DEENA WINTER / Lincoln Journal Star | Posted: Monday, July 17, 2006 7:00 pm
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.
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.