KEN TAYLOR
Ken Taylor, who has contributed to the Shadow from time to time, attended the City budget workshop, and made the following statement that we thought, would be of some interest to our readers.
August 1, 2007, workshop talking points.
I am speaking to you today as the representative of the New Smyrna Beach Tax Reform Budget Committee.
My purpose at this workshop is to encourage you to seriously cut spending, rather than accept the proposed budget, which, in reality, is no significant reduction, and adopt Governor Crist's spending cut concept for the New Smyrna Beach budget that has escalated over the last few years far beyond the increase in inflation. On average, the cost of government in Volusia County, including New Smyrna Beach, has grown about 75% over the last five years. The Governor's position, as we understand it, is to roll back spending to fiscal 2001 levels, so that these spending cuts are reflected in next years budget through reduced millage rates for taxpayers.
There are some cuts that have been included in the proposed budget, such as not filling several management vacancies, and reduced costs for our 911 service, but apparently they do not represent enough to offset the loss in revenue, and that shortfall is being made up by dipping into the city's reserve funds by as much as $1.5 million. Take a hard look at the UC to see what happens when you deplete reserves, look at your utility bills. This estimate of $1.5 million could escalate if the unrealistic revenue projections for the golf course, sports complex, and Marine Development Center are not realized.
The tax reform committee believes that you must address the two city
functions that consume over half, 52.6%, of general fund revenue. The fire department organization together with its pay and benefits must be structured to provide a more rational system. We can no longer afford union contracts that provide overly generous salaries and benefits. Over the years, our fire department has transitioned from primarily a fire fighting force, to a medical rescue service. It is past time to recognize this transition and provide pay and benefits consistent with the service provided. In this context, it is time for fire department personnel to contribute a fair share to their pension, and that the percentage for calculation of that pension be less than 3%, that the provision of full pensions for retirees under age 55 should be revised, and the use of excessive overtime should be reduced or eliminated. We have estimated that by reducing the number of battalion chiefs and lieutenants, and minimizing authorized overtime, the fire department could reduce their budget by at
least $500,000.
The second most costly function is the police department. Our principal concern with this department is the overstaffed management structure, the thinly veiled assignment of city vehicles to officers for their personal use, unsupportable allowances for clothing provided to detectives, and questionable personnel practices. This department has too many chiefs for the number of Indians. Because of this organizational structure, a reduction in the number of commanders, reinstitution of lieutenants as
division commanders and other management restructuring actions together with a reduction of authorized overtime and other perks, could reduce the police department budget by $500,000
There are five golf courses within the city limits, and many more within easy commuting distance. Our municipal course requires a large operational subsidy each year, and most recently an approximately $3.2 million loan for refurbishment. Recently reported revenues following this large expenditure do not convince us that the financial situation of the golf course is improving, while competition for players is increasing. We believe that if the city contracted for outside management and maintenance of this course, a
revenue stream of about $100,000 annually could be realized, rather than the ongoing annual subsidy. Ask yourselves why there is a subsidized municipal golf course, when there are four, and soon to be five, competitive courses in New Smyrna Beach. A municipal course may have been reasonable in the '30s and '40s, but under the current economic circumstances, that is a questionable proposition.
In our judgment, merging the public works, and parks and recreation
departments could result in a budget reduction of about $200,000 through elimination of unnecessary management positions.
Try as we may, we are not convinced that construction of a new police
station as currently envisioned, and replacement rather than refurbishment of the Columbus avenue fire station with the proposed third avenue station should be built at all. The new firehouse will not provide better service to any part of the beach, and Minorca will receive poorer service. Look at the map provided by the fire department to justify its construction. Furthermore, we have been unable to quantify the improvement in public safety that would be provided by constructing the new police station. It is our recommendation that these projects be placed on hold, and the remaining funds be placed in escrow until realistic plans are available for all to see.
Last but not least, it is our recommendation that position vacancies be
filled at or near entry level salaries, and those employees near retirement age should be encouraged to do so. We are a small city, younger people are available and skilled, and who can be trained to take on these job responsibilities. If we rebalanced the employee experience mix, and the cost per employee, the city could provide employment for more of our young people. Some will use these positions to enhance their skills and move on to better paying and more responsible jobs, others will stay, grow into senior positions, and retire, and still others will become stagnant be terminated, or remain faithful employees. This is the way of the world!
The New Smyrna Beach Tax Reform Budget Committee will continue to review the budget and provide comments we believe would be useful to the city staff, or commissioners.
Thank you for allowing me to present our comments; we are at your service.