By Phyllis Schaltenbrand
It fell to City Administrator Allan Williams to deliver the bad news Tuesday evening, that income projections in the Mayor’s 2005 City Budget are off by $1,160,736 near the midpoint of the fiscal year. The report was bad news for the Mayor who had submitted the projections to the Council last Fall along with projected expenditures based on the rosier numbers.
The shortfall was most acute in projected revenues from Ameristar Casino. While casino revenues for the City are running ahead of last year (2.1%), the Mayor’s Budget had anticipated far more growth (7 + %). The City Administrator and Finance Director reported that Gaming Fund revenues are projected to be $830,000 short of projections by the end of the year if current trends continue.
Sales tax revenues, which go primarily to the General Fund to support municipal services such as Police, Fire EMS and many City Hall departments, could be off the mark by as much as $528,500 this year. This downturn is offset somewhat by increases in permit fees and interest income, but the net loss of non gaming revenues is still projected to top $330,000.
Councilman Mark Brown was particularly upset that the report was not sent out to the Council in its regular packet so Council members could study it prior to Tuesday’s meeting. “I feel like they are pulling a fast one,” he said, adding, “I’ve seen reports on how the casino is doing that are higher than how I’m being told they are performing by this Administration.”
Councilwoman Dottie Greer, speaking with the First Capitol News after the meeting, said that having a report of this importance “Just dropped in your lap during a Council meeting was wrong. By doing this it makes me think they are trying to stir something up. Trying to make the public believe something that is really not there. That’s why we have a rule that any reports to be given out to the Council are suppose to be sent to us in advance.”
Councilman John Gieseke was disappointed the Administration had missed the mark by so much saying, “We relied on the Mayor’s numbers. Time will tell if that faith was misplaced.” Gieseke also questioned the timing of the release of the report on the 21st of June since the midpoint of the fiscal year is July 1st. “In some cases you have five or five and a half months of performance compared with six months in other categories.”
City Council President Rory Riddler said disappointing sales tax numbers were to be expected with the sluggish economy and high gasoline prices. “When people are spending $40 and $50 dollars to fill up at the pump, it reduces their discretionary spending. The only people who think everything is fine with the economy right now are in Washington, D.C. and wearing rose colored glasses,” commented Riddler.
“But I am concerned that the casino numbers appear to be so far off. Had the City Council not reduced our dependence on gaming revenues, our options would be more limited..”
The City Administrator is preparing a list of recommendations on where to reduce spending, but said that the problem was not so great as to force layoffs. Under the Charter, it will be up to the City Council to decide where and how cuts should be made.
The Council unanimously supported a motion by Councilman Brown to review an updated report on the City’s financial status at the July Council Work Session, one which would use June 30th as the cut-off date and update all projections.
The City Administrator’s report appeared under the normal Council portion of the agenda, prompting the Mayor to remark that it should have been listed under her reports. The Mayor, however, did not deliver any portion of the presentation, which was handled by the Administrator and Finance Director, and made no comment during the ensuing discussion concerning the conclusions of the report.
“I’m surprised the Mayor didn’t offer any personal explanation since the problem originated with the budget numbers she submitted to the Council, “ remarked Councilman Gieseke after the meeting.
“It is a good thing this City Council has been concerned with reducing such costs as the employee’s insurance and held the line on no raises this year. Otherwise we would be looking at layoffs instead of a mid year adjustment,” said Councilman Gieseke.
