Council makes preliminary budget changes
Two centerpiece programs of the mayor’s budget proposal appear to be on the rocks with the Lincoln City Council, which declined to approve either of them during preliminary votes Monday.
Mayor Chris Beutler has proposed the city tap a little-used pot of money to set up a $6.4 million economic development fund, and use interest income on the 2005 stormwater bond issue to stimulate the housing industry.
But the City Council cut the housing stimulus program from Beutler’s budget proposal — purposely leaving it in limbo while continuing to talk about the concept — and declined to transfer money to create the economic development fund.
The council also doesn’t appear interested in using one-time money to help balance the budget.
And since the council had already made it clear it wouldn’t go along with Beutler’s now-dead proposal for a 1-cent property tax increase, it will have to come up with at least a million dollars in cuts or find other revenue in order to balance the budget.
It would seem Beutler is having difficulty getting his agenda through the Republican-dominated council. However, the council has not ruled out creating some type of stimulus program or economic development fund.
Beutler proposed creating an economic development fund and shoring up the budget by tapping into the city’s little-used Special Assessment Revolving Fund, which contains about $10 million.
He wants to transfer $8.1 million out of the fund, using $1.7 million to replace his property tax increase revenue and $6.4 million to set up an economic development fund.
But on Monday, the council voted to transfer only a small fraction of the special assessment fund.
Councilman Jon Camp said he’d prefer to balance the budget without using such one-time money (which has been Beutler’s stance, too), but acknowledged that will mean the council has to come up with another $1.5 million to $1.7 million in budget reductions.
And while the council approved some preliminary budget changes Monday, they didn’t add up to anywhere near that figure.
Councilman Doug Emery said he wasn’t sure how the council planned to balance the budget if it wouldn’t go for a tax increase, but he also doesn’t want to tap the special assessment fund. He said the city can’t just keep tightening its belt, because at some point, “you starve to death” and then die.
Councilman Jonathan Cook also said he won’t vote for any more cuts to the mayor’s budget.
“I think it has more cuts than I’m comfortable with,” he said. “This is a very austere budget; it has severe cuts.”
Councilwoman Robin Eschliman said she’s not completely opposed to Beutler’s idea of using the special assessment fund to create an economic development fund, but would like to see the private sector come up with matching money.
The council also stripped funding for the mayor’s housing stimulus plan, which would dole out grants of $1,000 or more to people who buy new homes. Members don’t agree with using interest income on stormwater bond money to fund the program, but indicated they may be open to fashioning some kind of economic stimulus program.
Councilman John Spatz said he’d prefer any stimulus program be funded by the mayor’s proposed economic development fund. But he and other council members think both of those programs should be discussed separately from the budget.
The council unanimously went along with Spatz’s motion to cut the $610,000 in stormwater money for the stimulus. The council indicated it may instead use that money to pay for the city’s match for the State Fair.
Councilman Ken Svoboda said he had a list of more than $1 million in possible budget cuts, but he declined to unveil them Monday, saying he’ll be talking about them with fire, law, planning, police and public works department heads in coming weeks.
He said the city budgeting process has gotten to the point where it’s operating on the squeaky wheel premise: Where those who come down to the public hearing and speak the loudest get their money or programs restored.
He believes the council can find enough cuts or revenue increases — such as an increase in bus fares — so the city would only need a couple hundred thousand dollars from the special assessment fund. He views the mayor’s decision to use the special assessment fund to balance the budget as “piddling away” the money.
Other council members implied Svoboda was ducking the public process because normally council members reveal their budget proposals at this point, giving the public notice and time to react to them.
“I think it’s fair to disclose to the public before they come down here what we’re actually looking at,” Councilman Dan Marvin said.
Emery agreed, saying the public deserves to know where the council intends to come up with some $1.7 million in cuts.
“Where is that coming from and doesn’t the public have a right to know where it’s coming from?” he said.
Svoboda said later that every year he discloses a long list of budget cuts early, but this year he wants the option of changing his mind, “like the mayor” did about his tax increase and use of one-time dollars.
The public will get its chance to weigh in on the budget during a public hearing in three weeks.
Reach Deena Winter at 473-2642 or dwinter@journalstar.com.
Mayor Chris Beutler has proposed the city tap a little-used pot of money to set up a $6.4 million economic development fund, and use interest income on the 2005 stormwater bond issue to stimulate the housing industry.
But the City Council cut the housing stimulus program from Beutler’s budget proposal — purposely leaving it in limbo while continuing to talk about the concept — and declined to transfer money to create the economic development fund.
The council also doesn’t appear interested in using one-time money to help balance the budget.
And since the council had already made it clear it wouldn’t go along with Beutler’s now-dead proposal for a 1-cent property tax increase, it will have to come up with at least a million dollars in cuts or find other revenue in order to balance the budget.
It would seem Beutler is having difficulty getting his agenda through the Republican-dominated council. However, the council has not ruled out creating some type of stimulus program or economic development fund.
Beutler proposed creating an economic development fund and shoring up the budget by tapping into the city’s little-used Special Assessment Revolving Fund, which contains about $10 million.
He wants to transfer $8.1 million out of the fund, using $1.7 million to replace his property tax increase revenue and $6.4 million to set up an economic development fund.
But on Monday, the council voted to transfer only a small fraction of the special assessment fund.
Councilman Jon Camp said he’d prefer to balance the budget without using such one-time money (which has been Beutler’s stance, too), but acknowledged that will mean the council has to come up with another $1.5 million to $1.7 million in budget reductions.
And while the council approved some preliminary budget changes Monday, they didn’t add up to anywhere near that figure.
Councilman Doug Emery said he wasn’t sure how the council planned to balance the budget if it wouldn’t go for a tax increase, but he also doesn’t want to tap the special assessment fund. He said the city can’t just keep tightening its belt, because at some point, “you starve to death” and then die.
Councilman Jonathan Cook also said he won’t vote for any more cuts to the mayor’s budget.
“I think it has more cuts than I’m comfortable with,” he said. “This is a very austere budget; it has severe cuts.”
Councilwoman Robin Eschliman said she’s not completely opposed to Beutler’s idea of using the special assessment fund to create an economic development fund, but would like to see the private sector come up with matching money.
The council also stripped funding for the mayor’s housing stimulus plan, which would dole out grants of $1,000 or more to people who buy new homes. Members don’t agree with using interest income on stormwater bond money to fund the program, but indicated they may be open to fashioning some kind of economic stimulus program.
Councilman John Spatz said he’d prefer any stimulus program be funded by the mayor’s proposed economic development fund. But he and other council members think both of those programs should be discussed separately from the budget.
The council unanimously went along with Spatz’s motion to cut the $610,000 in stormwater money for the stimulus. The council indicated it may instead use that money to pay for the city’s match for the State Fair.
Councilman Ken Svoboda said he had a list of more than $1 million in possible budget cuts, but he declined to unveil them Monday, saying he’ll be talking about them with fire, law, planning, police and public works department heads in coming weeks.
He said the city budgeting process has gotten to the point where it’s operating on the squeaky wheel premise: Where those who come down to the public hearing and speak the loudest get their money or programs restored.
He believes the council can find enough cuts or revenue increases — such as an increase in bus fares — so the city would only need a couple hundred thousand dollars from the special assessment fund. He views the mayor’s decision to use the special assessment fund to balance the budget as “piddling away” the money.
Other council members implied Svoboda was ducking the public process because normally council members reveal their budget proposals at this point, giving the public notice and time to react to them.
“I think it’s fair to disclose to the public before they come down here what we’re actually looking at,” Councilman Dan Marvin said.
Emery agreed, saying the public deserves to know where the council intends to come up with some $1.7 million in cuts.
“Where is that coming from and doesn’t the public have a right to know where it’s coming from?” he said.
Svoboda said later that every year he discloses a long list of budget cuts early, but this year he wants the option of changing his mind, “like the mayor” did about his tax increase and use of one-time dollars.
The public will get its chance to weigh in on the budget during a public hearing in three weeks.
Reach Deena Winter at 473-2642 or dwinter@journalstar.com.
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