Beutler budget proposes property tax increase
By DEENA WINTER / Lincoln Journal Star
Saying he has cut the budget as far as he can without jeopardizing swimming pools, library hours and other crucial city services, Mayor Chris Beutler proposed a 1-cent increase in the city property tax levy on Thursday.
The $1.5 million generated by the tax increase would be enough to bridge what’s left of what started out as a nearly $6 million budget gap.
If — and it’s a big if — the City Council goes along with the proposed tax increase, the owner of a $150,000 home would pay another $15 annually.
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Mayor's city budget proposal
These slides are from a Powerpoint presentation from Mayor Chris Beutler outlining his proposed city budget. (Courtesy document)...
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- The mayor proposes a 1-cent increase in the city property tax rate.
- The city assumes a 1 percent increase in the city property tax base.
- The city budget would increase 2.6 percent, from $132 million to $135 million.
- Beutler proposes $120,000 in fee increases for parks, planning and health department services - including a 25-cent increase in pool fees.
- The budget assumes a 4 percent increase in water and wastewater rates next year.
- The mayor would eliminate 65 full-time equivalent positions out of the city’s work force of about 2,000.
* Since 1991, Beutler said, the city's population has grown 27.6 percent. Its area has grown 39.7 percent. At the same time, the city’s number of non-public safety employees has dropped by 74 positions.
More information
Beutler will present his budget message to the City Council at 12:30 p.m. Monday, July 7 in the City Council Chambers. The presentation will be carried live on 5 CITY-TV, the government access cable channel.
Beutler put it this way: For the owner of the average Lincoln home, the increase would be the equivalent of the cost of a bottle of pop per month.
And it would be the first increase in the city’s property tax rate — aside from voter-approved bond issues — in nearly 15 years. The city’s tax rate has dropped 45 percent since 1993.
The alternative is to close pools, cut library branch hours and eliminate school resource officers, Beutler said.
His $135 million budget proposal — which must be approved by the City Council — increases spending by 2.6 percent. That’s assuming, as other taxing entities have, a paltry 1 percent increase in the property tax base, although final figures won’t be in until August.
Beutler also is proposing $120,000 in fee increases for parks, planning and health department services — including a 25-cent increase in pool fees. The budget also assumes a 4 percent increase in water and wastewater rates next year.
While the proposed tax increase will get most of the attention, Beutler erased the city’s shortfall primarily with budget cuts that include the following.
* Eliminating 65 full-time equivalent positions out of the city’s work force of about 2,000. That’s 20 more than Beutler projected he would cut in mid-June. Many of the jobs will disappear through restructuring, retirements or unfilled vacancies, but roughly 12 to 15 would be pure layoffs, unless they find jobs elsewhere in city government.
* Of those 65 positions, 10 will come from StarTran bus ranks, although some would be unfilled vacancies.
* Reducing StarTran bus service by three hours midday on most routes during non-peak times.
* Reducing city funding for before- and after-school programs at Community Learning Centers by $273,000, as he earlier announced.
* Closing Bennett Martin Public Library at 6 p.m. rather than 9 p.m. on most weekdays. Five library positions would be eliminated.
* Ending city funding of the Meadow Heights swimming pool. The city is exploring possible operation of the pool by a private group.
A tight budget makes it tough for the mayor to propose many new programs or expenditures, but he does propose to:
* Spend $150,000 to study fire and rescue coverage areas and response times.
* Spend $25,000 to start a graffiti removal program.
* Tap into a little-used $10 million Special Assessment Revolving Fund to create a one-stop development shop at city hall and create an economic development kitty.
* Spend $610,000 on a home ownership stimulus package — people who buy new homes could get grants of $1,000 or more.
* Expand the Ride for Five discount bus program for low-income riders by expanding income eligibility.
Beutler said the budget is being strained by inflation, rising utility costs and skyrocketing fuel costs.
And although his budget assumes average 2.39 percent raises, which would cost $3 million, actual raises are likely to be higher because five of the city’s six unions are still negotiating labor contracts.
And if the City Council chooses not to go along with Beutler’s proposed tax increase — as four Republican members have indicated — it will have to find $1.5 million in cuts or revenue.
Some council members have indicated interest in dipping into the city’s $10 million Special Assessment Revolving Fund. The fund is not used as often as in past years, and Beutler wants to use about $8 million of it for the economic development kitty.
Council Chairwoman Robin Eschliman said she believes the city should follow the direction given by Lincolnites surveyed by Beutler earlier this year. Only 15 percent said they’d support a tax increase, while 34 percent said to cut spending and 42 percent said to find some other solution.
“The scientific results gave very clear direction as to what the citizens want,” Eschliman said in a prepared statement. “I will be watching to see that the wishes of the people are carried out.”
Beutler vehemently opposes any council inclination to use such one-time revenue sources as the Special Assessments fund for ongoing budget needs. He says the city has gotten itself into a budgetary bind by plugging budget holes with such temporary sources of cash.
But Eschliman said she takes “great exception” to his characterization of using the Special Assessments fund as a gimmick.
“The savings account does not belong to Chris Beutler,” she said. “It belongs to the people.”
The council will begin dissecting the budget in detail next week, and must approve a final budget in August.
Reach Deena Winter at 473-2642 or dwinter@journalstar.com.

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Raise them higher wrote on July 3, 2008 12:30 pm:
Mike wrote on July 3, 2008 12:32 pm:
I wrote on July 3, 2008 12:34 pm:
surprise wrote on July 3, 2008 12:34 pm:
stignob wrote on July 3, 2008 12:36 pm:
figures wrote on July 3, 2008 12:36 pm:
Shocking wrote on July 3, 2008 12:38 pm:
sam wrote on July 3, 2008 12:45 pm:
darned if you do... wrote on July 3, 2008 12:48 pm:
D.A. wrote on July 3, 2008 12:57 pm:
Nice job Mayor. "
Chip wrote on July 3, 2008 1:01 pm:
Alan wrote on July 3, 2008 1:05 pm:
How about expanding the tax base. Put the baseball stadium on the tax rolls in porportion to the private use (Saltdogs). Put the daycare facilities and parking lots of churches on the tax rolls. Revoke the "educational" exemption for union halls that engage in political activities. Don't forget the $27 million that's leaving Lincoln every year with the state fair.
Let's put a voluntary donation line on the property tax statement. That way everyone who thinks they are "undertaxed" can correct that oversight. In fact why don't we vote for future bond issues on our property tax bills? "
Good job mayor.. wrote on July 3, 2008 1:08 pm:
property tax wrote on July 3, 2008 1:10 pm:
the real entity that keeps our property taxes high is LPS, where is the citizen review committee there to provide honest feedback to LPS on where they can cut and to tell them that we don't need lavish schools with atriums and 20 gyms "
Kevin wrote on July 3, 2008 1:11 pm:
But while we're evaluating property taxes, could we please re-visit the property tax percentage allocations?
I think LPS does a good job, but the fact that they receive well over half of the funds raised by property taxes seems quite lop-sided. "
whats a penny wrote on July 3, 2008 1:12 pm:
Chico wrote on July 3, 2008 1:15 pm:
Its About Time wrote on July 3, 2008 1:16 pm:
Congrats Mayor wrote on July 3, 2008 1:21 pm:
Thanks for looking out for the long-term needs of the City & not induldging the "no tax hike at any expense" minority! "
Sam wrote on July 3, 2008 2:13 pm:
We have an overflowing jail...why don't we utilize some of those offenders to supplement city services and cut our taxes instead of letting them just sit there, get three square meals a day, and watch cable T.V.? Make them mow the parks. "
john q wrote on July 3, 2008 2:18 pm:
Spin Machine wrote on July 3, 2008 2:20 pm:
Stan wrote on July 3, 2008 2:21 pm:
Insulting wrote on July 3, 2008 2:26 pm:
Seriously wrote on July 3, 2008 2:32 pm:
* Spend $25,000 to start a graffiti removal program.(GET THE CRIMINALS TO REMOVE IT/PAY FOR IT)
* Tap into a little-used $10 million Special Assessment Revolving Fund to create a one-stop development shop at city hall and create an economic development kitty.(WE ALREADY HAVE THESE RESOURCES IN THE CHAMBER and DED)
* Spend $610,000 on a home ownership stimulus package, where people who buy new homes could get grants of $1,000 or more. (WHY?? if they can afford to by a new home, why give them $1000??) "
Even More Shocking Knee Jerk wrote on July 3, 2008 2:33 pm:
J wrote on July 3, 2008 2:34 pm:
Fred wrote on July 3, 2008 2:35 pm:
Ej wrote on July 3, 2008 2:37 pm:
Kevin wrote on July 3, 2008 2:38 pm:
LFR wrote on July 3, 2008 2:43 pm:
hh wrote on July 3, 2008 2:43 pm:
Income tax next wrote on July 3, 2008 2:46 pm:
I just wrote on July 3, 2008 2:47 pm:
NO wrote on July 3, 2008 2:56 pm:
People always know better how to spend their own money than what government does. They never earn anything on the amount of money they take from me. I can better invest (even $15) and return more to me than what the city will ever pay/give me.
Closing pools, libraries, and not mowing parks is always the first thing mentioned. Why? Those things affect our children the most, so if they are mentioned first and most leaders can begin right away at pulling at the hearts of citizens...."the poor children." I have children and care about them but this is just the same old reasons to always raise taxes.
NO to higher taxes! "
fools wrote on July 3, 2008 2:57 pm:
The question is will he stay or will he run for governor?
It wasn't a hard decission, he had to raise taxes but at who's expense the ones who really need it take from us to give to developers, take from us to give to the non profits. "
what is stopping you wrote on July 3, 2008 2:59 pm:
Rodger wrote on July 3, 2008 3:10 pm:
Developers don't ride busses so cutting StarTran, which is actually an efficient operation, so we can fund benefits for developers makes sense. "
Mike wrote on July 3, 2008 3:24 pm:
On the budget I would like to not spend $150k on the fire and rescue study and instead put that toward our community learning centers for kids. "
JR wrote on July 3, 2008 3:43 pm:
Check Your Math wrote on July 3, 2008 3:50 pm:
I don't think that's enough to do any good considering property values are sliding down nationwide at a greater percentage, which therefore will decrease revenue funds. And wouldn't it be safe to assume that those property owners that are defaulting on their mortgage aren't even bothering to pay their property taxes. Another loss of anticipated revenue. "
Jan wrote on July 3, 2008 4:00 pm:
Good Work wrote on July 3, 2008 4:15 pm:
Elaine Hammer wrote on July 3, 2008 4:16 pm:
L wrote on July 3, 2008 4:24 pm:
We have not paid more in taxes to run the City Departments for 15 years.
Please support the Mayor and your City and let your City Council person know you agress with the mayor. I want a City with all services operating. "
Resident wrote on July 3, 2008 4:46 pm:
Shane wrote on July 3, 2008 4:50 pm:
sallie wrote on July 3, 2008 4:53 pm:
Kurt Reaplie wrote on July 3, 2008 5:17 pm:
Matthew Hussein Platte wrote on July 3, 2008 5:21 pm:
homestead exemption wrote on July 3, 2008 6:00 pm:
To reduce city spending I propose that the City pays no overtime for snow removal Start at city center and work out to the fringes and the job gets done when it gets done. That would save 2 million. "
Jr Fan wrote on July 3, 2008 6:33 pm:
know when to fold wrote on July 3, 2008 7:36 pm:
dfb wrote on July 3, 2008 7:52 pm:
As for jobs leaving Lincoln, Stignob? The last jobs report I saw about Lincoln, Lincoln is gaining in the number of jobs, not losing them like most of the country.
Now, let's hope the city council does the right thing and pass the budget. If they want to save money, why don't the council members who have contracts with the city cut fees they charge in half. They have a sweetheart deal anyway and could easily afford that cut. They don't need to make millions off the city. That probably would save the city a couple of million easily and we could cut taxes. "
curly wrote on July 3, 2008 8:26 pm:
Invest in this wonderful city which is in need of desperate revitalization. The city government has been so efficient they have cut themselves to the quick. "
mike wrote on July 3, 2008 8:34 pm:
Yes Please wrote on July 3, 2008 9:02 pm:
LLoyd wrote on July 3, 2008 10:09 pm:
dewboy wrote on July 3, 2008 10:47 pm:
CS wrote on July 3, 2008 11:29 pm:
NOT SO FAST wrote on July 4, 2008 6:04 am:
Dan McCord wrote on July 4, 2008 8:36 am:
Big Picture wrote on July 4, 2008 10:20 am:
Headshaker wrote on July 4, 2008 10:29 am:
Cant believe it... wrote on July 4, 2008 11:18 am:
Scott wrote on July 4, 2008 12:14 pm:
I agree wrote on July 4, 2008 12:21 pm:
Tony wrote on July 4, 2008 12:39 pm:
For all of you sheep who think this is just business as usual, keep in mind that we already pay a higher percentage comparatively than most of the US.
Unfortunately for Lincoln, the city is controlled by the money the football team generates, and when the program went into the crapper, so did revenue. Maybe it's time to be more productive and drum up some different areas of revenue.
How much did the city pay Wasabi, Starship and the other businesses to knock them down to build a parking lot? The problem is in what the city chooses to invest in. The fair has gone broke due to complete incompetence.
Tax increases are not an answer to this problem. Progressive spending, better project assessment, and competent leadership are the only answers. Trimming the fat is a start, but first you've got to quit bringing the hogs to the buffet. "
Shane wrote on July 4, 2008 12:52 pm:
Not so fast, do you suppose the mayor knew when he was running for office that we would be looking at 4.50 Diesel and 4.00 gas a year after he was elected? Are YOU paying more for things than you did a year ago? Don't you think that applies to the city also??? "
NOT SO FAST wrote on July 4, 2008 3:31 pm:
Oh yeah, I think the mayor was aware that gas prices were and are going up, and that is why he is doing this. But, the point is that He said he would not raise taxes on property and here we have it, an increase, with a promise for more to come, because he has signed on with the arena idea and not taken seriously situations of streets and other issues facing the city. It has been pointed out that the 2 for one match in retirement gives most people a somewhat uneasy feeling in the stomach and the fact that many of the city employees are paid in the 100 thousand dollar range. Solutions come from people and keeping the current conditions of increase and spend without relevant and definite control will result in people being upset enough to vote so called spenders out. It will happen, but not maybe as soon as we would like, but trust me it will happen, and when you and others are paying for event centers and peoples retirements and living on pennies of the dollar that you earned over your life time, while others are spending your extra dollars freely and at will, you will also change your mind. Unless of course you are so filthy rich that it doesn't matter to you. Well for a lot of us 15 dollars more in property tax is a lot. For me it is not the 15 dollars so much as it is the perception that it is OK and really not a big deal. IT is a big deal and wake up, you will live long enough here in Lincoln to see the ramifications of this and it will not be pretty. When a building or buildings and stadiums set idle for years upon end, people will still be paying for things and it will not be pretty. You should look at things from the WORST CASE possible for anyone and then make decisions based off of that premise, rather than on PIE in the SKY attitudes. GOOD LUCK to you but a lot of good people are leaving Lincoln because of you and the Mayor. Thanks. "
Omahan wrote on July 4, 2008 6:06 pm:
Okay Everyone Laugh wrote on July 4, 2008 7:04 pm:
Ex-Omahan liking Lincoln wrote on July 4, 2008 8:18 pm:
I'd bet Lincoln could do a lot with an additional 9 cents on every dollar for 10 years. And Lincoln does it without the daily shootings. "
wrote on July 5, 2008 1:13 pm:
Private sector worker wrote on July 5, 2008 3:53 pm:
Setting the Record Straight wrote on July 6, 2008 5:29 pm:
Thank you wrote on July 7, 2008 10:43 pm:
Furthermore, I am more than willing to pay the approximately $13 a year my property tax will increase (my house is valued at $130,000 or below the example of $150,000). If the American public wouldn't spend $2 for every $1 they had, many of you would not be in such tough financial positions currently. Sure, I could live in a house that was valued more, but I live well within my means.
Thank you, Mayor Buetler, for taking into consideration what is best for the City of Lincoln! "
Jen wrote on July 9, 2008 12:08 pm: