1 week Ago By NAYANIKA GUHA [email protected]
The draft budget was released on the city’s website in early October, after which a public comment period was held. The budget does not have tax increases to cover the difference between expenses and revenue. “We had estimated a 2% property tax increase, and two weeks ago, after seeing all the other expenses come in and seeing where we were with budgeted expenses, budgeted income, versus where we are this year, as a guide post, I pulled the 2.
2% out for a 0% tax increase,” Mayor Bill Collins told the Post-Star. Instead, the Mayor believes the city can use its fund balance at the end of the year, if needed, to cover the gap. In recent years, the city has not used the fund balance, a sort of savings account for the city, but added to it, he said.
It stands at about $10 million now. At the meeting, Palmer, the only one to vote no, said that she has made it known that she views the budget differently than the Mayor. “We’re not arguing about the numbers presented today, but we see them very differently,” she said.
“I’ve consistently raised concerns about the city’s fiscal trajectory and advocated for structural changes. While I’ve worked hard to address these issues and have successfully pushed for some reductions, there’s a limit to what can be accomplished within my role on the council. The time to make significant changes to this budget has passed, and my vote tonight reflects the values I’ve been advocating for all along,” she added.
Previously, she has expressed concerns regarding planned spending exceeding the expected revenue, a need for sustainable financial planning to avoid future fiscal distress, and the need for a plan to direct future investments. “I want us to plan to have our expenses in line with our revenues,” Palmer told the Post-Star. She added that due to having spent federally granted American Rescue Plan Act funds for vehicles and big upgrades, “we have more money in the general budget.
” “ARPA won’t be there next year. And I think if we make smart decisions now, I think we could, we could set ourselves up for success,” she said. She also expressed concern about the gap between the expected revenue and expenses growing each year.
Collins said that he doesn’t disagree that the gap is growing, “but we don’t know any better way.” “Two years ago, we came in about $2 million under budget. So even though the budget gap has grown, we didn’t spend any of that gap money, and we added to the fund balance.
Last year, we came in $3.1 million under budget,” he said. Lapham, however, argued that this exposes a fault in the system.
In his comments he said that the Mayor pointed out that each budget he has proposed has had a structural deficit in place, from projected revenues to estimated spending, but the city has always ended up with adding more money going into the general fund, with revenues either being above plan or expenses being lower. “To me, this is a failure in our budget process,” Lapham said. “In my mind, we are missing the part where we get to understand why we were off and reconciling that to all parties involved in the process.
” Landry, along with Lapham, called for instituting a finance committee to oversee budget activities, and plan for smart investments. “I can’t believe we don’t have one,” Landry said. “There is revenue to be made in the areas of investment that are being missed as we sit here tonight.
This committee would also be responsible to develop a better working budget process, keep the council better informed on day-to-day finances, and hopefully assist in adding to the reduction of cost or the increase of revenues,” Landry added. He also pointed to growing concerns around the cost of health insurance, and public safety. “Health insurance alone is over $6 million in climbing.
That’s 25% of our budget. Our public safety departments cost over 40% of our entire budget and climbing,” he said. “So while we debate the many small items that are easily reachable in balancing a budget and discuss the pros and cons of utilizing fund balance.
..and being concerned, as most small cities do, about the debt that we’ve often forced to take on, the big items continue to grow and become even more unreachable in the short term.
” While the council had many disagreements through the budget process, many agreed that this year’s process was smoother than previous years, and was more in compliance with the charter, as far as timelines go, giving them more time to deliberate on it. “I couldn’t be more proud of the process of the council members and their efforts and all the work they put into it. And I’m grateful to be the mayor in this and to be leading in this particular time,” Collins said.
Palmer, though she agrees that conversations with the council and various department heads have been productive, “It hasn’t always been productive when the mayor’s been present.” She added, “I have had to actually pause meetings to request more civil discourse.” Last year, the Mayor called her comments asinine and silly, and this year, called them disturbing, she said.
“So I think that debate is good, and different perspectives are good, especially with something so important as the budget. I respect his perspective, and when I don’t agree with it, I ask questions to learn more. I don’t try to shut it down,” Palmer added.
Speaking of the heated debates during the process, “As much as I sometimes don’t appreciate negative comments, I think it’s part of the democratic process. It’s part of this budget process. I need to be okay with it,” Collins said to the Post-Star.
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