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Council members propose budget cuts

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By DEENA WINTER / Lincoln Journal Star

Tuesday, Jul 18, 2006 - 10:27:59 am CDT

Union leaders and department heads braced themselves and occasionally cringed as they listened to City Council members’ budget-cutting ideas during an informal Monday meeting.

Their lists provided the first glimpse of areas they’re likely to target for trimming in the mayor’s voluminous $131.7 million budget proposal.

Councilman Ken Svoboda came up with a hefty package of $3 million in suggested cuts — about $1 million short of what the council would have to cut out of Mayor Coleen Seng’s budget in order to keep property taxes from going up.

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See the Council's budget cut list

The mayor’s budget would keep the city property tax rate the same, but most property owners would see bigger bills because the recent revaluation of property in the county resulted in higher property values for most people.

One of Svoboda’s most prominent budget cuts is a proposed reduction in the city’s contribution to civilian employees’ retirement plan, which is now matched 2-to-1. After the first $4,800 in earnings, the city contributes 12 percent of city employees’ earnings if the employee contributes 6 percent.

Svoboda also proposed increasing the price of monthly StarTran bus passes for low-income residents from $5 to $7.50; putting off purchases of snow, street or landfill vehicles or equipment; and cutting several positions.

He proposes eliminating funding for the city’s congressional lobbyist, the Fire Department’s public information specialist and the mayor’s ombudsman.

Councilwoman Annette McRoy’s list of possible spending cuts included reducing the Affirmative Action office diversity fellowships from $40,000 to $25,000, buying fewer vehicles for building and safety workers, eliminating an Animal Control dispatcher and officer, and cutting money for the July Fourth celebration by $10,000.

McRoy said that’s just her preliminary list, and promised additional cuts when the council votes on tentative budget changes Wednesday.

Councilman Dan Marvin and Councilwoman Patte Newman suggested about $1 million in spending reductions, including cutting the city traffic engineer position and two senior engineering specialists, cutting $175,000 in sidewalk repairs and one or two Urban Development positions.

Marvin also floated the idea of requesting a $25 million to $30 million highway allocation bond to fund sidewalk and street repair and maintenance needs.

Councilwoman Robin Eschliman targeted merit pay increases, durable street markings and across-the-board overtime cuts.

Councilman Jon Camp said since personnel costs account for about 70 percent of city spending, he’d like to see another $250,000 in cuts to overtime, more discretion in handing out merit pay increases and reduced contributions to employee retirement plans.

He also suggested the city try to reduce spending on workers compensation claims and double the city’s contribution to economic development to fertilize future job growth.

Other council members talked about keeping some economic development dollars in a city fund so they’d have more say in how it’s spent.

Newman said she recently tried to help a small manufacturing business get a couple thousand dollars in assistance, but could find no help for them.

“It’s not all about bringing Mercedes to town,” she said.

The council spent some time bemoaning the fact that the public tends to focus on their budget, even though the school district gets 63 cents of every dollar in property taxes collected in Lincoln, compared to 15 cents for city government. But Camp said the city should set an example for other taxing entities.

None of the ideas mentioned Monday will go anywhere unless at least four council members and the mayor approve them. The council will vote on tentative changes to Seng’s budget at 10 a.m. Wednesday, although there are several additional steps in the process of crafting the 2006-07 budget.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.

What happened? Lincoln City Council members tip their hands as to what budget cuts they’re considering making to Mayor Coleen Seng’s proposed 2006-07 budget.

What does it mean? City employees should watch for proposals to eliminate some positions, reduce city contributions to their retirement plans, cut overtime spending and be more judicious about handing out merit pay increases.

What’s next? The council votes on tentative changes to the mayor’s budget at 10 a.m. Wednesday. A public hearing on the proposed budget is set for Aug. 7.


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Concerned Citizen wrote on July 18, 2006 12:33 am:
" It appears to me that these professional politicians namely Ken Svoboda are jockeying to run for Seng's positon. Unfortunately they have placed their desires ahead of the citizen's. "
Nic C wrote on July 18, 2006 8:12 am:
" Lincoln's city council republicans are a joke. Once again the city can't balance its budget properly so what gets suggested, retirement cuts. This is starting to remind me of the Mike Johanns days when many city employees were denied cost of living raises for many years. In case you forgot the city was then sued for unfair labor practices and lost the back money with intrest. Shame on anyone who even entertains these peoples ideas. "
CJ wrote on July 18, 2006 9:05 am:
" What ever happened to bringing in viable business to Lincoln? We have lost the Wrestling tourney. and now the RollerSkating is leaving to go to Omaha. Several manufacturing businesses have left Lincoln along with the high pay. When and where are we going to replace this money? I for one cannot pay more taxes. "
Joe Taxpayer wrote on July 18, 2006 9:10 am:
" Hello does anyone remember the piece LJS did on the pay of city workers? Something is way out of wack when city administrators, managing a 130 million dollar budget are making over a $100,000 per year. When the state administrators managing a 2 billion dollar budget are only making $80,000. How about the Mayor’s three musketeers all making $100k+? Yes UDD is a bunch of ninnies, 80% of what they do is funnel our tax dollars to subsidize big business. Most of the deals they put together would have happened anyway without TIF help. All TIF did on the O street deal was boost the land sellers profit. How about a memo telling city workers they already make on average 20% more than a state employee performing similar tasks, so no raises this year. If Joe Taxpayer could balance the budget with no cuts in city services, why can’t the mayor and the council? The council is making progress but they still have a ways to go. I like the idea of using equipment a little longer but that idea alone won’t fill the gap. Challenge the department heads to improve the efficiency of their departments. Eliminate all of those so-so people who do not add any value. Bamm the budget is balanced, remember the efficiency activities need to happen all year long not just at budget time. "
Marvin wrote on July 18, 2006 12:29 pm:
" As long as the present mayor and city council are running the show, don't expect any industry to come in or whats here to stay. Seng needs her big convention center so the taxpayers will have something else to wipe them out financially. Interesting how as an executive I never ever made over $50,000 yet I'm expected to pay the mayor and "friends" their salaries over $100k+. This city spends so far over its head its pitiful. The state/city I came from weren't running around in brand new shiny pickups and trucks & machinery, didn't have photo cameras on every street light intersection,the taxpayers weren't paying for the industries property tax, never ever heard all the bickering that goes on, and had good firemen and police, I was very close to the fire marshal, city fireman and police. The schools are like castles compared to where I came from. Therefore apparently Lincoln kids must have their nice new cars to drive to school which is different than where I came from. Seems the kids are taught the extremely higher standards of materialism so why wouldn't they expect bigger and better jobs other states provide. Nebraska sure isn't going to provide JOBS and Industry. Its pretty bad when the levy stays the same with the huge increase of property values, and THEN they whine about cutting the budget when they'll be getting MORE property tax. Why on earth would an industry want to come to Lincoln if they read about all the discusting unrealistic business climate, and I'm sure they don't need to read the paper since other states already know the impossibilities of Nebraska and Lincoln. "
WM wrote on July 18, 2006 1:02 pm:
" The economy is in a precarious stall and people can't sell their houses, yet the houses are assessed beyond the price people can get for them so they sit on the market, no industry coming in to support wages or taxes, and basically we're in a very delicate position, and all the mayor and city council can do is spend spend spend and dig dig and dig. To have reassessed with the knowledge (if they have any sense) that property was stalling and values were going down, the city/state basically shot the bomb and could care less about the citizens. This city is like the big 3 auto companys, kept raising prices to the limit, put more and more elaborate unnecessary things on the vehicles and guess where they are today???? "
RJ wrote on July 18, 2006 7:51 pm:
" As a Nebraska native living outside Nebraska in a large city with a Council-Manager form of local gov't (not a Strong Mayor system as used in Lincoln), Lincolnites should seriously consider/debate the need for a professional City Manager to oversee day to day management and let the Mayor and Council keep to higher level policy direction. I suspect a City Manager would bring a higher level of professionalism to top level city leadership, help to remove some of the politics from trickling down into the city bureaucracy, and produce a much better budget and budget process. Which would you rather have overseeing day to day city management: Coleen Seng or a City Manager with a Masters in Public Administration (similar to an MBA degree, but devoted to government management)? "

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