Tough decisions help city close $357,733 gap
The 2012 city budget was examined at the City Council meeting on Tuesday, Nov. 8. City officials worked to overcome a $357,733 deficit in order to create a balanced budget.
Right off the bat, the city was faced with $199,933 in revenue reductions for 2012, including decreases in state shared revenue ($37,604), general transportation aids ($27,207), fund balance not being used ($94,122) interest earnings ($25,000), citation revenues ($10,000), and sale of vehicles ($6,000).
Expenditure increases for 2012 total $157,800, including increases in vehicle fuel costs ($17,800), health insurance premiums ($50,000), elections due to presidential year ($8,300), a new police station ($12,100), liability insurance premiums ($8,100), firefighter physicals ($2,500) and miscellaneous expenses ($59,000).
The net impact from changes to the 2012 budget totaled $357,733-a difficult amount for the city to overcome.
The city is planning to require employees to contribute 5.8 percent of their retirement, which will save about $91,000. City employees will also be required to pay 15.5 percent of health insurance charges, as opposed to 10 percent, which will save $122,000. The city is also changing some deductibles on vehicle insurance, which will save $8,300. Assessor/auditor reductions total $1,000, and removing the hanging flower baskets will save $2,500. City Administrator Lisa Kuss said she intends to fundraise for the cost of the flower baskets so that they will not be totally eliminated.
The city has found various ways to reduce expenses as well, including eliminating the Clintonville Area Waste Service (CAWS) subsidy ($4,000), reducing fire expenses ($4,500), and reducing street lights ($7,000). The total expense reduction is $240,300.
Methods of increasing revenue have also been discovered by city officials. Some of those include a Utility Payment in Lieu of Taxes (PILT) totaling $58,992. Others include OWLS library revenue ($11,038), room tax at 30 percent (5,000), Utility City Hall rental ($8,000), Mayor/council donations ($1,100), Utility accounts payable ($5,000), and boat launch fees ($300).
Boaters wishing to launch from a ramp in Clintonville will be required to pay a fee or purchase a ramp permit. The ordinance establishes a $3 per day fee or requires boaters to purchase a season permit for $20 (city residents) or $25 (for non-residents).
Many council members also offered to give $100 of their salary back to the city; some chose to donate an entire paycheck back to the city. Others felt that alderperson pay is too low, and chose not to donate any of their pay back to the city.
Other ways to increase revenue include event fees ($1,000), private garbage hauler fees ($750), Senior Center fees ($300), and other revenue changes ($25,953). The total revenue increase is $117,433.
When the expense reductions and revenue additions are totaled and applied to the 2012 starting deficit, a balanced budget is reached.
Of the changes, 60 percent are absorbed by city employees. The mandated PILT payment accounts for 16 percent, while expense reductions make up 9 percent and changed revenue sources total 15 percent.
The city's allowable levy increase is 0.048 percent, or about 11 cents. For a house valued at $78,000-which is the average for a house in Clintonville-will see an increase of about $8.58 in city tax in 2012.
Council members discussed these measures at the council meeting and also at a budget workshop held the evening before. Dunlavy said the city should look at reducing hours for non-salary employees. Kuss said there are only two hourly employees in City Hall, and the work doesn't go away.
"In the real world, you have to prioritize and be more efficient," Dunlavy said. "Could we do a time study? It seems the citizens are getting hit a lot."
Alderperson Mark Doornink responded that the city has 50 employees and questioned why Dunlavy was targeting two hourly employees. "Do you see inefficiency?" asked Doornink.
"It's just an example," Dunlavy said. "Everybody's taking a hit."
"How much more of a hit do you want them to take?" asked Doornink, noting that 60 percent of budget reductions directly impact city employees. "They already pay 15.5 percent of their health care. Most cities just went to 10 percent. I'm standing up for these employees."
"The good news is the police still come when we need them," said alderperson Bill Zeinert. "The reality of taxpaying is that we all share in this; sometimes the budget goes up, sometimes it comes down.
"You have to think bigger than what you're saying," Zeinert said to Dunlavy. "Look at the outdoor pool or senior center. You're cherry-picking employees because it's easy; be prepared to stand up and make bigger decisions.
"The street light issue is a good example," Zeinert continued. "Nobody loses their job because we turn off some street lights. Nobody has to like that decision, but nobody has to lose their job over it, either."
"The Finance Committee worked hard on this budget," said alderperson Mike Hankins. "None of these reductions are things everyone is happy about. The employees are taking a big hit-they aren't getting a pay increase and they are having to pay more of their health insurance.
"Everyone here is definitely on the side of the taxpayers," Hankins continued. "I feel that we need to eliminate council member meeting pay because we need to share in the pain. We need to look at ourselves. The staff helped come up with ways for us to make cuts in a proactive way. We're trying to balance services with taxpayer value while reining in spending."
"I feel this is a good budget," concluded Mayor Judy Magee.
The council went on to approve the following:
• Airport hangar rental increase from 11 cents per square foot to 13 cents per square foot;
• Resolution 2011-16-Park and Rec/Waste Haulers fees;
• Resolution 2011-14-Boat ramp fees;
• Ordinance 1073-Accomodations tax (Schley and Dunlavy voted no); and
• Sidewalk snow/ice removal bid from Adams Small Engine (prices are the same as last year).
Right off the bat, the city was faced with $199,933 in revenue reductions for 2012, including decreases in state shared revenue ($37,604), general transportation aids ($27,207), fund balance not being used ($94,122) interest earnings ($25,000), citation revenues ($10,000), and sale of vehicles ($6,000).
Expenditure increases for 2012 total $157,800, including increases in vehicle fuel costs ($17,800), health insurance premiums ($50,000), elections due to presidential year ($8,300), a new police station ($12,100), liability insurance premiums ($8,100), firefighter physicals ($2,500) and miscellaneous expenses ($59,000).
The net impact from changes to the 2012 budget totaled $357,733-a difficult amount for the city to overcome.
The city is planning to require employees to contribute 5.8 percent of their retirement, which will save about $91,000. City employees will also be required to pay 15.5 percent of health insurance charges, as opposed to 10 percent, which will save $122,000. The city is also changing some deductibles on vehicle insurance, which will save $8,300. Assessor/auditor reductions total $1,000, and removing the hanging flower baskets will save $2,500. City Administrator Lisa Kuss said she intends to fundraise for the cost of the flower baskets so that they will not be totally eliminated.
The city has found various ways to reduce expenses as well, including eliminating the Clintonville Area Waste Service (CAWS) subsidy ($4,000), reducing fire expenses ($4,500), and reducing street lights ($7,000). The total expense reduction is $240,300.
Methods of increasing revenue have also been discovered by city officials. Some of those include a Utility Payment in Lieu of Taxes (PILT) totaling $58,992. Others include OWLS library revenue ($11,038), room tax at 30 percent (5,000), Utility City Hall rental ($8,000), Mayor/council donations ($1,100), Utility accounts payable ($5,000), and boat launch fees ($300).
Boaters wishing to launch from a ramp in Clintonville will be required to pay a fee or purchase a ramp permit. The ordinance establishes a $3 per day fee or requires boaters to purchase a season permit for $20 (city residents) or $25 (for non-residents).
Many council members also offered to give $100 of their salary back to the city; some chose to donate an entire paycheck back to the city. Others felt that alderperson pay is too low, and chose not to donate any of their pay back to the city.
Other ways to increase revenue include event fees ($1,000), private garbage hauler fees ($750), Senior Center fees ($300), and other revenue changes ($25,953). The total revenue increase is $117,433.
When the expense reductions and revenue additions are totaled and applied to the 2012 starting deficit, a balanced budget is reached.
Of the changes, 60 percent are absorbed by city employees. The mandated PILT payment accounts for 16 percent, while expense reductions make up 9 percent and changed revenue sources total 15 percent.
The city's allowable levy increase is 0.048 percent, or about 11 cents. For a house valued at $78,000-which is the average for a house in Clintonville-will see an increase of about $8.58 in city tax in 2012.
Council members discussed these measures at the council meeting and also at a budget workshop held the evening before. Dunlavy said the city should look at reducing hours for non-salary employees. Kuss said there are only two hourly employees in City Hall, and the work doesn't go away.
"In the real world, you have to prioritize and be more efficient," Dunlavy said. "Could we do a time study? It seems the citizens are getting hit a lot."
Alderperson Mark Doornink responded that the city has 50 employees and questioned why Dunlavy was targeting two hourly employees. "Do you see inefficiency?" asked Doornink.
"It's just an example," Dunlavy said. "Everybody's taking a hit."
"How much more of a hit do you want them to take?" asked Doornink, noting that 60 percent of budget reductions directly impact city employees. "They already pay 15.5 percent of their health care. Most cities just went to 10 percent. I'm standing up for these employees."
"The good news is the police still come when we need them," said alderperson Bill Zeinert. "The reality of taxpaying is that we all share in this; sometimes the budget goes up, sometimes it comes down.
"You have to think bigger than what you're saying," Zeinert said to Dunlavy. "Look at the outdoor pool or senior center. You're cherry-picking employees because it's easy; be prepared to stand up and make bigger decisions.
"The street light issue is a good example," Zeinert continued. "Nobody loses their job because we turn off some street lights. Nobody has to like that decision, but nobody has to lose their job over it, either."
"The Finance Committee worked hard on this budget," said alderperson Mike Hankins. "None of these reductions are things everyone is happy about. The employees are taking a big hit-they aren't getting a pay increase and they are having to pay more of their health insurance.
"Everyone here is definitely on the side of the taxpayers," Hankins continued. "I feel that we need to eliminate council member meeting pay because we need to share in the pain. We need to look at ourselves. The staff helped come up with ways for us to make cuts in a proactive way. We're trying to balance services with taxpayer value while reining in spending."
"I feel this is a good budget," concluded Mayor Judy Magee.
The council went on to approve the following:
• Airport hangar rental increase from 11 cents per square foot to 13 cents per square foot;
• Resolution 2011-16-Park and Rec/Waste Haulers fees;
• Resolution 2011-14-Boat ramp fees;
• Ordinance 1073-Accomodations tax (Schley and Dunlavy voted no); and
• Sidewalk snow/ice removal bid from Adams Small Engine (prices are the same as last year).
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