The Shawnee Dispatch / Holiday staples on line as city looks to pare budget

Archive for Wednesday, June 25, 2008

June 25, 2008

Imagine Shawnee without a CityLine newsletter, Christmas decorations or even a Fourth of July fireworks show.

All of the above are items Shawnee city staff members have suggested the Shawnee City Council consider cutting to save the money next year. With lower-than-expected revenues leading to yet another tight budget, the city is looking for ways to make up shortfalls in the millions of dollars for both this year and 2009.

“We’ve gotta watch things closer than we’ve ever watched before: Keep an eye on everything, question everything,” Carol Gonzales, city manager, told the Council at the June 17 Public Works & Safety Committee meeting.

The meeting was the Council’s fourth meeting concerning the 2009 budget; another meeting is scheduled Thursday evening to finish discussion of the city’s general fund.

Bryan Kidney, city finance director, and Gonzales had previously warned the Council the city would need to find $2.6 million in the 2008 budget to meet the goal of having 35 percent reserves in the general fund. The city also would need to cut the 2009 budget by $6.9 million to have 35 percent remaining in reserves.

The city last year set the goal for 35 percent reserves to help keep the city financially sound and maintain its Aa3 bond rating.

At last week’s meeting, city staff said they had cut those numbers down to $711,100 to be cut from the 2008 budget and $4.2 million for the 2009 budget. They did this by several means, such as moving some expenditures out of the general fund into special city funds, reducing contractual services and commodities for city departments and delaying filling 10 open city positions for at least six months, though Gonzales cautioned that the city would have to watch this carefully because it would be defeating the purpose of saving money if employees start working overtime to make up for the vacancies.

Staff also eliminated a third of the city’s mill and overlay program — $1 million — for this year and next year, meaning many city streets that need repair will have to wait several more years.

“There are some streets like Nieman Road that need to be overlaid, but they got cut in that $1 million,” Gonzales said.

Other moves included reducing the city’s budgeted increase for employee compensation from 3.9 percent to 2.9 percent, saving $69,000, and “significantly” deferring replacement of computers and other technology, saving $200,000.

But it is likely the Council will have to find even more places to cut funds. Options presented were all but eliminating the CityLine and Parks and Recreation brochure, which could save $21,000. Rather than print the full newsletter and brochure, the city would send residents post cards directing them to an online version.

“It’s one of the things you just hate because you hear all the time, ‘We read that in the CityLine,’” Gonzales said.

Also suggested were eliminating the city’s fireworks display, put on in a partnership with the city of Lenexa, which would save Shawnee $35,000; and eliminating the city’s annual Safety Center Open House, which would save $12,000.

Another option would be to stop putting out Christmas decorations and other banners, which would save $26,000. The largest suggested reduction would be to further cut the mill and overlay program for street resurfacing by up to $2 million.

When reviewing the Council’s budget for 2009, Council member Dawn Kuhn asked if it was an option for Council members to decline their 2.9 percent pay increase, though it would save just $2,700.

“I recognize we put a lot of time into (work on the Council), but I think we need to lead by example,” she said.

Gonzales said adjusting salaries for elected officials is at the discretion of the Council. This year’s Council salary budget for eight Council members and the mayor is $93,200.

City staff also reviewed reinstating franchise fees on utility bills to increase the city’s revenue, though Kidney stressed it was for informational purposes only and something the Council would have to decide later.