Wednesday, March 25, 2009

Question One: Budgeting the City

1. I presume all of you have looked at the city’s budget and have an idea of what you would like to see changed in that budget. Ideas and projects I have read about included new streets projects, resolving the issues around our legal expenditures, having city hall open on Saturdays, reducing the budget by $500-750K. All of these issues should be explained more than the general blanket statements I have so far heard. Please explain in detail what expenditures you wish to cut from the city budget in an effort to save the city money and what new expenditures you plan to add if any in your term as the city’s mayor.

Dennis Patton's Reply
Because the department heads are only just now developing the expense side of the budget and have not submitted requests it is impossible to cut before you know is being asked for. Instead, I will share my thoughts on the budget.

The City Budget must be handled similar to the way most of us handle our household budgets in these difficult economic times. Limit spending!

Our current Mayor talks of his accomplishments and states being Mayor is like being the CEO of an $18 million company. Since he has become CEO revenue has went down each year and expenses raised. The City spent over $400,000 in legal fees in 2008 and had a deficit in the general operating fund of over 1/2 million dollars. Comparing Columbia to Waterloo, Waterloo has a fair market value of all real property, not county schools and municipal properties, of $555 million, revenues of $620,000 from property tax in the general fund and collect almost 2 million in sales tax generated from businesses. Columbia has 10% more property value, $615 million; collected over a million dollars in property taxes for the general fund, and collected $1, 600,000 total property taxes for city services. Columbia’s sales tax revenue is falling by 10% yearly, a trend seen in most small cities. Someone has to be responsible for Columbia's dismal finances. To take credit for the positives and ignore the negatives is politics as usual. Companies all over America are firing CEO's whose companies are loosing money and according to the 2008 audit Columbia's deficit was over $505,000 in the general Fund and minus almost $330,000 in the total funds. The Mayor is not the cause of all of the Cities troubles, but the buck stops there.

Spending over $400,000 in City legal fees in 2008 is outrageous and I believe this amount can be immediately cut in half. The City is still defending two lawsuits, the appeal by Grewe and Columbia Crossings and Pine Creek lawsuit. Most citizens know about and have opinions about the Columbia Crossings Issue, but many don’t even know about Pine Creek. The Pioneer Ridge Subdivision at the top of Cherry pour a tremendous amount of storm water down through Old Town and is taxing the Cities existing sewer lines. A new sewer and storm water retention that would help alleviate the Pioneer Ridge problems was all part of the Pine Creek development process that has been halted by disagreements at City Hall resulting in a second lawsuit. Several other legal actions, dealing with the handling of personnel issues, have been initiated against the City and our current Mayor. Settling these lawsuits and eliminating legal costs will go along way in helping to balance the General Fund budget.

During my first fifteen years as Columbia High School Principal I was faced with having to cut expenditures because of falling revenue. Our administrative team spent countless hours cutting minor expenses and could not dent a $200,000 deficit budget. It is only when large equipment items are eliminated and/or personnel and their benefits are eliminated are you able to cut substantial amounts. I believe that any personnel cuts, if forced to make them, should come at the top, administrative positions at City Hall, not by eliminating workers who are actually performing public services.


Kevin Hutchinson's Reply
With 6 years of experience I am very familiar with the city Budget. When I was finance chair, -we started quarterly progress meetings with department heads, our Finance Director and the City Administrator, This kept the current budget on track and gave the council ongoing input for next years budget. Last year we made drastic cuts, police officers, equipment and employee training to name a few. Every cut we make cuts into services provided to city residents. We are just now solidifying our projected revenue dollars, so it is impossible to know at this time what will or will not be cut or added. I do not foresee any additional line items being added.


Harold McCarty's Reply
I plan to cut legal fees, engineering fees, departmental budgets, and administration costs. I plan to run the departments with common sense like you would your own house, cut the fat and eliminate things we don't need. Make all departments run more efficiently.

I plan on having City Hall open 8-12:00 on Saturdays to accommodate the citizens who work but that will not cost anything extra because as Mayor I am salaried as is the City Clerk. Any of the clerical people working a Saturday would get a half-day off during the week. Therefore, it would not cost anything extra to keep City Hall open on saturday as it has been suggested, and it would be a service to our taxpayer's.

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