MONROE - An alderman's proposal to adjust the pending 2012 budget to amass a pool of funds for the city to offer retention and performance incentives to employees may have to wait to be considered in council committees during their normal course of business next year.
At a council meeting Tuesday, Nov. 1, Alderman Michael Boyce requested Mayor Bill Ross schedule a meeting of the Salary and Personnel Committee or full council before Nov. 15 to discuss and possibly take action on early refunding or prepayment of TID No. 7 debt; a revised 2012 capital expenditure plan; and a budget revision to earmark most of the expected savings to support up to a 5-percent increase in 2012 proposed salaries for positions subject to the general fund levy. The positions would not include employees in the water, wastewater or storm water utilities, which operate on user fees rather than on levied tax dollars.
Alderman Thurston Hanson also requested one meeting of the full council to "deal with this unfinished and unacceptable budget," before the council's anticipated vote on the proposed budget Nov. 15.
Hanson called the proposed budget that passed out of committee Oct. 26 "sub-par," with "no serious talk about potentially restructuring debt, paying down loan obligation debts using excess cash in the general fund, or seriously looking at cutting expenses by cutting back the size of government" ... and "other critical issues that have been ignored."
Mayor Bill Ross said Wednesday that those requested meetings will probably not be scheduled, and called the requests an attempt to "stir the pot after the budget has been sent" out of committee to the council.
"I don't see much point, because other alders are tired from working hard to bring in this budget, and they can make changes after the budget passes," he said.
Ross said no other aldermen have asked for the additional meetings.
"Phil (City Administrator Phil Rath) did exactly as he was told to do, and at all the Finance and Taxation Committee meetings, alders has the opportunity to interject comments," Ross said. "The budget is exactly what the goal was."
Rath was directed by the committee on Aug. 16 to bring in a 2012 budget with a zero-percent levy increase, including the debt service and capital accounts. Rath set the budget with input from department heads, but he left open options for committee members to determine how they wanted to fund non-city entity requests, a $200,000 shortfall in downtown TID 7 funds for a pending debt service payment and an additional $330,000, compared to the 2011 budget, in street construction projects.
Boyce said Wednesday that the proposed 2012 budget has "a structural imbalance that will continue to exist going forward."
His plan would help "create a process of certainty for employees that currently doesn't exist," he said.
"It would address the morale issue at the city, evidenced by some recent personnel changes," he added.
Boyce's Proposal
Boyce likened the first part of his proposed plan to paying off the balance of a high-interest rate credit card with money sitting in a bank account earning little or no interest.
His plan would begin by paying off the TID No. 7 bonds, eliminating about $2.4 million in interest costs over the life of the bonds, with a repayment agreement with the district to repay the principal.
TID No. 7 raised about $46,000 this year, short of what Boyce's plan would require of it, but far closer than the current payments are requiring.
The Finance and Taxation Committee budgeted about $200,000 from the undesignated funds balance to covering the TID debt shortfall in 2012.
Boyce believes the city will continue to supplement the TID payments for years to come.
"Your first loss is your smallest loss," Boyce said.
In Boyce's plan, the principle left on TID 7 loans, about $1.6 million, would be repaid to the city by the tax increment district over the remainder of its 30-year life, about $51,800 annually, plus interest at a rate lower than the current bonds.
The payoff would save the city about $183,000 for 2012 and every year after, Boyce said.
A second part to Boyce's plan is to "take the spikes out" of requested capital savings over the five-year plan. The Finance and Taxation Committee honored $700,000 in capital requests for 2012. But if the total cost for non-bonded projects and purchases were averaged across the five years, to about $548,000 annually, the city would see an additional $154,600 in 2012.
The savings from restructuring TID 7 debt and capital account requests would be more than enough to cover a 5- percent increase in 2012 salaries and wages supported from general funds, which would be less than $184,000, according to Boyce.
Boyce said the numbers in his plan are not refined, but are a point to start discussions.
"It's the idea that's important," he said.
At a council meeting Tuesday, Nov. 1, Alderman Michael Boyce requested Mayor Bill Ross schedule a meeting of the Salary and Personnel Committee or full council before Nov. 15 to discuss and possibly take action on early refunding or prepayment of TID No. 7 debt; a revised 2012 capital expenditure plan; and a budget revision to earmark most of the expected savings to support up to a 5-percent increase in 2012 proposed salaries for positions subject to the general fund levy. The positions would not include employees in the water, wastewater or storm water utilities, which operate on user fees rather than on levied tax dollars.
Alderman Thurston Hanson also requested one meeting of the full council to "deal with this unfinished and unacceptable budget," before the council's anticipated vote on the proposed budget Nov. 15.
Hanson called the proposed budget that passed out of committee Oct. 26 "sub-par," with "no serious talk about potentially restructuring debt, paying down loan obligation debts using excess cash in the general fund, or seriously looking at cutting expenses by cutting back the size of government" ... and "other critical issues that have been ignored."
Mayor Bill Ross said Wednesday that those requested meetings will probably not be scheduled, and called the requests an attempt to "stir the pot after the budget has been sent" out of committee to the council.
"I don't see much point, because other alders are tired from working hard to bring in this budget, and they can make changes after the budget passes," he said.
Ross said no other aldermen have asked for the additional meetings.
"Phil (City Administrator Phil Rath) did exactly as he was told to do, and at all the Finance and Taxation Committee meetings, alders has the opportunity to interject comments," Ross said. "The budget is exactly what the goal was."
Rath was directed by the committee on Aug. 16 to bring in a 2012 budget with a zero-percent levy increase, including the debt service and capital accounts. Rath set the budget with input from department heads, but he left open options for committee members to determine how they wanted to fund non-city entity requests, a $200,000 shortfall in downtown TID 7 funds for a pending debt service payment and an additional $330,000, compared to the 2011 budget, in street construction projects.
Boyce said Wednesday that the proposed 2012 budget has "a structural imbalance that will continue to exist going forward."
His plan would help "create a process of certainty for employees that currently doesn't exist," he said.
"It would address the morale issue at the city, evidenced by some recent personnel changes," he added.
Boyce's Proposal
Boyce likened the first part of his proposed plan to paying off the balance of a high-interest rate credit card with money sitting in a bank account earning little or no interest.
His plan would begin by paying off the TID No. 7 bonds, eliminating about $2.4 million in interest costs over the life of the bonds, with a repayment agreement with the district to repay the principal.
TID No. 7 raised about $46,000 this year, short of what Boyce's plan would require of it, but far closer than the current payments are requiring.
The Finance and Taxation Committee budgeted about $200,000 from the undesignated funds balance to covering the TID debt shortfall in 2012.
Boyce believes the city will continue to supplement the TID payments for years to come.
"Your first loss is your smallest loss," Boyce said.
In Boyce's plan, the principle left on TID 7 loans, about $1.6 million, would be repaid to the city by the tax increment district over the remainder of its 30-year life, about $51,800 annually, plus interest at a rate lower than the current bonds.
The payoff would save the city about $183,000 for 2012 and every year after, Boyce said.
A second part to Boyce's plan is to "take the spikes out" of requested capital savings over the five-year plan. The Finance and Taxation Committee honored $700,000 in capital requests for 2012. But if the total cost for non-bonded projects and purchases were averaged across the five years, to about $548,000 annually, the city would see an additional $154,600 in 2012.
The savings from restructuring TID 7 debt and capital account requests would be more than enough to cover a 5- percent increase in 2012 salaries and wages supported from general funds, which would be less than $184,000, according to Boyce.
Boyce said the numbers in his plan are not refined, but are a point to start discussions.
"It's the idea that's important," he said.