MONROE - The Monroe Common Council delayed a vote on its 2014 budget until Tuesday, Nov. 26 to give members time to ponder an amendment to the proposed budget that could reduce expenditures and the proposed tax levy by more than $500,000.
Louis Armstrong motioned, and Chris Beer seconded, to defer the budget vote until next week, which passed on a 7-2 vote. Reid Stangel and Charles Schuringa voted against delaying the vote at the council meeting Tuesday, Nov. 19.
The expected vote on the budget jumped track when Alderman Michael Boyce made a motion to amend the proposed 2014 budget and offered more than 17 changes.
If all were implemented, they could create a tax rate of $8.97 per $1,000 of property value, compared to $9.77 per $1,000 under the proposed budget. The difference would save the owner of a $100,000 home about $80 in property taxes in 2014. The tax rate was $9.68 for 2013.
Beer seconded Boyce's motion to open discussion.
The proposed tax levy is $6.27 million, while Boyce's amended version would levy $5.76 million, or 8.2 percent less, in property taxes. The tax levy in 2013 was $6.15 million.
Total expenditures would be $20.64 million under the amended budget, compared to $21.15 million under the proposed budget.
Under the proposed budget, $5.88 million in taxes would go into the city's general operations fund; $94,400 would cover the gap in the capital projects fund; and $225,000 would go toward debt service costs.
The amended budget would use of $259,000 from TID No. 7 and $319,000 from the recent sale of the Water Department Wasserhaus to offset the 2014 capital project funds gap of $94,400 and to reduce anticipated 2014 capital borrowing costs by $484,000. TID 7 and the water department have borrowed money from the general fund in recent years, with an agreement that the money would be paid back. Boyce said these transfers would represent initial repayments.
But not all reductions in expenditures were welcomed by other council members. Boyce's plan halts cost of living increases and step increases for 2014 ($48,000); unfunds vacant positions in the streets department ($158,000); and eliminates the position of Director of Public Works ($52,000).
The plan also reduces overtime costs by $15,700; reduces IT professional services ($10,000) and volunteer fire salaries ($10,000); and knocks $85,000 off the $220,000 proposed for professional garbage and refuse services.
Expenditures in the general fund would total $9.86 million, compared to $10.37 million in the proposed budget.
Boyce promoted his plan to the council by noting the 2014 capital budget would be fully funded as requested by department heads, plus the city would maintain its 88/12 percent split in employees' health insurance and the $350,000 wage increases awarded in 2013, while maintaining all existing staff and service levels.
Aldermen Boyce, Tyler Schultz, Brooke Bauman and Beer related stories told to them recently by citizens who, they said, are still reeling from economic difficulties.
Boyce's plan appeared to be "more responsible" than the proposed plan sent to council by the Finance and Taxation Committee, Beer said. She called the $500,000 reduction a "good starting point to get back to that 1-percent reduction we talked about in the beginning (of the budget process)."
"There's a lot of people still out of work, losing their homes," she added.
Schultz also noted that health insurance rates are expected to rise and the city's water rates are poised to increase by as much as 17 percent next year.
But Stangel criticized Boyce for waiting until the "twelfth hour" to bring forth his ideas to amend the budget and for not attending Finance and Taxation committee meetings during the budget process.
Boyce said he did not view the council meeting as "the last moment" for presenting his plan but, rather, as "a moment" when "open and honest discussion" on the budget is supposed to take place for council members.
The proposed budget was presented to the council at its meeting Nov. 5; as is customary, the vote on the budget was scheduled for the next meeting, which was Tuesday.
City Administrator Phil Rath said the new changes would "cut (expenses) back so severely in one year" that they leave little room for unexpected and uncontrollable cost increases, at a time when the understaffed city has had to push off projects and work.
"Local government is the last stop for people to get their services at reduced rates," Rath said. "There's no place for us to roll that back."
Boyce said his plan was "not cuts," but just "not spending."
"A very small percentage of the total is actually cuts," he added.
Reducing expenses by $513,000 "is bold," he added, "but not irresponsible."
Louis Armstrong motioned, and Chris Beer seconded, to defer the budget vote until next week, which passed on a 7-2 vote. Reid Stangel and Charles Schuringa voted against delaying the vote at the council meeting Tuesday, Nov. 19.
The expected vote on the budget jumped track when Alderman Michael Boyce made a motion to amend the proposed 2014 budget and offered more than 17 changes.
If all were implemented, they could create a tax rate of $8.97 per $1,000 of property value, compared to $9.77 per $1,000 under the proposed budget. The difference would save the owner of a $100,000 home about $80 in property taxes in 2014. The tax rate was $9.68 for 2013.
Beer seconded Boyce's motion to open discussion.
The proposed tax levy is $6.27 million, while Boyce's amended version would levy $5.76 million, or 8.2 percent less, in property taxes. The tax levy in 2013 was $6.15 million.
Total expenditures would be $20.64 million under the amended budget, compared to $21.15 million under the proposed budget.
Under the proposed budget, $5.88 million in taxes would go into the city's general operations fund; $94,400 would cover the gap in the capital projects fund; and $225,000 would go toward debt service costs.
The amended budget would use of $259,000 from TID No. 7 and $319,000 from the recent sale of the Water Department Wasserhaus to offset the 2014 capital project funds gap of $94,400 and to reduce anticipated 2014 capital borrowing costs by $484,000. TID 7 and the water department have borrowed money from the general fund in recent years, with an agreement that the money would be paid back. Boyce said these transfers would represent initial repayments.
But not all reductions in expenditures were welcomed by other council members. Boyce's plan halts cost of living increases and step increases for 2014 ($48,000); unfunds vacant positions in the streets department ($158,000); and eliminates the position of Director of Public Works ($52,000).
The plan also reduces overtime costs by $15,700; reduces IT professional services ($10,000) and volunteer fire salaries ($10,000); and knocks $85,000 off the $220,000 proposed for professional garbage and refuse services.
Expenditures in the general fund would total $9.86 million, compared to $10.37 million in the proposed budget.
Boyce promoted his plan to the council by noting the 2014 capital budget would be fully funded as requested by department heads, plus the city would maintain its 88/12 percent split in employees' health insurance and the $350,000 wage increases awarded in 2013, while maintaining all existing staff and service levels.
Aldermen Boyce, Tyler Schultz, Brooke Bauman and Beer related stories told to them recently by citizens who, they said, are still reeling from economic difficulties.
Boyce's plan appeared to be "more responsible" than the proposed plan sent to council by the Finance and Taxation Committee, Beer said. She called the $500,000 reduction a "good starting point to get back to that 1-percent reduction we talked about in the beginning (of the budget process)."
"There's a lot of people still out of work, losing their homes," she added.
Schultz also noted that health insurance rates are expected to rise and the city's water rates are poised to increase by as much as 17 percent next year.
But Stangel criticized Boyce for waiting until the "twelfth hour" to bring forth his ideas to amend the budget and for not attending Finance and Taxation committee meetings during the budget process.
Boyce said he did not view the council meeting as "the last moment" for presenting his plan but, rather, as "a moment" when "open and honest discussion" on the budget is supposed to take place for council members.
The proposed budget was presented to the council at its meeting Nov. 5; as is customary, the vote on the budget was scheduled for the next meeting, which was Tuesday.
City Administrator Phil Rath said the new changes would "cut (expenses) back so severely in one year" that they leave little room for unexpected and uncontrollable cost increases, at a time when the understaffed city has had to push off projects and work.
"Local government is the last stop for people to get their services at reduced rates," Rath said. "There's no place for us to roll that back."
Boyce said his plan was "not cuts," but just "not spending."
"A very small percentage of the total is actually cuts," he added.
Reducing expenses by $513,000 "is bold," he added, "but not irresponsible."