Why is Portsmouth Self-destructing?
As a resident of Portsmouth and a taxpayer, I think that the Town Council has made a major error in not funding the Director of Business Development position for next year.
By removing this $27,000 item from the budget, the council may think that it has saved the town some money, but at what cost? Despite the misinformed bluster of the PCC voting block on our Town Council, business development increases the commercial tax base which helps to keep our residential taxes low.
Doing away with this development position sends the message that Portsmouth does not care about or need economic growth. In today's highly competitive business climate, this is not the right message to send. The Director of Business Development job is definitely not a "feel good" position, but represents just about the minimum that Portsmouth can do to be considered friendly to businesses. The funding amount for this position is almost miniscule compared to the representation and broad range of activities that the current director has been engaged in, all with the benefit of Portsmouth in mind.
After hearing about this action by our Town Council, an official from a nearby town was overheard to ask a friend: "Why is Portsmouth self-destructing?" I have no answer to this except to point to the four members of the Town Council members who must be held responsible for it. And I don't think we can afford to wait until the next election.
Average Joe
1:54 pm on Friday, May 20, 2011
I agree that business development for the town is crucial if we want to increase revenue. I do have a few questions though, first, how many businesses were brought into the town by the past Director of Business Development, and second, how much revenue was generated from those businesses?
East side
3:44 pm on Friday, May 20, 2011
we need a new person in this position with business/marketing skills. The economomic development committee also needs an axe to it as well. This is a group of men retireed from the military getting together and not doing anything. We need a representive sample of the community with business backgrounds on this committee.
Doug Smith
9:24 am on Saturday, May 21, 2011
I don't speak for the PEDC, but there are only four retired military people on that committee - and three of those work in or own local businesses. The rest are simply citizens who want to help. The PEDC is an advisory committee, reporting to the Town Council on economic issues. It is not a marketing firm. The Business Director does actively advocate for Portsmouth in a variety of organizations, conferences and meetings that would otherwise not be attended by anyone from the Town. If you would like to join the PEDC to see what they do or help out instead of just sniping at them, I believe some openings are currently available - or just attend one of the PEDC meetings, all of which are open to the public.
East side
4:34 pm on Saturday, May 21, 2011
So there is a conflict of interest? For example, if I want to open a financial brokerage firm would I get help? How about a real estate firm?
Again. This crew is a good old boys club that do not market the
Selves or their services. In order to get business into potsmouth marketing efforts need to take place along with exposure at the town council meetings. Time for change
Scott Boyd
4:27 pm on Friday, May 20, 2011
How about figuring out how to pay for the services based on the tax revenue generated by the residents? Why is it always thought to be a good idea to put the tax burden on businesses? "We need more businesses so we can raise taxes from them not residents". Forget the growth, there is more a big enough critical mass for the tax base, the problem is living within our means.
Doug Smith
9:37 am on Saturday, May 21, 2011
Scott, my point was not to tax businesses more but to encourage some business growth in Town to balance residential growth. Taxes collected from businesses provide positive revenue for the Town. In other words, the Town gets more revenue from business taxes than it spends in services for businesses. Tax revenue for residences is revenue negative, that is, it costs the Town more in services for residential taxpayers (primarily because of schools) than the Town receives in residential tax revenues. At one point in the 1990's, 18% of the taxable properties in Portsmouth were commercial. This dropped to 10% in 2001, but has held steady at 10.1% and not continued to decline thanks in part to the efforts of the Business Director. For sustainable budgets, a better balance is needed.
franny glass
9:02 am on Saturday, May 21, 2011
from the Portsmouth town web site:
THE ROLE OF THE TOWN PLANNER
Portsmouth is a growing community. Productively managing this growth has been the Town Council's priority for over a decade. The Town Planner is charged with working on the Town's future. Whether it is land use regulations whose benefits accumulate over the years, major physical projects that will benefit residents for decades, environmental protection, or *economic development* to provide jobs and balance the tax base, the Planner focuses the Towns government on long-term projects.
M. P.
9:06 pm on Saturday, May 21, 2011
The problem is that the majority of the members on our current council do not feel that we have a revenue problem. They can't comprehend the idea that if as a town we had a money making venture then it would lessen the financial burden on the taxpayers. You are correct, Doug, the costs of everything will continue to rise, but our council just keeps thinking that if they close their eyes and wish hard enough that it will be 1950 again and costs will decrease. Someone needs to give them a reality check. This town needs business development to lessen the burden on the taxpayer when service costs continue to rise - and they will. Just more mistakes being made by the penny-wise and pound foolish TC.
East side
10:44 pm on Saturday, May 21, 2011
The problems are the people on the committee. Their ideas are terrible. Want to save money not just generate revenue. For example. Regionalization is discussed for the school system. However the thee libraries on the island could be brought down to one. The school admin could be brought sown to one. The town could work with newports Economic development group in order to use synergy among the towns to bring in and drive business. All I see these people doing is or hear about them is when something bad happens to or is said about the committee. Portsmouth needs proactive economic development people.
Ray Berberick
6:12 pm on Sunday, May 22, 2011
East Side: We are doing what we can. We have started this effort to raise revenue. http://portsmouth.patch.com/articles/portsmouth-man-wants-the-town-to-find-new-money-within-five-years
We need more help on this committee. Call me at 682-2007. Our next meeting is on Wednesday, June 15th at 5 pm in the Portsmouth Room at Town Hall.
Werner Loell
7:51 pm on Monday, May 23, 2011
How do I feel? Not too pleased. The Portsmouth Business Community wants more development and further economic growth. Do we know how many tax payers and local residents are supportive of this constant frenzy for economic growth (the defeat of Target comes to mind). The “self-destruction” Mr. Doug Smith is referencing could not be more incorrect and seemingly oversimplified. More development is what destroys orchards, arable lands, biodiversity, clean air and water, quality of life, aquatic life, and our bucolic environment that sustains our community.
Ray Berberick
1:18 pm on Tuesday, May 24, 2011
Mr. Loell: I invite you to come to the next RGSC meeting on June 15th at 5 pm in Portsmouth Room at the Town Hall. The RGSC/PEDC is not advocating massive expansion. We are aware of the concerns of the town residents about "Preserving Portsmouth" and "big boxes." What we are advocating is "smart growth" which is developing existing land that is already zoned for business as well as looking into what opportunities can be done to raise revenue using town property and looking for other creative ways to raise revenue. The PEDC annual briefing slides on the PEDC website shows the "looming budget gap." Many people in town are involved in analyzing the budget and reducing spending. However, there are two sides to the balance sheet. We are looking at the revenue side as well. We welcome the help and ideas of any resident to look for ingenious and lucrative ideas to help bring new revenue and maintaining the positive aspects of Portsmouth that we all enjoy.
Scott Boyd
6:36 pm on Tuesday, May 24, 2011
Re my comment above and Doug's reply. Doug, my point is why should a business contribute more in taxes than their cost to the Town? Why does everyone think it's a great idea to make up what the residences cost in excess of their contribution by shifting it to the business tax base? You want to see business growth in Town, work on the residences living within their means (raise taxes or cut services until they balance) tax the businesses what they incur, which your facts show is considerably less than they get taxed now, guess what Portsmouth becomes a very business friendly place.
Bill Carson
8:33 am on Thursday, May 26, 2011
When anyone wants to purchase a home in the Rhode Island area the first thing they look at is the tax rate! It's not the cute little formulas about percentages and averages,it's about how much does it cost to pay the town and what do you get .
If I want to pay $500,000 for a house how much does it cost to live in that town ? The real estate companies tell you up front what the yearly expense is ! The home buyer looks at the tax bill and what the mortage will cost and makes the decision !
Portsmouth has between 275 and 300 homes for sale all the time - Not a good figure !
This is called self destruction - Give the town a dollar tax and they spend a dollar twenty-five !
Mina
3:51 pm on Tuesday, June 26, 2012
If business " destroys orchards, arable lands, biodiversity, clean air and water, quality of life, aquatic life" Middletown is in better shape. Business brings revenue to the town, as far as I know. Anyway, what is the town has to offer in terms of opening a food business, even if its a very small business, if I have to spend between 25,000 to 50,000 more than if I open a business in Middletown or Newport?