How do you solve a $1.6 million budget deficit? City to Put Bay3TV Spotlight on Budget Work Sessions, Pawn Shops
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How do you solve a $1.6 million budget deficit without a tax increase or chopping the labor force even more?
Close city hall?
Shut off all street lights?
Close another fire station?
That's the dilemma faced by the City Commission of Bay City since April 19 when they rejected on a 6-3 vote the manager's proposal to ask voters for a 2.03 Headlee Override tax millage increase.
The millage increase would have allowed the city to levy the maximum 19 mill property tax authorized by city charter and would have raised about $1.2 million additional per year beginning in July 2011.
Several commissioners, Kevin Novellino, Douglas Somer and Kathleen Newsham, who initially favored the millage backed off after hearing complaints from city residents.
Under severe financial strain in a struggling economy, City Manager Robert V. Belleman has decided to bring the public more into the budgeting process -- through television.
"Big picture" issues to be explored include the high unemployment rate of the state and nation, decline in state revenue sharing pinched by the $2 billion annual cost of prisons, and nearly 1,500 property foreclosures in the city since 2000.
The property foreclosures have resulted in more rental units, a situation that Commissioner Kevin Novellino deplores on grounds renters don't have a stake in the community.
Commission President Chris Shannon says fellow commissioners would like to bring on additional staff to support public safety and to look at consolidation opportunities with neighboring communities.
Initial discussions seemed to reach consensus on further labor cost reductions, with some commissioners favoring layoffs. The manager has proposed a 10.8 percent wage decrease as a way to reduce the deficit by about $1.1 million.
Without some other funding, 19 city employees would be issued layoff notices May 24, according to the manager. The city is aiming for a June 7 approval of the final budget document, he said.
The City Commission has established four budget work sessions for the finance/policy committee, the first of which will be held Monday night, April 26.
All of the budget sessions will be aired on Bay3TV, the government-education access channel 99 on Charter Communications cable.
The proposed FY 2011 budget of $130 million was presented to the public on April 19. That compares with last year's $133 million spending plan that was adopted only after long wrangling about firefighter layoffs, vetoes and agonizing discussion.
The city has already reduced staff by not filling six positions that have become vacant, the property appraiser, a labor relations specialist, one firefighter and three employees of the parks department.
The dates of the four budget work sessions are April 26, April 27, May 4, and May 10. As in previous years, the budget work sessions will be held in Room 317 and will begin at 6 p.m., end at approximately 9 p.m., and will be covered by Bay 3 TV.
In early April the commission reviewed Mr. Belleman's six options for deficit reduction:
1-Labor cost reductions;
2-Reduction in force/layoffs;
3- A 1 percent property administration fee;
4-Added millage through a ballot question;
5-Suspend street light operations;
6-Use part of the $1.4 million general fund balance, probably about $465,000.
The April 26, 2010 budget work session will open with a presentation on the overall budget and the long term picture. The proposed FY 2011 budget book continues with a one page budget summary followed by the actual budget document for that particular fund and/or activity within that fund.
Said Mr. Belleman: "This year the staff will highlight significant changes to their budget, proposed programs, projects and services, and to incorporate the major financial aspects of each of their cost centers.
The budget summary which employs pictures and narratives make the budget more user friendly and informative, said Mr. Belleman. Previously, administration had simply supplied financial numbers which made it difficult to identify programs, projects, services, and staffing information, he said.
The proposed FY 2011 budget also includes the Debt Service Schedule for all debt currently in effect for the City of Bay City, the Cost Allocation Plan, and the 2011 - 2016 Capital Budget.
"The Budget Message discusses the big picture - - national and state economy, and its impact on the City of Bay City as well as provides specific highlights of the FY 2011 budget which I encourage you to review prior to the upcoming budget work sessions."
At the May 3 Finance/Policy Committee Meeting Police Chief Michael Cecchini will make a presentation on Pawn Shop Ordinance/ Business Watch International.
Chief Cecchini, Deputy Chief Thomas Pletzke, and Officer Berthiaume would like to introduce a more efficient process in handling pawn shop reports on items pawn shop owners acquire and how that information is entered into the database the Police Department maintains in case they receive reports of stolen property. When a report is received by the Police Department they search their pawn shop database for stolen property items.
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