Tag Archives: finance

Scales: ‘The mayor is building a budgetary house of cards’

Former City Councilman Bob Scales says the mayor’s proposed budget would spend too much and cut too little. Read his column below.

Despite a global economic crisis and declining city revenues, Mayor Darlene Kordonowy has proposed yet another unsustainable budget. Over the next two years she plans to add more than $30 million to city coffers by raising taxes, rates and fees, and by going even further into debt.

The mayor needs this extra cash so she can launch the most aggressive capital spending program in the city’s history – $50 million for a handful of mega-projects. This spending program will leave the city with crippling debt, homeowners with higher property taxes and utility customers with massive rate increases, including a 42 percent increase in storm water fees and a 44 percent increase in sewer rates.

The mayor wants to maintain city bureaucracy at a time when other cities are slashing operating expenses and laying off employees. If the City Council approves the mayor’s reckless agenda, they will likely condemn the city to years of financial turmoil.

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Despite outcry, city moves forward with debt-funded plan

The City Council narrowly approved a controversial bond-funded plan Wednesday that would put nearly $1.8 million toward small-scale capital projects.

“We’re all taxpayers and wish the city could meet its obligations without going into debt,” said Councilman Barry Peters. “Projects like the famous bathroom are now virtually done and we have to pay for it,” he said, noting that the long delayed Waterfront Park restroom is, after almost eight years, finally set for completion in the coming months.

Road repairs, bicycle lanes and city dock upgrades were also included in the bond-funded plan.

While using bonds to fund capital projects is common, critics argued that most of the plan’s elements were for small items that could have been paid for out of the general fund or deferred to a later time when the city wasn’t facing a $2.5 million revenue shortfall.

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