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Deena Winter: Mayor plugs his budget

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Wednesday, Jul 02, 2008 - 12:35:45 am CDT

The mayor is sending a message to the city and its City Council (via the press): Go with my budget. It’s the best way to get out of this budget mess.

City Council members got a copy of Mayor Chris Beutler’s budget proposal Monday. And the next day, the mayor began publicly plugging his spending plan. (The public will get a look at the numbers when they’re released Sunday.)

But in the runup to the release, the mayor got a bunch of city officials together Tuesday to talk about how cutting one department can affect multiple departments.

Councilman Ken Svoboda’s reaction to that revelation, in a nutshell: Well, duh.

But the real message Beutler seems to be putting out is: Don’t cut another $1.5 million out of the budget. It’d cut too deep.

Beutler said it’s time for the community to decide whether it will fund a budget that keeps pools open, builds roads and revitalizes neighborhoods.

He said the city has reached a point where “simply doing more with less” is increasingly difficult.

“We have the ability to put the budget problems behind us this year,” he said.

But he refused to comment on whether his solution includes a property tax increase, as expected.

To balance the budget, he had to close a nearly $6 million shortfall. He has dribbled out bits and pieces of his budget, including the elimination of 45 positions and creation of an economic development fund.

If he proposes a property tax increase, he’ll have to sell it to a skeptical City Council. Four Republicans on the council have said they don’t plan to go along with a tax increase.

Svoboda is one of them. He’s seen highlights of Beutler’s budget and said, “It’s not a pretty picture.”

“There’s some pretty deep cuts in there,” he said.

However, he said he doesn’t know of anybody who’s suggested closing pools. He said there are other ways to balance the budget.

Most council members have been through enough budgets to know that cuts have ripple effects, he said.

“This is the mayor’s first budget of his own and I think he’s telling us things we already know,” he said.

Beutler says his budget ends the use of “gimmicks” to balance the budget — which he defines as using one-time revenue sources to plug budget holes.

Svoboda said that depends on how you define one-time money. Beutler has proposed taking about $8 million out of the little-used Special Assessment Revolving Fund to create an economic development kitty. But Svoboda said you could instead make that money a revenue stream by using the interest income to create or fund programs.

In other words, he seems open to using the pot of money Beutler is warning the council to stay away from, when it comes to balancing the budget.

If those council members stick to their guns, it looks like we’re in for another summer of cuts. On top of the ones Beutler announces Sunday.

Street bond issue, part 2?

Perhaps the two most interesting words spoken during the mayor’s Tuesday press conference were in response to a question about whether he’d consider making a run at another bond issue for street construction and repairs.

His answer: “That’s conceivable.”

Voters thumped a $75 million street bond issue in late 2004, nearly 2-to-1.

Councilmen: Mayor’s ideas news to us

Beutler’s last two press conferences were news to council members.

And not good news, to two of them.

Council members generally don’t like learning about what’s happening at city hall from reporters.

They really don’t like it when the mayor makes an announcement, and they get calls from the press for reaction to something they know little to nothing about.

They complained about it when Coleen Seng was mayor, too. Beutler has tried to do a better job of giving the council a heads-up before going public, but he doesn’t always do a good enough job, they say.

Last week, councilmen Ken Svoboda and Jon Camp were irritated when they heard about Beutler’s Thursday press conference. He proposed a housing stimulus plan where the city would give grants to people who buy new houses.

Svoboda said he had a budget briefing with Beutler the previous day, during which the stimulus idea was portrayed as something Beutler was “kicking around.”

Svoboda was “disappointed” to hear that Beutler had already scheduled a press conference the next morning, where he announced the housing stimulus plan.

“I don’t see this team effort that everybody keeps talking about,” Svoboda said. “It sounds like ... we’re putting together something at the last minute.”

Camp was also miffed the media was notified of a press conference about the same time he was in a budget briefing where the housing stimulus was being portrayed as merely an idea.

Camp called it “another 11th hour disclosure” from the mayor’s office that puts the council in an awkward position.

He said the mayor apparently had already talked about the idea with civic groups.

“I thought we were going to work together with this administration,” Camp said.

He doesn’t like it when the mayor has a press conference to unveil a plan as if it’s a done deal, even though it requires council approval.

He called that a “candy store trick” — where the mayor offers the public a tantalizing treat and then makes the council the “bad guy” if it refuses to go along with the proffer.

But mayoral aide Rick Hoppe didn’t see it that way.

“I fail to see why the mayor shouldn’t propose something simply because Jon Camp wouldn’t support it,” he said.

He said the mayor always notifies the council before releasing proposals to the media. Council members have had several budget briefings, he said, where they were asked for ideas and input, which the mayor said he’d consider applying to his budget.

“We really have not received a lot of response,” Hoppe said. “We have trouble understanding where they’re coming from when they’re given the opportunity to be part of the process … but choose to reserve their criticism for after we announce where we’re going with our budget proposals.”

Hoppe said the mayor doesn’t have to talk to the council first about everything; sometimes he’s still trying to flesh out an idea by running it past people with expertise on the issue.

Svoboda said he intends to discuss the issue during an informal meeting with the mayor on Monday.

He said it

“If this is the biggest criticism that Mr. Svoboda and Mr. Camp can make of the mayor, then I would submit that the mayor is doing a great job.” — Mayoral aide Rick Hoppe, on the two councilmen’s criticism the mayor doesn’t always clue them in early enough on his proposals and announcements.

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


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Really getting annoyed wrote on July 2, 2008 4:35 am:
" It seems that the real message here is that new taxes will be the ticket and the council will automatically approve them. "

russell wrote on July 2, 2008 8:08 am:
" Why are the taxpayers giving the home builders a subsidy? The taxpayers cannot ride the bus because of the proposed cuts but even fewer tax payers get a handout to buy a new house. Raise our taxes that $5 per month (for a $150,000 house) and let this city continue with the reduced services compared to 2 years ago. "

seems wrote on July 2, 2008 8:24 am:
" Seems to me cutting or transfering after school programs which end up costing more to the families who are struggling now and giving money to new home owners doesn't match. These families that are struggling may opt not to put their kids in a structured program and leave them home alone. "Latch Key Kids" Then they will have a greater chance to get into trouble or hurt. Why did he select a certain non profit to do this program rather that sending it out for bids? "

New idea wrote on July 2, 2008 9:17 am:
" Perhaps the city should start charging a fuel surcharge for traffic violation/parking tickets. Speeders get a $10 charge and parking fines increase $1 while gas prices are high. Use that extra money strictly for city gas usage increase. Obey the law and you don't get charged. "

George wrote on July 2, 2008 9:47 am:
" If I were on the council the first thing I would cut is the home builder subsidy idea. Small city governments have no place subsidizing big business. Taxing the citizens of Lincoln to pay the heads of the five families (Top five land developers in town) is wrong. It is taxing the poor to give to the rich. Beutler thinks he is helping the local plumbers, electricians, and concrete installers. He is wrong, Simple economics will tell you the money flows down to the home builders and land developers, not new home buyers or the workers that built them. Home builders and land developers do not set their prices on what it cost them to develop the property. They set their prices on what the market will bring. If Beutler starts giving 1000+ dollars per house to the market then home builders will factor that into the pricing. The sub-contractors will not be able to charge more, only the big dogs, the builders and land developers.

The second thing I would cut is Mayoral aide Rick Hoppe. His salary is a total waste of taxpayer money. "

Outside the Box wrote on July 2, 2008 9:49 am:
" Why does the mayor need to alert the council every time he holds a press conference? Do the council members alert the mayor every time they make an announcement?

Who's running the city? The Mayor or the council? It sounds like the collective ego of the council needs to be taken down a few notches. "

BAP wrote on July 2, 2008 10:57 am:
" Unfortunately Svoboda and Camp will simply never utter anything but negativity and criticism for anything substantive Beutler does because he is a Democrat and they cannot see past partisanship.

I'm a Republican and although you can't agree on everything, objectively speaking, Beutler is actually doing quite a good job. Duh, Ken. "

Alan wrote on July 2, 2008 12:38 pm:
" I don't understand the need for an expensive new entitlement directed to new home buyers. Perhaps that is intended to buy some votes for the tax increase.

Raising taxes in a recession is never the answer. Many people are struggling already taxes are too high and even $5 per month is just wrong. "

dewboy wrote on July 2, 2008 2:34 pm:
" This is a very good example of why this city is so messed up. Sheer stupidity is actually the word for it. INCIDENTALLY, that includes BOTH parties. The only way a street bond issue would pass is if 90% of the fund would go to CORE city streets. Those that like urban sprawl can also afford to pave their own streets etc. "

come on wrote on July 2, 2008 3:32 pm:
" just anty up. this is a minor inconvience for most. the city needs money now and its up to the taxpayers to bail it out. the developers need money to continue to build east of 84th st. how much money do you think they have to spend on their projects. i only wish i had an extra million laying around, i would be glad to give it to the mayor, vision 2015, and the developers to help them out in their time of need. "

concerned taxpayer wrote on July 2, 2008 8:30 pm:
" What a couple of cry babies Camp and Svoboda are. Both just can't get over the fact they are not mayor. Grow up and do what's best for Lincoln and forget your egos! "