Where Can We Cut Newport's FY2015 Budget?

The FY2015 budget has been proposed by the City Manager.  She is asking for a 3.62% tax hike, on top of last year's 3% tax hike and also on top of the staggering water rate hikes.  That's too much for me to support.

Her proposed budget is available on the city website in five parts: http://www.cityofnewport.com/departments/finance/budgets-cafrs-cips. Look under "Proposed Budgets".  

Over the next two hearings (June 11, June 25), the city council will have the opportunity to tweak it and make any changes.  

Unfortunately, few line item changes are ever made.  Over the last 18 months, I've proposed a dozen different ideas to achieve cost savings, and increase non-tax revenue.  Nearly all were rejected by the council majority.  And that's OK.  That's the process.  Maybe we can find a few like-minded candidates who will run for city council this year.  (Aside: Declaration of City Council Candidacy for the November election is later this month!)

But these next two hearings are our last collective opportunity to find line-item savings in the budget.  Let's hope every councilor is able to propose at least one line item reduction.  If not, well, maybe they need to reconsider whether they are really committed to serving on the council.  If you can find the time to get Newport taxpayers to pay for your airfare, hotel or meals on a 10-day trip to Japan, then you can propose a few budget reductions.  (Yes, I'm talking to you Harry, Naomi and Marco.  Japan on Newport's dime?  Seriously?!?!).

In years past, the council relied on city managers to keep taxes low.  That didn't happen in FY13 or FY14.  Our current City Manager recommended tax hikes of 3.87% and 3.62%, at a time when our taxpayers were also being hit with council-approved rate hikes for water and sewer service.

Fortunately, Kate, Jeanne, Marco and I were able to cut last year's tax hike from 3.87% to 3% - but it was still too high.

I don't know if we will be able to do the same thing this year, but I am sure we will try.  The problem is that when we asked the City Manager to find some cost savings, she didn't dig too deeply.  But she did go on a job interview for the city manager position in Middletown, Ohio.  (Apparently they gave the job to someone else.)  In any event, when she returned, we were presented with some budget options which we had already rejected.

By the way, don't worry about the City Manager's being upset at not being given the jobs she applied for in Middletown, Ohio or in Brunswick, Ohio.  The mayor was able to soften the blow of those rejections by extending her contract for another year.  

But back to the budget - One of the City Manager's renewed proposals was particularly obnoxious.  She proposed cutting city spending on fire hydrants, but also billing the taxpayers/ratepayers directly for those hydrants.  

In other words, she could say publicly that she cut spending by an $800,000 line item, but quietly billed that $800,000 directly to Newport residents through their water bill - each and every year.  As was pretty obvious when the issue was first raised, several council members just didn't get it.  But fortunately, Kate, Jeanne and I pointed it out.  After this was patiently explained to one or two befuddled council members, the idea was rejected.  

Our point was that Jane's idea was actually a tax increase AND a spending increase.  She tried to take one $800,000 item out of the budget, but continue spending that $800,000 on other items, AND also adding an $800,000 expense to the Water Department to be passed along to Newport residents in their water bill!  

At least if she had cut spending by $800,000, the idea would have been "revenue neutral".  But that was not her plan.  She wanted to spend the $800,000 on other items, AND increase your collective water bill by $800,000!!! 

So we said, "no thanks."

Which brings us to today.  The City Manager has apparently exhausted her efforts to find savings (as evidenced by her other proposal to eliminate the Recreation Department - seriously?!).  

So, I'm asking for your help in finding savings in the budget.

There are hundreds of line items in our budget, covering everything from office supplies and conferences and training, to purchases of equipment and capital improvements.  (We can leave personnel and benefits out of this discussion for now, since so much of that is set by contract.)  Each line item has a code number and a description.  For example, within Civic Support, the line item for Newport Little League is 11-830-2111-50889.  And the line item for Unallocated  Funds is 11-830-2111-50xxx.

So if I wanted to adjust the budget to increase the Newport Little League allocation from $3,100 to $6,000, then I would also need to reduce another line item by $2900.  And so, I could propose a reduction of the Unallocated Funds line item from $7350 to $4450.

Anyone could put this revision on a "Budget Revision Schedule" (like the one attached above as a pdf), and propose it at the council meeting when we are discussing the budget.  If it receives a second, then we can discuss and vote on it.  If it passes, then the budget is changed.  If not, then the budget stays the same.  We can do this for as many issues as necessary.

The main rule is this: If you want to INCREASE spending in a particular line item, then you need to identify a specific spending REDUCTION for another area.  But if you just want to cut spending, then you only need to identify the reduction proposed for that line item, the balance can be put toward reducing property taxes OR toward the general fund.

Based on the reaction I received last year from other council members and the Finance Department when I asked for a Budget Revision Schedule pertaining to specific budget changes, this had never been done before.  However, it is precisely the way the budget is supposed to be modified by the City Council according to the City Charter.  

So, if you see a line item which you think needs adjustment, let your council member know.  Or give me a call.  Or bring it to the Council meeting.  And don't feel like you have to go through the entire budget.  Even if you just looked at one or two departments, the city council will appreciate your interest.  

By the way, don't waste time looking for the City Council's "Sister City Program." That program is not actually contained in the budget.  That program gets funded off-the-books by poaching $30,000 each year from the $40,000 rent paid to the city by the Newport and Bristol County Convention & Visitors Bureau.  I'm not sure who decides which council members go on those trips, but lately, it seems to be council members who go along with the Mayor.  

Maybe we can fix that too. 

In any event, the City Council has the power to make these changes - we just need to do it.   Feel free to print and fill out the Budget Revision Schedule with your suggestions for a Better Newport, or we can fill one out together at one of the June City Council sessions.

Thank You.