Erin Council Taxes Local Cable Company

Photos by Mike Davis

Story by Teresa N. Settle
TENNESSEE EXPRESS STAFF WRITER

Peoples Cable TV will be asked to pay an additional five percent to the City of Erin. That’s because the Erin City Council voted to create a franchise tax at their regular meeting last Tuesday night, Feb. 3.
The motion narrowly passed, with two council members objecting to the measure.
Jimmy Lowery, Ward 2, stated, “We don’t need to create any new taxes. Honestly, I think we’re going about it the wrong way.”
Lowery added that he did not feel this would generate more money for the city.
Agreeing, Wanda Lockhart, Ward 1, said the new tax would hurt the lower income residents, because she and Lockhart felt the cable company would just turn around and charge the residents in order to pay the tax.
“If you have cable, you are going to starting paying a tax,” Lowery said.
In favor of the motion, Martha Greenfield, Ward 3, stated, “The reason I favor this motion is to treat every business the same.” Greenfield said in the past 25 years, Peoples Cable has never been asked to pay a franchise tax.
The motion in favor of the franchise tax passed 5-4. Voting “yes” were: Greenfield, Randy Lewis (Ward 1), Terry Lewis (Ward 4), Betsy Ligon (Ward 2), and Mayor Rhyne Largent.
Voting “no” were: Loraine Beechum (Ward 4), Walter “Bo” Dunn (Ward 3), Lowery, and Lockhart.
The council also revisited charter revisions. City Attorney Jennifer Roberts explained changes, including a past-tense change under general elections and a change denoting the city judge will be appointed to a four-year term with the salary to be fixed and approved annually by the council.
One sticking point that council members and the mayor debated was in regard to a proposed change that did not pass. Lockhart and Beechum felt the wording under officers and employees salaries was inappropriate. The two argued that the phrase “salary and compensation” should not be listed together under the pay plan.
After a motion by Randy Lewis and seconded by Terry Lewis to adopt the charter, Beechum wanted more discuss on the proposed change that failed at the last committee meeting.
“The elected officials should not fall under the pay plan,” she said. “It’s a mixed up plan. It leaves open salary raises by elected officials.”
Lockhart and Mayor Largent had words about the wording as well, but in the end, the charter revisions passed with six in favor and only three voting no. Beechum, Dunn, and Lockhart carried the no votes.
After the charter revisions passed, Mayor Largent said the council had been discussing changes for several months and that now that the charter revisions had been adopted, the council would have to move to send them to the legislature for a private act and approval from the Governor. That motion also passed 6-3.
When the charter returns, the mayor explained, the council will then vote to ratify it.
Under new business, Brian Welch with Tennessee Wire asked that the council waive the industry’s sewer tap fee.
Welch said the company, which is located in the Stewart-Houston Industrial Park, has maintained an average of 80 employees since opening in 1997. It has paid over $36,000 in county taxes and provides revenues and local jobs.
“Now we need a large system,” Welch said, adding that the company would like the council to consider their request based on its contributions to the community in general.
After his request, Mayor Largent stated, “We’ve actually dealt with these types of situations before.”
He reminded council members that Cass Rye, owner of Rye’s N Shine service station, just up the road on Hwy. 149 across from the industrial park, came before the board years ago asking for the same waiver. The board did not grant it, however.
“If you do it for one, you set a precedence,” the Mayor said. Largent added that the tap fee is $1,000 an inch for industrial lines. Since it is a six-inch line, it would be a $6,000 tap fee.
Lowery made a motion to waive the tap fee, but since there was no second, the motion died.
With no other new business, and a quick motion to pay the bills, the council adjourned.
The Erin City Council meets at City Hall on the first Tueday of each month at 6 p.m.MORE PHOTOS Read more!