A pair of commissioners disagree with taking money from reserves to balance a budget they say can be trimmed.
By MEGAN SCOTT
Published September 16, 2004
DUNEDIN - Two commissioners tonight will more than likely find themselves on the losing end of a battle over the city's budget.
Bob Hackworth and Dave Eggers say they won't support the 2004-05 spending plan because there is too much spending and not enough cutting. Dunedin had to take $562,000 from its reserves to balance the budget.
But three other commissioners support the measure, meaning it probably will be approved at tonight's meeting.
"I have a problem when we are presenting a budget that doesn't balance that has to use reserves to balance it," Eggers said. "We have got to find ways to cut our costs. I didn't see any efforts in that area. I was disappointed in that."
City leaders approved the budget 3-2 in a preliminary vote Sept. 2, with Hackworth and Eggers voting no. Assuming approval tonight, the budget takes effect Oct. 1.
More than $22-million of the funds are slated for capital projects such as the community center in Highlander Park and renovations to the Dunedin Public Library. The city plans to add seven new positions, including one for the city's cable Channel 15 operation, and one for Dunedin Fire Rescue.
Hackworth questioned some of the other expenditures, such as the more than $100,000 for St. Andrew's Links Golf Course.
"We're spending our reserves on nonessential items," Hackworth said. "To me, we should be protecting our reserves and not just spending them.
"There's thousands and thousands that go to attending conferences, and training and travel, those are some of the items we could think about cutting back on."
Budget director Dan Zantop said the city always is looking for ways to cut costs and enhance revenues. Dunedin is increasing permitting fees, which should bring in an extra $300,000 in revenue. The city sold naming rights to its stadium to Knology Inc. and granted Pepsi Bottling Co. exclusive rights to sell in city facilities.
And stormwater fees are going up from $4.50 to $6 per month, which should generate $450,000 in revenue for drainage projects.
The increased revenue is what baffles Hackworth and Eggers.
"We have a lot of new revenue coming in to the city," Hackworth said. "And it should be enough in my opinion to cover the uncontrollable costs and increases, the things we don't have a lot of control over."
But increases in the annual cost of health, property and life insurance and law enforcement services makes cost-cutting difficult.
The budget review committee, a private citizens group, goes through the budget line by line looking for ways to cuts costs without compromising services, Zantop said. And every open position with the city is studied before it is filled.
"You just can't cut paper and pens and things like that," Zantop said. "If you're trying to cut $1,000 or $2,000 you may be able to find that without much trouble. You're getting into programs. It's making the determination what would you want to cut with these programs. It makes it a little bit tougher."
Commissioner Deborah Kynes pointed out that even with the proposed budget, not every department got what it wanted.
Jack Martin, the city's Channel 15 production coordinator, wanted two new positions but was budgeted only for one. Harry Gross, director of leisure services, also requested another employee. That was denied.
Kynes said the budget is only a framework. There can be changes.
"There can be more cost cutting," she said. "We can still make decisions that will affect the bottom line. At the present, it is the best framework we have at this time to go from."
Dunedin is keeping the property tax rate at $4.425 per $1,000 of taxable valuation, a sharp contrast from last year when city officials wanted to increase the rate 15 percent to cover a potential budget shortfall. Commissioners instead approved a 7.5 percent hike.
The city's fiscal policy says the general fund should maintain a minimum of 15 percent of its balance in reserves.
But because expenses have generally exceeded revenues, the city has had to use reserves to balance the budget.
In the upcoming budget, the general fund has 19.2 percent in reserves, which means another tax increase could occur in 2007 unless the fiscal policy changes, Zantop said.
Regardless of keeping the millage rate the same, Hackworth and Eggers maintain that spending more than you bring in is not a good idea.
"I just profoundly disagree with that philosophy," Hackworth said. "I disagree with it as it relates to my own family spending. I don't know why the city government is different."
