Before the public hearing began, Mayor Emery Doughtie explained the city’s fragile economic condition.

He explained there is very little income coming from the theater and because of the huge debt from it council must consider a tax increase, a sales tax increase up to 1 cent or cutting services.

The sales tax, he said, would generate between $1.7 million to $1.8 million. To raise that from a property tax increase would require an increase of between 15 cents to 18 cents, about a 25 percent to 35 percent increase.

“I don’t have a problem saying I don’t like taxes,” the mayor said. “I would support it.”

City Manager Paul Sabiston said a 1 cent sales tax increase could generate as much as $2 million.

What the city will do as it begins budget deliberations for the upcoming fiscal year, Sabiston said, is cut anywhere from $1 million to $2 million from its capital improvement budget.

The bill, which requires a referendum for city voters, is being drafted, the city manager said.

Bam Moore speaks during the hearing.

Kimberly Lowery was the first person to speak and asked that if a sales tax is passed by voters, it go away when the theater debt is paid. “There’s not a lot of trust in the city council any more,” she said.

She said the city needs to make cuts and asked why it takes three people to operate a leaf truck and why the city is paying $25,000 a year for someone to write grants. She questioned the city giving discounts to the school system to use the Aquatic Center. “Council made the decision to build that theater without our vote,” she said, adding later, “You owe it to us to never put us in debt again without a vote. Don’t sign us up for a $20 million debt without a vote.”

Jack Moore told council he believed the 1 cent sales tax was the most fair solution for retiring the debt. “Some of the businesses are against it. They better be worried about the toll booths on I-95.”

Bam Moore said he also favored the sales tax as did a local minister.

“We can buy fire protection insurance but we can’t buy insurance on our government,” Jim Garrett said.

Garrett said he goes to council meetings and is appalled when the city makes a motion to buy nine police cars and then increases it to 13. He questioned the city buying doors for the public works building without competitive bidding and questioned why inmates were edging sidewalks.

Citing a lawsuit he filed against the players bringing the theater to the city, Garrett said a judge said it was brought here by gross negligence and fraud. “I understand why the last city council didn’t do anything. What have you done? You need to go after the guys who took us to the cleaners.”

Kim Simpson said she favored the sales increase as a way to get those who don’t own property to share in the theater burden.

Phil Hux told council he attended a meeting where members of council and administration were originally talking about a half cent sales tax. He asked council if they believed the General Assembly would even give the city permission to hold a referendum. “The speaker of the house told us he didn’t think it would pass.”

Doughtie replied: “If we don’t take any action, we’re not going to get anything accomplished. We want to try to get us back operating a city like it should be.”

Hux said should the sales tax pass, it should continue to avoid future property tax increases.