I agree with you Catherine, on one hand, you and I can rattle off our priorities, so I would think the board members could also. On the other hand, I can see some benefit in giving them a little more time to get a handle on the process.
Riverside Info » About Riverside
2010 Budget
(53 posts)-
Posted Tuesday Jun 23, 2009 14:06 #
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You said it: over a million dollars was transferred to the capital budget to force the tax increase issue by referendum. A workshop was scheduled as to what the need was in capital expenditures to justify this, then it was cancelled. The voters gave their answer to that attempt to force the issue: no dice.
So I think it is unsettled, to say the least, whether spending that money amounts to "depleting our savings" as has been said occasionally. As it is, you heard the Board request a balanced budget, i.e. one that did not yet reverse that transfer. That was my understanding but, again, no financial whiz here. Can't keep up with the shell games, including the parking lot one.
Edit: right to above.
Posted Tuesday Jun 23, 2009 14:10 # -
I would like to bring up a budget topic that people (especially the current Board) have been avoiding like the plague, but needs to be discussed. Please read the entire post before you pick up any stones or bricks.
A Tax Increase May Be Inevitable
According to the 2009 Budget adopted by the Board, 2009 was projected to have a $64,600 surplus, 2010 a $334,000 deficit, 2011 a $490,000 deficit, 2012 a $627,000 deficit and 2013 a $805,000 deficit. The Board has already had to address a revised $360,000 deficit for 2009 and started to tackle a $600,000 + deficit for 2010. 2011 and beyond are looking even more bleak with the continuing status of the economy and the talk in Springfield of the State putting more pressure on municipalities to raise their own revenue to provide services that the State offset in the past.
As I see it, there are 3 ways (or combinations there of) to balance the Village budget.
1. The Board can reduce the level of services offered to residents. The problem with this is that there is already a consensus that the Village is currently providing a minimum service level and that residents do not want to see any further reductions to those levels.
2. Spend down the savings. There's not enough there to last 3 -4 years even if you cut out all of the "fat" from the budget and gain control of the increases in expenses - of which union contracted salaries and pension liabilities make up the lion's share. The flat to projected negative CPI has accelerated the deficit momentum on the revenue side. Even with the most careful balancing act of service cuts and savings utilization, the Village can be potentially out of compliance with the law that requires a balanced budget within a 3 to 5 year window.
3. Tax increase by referendum. This has been a hot topic for years, but I believe the Board and the residents need to be open to this discussion if we truly care about the Village's future. The process of bringing in additional revenue through a tax referendum would take more than 2 years to complete from start to finish. We cannot wait to have this conversation until we are out of money -it will be too late.
Just a thought
Posted Tuesday Jun 23, 2009 17:25 # -
Well that has always been the choices avail. Provide less, spend less by improving efficiency, or raise revenue. Perhaps all three. When wasn't that the spectrum of choices? But the situation is compounding as things drop. Not just here - everywhere. We didn't have 43 foreclosures and short sales and all the rest back two years ago. Now we do. Expectations are that this will be as bad in 2010 as 2009 - at best. And it's the same wherever you go. So we should husband what we have, cut where we can, and see how things develop. With a $400K drop (or rise) in six months who can forecast the future accurately? We have to do the best we can, and that's why they want to look at every item, every operation. People need to wait and see what can be done.
If you only have so much ammunition you can't waste it on warning shots and ceremonial salvos. They are doing what they can do, and are in the same pickle as every other government - city, county, sate, federal. I wish we had that dough we spent for those two houses in the bank, but that's gone. I wish we weren't doing the Centennial project now, and we had back what was put in, but that's gone or going. I don't need them to salt the streets for me, plowing works too - always did. But if they don't we'll hear the cry of safety and all the rest. People want more safety (and that to me does not equate to another body and squad car BTW), they want this and that. We were going to have the 4th of July paid for privately, but now the Rec department says they spent so much time doing this they can't get to the point where they are self sustaining. I'd rather have trees to plant on the 4th then some noise and a bunch of confetti and hard candy to pick up - but other want their annual jag of patriotism. And on it goes. Give me this, give me that, don't cut my whatever, and don't raise my taxes. Well that won't work anymore.
Talking about what the situation was 12 months ago, or two years ago, or five years is just nonsense. We are where we are and its not the fault of the people that were elected. They are working hard to try and make it go on what we have, and if we can't, If it doesn't, they'll have to look for more revenue, and that will not be some kind of doublecross, it will just be dealing with the situation we are faced with. Friends, we are a little bit pregnant. People should pontificate less and pitch in to help.
Posted Tuesday Jun 23, 2009 18:36 # -
Not a doublecross? What exactly does "hold the line on taxes" mean? What did " increase services" mean? They should be tarred and feathered if they ask Riversiders for a tax increase. They told the little old ladies to vote for them on the premise the caucus machine would raise taxes and drive them out of town. Really Spatny, The RCA made these promises 13 weeks ago! A tax referrendum will be the Ultimate doublecross.
Posted Tuesday Jun 23, 2009 20:38 # -
Holding the line on taxes is what is happening now. Studying the budget for ways to increase efficiencies and to deliver the same services was the campaign proposition - that it did not logically follow that a decrease in spending equated to a decrease in services. That is happening now.
Tony, it is just a non-starter to ask for a tax increase referendum now. If one was just voted down, why do you expect one to pass now? It was not propaganda that defeated the tax referendum. Riverside has agreed to tax increases in the past. What there was was the perception of a lot of wasted money. Now people want to see a period of that stopping, and then to be convinced that all possible efficiencies have been realized. Then they will be more willing to believe any resulting deficit projections, the ones presented earlier in the year they are not yet willing to accept as valid. Once people are convinced these 2 things have happened, they will reconsider a tax increase, I have never doubted. I recall Lonnie Saachi making this point repeatedly during the campaign.
I have never agreed there was a "consensus" that no one was willing to reduce services though. I think it is clear since the economy collapsed in September that people are willing to do without a lot of things if it means saving money. No one anticipated at the time service levels were being discussed that the economy would go into a death spiral. People do not want tax increases now, for this new reason as well.
And I agree that the special pleading by special interest groups must stop. At nearly every meeting, someone providing a nonessential service shows up with cap in hand. The Rec department says it cannot keep its promise to deliver a self-sustaining budget because it spent 5 weeks on the 4 July festivities. I liked the fundraising idea for the 4th and it was going well. Now it turns out it is costing taxpayer money. The village itself must be put first.
Even Ben Sells said volunteers would be needed too step up and get involved with things we cannot pay for. I would like to see each commission, department and the Board identify the needs and call for those volunteers publicly and post the opportunities on the village website. Volunteers can obviate the need for certain spending.
Posted Wednesday Jun 24, 2009 10:37 # -
On April 6, 13 weeks ago, the projections were just as bleak as they are today on June 24.
Everyone who ran for election, and anyone who took the time to watch meetings and become informed, knew the Village was in serious financial trouble. The numbers for 2010 forward were startling.
What gets me is that and I’ll say it again, 13 weeks ago, Shevitz, Reynolds, Sacchi, and Gorman handed out palm cards and told each and every voter, “No New Taxes! Vote RCA.”
If the RCA puts up a tax referrendum, what are we supposed to do? Throw tea into Swan Pond?
If the RCA can’t figure out a way to balance the budget, without depleting our savings, then what?
I took away from the meeting that the line-by-line “RCA” audit won’t happen until the 2011 budget process. What if they don’t find the efficiencies/cost savings/fat for the 2011 budget? That’s a real problem because there won’t be time to put it to a referendum. Again I say - then what?
Your answer Catherine, is volunteering. According to the Landmark today, Uphues just reported that over 60% of the general operating expense budget is made up of personnel; the majority is union, police, fire and public works. Are you suggesting I get out my law mower and fire hose?
Posted Wednesday Jun 24, 2009 14:16 # -
That is what they are doing - looking for ways to stretch a diminished revenue stream to avoid new taxes. After the election - not before - Kevin W presented some rather startling new projections. As facts change everything has to be looked at harder. No one on the Board that I know of has said anything about raising taxes. That was my line - because I think the next set of numbers will be worse than anticipated. Common, I think you are getting wound up, and should stop the "tar and feathers" crapola. Etc. Why not just step out from your phone booth and come to the meetings, step up and speak your thoughts there? The vitriol is growing tiresome. Law mower? Hmmmmm.
Posted Wednesday Jun 24, 2009 16:07 # -
Commonsense, sure, why not? Each of us already mows the parkway in front of us! 30% of our budget is not personnel, so, that's one: expenses. My own opinion has always been that non-public safety personnel hours would have to be cut. I am not suggesting we do their jobs, but that ideas generated by Commissions and Rec - discretionary spending - be supplemented by volunteers, not cash. We cannot afford piety and sacred cows right now, I think. One thing I would like to be considered is a Legal Commission. Many tasks can be performed by volunteer attorneys for review by village counsel, thus reducing our legal bills. For example. We have a lot of skilled people here. I am sure they would donate professional services we are now paying for.
No, actually, more volunteers was Ben Sells' idea. He made a speech about it before the election. People applauded. What has happened to that? I did not favor government funding for a certain area but I did do a volunteer project for it. I fail to see why we needed Rec to organize the 4 July. Sure, hard, but not impossible. Then they could have gotten on with their task. Just my opinion, not the RCA.
No, the line by line audit is happening this year. They are also taking on the extra work of analyzing budgets back to 2006 to look for savings. But I do think that with more time there can be even more fresh thinking occurring end 2009.
It is true, as Don said, that we are presented with a new set of numbers - grim. Still not going to vote for a tax increase until I am convinced that budget is wrung out.
Posted Wednesday Jun 24, 2009 16:31 # -
I know that back in February the deficit projection for 2009 was $400K. What is it now?
What are the current deficit projections for 2010, 2011, 2012 and 2013? I can't seem to find this information. Is this posted on the Village Website somewhere??
Posted Thursday Jun 25, 2009 12:55 #
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