Council Sets Budget Ceiling of 4 Percent

Several City Councilors were hesistant to approve Mayor Eric Spear's motion calling for city department heads to submit Fiscal Year 2013 budget requests that do not exceed a 4 percent increase.

But after some debate, the council approved the motion during its meeting on Monday night at City Hall so that department heads can at least have a starting point for the upcoming budget season.

“The residents have spoken and we all know that we have to hold the line in the budget,” said Assistant Mayor Robert Lister. He said that by giving city department heads a 4 percent ceiling, it will give City Manager John Bohenko and city department heads a uniform reference point.

City Manager John Bohenko said his preliminary estimates show the budget could go up 4.6 percent on the operating side mainly because of increases in pension contributions. He said a 63-cent increase in property tax rate could result, he said.

This was actually better than what the council discussed during a work session in November when Bohenko said the city was looking at a potential 91-cent property tax increase to support $94.5 million budget.

City Councilor Brad Lown said he would vote for the motion to give the department heads a reasonable guideline in working with their budgets.

But Councilor Ken Smith said he would not support it because he wants each department to come in with their best budgets so we can work with them on a case by case basis instead of “pulling numbers out of the air.”

“My concern with 4 percent is you know what is going to happen. They are all going to come back with 4 percent increased budgets,” said Councilor Jack Thorsen. “Four percent is blowing it out of the water.”

Councilor Nancy Novelline Clayburgh said she would support the motion because it will make it easier for the department heads to have some ceiling to work with.

“For now we should give them a number so they can put their budgets together,” she said.

Thorsen's attempt to amend the motion reduce the ceiling to 3 percent failed on a vote of 4-5. The main motion passed, 6-3.