State-Journal.com - Hiring freeze, fee increases proposed

A hiring freeze, 3 percent salary hike for city employees and increases in insurance premium taxes and utility fees are part City Commission's proposed 2008-2009 budget.

The proposed budget was presented to commissioners at its Monday work session. Also possible are raises in the Sullivan Garage parking rate.

City Manager Tony Massey said that as staff worked on the budget, it would have been $3.4 million out of balance at current revenue and spending levels.

In order to keep the books balanced, staff looked to control costs, scrutinize current fees and use the city's general fund balance where appropriate, Massy said.

In addition to a hiring freeze for the fiscal year, city staff recommended a freeze on department budgets as well.

Massey said the hiring freeze will save the city $700,000 and department budget freezes will save the city $900,000.

Though times are tight, Massey said city employees would receive a 3 percent raise this year. "That took some effort to get that in there," he said.

Massey said the most significant budget item for commission to approve was doubling the Emergency 911 telephone monthly surcharge. The charge is currently $1 and would increase to $2.

Massey said Frankfort is behind other cities and counties in raising the cost of the telephone surcharge. ""We're one of the lower communities," Massey said. "Emergency 911 is a million dollar operation."
The Franklin County Fiscal Court must approve the surcharge, Massey said.

Massey said he had met with Ted Collins, the judge-executive, and he voiced approval, but no formal action has been taken by the city to get the 911 surcharges before the Fiscal Court.

City Finance Director Steve Dawson said the City's general fund has taken a hit in its interest earned. In the 2006-2007 fiscal year, the City earned a $1 million in interest on its general fund account.

"The Federal Reserve has lowered interest rates," Dawson said, alluding to the blow the rate cut has dealt to those who earn interest on saved money.

Dawson said interest earned would be significantly down.

"You also have the effect of significantly fewer dollars earning interest," Commissioner Rodney Williams said.

The Commission also discussed increasing the insurance premium sales tax. Commissioner Doug Howard raised the issue. The Fiscal Court has also discussed raising the insurance premium tax.

Williams voiced concern over the tax, saying two different tax rates for the city and the county wouldn't be confusing.

"I don't agree with the logic of increasing the insurance premium tax simply because the fiscal court is going to do so," Williams said.

Commissioner Kathy Carter cited food and gas prices, saying "There are so many things hitting citizens right now. I'd like to see if we can weather the storm without (the tax increase)."

In order to save money for the coming fiscal year, the city also recommends the police department wait an extra month before replacing ten police cruisers.

Under the new proposal, Dawson said the police department would purchase five new cruisers at the end of the fiscal year, rather than ten, and purchase five the following month in the next fiscal year.

Additionally, the proposed budget recommended at parking rate increase at the Sullivan Garage. "We haven't had a parking rate increase since 1993," Dawson said.

The City loses $1,200 a month on the structure, Dawson said. The rate would increase by about 20 percent, from $18 per month to $21 per month.

The commission again discussed the creation of a sustainability coordinator position, although no action will be taken before the Mayor's Task Force on Energy Efficiency and Climate Change addresses the Commission in June.

At the opening of the session, Mayor Bill May said this is his 13th and last budget as mayor. May said he felt sentimental. "Can I get a hanky?" he asked.

"You might need one," Massey said.

Correction: It was originally reported that Mayor Bill May brought up increasing the insurance premium tax at the Monday work session. May did not initiate discussion and is against increasing the tax.

27.	Posted by doesitreallymattereddie? May 15, 2008
	i agree buzz, not to sound like more gov't but perhaps the best things is to eminent domain a building if it is say... more than 70yrs old, nothing has been in it for .... 25yrs, and the place is run down. those are tax $ being lost. I mention this rationale b/c the alternative to me is what we have with the judicial building proposals. Here, there are families having their homes / property proposed to be taken when there are these old crap buildings, which some are condemned, and they are just a free lot for any owner whose already paid for them. The vision of these people in charge are 20th century. You can not look at the process and solutions in the same ways as people have been for the past 50yrs... history - ask Rep Graham - often has a funny way of repeating itself if changes. 'Funny' in that it repeatedly comes at the expense of the middle class. sorry... now i've got to go read the 4% raise and other genious ideas suggested by our county exec. i don't know about the rest of you - but my lips are kinda chapped and are boardering on a rash.

23.	Posted by mafiaman May 14, 2008
	I'm not sure how much the Mayor is paid, but the Commissioners only make $9,000 per year to be Commissioner (which is why they all hold full time jobs also). My understanding is that the role of the Board of Commissioners is only oversite and policy setting (much like a Board of Directors in a large company). Ultimately, the responsibility of HOW the City is run (or not run) falls on the City Manager (who would be like the CEO of a company). Johnny B Goode is right - none of the Commissioners or the Mayor have the power to run the City in it's day-to-day operations. I think most of everyone's comments should actually be directed at the City Manager; however, it is the responsibility of the Commission to make sure the City Manager is doing his job.... Regardless, I doubt that anyone can say the Commissioners are in it for the money... $9,000 per year pays hardly anything per hour for the amount of time they spend in Commission Meetings. I hate to be defending them because I'm as big a critic as anyone (ever try sitting through a commission meeting?), but I don't think decreasing the amount they are paid is the solution. In fact, if we want a Mayor and Commissioners that are really devoted to the issues in Frankfort, perhaps we should pay them a wage and require that they NOT have another full time job. (We could also put a limit on TOTAL terms served) My experience with City Commission meetings is that the Commissioners show up, grab their materials out of their little boxes in City Hall, and start reading them DURING the meeting... no preparation, no homework/research done, etc. All this, I feel, is the result of having another full time job that you're being paid for. By the way, County Magistrates get paid somewhere around $23,000 per year.

20.	Posted by Pillar May 14, 2008
	As I understand it, the City Commission has been asked to consider hiring a Sustainability Coordinator for the city. Obviously there is a hiring freeze, but I still wish they would consider the idea as a smart investment. There are plenty of success stories from other towns that suggest that Frankfort could save a lot of money by learning how not to waste it in the first place. A sustainability coordinator would be someone trained in the areas of energy efficiency, new/efficient/green technologies, and balancing economic, ecological, and social needs for the city. They could be tasked to look at areas where the city can stop wasting money, particularly on energy and fuel. The commissioners are being asked to fund this position, and many of us know that by spending a little money on a coordinator, the city would save more money within the next few years, and would be on a path of being sustainable. We need to get to the source of these budget problems, and stop band-aiding everything. A professional sustainability coordinator could be our way to go.