DEENA WINTER / Lincoln Journal Star | Posted: Sunday, June 25, 2006 7:00 pm
During her “State of the City” speech Monday, Mayor Coleen Seng sent a message to City Council members abandoning previous inclinations to use new, higher property values to buttress the budget: Don’t cut and run.
The mayor said during budget meetings earlier this year, most council members indicated they’d support using the higher valuations to balance the city’s 2006-2007 budget.
But their support has eroded since the new property values were released late last month.
The mayor’s budget uses a projected increase in property value of nearly 11 percent, after expected protests are factored out.
The city’s tax bite is only 15 cents of every dollar in property taxes collected in Lincoln. Seng’s proposed budget takes full advantage of the increased property values, which would bring in about $5 million in extra revenue for the city.
Seng suggested council members are backpedaling for political reasons.
“Unfortunately, the personal ambitions of some may be getting in the way, and some have begun to backtrack from earlier statements,” Seng said.
“The community is now watching. Lincoln residents are not easily fooled. They will not let you sacrifice their future for personal political fortunes. Together we must set aside elections and work together on a budget that achieves goals for a bright future for Lincoln.”
Four of the seven council members are up for election next year.
It appears Seng will run into resistance even from some of her fellow Democrats on the council.
Councilwoman Annette McRoy said she’s re-evaluating her position on using the increased valuations. She previously said she’d support using more of the bounty, but she said that was before the economy softened and fuel prices skyrocketed.
Now she’s leaning toward just using the 3.5 percent attributed to new growth and development.
Councilman Jonathan Cook also said he’s uncomfortable with using the full valuation and is looking at various cuts and restructuring. Aside from that, he didn’t have much to say about Seng’s budget proposal, other than “We will look carefully at it.”
The other two Democrats on the council, Dan Marvin and Patte Newman, wouldn’t say where they stand on the valuations.
The Republicans on the council are less diplomatic about Seng’s spending plan, particularly the two who are interested in being Lincoln’s next mayor: Jon Camp and Ken Svoboda.
Svoboda is one of the council members who backed away from earlier support for using the new valuations to balance the city’s books. In January, he proposed leaving the city’s property tax levy alone so the city could collect what was then estimated at $5 million to $15 million.
But now he says he’d support using only about 6 percent of the increased property value, which includes the 3.5 percent attributable to new growth.
“I’m disappointed we’re using the full valuation,” Svoboda said. “I’m hearing from everybody on the street that this is ridiculous.”
He said he’s sent a letter to all city department heads asking them for their three lowest priority programs with an eye toward cutting up to $3 million out of Seng’s budget.
In another sign that he’s looking to run for mayor, Camp noted that he’s been consistent — unlike some council members — in saying the city shouldn’t go after all of that extra revenue. He said he’d support using a “minor amount.”
Camp also said he’d be coming out with “a bunch of budget cuts” soon.
Seng said if the council doesn’t like using the increased valuations, it had better be prepared to make millions of dollars in painful cuts.
What would it take to find that kind of cash? Eliminate all the city’s rec centers, cut all summer playground programs and close all the swimming pools. Or cut library funding in half. Or firing at least 60 city employees.
Some council members are likely to propose cutting personnel, since it comprises about 70 percent of the city’s spending.
But Seng’s speech had a few campaign sound bites too, as she warned the council not to neglect streets, sewers, parks, libraries, pools or public safety.
“Those are the choices of a community in decline,” she said. “They are the choices of a community unwilling to build a better future for its children. They would send the Lincoln we love into a downward spiral.”
After a series of other steps in the budget-crafting process, the council will vote on changes to Seng’s budget in August.
Reach Deena Winter at 473-2642 or dwinter@journalstar.com.
Budget in brief
Actual 2005-06: $131,564,552*
Proposed 2006-07: $131,654,357
Increase: .1 percent
*This includes an additional pay day this year, which cost the city nearly $3 million. When that figure is excluded, the city’s budget increases 2.2 percent.
Where money would go
Here’s what Mayor Coleen Seng proposes each department would receive in tax dollars in 2006-07:
City Council: $262,391
Building and Safety: $757,987
Personnel: $901,015
Mayor’s Department: $1,258,154
Urban Development: $1,525,665
Planning: $1,599,336
911 Center: $1,792,156
Law: $2,026,892
Finance: $2,698,980
Aging: $2,950,118
Public Works and Utilities: $4,439,437
Health: $4,564,734
Star Tran: $5,935,678
Library: $7,562,602
Parks and Recreation: $11,629,461
Fire: $19,107,944
Police: $28,992,736