2008 - 2009 Budget

CITY COUNCIL’S FINAL CHANGES TO MAYOR’S RECOMMENDED BUDGET

ESTIMATED FINAL TAX BUDGET - $134,945,619
2.28 PERCENT OVER PRIOR YEAR

CHANGES PROPOSED JULY 21

TAX-FUNDED BUDGET: reduction of $1,011,000 total

* Delay home ownership stimulus program - $610,000.
* Cut consultant services and eliminate Lincoln Fire and Rescue study of coverage areas and response time - $165,000.
* Temporarily suspend Urban Development Department commitment to downtown Lincoln retail incentive project - $100,000.
* Cut contingency fund from $350,000 to $250,000 - $100,000.
* Reduce data processing in Planning - $20,000 total: $16,000 from SAR transfer and $4,000 from County revenue.
* Cut in Criminal Justice Information System - $16,000.

NON TAX-FUNDED BUDGET: reduction of $6,309,217 total.

* Cut all but $235,000 from Mayor’s proposed Fast Forward Fund - $6,200,000.
Cut two new positions in Public Works and Utilities, Engineering Services Revolving Fund - $108,917.
Cut $300 for replacement of office chair in Public Works and Utilities, Fleet Services - $300.

* These proposed cuts would reduce the amount of the transfer from the Special Assessment Revolving (SAR) Fund to the General Fund.

COMPROMISES ANNOUNCED AUGUST 9

STARTRAN

Restore mid-day service with $680,000 in different cuts and additional revenue:

Cuts:

Eliminate two bus operators, one bus on the Neighborhood South Route and an extra noon bus on the Star Shuttle - $150,000.
Make additional cuts - $45,000.

Additional revenue:

Add revenue from SAR Fund - $150,000.
Increase fares by $10 for the 31-day pass ($35 to $45) and the 20-ride pass ($23 to $33). The cost of HandiVan passes also would increase - $101,000.
Keep fare for the Big Red Express at $4 each way - $100,000. (The fare was to be reduced to $1.25.)
Change Ride for Five to Ride for Seven-Fifty (31-day pass for $7.50) - $45,000. (The proposal to increase the eligibility to 200 percent of poverty is retained.)
Increase cash fare from $1.25 to $1.75 - $73,000.
Start 25-cent fare on the free Star Shuttle - $14,000.
Eliminate Ride to Shop program - $1,000 loss.

OTHER

Delay purchase of one street sweeper and one dump truck and use funds for sidewalk repair - $165,000 in non-tax funds.
Add two Emergency Service Dispatchers - $97,496 (plus $4,062 in County funds).

NEW CHANGES:

Maintain program serving people with head traumas and mental health issues at the Easterday Recreation Center - $22,000. (This program was to be relocated to the Auld Recreation Center.)
Maintain City operation of Meadow Heights Pool -$34,759 from contingency funds.
Add funds for staff to provide immunizations - $15,750 (plus $9250 in County fund).
Cut additional funds for Mayoral Economic Development Aide - $10,000 in miscellaneous budget.
Cut supplies for Lincoln Fire and Rescue - $20,000.
Cut computer fund - $20,000 in general expense.
Move Mayoral Aide for Stronger Safer Neighborhoods from Police budget to Mayor’s budget - no budget impact.
Remove funding for Affirmative Action duties - $87,068.
Cut cost of replacement of office stool in Public Works and Utilities, Fleet Services - $300.
Add fund-raiser in Parks and Recreation - $100,000.

ADMINISTRATIVE CHANGES

Decrease budget to reflect actual requests by County for joint agencies- $9,340.
Increase Public Works and Utilities budget to reflect interlocal agreement with County for enforcement of weed ordinance - $3,419.
Reduce General Fund appropriation to be covered by domestic violence grant - $33,887.
Move grant funds in Urban Development to different division - no impact.

MISCELLANEOUS

City Council voted to set the property tax rate at the same level as 07-08. Any additional revenue provided by growth above 1 percent would be used to reduce the transfer from the Special Assessment Fund.

PRIORITY LINCOLN: We’re listening.

BUDGET OVERVIEW

Out of every property tax dollar paid by Lincoln homeowners, only 14.3 cents goes to support City government. An individual’s total property tax bill is determined by the budget actions of all governmental entities, including Lancaster County (13.7 cents) and the Lincoln Public Schools/ESUs (64.1 cents). Each elected body sets its tax rate independently.
The City receives 42 percent of its revenue from sales taxes and 30.7 percent from property taxes. Sales tax revenues grew during the 1990s as local retail construction increased to meet demand. In a recent study, the State Revenue Department concluded that Lincoln’s sales tax receipts have now leveled off as that demand has been met.
The City property tax rate has dropped 44.7 percent since 1993-94. The tax budget as a percentage of personal income has dropped from 1.65 to 1.4 percent from 1990 to 2004.
Of the state’s top ten largest cities, Lincoln’s City property tax rate is among the lowest, behind Bellevue, Hastings, North Platte, Omaha, Fremont and Columbus.
More than 50 percent of City tax dollars fund public safety services.
To balance the 2007-08 fiscal year budget, the City cut 63.5 positions, saving $2.8 million, including $1.8 million in tax funds.
Over the last decade, Lincoln’s population has grown by a number equal to the total size of Kearney. Since 1990-91, the City’s population has increased by 25.7 percent, and the City’s size has increased 39.1 percent. Over that same time period, the number of City employees other than public safety has decreased.
State law mandates that City salaries and benefits be comparable to those of other cities our size. Other expenses not under City control include fuel cost hikes, the overall inflation rate and State and federal mandates.
For the 2008-09 fiscal year, the City projects revenues to increase by $3.2 million and costs to increase by $9.1 million, leaving a gap of $5.9 million.