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Beutler presents budget changes to City Council

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BY KENDRA WALTKE / Lincoln Journal Star

Friday, Jul 18, 2008 - 05:39:38 pm CDT

After last week’s shock over rising electricity rates, Mayor Chris Beutler nixed a plan to raise property taxes.

On Friday, he said he will instead move $1.7 million from a seldom-used Special Assessments Revolving Fund to balance the city budget.

Earlier, Beutler opposed bailing out the budget with the fund.

Story Photo
Mayor Chris Beutler
Where the $1.7 million transfer would go

* $1.42 million, to offset revenue the mayor had counted on from his earlier plan to raise the property tax rate by one cent. He nixed that after LES proposed raising its rates, saying the increases together would strain Lincoln families.

* $260,000 to cover city’s now- increased electrical costs. The mayor also directed departments to make conservation plans.

* $19,000, to preserve hours at some libraries, a reversal of a cut the mayor had earlier proposed.

* $23,000, to preserve a mental health and head trauma program that had been proposed for cuts. The program will still move from Easterday Recreation Center to Auld Recreation Center.



Budget timeline

The City Council will meet at 9 a.m. Monday to identify and vote on tentative changes to the mayor's recommended budget. 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 Beutler'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 Chambers, 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.

“I remain disappointed that we must resort to one-time funds to balance the budget,” he said in an announcement Friday.

“However, I am even more convinced that deeper cuts will be harmful to Lincoln’s future.”

Beutler had hoped to use $1.5 million in revenue from a 1-cent property tax increase to balance his budget.

The City Council had mixed reactions in a short but tense discussion that followed the mayor’s Friday morning announcement.

Council members gathered for a brief, mostly philosophical, discussion of budget matters.

The transfer could be called a rainy day measure, several noted.

“We need to decide whether it’s really raining,” said Councilwoman Robin Eschliman.

Councilman Jonathan Cook seemed to embrace the plan, saying cuts already were severe and many city positions were being eliminated.

But Councilman Ken Svoboda said proposed cuts were not severe.

“We’re not closing doors,” he said. “I think (even) taking $1.5 million out at this time is more than I can support.”

Svoboda suggested the special assessment fund might be better used for what it was originally intended — public works.

At one point, he referred to Beutler’s new plan as “stealing” from the fund.

Councilman Jon Camp cut in, saying: “It’s not stealing, it’s transferring.”

Svoboda also hinted at budget cuts he may propose at Monday’s budget meetings. Cook asked him to discuss his cuts Friday, asking whether he was waiting for a “surprise factor.”

But the council spent much of its time on Beutler’s plan.

“I don’t think we got into problems by using one-time money,” Councilman Dan Marvin said.

Times are hard, he added, with a poor housing market and $4 gas possibly limiting people’s spending and holding down city sales tax revenue.

The mayor pulled his proposed tax increase out of concern it and high electrical bills would put a strain on Lincoln families.

Some of the transferred money will pay for the city’s rising electrical bills.

Beutler also added library hours and a mental health program back into his budget.

The special assessments fund has grown to about $10 million — mostly in interest — over the years.

In an interview after the meeting, City Budget Officer Steve Hubka said the fund should not be considered “found money.”

“I’ll show you how unhidden it is,” he said, pointing out the fund clearly listed on the city’s Web site.

The city has a budget problem, not a financial problem, he added.

But with the way the funds are set up — and the city charter calls this one “inviolate,” Hubka said — they are harder to access.

Tapping into this one will require council approval, he said.

The Special Assessment Revolving Fund was used extensively in the 1970s and early ’80s to put in infrastructure for new residential developments, Hubka said.

The city used its own dollars, or its better loan terms, then recouped its costs as developers paid the money back at higher interest rates.

“We were bearing the risk instead of them,” Hubka said.

Earlier in the budget process, Beutler proposed tapping $6.4 million from the fund to create a Fast Forward Trust Fund for economic development.

That fund will help the city pay $235,000 it owes to Information Technology Inc. from a prior economic development deal.

Beutler also hoped it would provide $200,000 to create a new Development Services Center, a one-stop shop for developers.

The mayor is still requesting the $6.4 million in his new budget resolution, which, along with the transfer, will take $8.1 million of the special assessment fund.

The remaining nearly $2 million could be used for paving alleys or other projects, in new or old neighborhoods.

The city also continues to collect payments from past projects, which go in the fund.

Reach Kendra Waltke at 473-7303 or kwaltke@journalstar.com.


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Sounds Reasonable wrote on July 18, 2008 12:24 pm:
" Good job!!! "

 South Bottoms Resident wrote on July 18, 2008 1:18 pm:
" I wikipedia'd our mayor and found his platform for his mayoral campaign. His top issues were establishing Lincoln as a great city by promoting safety and security, an exceptional economy, and a unique sense of place. Based on his actions for the year he has been in so far, I give him a middle of the road review. He has placed a top priority with Lincoln's economy with his leadership on the Haymarket revitalization project but yet under his watch, lost the state fair. However he does fully support the 2015 group's vision of the UNL Innovation Center. So for me, that's a tie. As for "safety and security," cuts in the police and fire department doesn't cut the mustard with me when he made it his campaign theme. Maybe he should have kept with his 1 cent increase of property taxes in order to fulfill that promise? And lastly, a "unique sense of place" well, Lincoln is truly unique when you factor in our crazy city councilmembers who would rather keep their tax paid internet for themselves and can't discern what truly is a conflict of interest. And who can forget Ms. Eschilman's statements in regarding toe-nails and giving the fire department buckets so then they don't drown when their roof collapses. Yup Mayor Beutler, Lincoln is truly terrific, isn't it?! "

 Mike in DC wrote on July 18, 2008 1:31 pm:
" Q: Why does a major city in a state booming with agriculture in an agricultural boom time have money problems.
A: Both local and state governments have poor tax structures, including metrics that cannot easily adjust energy costs for the the public sector. "

 Ted wrote on July 18, 2008 2:54 pm:
" I can't believe he's going to tap the special fund to keep library hours the same and then all but shut Star Tran down. Where are his priorities omg. People will lose their jobs with no ride to work. People can survive without their favorite novel. Gas is at a record high and more people want and need to use the bus. It may be time for a change like B.O. says.:) What are the steps needed for a recall election? Any thoughts on that? I'm a Democrat. "

 Max A. wrote on July 18, 2008 3:06 pm:
" The Mayor is wiping out the Special Assessment Fund! This is absolutely absurd! How much of his budget includes "special" funding for the arena, for Antelope Valley, not to mention all of the TIF funds! This Mayor is not leading, he is slowly torturing those of us who pay his salary. This Mayor is a career politician who likes to spend other people's money. Before Lincoln gives any more TIF funds to developers who want to develop strip malls or office and/or retail space, why doesn't he take a look at the massive number of openings in the strip malls that we have now! Lincoln is oversaturated with empty office/ retail space! Enough! Stop giving away my tax dollars! "

 Brandon wrote on July 18, 2008 3:22 pm:
" Mayor, it is time for you to rediscover concepts behind moral hazard and fooling with the books to compensate areas that need restructuring.. While the special assessment fund might be sufficiently funded, that might mean a smaller tax contribution needs to go to it and be applied elsewhere. I agree with another comment that this is a time to provide a more effective bus system that meets the needs of people. Now I will have a difficult time arranging doctor appointments, visiting friends and relatives in nursing homes, even getting groceries. A mass transit system is a sign of quality of life in large cities, the cuts reduce the quality of life and make Lincoln less competitive. For people seeking a “green community”.. "

 Clarify wrote on July 18, 2008 3:46 pm:
" The mayor's proposal restores hours at South Branch and the Arnold Heights library. It does not include restoring any evening hours at Bennett Martin library downtown. "

 Prairie Dog wrote on July 18, 2008 4:18 pm:
" Have you spoken to any farmers? Boom Time? Prices are up in commodities but so too is water, fertilizer and fuel. Check with the folks who live here before you comment from DC. "

 Mark wrote on July 18, 2008 5:49 pm:
" I agree with many of the other posts here. The city council likes to play favorites with their buddies in the business community who curry favors from the city council. There aren't hardly any decent paying jobs left in Lincoln yet the Mayor wants to give prospective new home owners a $1,000! What's THAT gonna accomplish? The high and mighty top dogs in city govt. have great salaries, free cars to drive around in, free gas, and I'm sure lots of little perks we regular citizens have not. You want to take away our bus service, cut library hours, and every other program that benefits Lincoln's working poor. NOBODY likes the word "TAX," including me. But look at the facts, Lincoln is falling apart. Though it may be unpopular, maybe we should pony up and give the Mayor the 1 cent tax increase the city needs. Maybe us voters ought to put the city council members under the microscope and kick out the no-good-nicks who curry favors from the rich and powerful at the expense of the rest of us. "

 Lincoln Resident wrote on July 18, 2008 7:00 pm:
" In my view these changes are a step in the right direction. I agree with those people who have concerns about bus service being cut. Using smaller vehicles during non peak hours might help. I along with many others in this community cannot understand why cuts are always made at the service level without looking at administration or ways organizations could be restructured so they need less administration. It is no doubt true that the city has fewer employees than it did in the past. The question is does it have more administrators and supervisors and fewer on line service or support staff employees. My guess would be yes it does. "

 Cuts not severe wrote on July 18, 2008 7:15 pm:
" I heartily disagree with Councilman Svoboda’s comment that “proposed cuts were not severe. We’re not closing doors.” What about Meadow Height’s swimming pool? What about Easterday Recreation Center? OK, yes, the building’s going to be used as a senior center, but it’s being closed as a recreation center. Thank goodness the Mayor has seen fit to restore the mental health program that was at Easterday, but what about the after school program that was there and was attended by children from Pershing. The answer will be they can attend the YMCA’s after school program (CLC) at Pershing (previously offered by Parks and Rec). But Parks and Rec charged $83 per session for their program at Easterday and I’ve heard that the YMCA will be charging around $170 per session (if you’re not a YMCA member). That’s outrageous and many of those families won’t be able to afford it (even with reduced fees). Even worse, the city is giving the YMCA $40,000 to subsidize the programs at Pershing and Mickle (as stated in the July 4th article “YMCA Steps into Education Initiative”) and yet the fees will be doubling. The same article also stated that, “the YMCA’s program fees reflect the expense the organization needs to cover its costs, not make money.” I thought the “city believes nonprofits are able to provide human services cheaper than the city” (from “City Considering Pulling Out of School Programs” dated May 14th). Apparently some of the nonprofits can’t provide services cheaper than the city. Let's not cut anymore services -- this is too much already! "

 whatever wrote on July 18, 2008 8:24 pm:
" Mike in DC has valid points. The Ag economy is booming. The farmers I know are making a killing. The price of commodities more than offset the higher costs of production. And at least in my neck in the woods and for at least a 100 miles in any direction anyone that is wasting money and water irrigating, except for the unlucky 1 in a thousand that isn't getting rain is a complete fool. "

 I agree wrote on July 18, 2008 9:03 pm:
" Let's stop cutting services and raise the tax levy by 1 cent as originally proposed. This city IS falling apart. It's so sad. The council keeps preaching that they want businesses to come to town to provide good jobs. Odd that the city employees that provide service and have 'good jobs' are on the chopping block. They want to take away decent benefits from these people. Apparently they want everyone else to provide good jobs for the citizens of Lincoln, but they aren't willing to themselves. And what company wants to come to a town where the council won't even take the steps they need to take to keep this city what it was and stop the degredation? Fix the streets, mow the parks. This town is looking pitiful. I thought we voted for a council to keep to do what's best for this fine city, not do what's best for their own political futures. I shouldn't have to watch my hometown, that I have always been so proud of, turn into a shambles because the people that have the power have personal aspirations politically. Shame on you!!! Do what you were elected to do, and sometimes that's raising taxes if not to simply maintain what we now have.
Also council, quit accusing people of hiding money. Apparently it was right in front of your face all of the time. If the general public can find it on the website - you certainly should have been able to! "

 For the City Council wrote on July 18, 2008 9:18 pm:
" Let's stop calling city funds and programs by pet names. Call them by the name they are given. Last year it was the 'toenail' program that was provided by the Dept of Aging, now tonight on tv I heard Robin call the Special Assesment Revolving Fund the 'Rainy Day Fund'. If that's what makes it easier in your household to have these pet names, fine. Let's be a little more respectful when it comes to the city's funds and programs provided our citizens. It's very demeaning and comes across as very crass. While you're at it - be a little more respectful, Mr Camp, of the people that come to speak at the council meetings, especially the annual budget meeting instead of interrogating them. They have a right to their opinion, even if it's not the same as yours. "

 jimi wrote on July 18, 2008 10:20 pm:
" Anyone that thinks that this city can make it without raising taxes is a fool!!!!
the republicans have cut the city to below the bear minimum for what it needs.
Raise taxes "

 realistic wrote on July 19, 2008 8:42 am:
" City government has manipulated the budget and it's funding for years. Now we are experiencing the results. The City took advantage of very healthy economic years in the 90's. Now things are not so healthy and those administrators of the 90's are not here to take the heat of lack of planning for the future.
It is evident that City services will decrease if revenue to pay for those services is not brought in. The economic developement for Lincoln appears to be on track(finally)to provide the avenue to bring the revenue in the future (year round, not just seasonally).
What about now? Sorry folks, it is time to pay the piper and raise taxes. If you want bus service, fire protection, police protection, library availability, maintained parks, you either get prepared to do without or open the wallet.
I discovered this blog which is very telling of the situation Lincoln is in with it's police department. I do not want to live in St. Louis, Kansas City or Omaha because of the lack of services provided. This just drives home how important it is to keep up with the growth of Lincoln and changing times.

http://lpd304.blogspot.com/ "

 I Dont Understand... wrote on July 19, 2008 10:49 am:
" I don't understand why a adequately funded, stable, well-functioning, local government isn't as important as Antelope Valley, arenas, research parks, and convention center?

There is something insanely wrong in the sick politics of LIBA, the Mayor, the Council, the University, LPS, and our greed driven visionaries.

Who is taxing me the most? The Private sector. "

 Thank you Mayor Beutler wrote on July 19, 2008 11:26 am:
" Thank you Mayor Beutler for having the courage to change your mind. This is a sign of true leadership in my opinion. We have far too many government leaders who do not know or care enough to listen to their constituents whoever they might be. They refuse to change their minds even when information and situations change. They use the power of their positions to coerce others into doing what they want whether or not it makes sense. Power of position or coercion is the least effective kind of power. This is why government is in so much trouble. Mayor Beutler does not appear to be this kind of leader.Keep up the good work. "

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