July 13, 2008
City ponders painful cuts to '09 budget By RICHARD ECKE Tribune Staff Writer
After a few years of squeaking by relatively unscathed, this year's proposed city budget contains several cuts and reductions.
The annual fireworks show, motorcycle patrols, police programs in schools and a city subsidy for RiverFest are among items on the chopping block.
Belt-tightening is certain to happen in some fashion, although city commissioners could decide to alter where cuts will take place.
"Tough decisions had to be made," said City Manager Greg Doyon, who came to Great Falls in March from New Hampshire.
Doyon has asked commissioners that if they decide to rescue one program, they should specify what other part of the city budget should be cut.
City Commissioner Bill Beecher said Friday that it has been difficult to set a budget.
"We just can't continue to provide some of the services we have in the past," Beecher said.
He and Commissioner Mary Jolley said last week that they might not recommend any changes to Doyon's proposed budget.
"I'm in favor of the city trying to live within its budget," Jolley said. The city's budget year runs from July 1 through June 30.
This year's city budget contains a double whammy of sorts.
The plan calls for the city to cut and eliminate some programs while increasing property taxes.
The city's total annual revenue for the upcoming budget year is set at $92,881,875, up 3.11 percent from last year's amended budget.
The proposed increase would cost the average owner of a house in the city an extra $16.33 per year, for a house appraised for tax purposes at $100,000. Last year's tax increase for a house of that value was $15, the increase the year before that was $5.80.
"We're not alone," Doyon said Friday. "All communities are struggling with some of the same issues this year."
Popular programs face cuts
If the City Commission agrees with the proposed budget, it will completely eliminate some expenditures, including:
A July 4 fireworks show. If city government ends its subsidy, which amounted to about $11,000 for this month's show, the fireworks event may not happen next year unless private sponsors emerge. Steve Moltzan of Great Falls said he would "absolutely not" like to see the fireworks program fizzle out. Fireworks vendor Mike Maeder said it would be a shame if the city can spend money on speculative ventures "but can't celebrate our freedom and independence." Doyon said the city needs to concentrate on its core functions;
Drug Abuse Resistance Education, or DARE, in fifth-grade classes, and Law Related Education, or LRE, in Great Falls high schools. Police officers who worked on these programs last year would be moved into other core police functions such as patrol duties or detective work. Mayor Dona Stebbins said she would hate to see the programs eliminated;
CALEA, a police accreditation program that stands for Commission on Accreditation for Law Enforcement Agencies, which had two police officers working on it last year. CALEA's annual cost is $170,948;
Police motorcycle patrols. In its initial budget request, city police asked to buy one motorcycle and lease two others, but the request for $19,500 was not granted. The motorcycles would have been used by police to patrol during warm weather; and
RiverFest, a free event held Saturday and organized by city Park and Recreation attracts between 5,000 and 10,000 people each year. RiverFest receives a $25,000 annual subsidy from the city. Jolley said next July's event might be a much smaller version. However, RiverFest has plenty of fans, including Sharon Odden of Great Falls.
"I love the RiverFest," Odden said. "It's something that brings the community together." Odden said riverside activities bring people to Great Falls from outside the area.
Jolley, however, believes city government should not act as the community's "entertainment director." Jolley suggested that vendors could pay more for booths to help fund the event.
Other items tagged for elimination are the city's paid lobbyist position at the 2009 state Legislature; a city publication, "News & Views," that was inserted in the Tribune and cost $5,000 last year; and a part-time staff position in the library that supported the Great Falls Arts Council at a cost of about $8,800.
Doyon said the city budget aims to avoid layoffs, but some employees will be reassigned.
City officials also noted that some items being eliminated, such as the police motorcycles, were requested by departments but not funded last year, meaning they are not actual cuts from last year's budget.
The overall police department budget will increase by 11 percent from last year. Some $500,000 of the police budget this year will go to animal control and overseeing the animal shelter, which was previously done by the Humane Society of Cascade County. Much of the rest of the increase comes from the city's attempts to make Great Falls police pay more competitive when compared to other Montana cities.
The proposed budget also calls for the city to keep its contributions the same to outside agencies, many of which were seeking increase.
Among those frozen in place are:
The City-County Health Department, which officials say is facing a budget shortfall, will receive its usual $250,000 city contribution, although the health agency has requested an additional $200,000 from the city, Doyon said. He added that the city and county will work with the agency in the coming months to try to produce a solution. The health agency hopes to create an independent health district within the next year, and later plans to ask voters for a special tax levy. That vote won't take place until 2009, at the earliest. Program cuts are possible if the agency does not receive interim relief, Doyon said.
The Great Falls Development Authority will receive its same city contribution as last year, $100,000. The GFDA had asked for an increase. Authority President Brett Doney said the group also would like the city to forgive $234,000 of a $250,000 loan, or at least defer this year's payment. The city received the request last week and has not acted on it.
Doyon said he is a big proponent of improving the local economy.
"I think what we need to be focusing on is economic development," Doyon told city commissioners. "You're advertising yourself as one of the last affordable cities."
Doyon, who has said he is convinced Great Falls will grow, did not give commissioners an immediate recommendation on how the city could help the GFDA.
"It may not necessarily be financial support," Doyon said, adding he wants to make sure developers and business people know Great Falls is pro-growth.
Doyon also bemoaned that the city was not able to add the position of comprehensive planner to the Planning Office to help prepare the city for growth.
The city still has several money-losing ventures, including:
City pools, which are expected to run a deficit of $564,455 this budget year.
City golf courses, which are expected to require a subsidy of $76,921. Additionally, Doyon said the city was unable to fund a golf equipment request of $200,000. He said Great Falls might be forced to close one of its golf courses next year, presumably Anaconda Hills, if golf finances don't improve by then.
"That's something that we're going to need to watch closely," Doyon said.
The Multi-Sports Complex, used mainly for softball games, will receive a subsidy of $21,038 this year, according to Budget Officer Melissa Kinzler.
Events at the Civic Center are expected to lose about $107,000 during the next year based on revenue of $666,768 and expenditures of $773,768. Doyon wants the Civic Center to come closer to breaking even. City commissioners said this spring that they may stop waiving up to $500 in rental fees for certain community groups that hold free events in the building.
Animal-control and shelter expenses jumped when the city took over those services from the Humane Society of Cascade County. The city gave the society $115,000 the previous year to run those services. City government took over in July 2007, repaired the shelter and gave employees raises. As a result, the city's animal-control and shelter budget jumped to $500,000 this year. The bulk of animal revenues for the fiscal year are estimated at about $98,000. The city hopes eventually to get a nonprofit group to run the shelter.
Doyon said the "elephant in the room" is how the city plans to come up with $1.5 million to pay half the costs of building a new animal shelter in 2009 or 2010.
The Animal Foundation of Great Falls plans to have about $1.5 million available to build the shelter, having raised all but about $200,000 of that total. The city's share is not included in this year's budget.