Council response to budget muted and mixed after first work session
A budget that drops spending by $300,000, even with a tax increase, is a little more palatable than a budget proposal that increases spending and raises taxes, Councilman Gene Janokowski offered near the end of a budget workshop in City Hall on Tuesday night.
There's an element of the council that agrees with Janokowski's balanced take on the administration's proposed budget, with its property tax increase of 16 cents per $1,000 of assessed value, said Council President Brooks Hawley after the meeting.
There are also those who side with Councilman John Deleo, who is having a hard time accepting the thought of any tax increase.
His senior constituents, many on fixed incomes, and his working constituents who haven't had a raise in pay in years are telling him to say no to a tax increase, he said.
"If I want to keep my seat, I've got to answer up to them," Deleo said.
In response, City Manager Jason Molino said the proposed budget continues the conservative revenue and expenditure projections that have been part of his administration's strategies for the past several years and have helped guide the city into calmer fiscal waters.
"We've stuck to the core fundamentals of budgeting," Molino said. "As long as there are no outliers, no huge unexpected expenses and no big dips in revenue, over a 10-year period, you can expect taxes to fluctuate within 3 percent, up to a 3-percent increase or a 3-percent decrease. Generally, residents can live with minor fluctuations in either direction, but what gets you into trouble (are) 4- and 5- and 6-percent increases."
He cautioned against using reserves to balance the budget because that's what puts municipalities in a bad spot and eventually leads to those big tax increases.
The proposed budget anticipates a continued slump in gas prices, cutting heavily into the 18 percent of the city's sales tax revenue that comes from fuel sales, and doesn't assume growing consumer confidence and greater buying power will necessarily lead to sales tax growth in the retail sector.
For the average homeowner, the tax increase and higher water rate will add up to only $27 a year in added expense, Molino said.
Deleo said he knows that doesn't sound bad, but his constituents want no tax increase under any circumstances.
Hawley said it's too early to predict how the council as a whole will direct Molino to modify the budget, if at all.
"I think the administration as a whole did a good job on the budget, but it's just a proposed budget and this is just our first meeting during the session," Hawley said. "We've still got a couple of months yet to look at it. There are some good things and there are some things we might want to change. For right now, I appreciate the administration coming here tonight and laying everything out in front of us."
The budget workshop is a chance for the city's department heads to explain expenditure requests and for council members to ask questions. The session went from 7 to 9:30 p.m. and included all departments except police and fire, which the council will hear from after Monday's regular meeting.
The proposed budget can be downloaded here (pdf).
Here are some highlights:
- Proposed $318,558 on sidewalks for Redfield Parkway, Allen Street, Holland Avenue, North Street, Olyn Avenue and 27 curb ramps at these locations;
- $201,800 on road resurfacing;
- $217,050 on legal services, including $57,550 prosecutorial services;
- Six upgraded computers and support subscriptions for city computers at $23,544;
- Wireless service for City Hall and citywide IT support, $50,625;
- The summer recreation program, $68,000;
- New roof on the youth center, $25,000;
- Total Youth Services spending, $194,715;
- Budget for the Bureau of Inspection, $329,965;
- In Public Works, a purchase of cab and chassis, $20,000;
- The total street maintenance budget is $607,115;
- Fuel costs, $66,500 for diesel and $21,020 for gasoline;
- Total budget for the Public Works garage, $495,345;
- The total cost of snow removal, $541,830, with $150,360 for sodium chloride, $20,800 for parts and equipment;
- Powering the city's public lights, $220,000, plus another $16,000 to power traffic lights;
- Replacing vandalized park equipment will cost $10,500 for Austin Park slides;
- Tree removal and trimming parks, $25,000; tree replacement, $13,900;
- Total parks budget, $217,150;
- Street cleaning, $39,270;
- The fire department proposed budget is $3.9 million, with $2 million in base salaries, $125,000 in overtime, $139,390 in holiday hours, a $35,000 one-ton utility vehicle, $21,000 in professional development and training, a $549,190 contribution to the state retirement fund, $188,430 for Social Security taxes;
- The police budget is $4 million -- $2.1 million for base salaries, $220,000 for overtime, $12,000 for the emergency response team overtime, $85,000 for holiday pay, $63,360 for two patrol vehicles, $61,000 for gas, $44,870 for uniforms and body armor, $19,000 for travel and training, $38,000 for new officer training, $539,980 for the state retirement fund and $194,340 for Social Security tax, and $434,610 for medical insurance.