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Council makes preliminary budget changes

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BY DEENA WINTER / Lincoln Journal Star

Monday, Jul 21, 2008 - 06:41:45 pm CDT

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.

Story Photo
Mayor Chris Beutler
Other action

The council also voted Monday to:

* Eliminate Beutler’s proposal to add two engineering specialists to the public works department.

* Eliminate $150,000 proposed for a study of fire department facilities, equipment and personnel. Instead, the council wants the fire department to do the study itself.

* Reduce the city’s contingency fund by $100,000.

The public’s chance

The public hearing on the budget is from 2:30 to 6 p.m. and 6:30 to 10:30 p.m. Aug. 11.

The council votes on final changes to the mayor’s budget at 9 a.m. Aug. 13 and adopts the budget at 5:30 p.m. Aug. 25.

All meetings are in the City Council chamber, first floor of the County-City Building, 555 S. 10th St. They will be aired on 5 CITY-TV, the government access cable channel.

More information on the city budget is available at lincoln.ne.gov.

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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Dano wrote on July 21, 2008 9:54 am:
" So what is the solution for next year going to be? I know you want to help all of Lincoln by not raising property taxes in a trying time, but what happens next year,or the year after that? Where does the money come from then?

I don't want to pay any more in tax than I need to, but I also don't want to sacrifice financial security of our city either for a little tax relief, to have it hit even harder then the next year or a little further down the road. "

 Joke wrote on July 21, 2008 10:42 am:
" Two million to pave alley's?, and other projects. Looks like a big cookie jar. "

 CarbonFootPrint wrote on July 21, 2008 11:05 am:
" A good start, now to adjust taxes to fund programs to assure Lincoln decreases its footprint annually.
A half cent per gallon gas should be an unnoticed amount. A fee for cars entering the city center and Haymarket area...$5/car/day might be a beginning. Excessive flatulence @ $10/time caught (methane or other unknown gases) . And, a $500/per 100 person crowd fee for group breathing. . Mr. Beutler, we’re tired of property taxes, let’s start taxing life itself! "

 Mark wrote on July 21, 2008 12:09 pm:
" I still think the Mayor should ask for AND GET the 1 cent property tax he originally wanted. The city's infrastructure has been cut and stretched to the breaking point and the city as a whole needs this money. What would help would be to restructure the way LPS gets their monies. LPS is a dark hole that needs to have the light of fiscal responsibility shone on it. "

 A Solution for Dano wrote on July 21, 2008 12:31 pm:
" A possible solution to bringing money to Lincoln...Tourism. Create new venues, events and attractions to bring people to Lincoln to spend money, increase sales tax revenue, visit Lincoln's businesses, etc. Last year a hometown private developer wanted to build a race track that would have brought millions to Lincoln, but Lancaster County officials created zoning to discourge and chase this venue away. The fair is leaving by 2010, what happens when that venue is gone and no new outdoor facility is available to promote these attractions and the money this facility did bring in is gone? Lincoln officials please PROMOTE your city with new attractions to bring visitors to Lincoln. "

 Harry the antenna guy. wrote on July 21, 2008 1:24 pm:
" Where did the money go? We have a growing city - new property is going up everywhere with large property taxes. So, where did the money go? Something is very fishy about the revenue side. It would appear that we have given too much money away already.
On the expense side - how about the mayor giving up some staff? Maybe wipe out useless committes? How about getting rid of uesless departments? Of course, useless is in the opinion of the decision maker and the mayor views the term useless as anything that the public actually uses and he might be able to con the public into paying for through fees or donations. The city and county have been expanding their government footprint multi-fold. We have built new office buildings and put up satellite sites with expanded staffs - why? Maybe we need to look at closing some of these buildings. A prudent business man would cut their business back when times are tough, so maybe the city should drop some of their excess staff and excess office space.
Skip the stimulus plan. NIFA is there to assist. We don't need to give away any more. If people want to come here to live, great. Lets not give anything away to get them here. If don't like what we have too offer for a community, too bad. Why do we keep giving so much away to our international resettlement population? Do we really need to bring them here and give them a free or discounted ride via government payments, food assistance, rent assistance, etc. Maybe the city can save some money by getting out of the immigrant import business. "

 cuts wrote on July 21, 2008 1:44 pm:
" Our first cut should be.......eliminate the city council. "

 Seemed to Miss wrote on July 21, 2008 2:08 pm:
" The press seems to have glossed over the fact that Camp also is hiding what he wants to see cut. Neither he nor Svoboda seem to think it's important to let the public know what they intend to cut. If they weren't ready to air it today, then both should have given a dated when they will make their intended cuts known. Gee, could that day possibly be August 11th? "

 Raised Out West Living in Lincoln wrote on July 21, 2008 2:08 pm:
" I agree that Lincoln needs to promote itself better in terms of being a destination location but lets face reality here folks, Omaha has us beat already in that regard. The only thing Omaha could be untouchable, as compared to Lincoln, is if the state allows casino gambling and a Las Vegas style casino ends up in Omaha. Now I don't mean we should not try to be competitive in order to be the state's best city (although I already believe we are). In fact we should make every effort to do so.

With all that being said, I for one don't see the math about how we cut so many essential programs vital to us as Lincoln's citizens yet we are "wanting" choices that will benefit our city immensly. What we are wanting cost money and some people want everything; like the Haymarket arena and convention center, new county jail, another but huge city park, redevelopment for the Lancaster County Event Center, and UNL's Innovation Park. I support these efforts (minus the jail) too but at what cost? The budget cuts are threatening the quality of life here in Lincoln and that is what we have against Omaha. So do we eliminate our 'unique-ness' altogether for the sake of being 'more unique?' Or do we do the bold thing and make a commitment with a raise in property taxes in order to ensure all things are properly paid for? "

 Matthew Hussein Platte wrote on July 21, 2008 2:54 pm:
" Camp and Swoboda may be hiding their budget proposals in part to camouflage continuance of their personal, socialized Internet access plans. Gee, what a responsible Republican recipe for fiscal restraint! Thanks for setting such a good example, guys. "

 Been There Done That wrote on July 21, 2008 2:58 pm:
" I am for the 1 cent increase in property tax. We citizens need to step up and pay up for the services we receive. Holding the line with no increase the past few years has really hurt the city. Also, Lincoln's population is fast approching 250,000. The city council, other elected officials, and department heads NEED to think like a city and not have the small town mentality. Just my 2 cents. "

 compromise wrote on July 21, 2008 3:26 pm:
" Perhaps there is enough wiggle room for a sort of compromise. Raise the tax rate by a half cent instead of one whole cent, and make some cuts that are less painless (are there any left?) Nobody wants to see taxes raised, but nobody wants to see any more services cut either. We all need to give a little to get a little, and in this case the city is in a situation that could be very precarious in the next couple of years if a solid solution isn't found soon. "

 Its wrote on July 21, 2008 3:39 pm:
" been just like it is today for the last 30 years. Nothing has changed in lincoln except crime and management. Taxes still go up every year. utilities go up every year and it ain't gonna stop. I wouldn't worry to much about lincoln becoming a tourist destination as there ain't nothing to entertain a tourist. What can you do or see? State capitol, stadium, wellllll I can't think of anything else. When you have KC, Des Moines, Denver. Lakes in missouri, mountains in colorado, black hills in south dakota and entertainment that close. Why would you want to go to a city, get the finger and horn, take a chance of being robbed at gunpoint, fight people who are angry in a mall then pay higher than average prices for a motel-hotel? I don't need that when I'm on vacation. Lincoln would be the last place on earth I would even consider vacationing at. I am no longer a resident because of these above reasons. You want to live in the mess, I guess pay the price (tax). "

 Sue wrote on July 21, 2008 3:40 pm:
" Just raise our property taxes and be done with it! If you want a nice city, you have to pay for it! "

 sue wrote on July 21, 2008 3:49 pm:
" Did LFR ever get the ambulance billing issue resolved or collected? "

 thought wrote on July 21, 2008 4:08 pm:
" Now there's a great thought. Let the fire department investigate itself. Just like it's always been with them, the fox guarding the hen house. "

 BB wrote on July 21, 2008 4:26 pm:
" I agree, it's time to raise taxes -- I'm still for the 1 cent increase. If not, we're going to have the same problem next year. How about using the money in the revolving fund for street and other necessary maintenance that's been neglected. "

 Pot meet kettle wrote on July 21, 2008 4:47 pm:
" I will not take anything these guys seriously until they stop making the citizens of Lincoln pay for their internet access. This is about $1,000 a year we could save the city.

The audacity of these members. Their constituents are scraping to get by, some not being able to afford high-speed internet, yet the expect us to pay for them to have it! The nerve! Jon and Ken are very rich men who are more than capable of paying for their own utilities. And until they do so, their credibility regarding budget cuts is seriously eroded. "

 Bob wrote on July 21, 2008 5:01 pm:
" Soon we will have no bus service at all. Get rid of the city cars. Let city employees drive their own cars or walk.....like we will have to now! The mid day service will be gone soon by next year they will probably shut star tran down. "

 N Street wrote on July 21, 2008 7:01 pm:
" Our City is crumbling. Proof? Drive N street 27th to 8th Street. It's a major street through the heart of Lincoln's business district. Now it's like the Oregon trail.

It is time to vote self-interest and greed off the Council. I would like to be proud of Lincoln and City government again. "

 Priorities wrote on July 21, 2008 7:09 pm:
" I find it interesting as I'm watching the city council meeting tonight that Robin Eschliman keeps asking people who are adding on to their businesses, etc., about the economic impact of what they're proposing -- how many jobs might they be creating. Yet, apparently it's okay for the city to cut jobs. "

 bite the bullet wrote on July 21, 2008 7:51 pm:
" This is a perfect example of the blind leading the blind. They need to bite the bullet already and raise taxes to get back in line with the cuts they made and staff the police and fire to recommended standards. When one of them gets hurt or killed because there are not enough personnel then it's going to cost the city millions. "

 Citizen wrote on July 21, 2008 9:26 pm:
" Let's see Svoboda and Company's proposed cuts will probably look something like this. Close a couple of swimming pools (or more), eliminate the rest of the City Recreation Department's Youth Sports and then cut the library operating hours in half. The reason he does not want to release his suggestions is so that people do not have time to react, but then again he won't respond to the concerns of the people he represents anyway. Don't be surprised if Ms. Eschliman proposes the sale of the Highlands Golf Course again.

On a final note why is the city still contributing to the State Fair when it is going to be gone in 2 years ???? "

 dewboy wrote on July 21, 2008 11:09 pm:
" Where oh where has all the tax money went over the years? Has anyone driven down North 33rd Street which is one of our OLDER streets (or tried) lately? How come that busy street looks like it has been bombed and yet we have all that nice stuff along Highway #2 aqnd the fringe areas ????? ALSO, why do they keep treating North 7th street for dust when in fact it is a dead end.???? "

 funk wrote on July 22, 2008 5:50 am:
" How is it that nobody has pointed out the tactics behind Camp and Svoboda not introducing their budget plans? Is it not obvious? Camp and Svoboda have been on the soap box whining for some time that the Mayor has been poorly communicating to them and dropping his agenda on them at the 11th hour. This is their childish way to prove their point that it isn’t a fair and reasonable way to handle business. Grow up gentlemen, lives and livelihoods are at stake, yet you folks want to resort to playground games. Truly makes for good comedy if it weren’t so flipping sad. "

 circus is in town wrote on July 22, 2008 6:08 am:
" Besides getting the inside edge on city contracts what economic stimulus projects have either Camp or Svoboda ever proposed? Ken, the Mayor laid out his budget plan and changed the plan when circumstances changed. A reasonable reaction I believe. But your logic is flawed, we would have to see your plan, if there is one at all, to know that is has changed. I am sure its tough being in the hot seat under the microscope but you choose to be there. One thing people don’t like, dishonest people, especially within their government. Man up dog, do the right thing. "

 Simple Solution wrote on July 22, 2008 8:10 am:
" It's an easy fix. Remember the fire department "promising" that they would make money with running the ambulance service? Just go get all that extra money from them, what? excuse me, nevermind...... "

 Maybe wrote on July 22, 2008 8:15 am:
" We need a tax that EVERYONE pays - not just the homeowners as we are property taxed out.
Maybe we should contact Seng and ask her for the $634,000 she dismissed from the company who ordered our fire trucks!!!
Maybe Beutler should get rid of his "first hand" man who can't even keep his property decent for renters in Lincoln, thus allowing the "first hand" man to devote more time to making money in the rental business and maintaining his property.
Maybe we need to reconsider giving the money toward the move of the State Fair and put the money into something that counts. Grand Island wanted it, let them figure out the funding.
Maybe we need to use our prisoners to do more road work, maintain the parks for their room and board, thus eliminating some staff. Chain gang anyone???
Maybe looking at some of the worthless staff in the Traffic Engineer's office.
Maybe, just maybe... "

 taxes and raiding funds are not the answer wrote on July 22, 2008 9:00 am:
" Here is a Budget 101 class:

Order your expenses by priority. Find out how much money you expect to come in and assign it to the priorities. In city budget this means that police and fire get 1st, then you get on to streets, sewers, etc. When you get down where the money runs out, then you come to the taxpayers with your proposals. You don't say "we need 1 million dollars more in tax money or we can't hire enough cops or the streets will be full of potholes." Instead you ask the taxpayers to pay 1 million for whatever pet project the council members want this time. If we do it the way they have been doing it, each year we pay out more in tax money and they get their pet projects. Then the next year they come back at us again with the same story from the previous year.

You all know very well that they can make cuts, not a dime more in "revenue" is required. I would be willing to bet that the city has taken in more revenue this year than last, and it has continued to go up. Problem is the bugdet goes up by more than the inflows. This needs to end. "

 JR wrote on July 22, 2008 10:08 am:
" Maybe I shouldn't say anything, as I seem to be sneaking by pretty good, but my taxes haven't been raised every year like "It's" claims. My tax bill has increased over the years, but not every year like he says it supposedly does. My property value has gone up and there fore my taxes have gone up, but that is to be expected. Good Lord people, that is called growth. But the tax RATE has declined a few times in the last few years and THAT is why we are in this mess. Too many politicians promising to cut taxes if elected, but then not telling us what they will cut. From now on, everyone should demand any politician that promises to cut taxes, has to say what services they will also cut. "

 yea raise taxes cuz we are stupid wrote on July 22, 2008 11:51 am:
" Yes let the council raise the taxes, no problem it is only 1 cent. Then next year when they want more trash programs or because they throw money down black holes, they can cry about cuts and they need to raise taxes. Then you folks will all say, "yes plesae raise my taxes again, after all, it is only 1 cent or 1%." You are all training the politicians that they just have to say the sky is falling and you will all agree to raise your taxes. No need to see if our money is doing a good job, no need to see if that program is really necessary to make all of the taxpayers pay for it, just cry about a key program that will get cut (it wont) and the lemmings will pay. If you are all so desperate to pay more taxes, cut a check to the city on your own, they will not stop you. If you want to pay for things that the city should not be funding go right ahead. Studies show that cutting taxes raises revenue to governments not the other way around. Raising taxes just means more money to waste by the government while your standard of living goes down. Take the emotion out of the issue and use your brains for once. "

 Alan wrote on July 22, 2008 12:30 pm:
" As long as the city has money to pursue projects for which they have no public vote on. As in the baseball stadium and the arena project I can only assume they have too much money laying around. How tight does the buget have to be before they focus on what's important? Streets, police and fire protection should be the issues, not the arena or antelope valley. "

 Grundle wrote on July 22, 2008 3:09 pm:
" Wow...I can't imagine what would happen if my standard of living went down by $1.25 every month...I'd probably have to declare bankruptcy. "

 JRP wrote on July 22, 2008 4:18 pm:
" OK, I need someone to explain this to me.
LPS is going to spend $293 Million in the 2008/2009 school year for 33,800 students. This works out to $8668 per student (all figures taken from the LPS buget. BTW, that is just the general operating fund, NOT the entire budget which is closer to $800 Million and no, that is not a type.

City of Lincoln will spend $125 Million in the 2008/2009 year for approx 250,000 citizen. This works out to $500 per citizen.

I'm confused here..... "

 JR wrote on July 22, 2008 7:24 pm:
" JRP - so are a lot of people. They look at their taxes and think the city is getting all of it, when it actuality, the city portion has shrunk over time compared to LPS. And this whole myth about cutting taxes brings in more wealth has got to stop. It didn't work for Reagan and it certainly isn't working for George W Bush. That is simply an AM radio myth along with the infamous "trickle down economy". "

 what gives wrote on July 23, 2008 6:55 am:
" I still wonder why the city doesn't sell some of its 1400 rental properties; close the current budget deficit and pave the way for additional revenue by getting them back on the tax rolls. "

 NO wrote on July 28, 2008 8:58 am:
" No increase in taxes. they will just find something else to blow it on. Until they are responsible with our money and no PORK projects then I say no more money. "

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