing the 4 percent local tax on groceries; expanding the annual sales tax holiday; and eliminating the monthly $7.90 customer charge for impoverished Dothan Utility customers.

Seagle said removing the grocery tax would help working mothers who are tired of living on macaroni and cheese and Beenie Weenies. He said it is both “wrong and immoral” not to act to help them. Low-income residents who receive food stamps already do not pay sales taxes on food purchased with those stamps.

The Dothan Eagle asked if Seagle and other elected public servants would be willing to forego their commission salaries as one way to cut expenditures in these grave times. City commissioners are paid $21,000 annually and the mayor makes $42,000. Taking no pay would save an additional $168,000 annually – which is about equal to the city manager’s salary with benefits.

Seagle did not answer the question. He is paid $50,073 as head of counseling at Troy University Dothan.

Seagle suggested the city manager could cut 5 percent or more from the city’s $181 million budget to offset the grocery taxes. He suggested reducing payroll, evaluating contracting services, and weaning the Downtown Dothan Redevelopment Authority off its reliance on city funds, which has always been a part of DDRA’s funding arrangement with the city.

Seagle said he does not believe there will be much of a sales tax deficit because by cutting the tax on groceries, which the state has not yet done, Dothan will be known as “the most retail-friendly city in Alabama.”

Seagle’s plan does not stipulate any new revenues except in the form of stimulus money and grants. He said there would be an increase in sales taxes collected, however, from consumers who will “flock” to Dothan to get cheaper groceries. The city already has the highest out-shopping rate in the state, meaning more people come into the city to shop per capita, than any city in Alabama.

Seagle did not say what people would be buying while in Dothan, but he called the recession “unprecedented times” and said there is a need to put tax dollars back in consumer’s pockets.

When Seagle first hinted at his plan Tuesday, Mayor Pat Thomas criticized it as “politicking” because the plan had never come up in discussions with consultant Lyle Sumek.

Seagle was asked repeatedly if he intends to run for mayor, to which he replied if his package passes, he will be satisfied. When asked if the commission does not approve his package, which will require a majority vote to place it on the agenda, Seagle said he “might” consider a run for mayor.

Seagle said he received a lot of input on his proposal. When the Eagle asked if input came from former mayor Kenneth Everett, Seagle replied: “I have not heard anything from Mr. Everett on this one.”

Seagle’s proposal includes job training, mentoring and small business support, all of which are already provided by the Dothan Area Chamber of Commerce, local colleges and other agencies.

Seagle’s plan watches pennies – including those Pennies for Progress generated by an additional one-cent sales tax. The commissioner proposed a Penny Saved Program whereby small miscellaneous savings can be made in various areas.

His plan did not include savings in the area of travel. Seagle was criticized last year for not reimbursing the city for a $50 excess baggage charge and a flight change fee while on a city trip to Washington.

In preparing for the press conference, Seagle e-mailed Information Technology Director Tim Stewart Wednesday night and asked him to prepare a power point presentation for Thursday’s press conference. Seagle got an administrative secretary to copy and bind 20 copies of his plan for the media and the eight members of the public who attended the press conference.

That action was apparently in violation of city code. Section 11-44E-45 of the City Code regarding the dealings of the commission states that commissioners “shall deal with the administrative service solely through the city manager, and neither the commission nor any member thereof shall give orders to any subordinates of the city manager, either publicly or privately” except for the purpose of inquiry.