Citizens Voice Concerns Before City Adopts Budget

The Glenwood City Council approved its preliminary budget for the 2016-2017 fiscal year following a 34-minute public hearing at City Hall last Tuesday, April 12.

City council members unanimously approved the $4.1 million budget, despite a projected shortfall of up to $300,000 in its general fund account.

Dialogue during the public hearing, attended by about 20 people, was civil for the most part, but some citizens did have specific comments and questions for council members, mayor Brian Tackett and interim financial manager Clint Fichter, who answered questions over the telephone.

Citizen Ron Marsh questioned Fichter about noticeable changes from the 2015-16 budget to 2016-17 on specific line items for both revenues and expenditures. Fichter said some of the changes are the result of the Glenwood Municipal Utilities budget no longer being included in the city’s budget estimate and others are simply a case of moving an expense or revenue onto a different line item. Tax Increment Financing (TIF) rebates, for example, will now be paid from the Debt Service fund instead of Community and Economic Development, Fichter said.

Citizen Steve Hunt told the council and mayor a city the needs to have more money in its reserve account. He questioned the city’s decision not to increase the tax levy and asked for council members to provide citizens with a “road map” of where the city wants to go financially and how it intends to get there in the next few years.

In response to Hunt’s questions, council member Jessie Lundvall initiated discussion on extending the city property tax base through annexation. Lundvall said non-residents living in housing developments “just outside of town” are reaping the benefits of services and programs funded by city taxpayers.

“They’re really getting the best of both worlds,” Lundvall said.

Hunt agreed with Lundvall’s assessment.

“I think that, too,” Hunt said. “They’re all living off of us and I’m tired of paying for them.”
Lundvall noted Fichter has “opened our eyes” to some possible revenue sources the city hasn’t pursued previously.

Mayor Tackett said one of his top priorities at this time is exploring the potential for collecting franchise fees from the city’s two major utility suppliers – Black Hills Energy and MidAmerican Energy. Tackett said the franchise fees could go a long way in addressing the general fund deficit.
Tackett said he wants the city to have a budget that’s “realistic” and promised “transparency” when it comes to finances.

“We’re really trying to regain the trust of the citizens,” he said.

Some other city council agenda items:

* Noting the current state of city  finances, the council rejected a request from the Senior Center to waive $3,250 in building permit fees for the remodeling and renovation project taking place at the facility. Bonnie Millsap and Candy Butler made the request in person.

Council member Susan Hirschman said typically the city only waives building permit fees for taxpayer-funded entities, such as the county or Glenwood Community School District.

“I think you do a great service, but I think we would be setting a precedent if we waived it for you,” Hirschman told the Senior Center representatives in attendance at the meeting.
Hirschman said the city has heard from constituents who agree the permit fee should not be waived.

Council member Jeremy Rodman echoed Hirschman’s thoughts and  noted the city isn’t collecting property taxes from the Senior Center because it’s a non-profit agency.

Tackett said it was “just bad timing” for the Senior Center to ask for the waiver at this time.

“We’re in a deficit and we’re trying to claw our way out of it,” the mayor said.

* Citing a lack of funds in its sanitation budget, council members opted not to have the city sponsor a community-wide clean-up day this spring, which typically carries a price tag of around $3,000.

Lundvall said the city would be receptive to bringing the program back if a private business were willing to fund it.