The Mayor's Budget Message

We are providing the Mayor's budget message below. We've made a few comments in italics, red print (kind of appropriate) and bold. Once again, Jim Suttle has never seen a tax that he doesn't like and his budget message proves it.

"Mr. President and members of the City Council, the budget I present to you today is not "business as usual." Instead, it represents a significant reform in thinking and direction for our City. (Increasing taxes for all)

I’ve considered how past decisions (many of them mine as mayor and former city councilman) have influenced the existing financial situation and have therefore made responsible choices to ensure a strong, sustainable future (ensuring no more tax increases and funding ALL my future frivolous plans). This budget is both a comprehensive solution to our (my) financial dilemma and a strategy for financial recovery (you know, like Obama's stimulus program).

The decisions leading to this budget are influenced by two very important factors:
• The expectations of our community, and
• The need for a long term stable financial plan for our city.

Hundreds of hours of discussion have gone into attempting to balance these two factors. This budget was formulated only after competent and careful consideration.

There is no doubt that this proposed budget is the most difficult that this City has had to face in recent memory. In preparing this budget, we felt it was absolutely essential to keep a multi-year perspective in mind (too bad we haven't done this since 2001). The history of relying on revenue streams that were not sustainable, compromising our pension obligations and depleting limited reserves have only postponed a necessary reform (even though it worked for years prior to giving the city to the unions).

Implementing solutions can mean making difficult decisions. But a history of avoiding difficult decisions has left us with a legacy of problems (you are our Messiah).

I have worked successfully (??????) with my Department Directors to develop a spending plan that preserves the most basic city services, funds the pension obligation, increases reserve balances and closes a projected gap of $34 million.

The total proposed budget for 2011 is $675.8 million. This includes $313.5 million for General Fund operations and $178 million for capital improvement projects. The entire budget is available on the city’s website.

This past April, we held seven community budget forums across the city. Directors from various City departments spoke to citizens interested in where their tax dollars go. In those meetings, I heard a variety of opinions and ideas from engaged citizens, as well as their priorities for city services.

What we heard at the budget forums, as well as in countless other meetings that I have had with business and civic groups and neighborhood associations have influenced the steps we are taking now. (You must have been at different meetings then we were.)

Omaha’s quality of life is the envy of other cities. Omaha citizens expect we will maintain our quality of life. To do that, we must work together as a community to meet the great economic challenge that faces us. The 2011 budget is premised on citizen expectations that we will maintain our quality of life. Omaha’s most pressing problem is its structural deficit - the imbalance between the cost of services the public expects from their City and the revenues that sustain these services (Other governments have these problems and they cut spending. They didn't raise taxes).

The continued recession, a rapid increase in health care costs, the burden of an unfunded pension liability (when did you discuss this as a councilman from 2004-08?), the cost of maintaining a deteriorating infrastructure and the long term consequences of prior short term decisions (like your campaign promise not to raise taxes???) have each taken their toll on the financial health of our City. For example, the increase in health care costs since the year 2000 have consumed the entire increase in sales tax revenue during the same time period.

The City’s depleted cash reserve has left us unable to deal with budget shortfalls as they arise. More than a decade ago, such reserves were used for tax cuts (blame that evil Hal Daub for not taxing people enough!), and little was left a few years later as the economy turned sour (somehow the state dealt with that downturn). Part of fiscal responsibility is putting money aside to deal with unforeseen expenses (tax and spend, not tax and plan). If we set aside a small amount each year, we can have the cash reserves we need when emergencies arise (so I never have to manage the budget because I've overtaxed you). My budget includes $500,000, a fraction of what is needed, set aside for the cash reserve. We need a conservative approach that acknowledges the need to contribute to the cash reserve annually. This should become a permanent process (it was before you and Fahey were mayors).

Last winter Omaha suffered through two major storms in a matter of weeks, and the effects are still felt on our streets today (Guess he forgot the ice storm of October 1997 and the winter of 2000). The Public Works department was stretched thin, and our street maintenance budget, already cut due to a decrease in funding from the state, ran over because of the expense of snow removal and pothole repair (oh, those potholes that won't be repaired until November--if we are lucky?).

Our streets are 20% of total City assets. They must be treated with the respect given to any asset that is such a large part of a portfolio. While the City of Omaha has grown significantly over the last decade, our funding for street maintenance has not (could it be because you and Mayor Fahey failed to raise taxes then because of concern for your political futures?). The life span of an average resurfaced street is twelve years, but at present we can only afford to resurface a single lane mile every fifty six years. My budget includes an increase in the wheel tax to be used for the resurfacing of major and residential streets and park roads (how often?).

We face a growing police and fire pension shortfall (when did you bring this up in your four years on the council?). Every year we wait, the cost to taxpayers increases. We must budget for pension reform and to meet the City’s legal obligation to the pension fund (while we give even more to them so they'll help us get re-elected). This will send a clear signal that Omaha is serious about addressing the pension shortfall. No matter what, we cannot turn away from this responsibility (yes we can--Chapter 9).

As a decisive indication of our resolve, I am asking the Council to approve a Restaurant Tax. The estimated revenue from this tax is $23.5 million annually, and will be used primarily to pay for the most basic city operating costs, the unfunded pension liability, and increased advertising within the Omaha Convention and Visitors Bureau (You'll really need to increase advertising with a 11% restaurant tax--others will go to Council Bluffs or Papillion).

Visitors support our local economy and jobs. Estimates from the Omaha Convention and Visitors Bureau after targeted advertising in the Kansas City market are that two hundred thousand people took the ride north to visit Omaha in the last twelve months. Figuring that the average tourist spent three hundred dollars, that means an additional $60 million in revenue was generated for our City (With an 11% tax they'll probably stay home).

It’s not just tourists, but also businesses that we must attract. We know the beauty of Omaha’s affordability (with these tax increases?) and accessibility but the more we share that message with others, the faster we generate economic growth and jobs in the private sector.

The decision to include a property tax increase in this budget was not an easy one to make, but as I looked at how to deal with the many problems confronting us when I took office just over one year ago, I found it impossible to avoid (blame Hal Daub and Mike Fahey and forget your promise to cut taxes).

If we are to maintain the quality of life that makes our city such an attractive place to live, we must face the reality before us. This increase will generate $12 million annually in revenue to help close the general fund gap. It returns us to the pre-2000 level, before short term and election year decisions (while Mike Fahey and then you made those election year decisions?) put City finances at risk.

Crime prevention is a major element of my 2011 budget. The hard work of the Omaha Police Department has led to a recent reduction in the rash of violence that hit our community earlier this year. But there is still much work to do. (No cuts here while crime is still out of control--listen to the news.)

The public has consistently said that public safety is their top priority. But to meet that expectation, we must ensure that the men and women of our police force are equipped with the tools they need for law enforcement and that we have a department at full strength. I am proud of each of our graduates of the police training class that was conducted earlier this year. They are prepared to join their fellow officers to keep our community safe and our police department at full strength. It would be an extreme failure of our duty as elected leaders of this city to take police off the streets because we don’t think we can afford it, or because it would be politically convenient to lay off police officers (both the Nebraska and Iowa Highway Patrols have cut personnel).

We must also work with the community to reduce violence at the source. That’s why I am investing in our youth with additional funding in the 2011 budget for the truancy programs of Building Bright Futures. If we can influence a young person’s life at a critical stage by providing incentives to stay in school and continue their education then we can help them avoid a fate of life on the streets, exposed to gangs and guns. (How about the schools, the parents and non-profits doing this and you enforcing the truancy laws?)

Reform not only means implementing stable revenue streams, it also means innovation in cost reductions. We are budgeting and monitoring the City’s costs with greater precision and detail than ever before, enhancing our ability to identify taxpayer savings (but we give the fire department a carte blanche to spend millions more than their budget with no mayoral oversight or control!)

For example, our city negotiating teams have achieved zero wage increases from all bargaining units for 2009 and 2010. The cost savings are an estimated $7 million in each year.

We are implementing health insurance reform by instituting premiums for retirees based on their ability to pay. I remain committed to addressing retiree health care costs in a manner that is fair to retirees and taxpayers alike. I am also committed to the principle that providing public services, not employee benefits, is our first priority (Where have you been since 2004?)

Using strategic management, we have reduced the number of firefighters through attrition without compromising response time. This has resulted in approximately $1.4 million in annual savings. (Then why are they millions over budget and why are they suing us for not abiding by contract staffing levels?)

We are also anticipating an additional $5.5 million in annual savings within the Omaha Fire Department, which is reflected in the 2011 budget. (How will future performance be any different than past performance?-no credibility here).

Recognizing the need for increased financial management, the City’s Chief Financial Officer has installed experienced accountants in both the Fire and Police Departments. We will implement this policy in all City Departments. (It surly hasn't worked yet even after spending thousands to hire a consultant to review the over-spending)

To help control an increase in court time, a City Attorney has been hired to monitor and coordinate court time for police and fire personnel. This position will potentially save $500,000 in court costs annually. (Show us the money!)

The City has successfully negotiated a tentative agreement (GIVEAWAY) with the Omaha Police Officers’ Association that reduces pension benefits for the first time in thirty years, increases the age of retirement and ends spiking.

It is easy and popular to say ‘no new taxes.’ (And who would know better than you-see your campaign promises!) But everyone that I have talked to has said they expect the Mayor and Council to adopt a realistic and balanced budget that doesn’t devastate basic city services (let's not talk spending cuts and services reductions).

This budget is an investment (that's what Bill Clinton and Obama tell us) This an investment in our streets and parks. It is an investment in our libraries, pools and community centers. It is an investment in our quality of life and our future.

Doing nothing is not a solution. Doing nothing leaves a legacy of problems for the future (you were okay with that from 2004-2008 when you were actively running for mayor!). The problem with the future is that it turns into the present.

I want to thank the citizens of Omaha for their input on community priorities (which I obviously didn't listen to!) I am committed to making the tough decisions necessary to meet their expectations. I ask the Council to join me in making these tough decisions.

By working together … and only by working together … with teamwork … can we achieve our most ambitious goal of maintaining our quality of life (BY RAISING TAXES ON EVERYONE!) "