City stares down budget cuts
• Homer residents plea for programs; ignore cuts to fire, police and roads
By Naomi Klouda
Homer Tribune
The Homer City Council, in a Monday work session, sought to understand the options that might be available for solving budget shortfalls as they try to reconcile the $1.3 million shortfall in the 2010 fiscal year general operating budget.
One way, obviously, is to cut costs somewhere else. Another solution is to borrow from the city’s bank account. Councilman Kevin Hogan proposed a slate of ordinances related to reducing city costs. One proposes that city employees contribute $250 per month to their health insurance. Currently, city employees pay no premium. City Personnel Director Sherri Hobbs said the city currently is able to provide for a deductible of up to $45,000 in a group rate.
Per year, the cost proposed by Hogan would require $3,000 from each employee for premiums.
“That is a big impact and I don’t know if some can afford it,” Hobbs said. The city pays $600 per city employee. A health plan is one of the attractions to maintaining a stable workforce, since they do not have high salaries.
HOMER TRIBUNE/Naomi Klouda - Homer youth testify to the city council about the environmental action the city needs to take in Homer's new comprehensive plan.
A companion ordinance Hogan wrote also asks for a task force to look at the city’s healthcare program.
“This is a budgetary matter to try to save money, and it is not onerous,” Hogan said. “It puts it back on the employees who receive the benefits.”
Councilmember Beth Wythe said the city first needs to do its own external review before changing the plan.
“I have a concern about going in and plucking any particular thing when we haven’t done due diligence, ”Wythe said. “What we’re hearing is that compensation in other places is substantially better.”
Hogan responded that he didn’t think this is asking a whole lot.
“Right now, we are giving a whole lot,” he said. “Other cities across the country are laying off city workers and handing out pay cuts. We’re not affected hardly at all. I have a hard time saying our city has a problem if (city workers) are not paid well. The highest class of paid employees in Homer is the city workers.”
Hobbs said, according a spreadsheet, the city spent $650,000 with local doctors, clinics and therapists last year; $400,000 was for the hospital alone from this city insurance plan. That’s a substantial economic contribution, noted City Manager Walt Wrede.
Councilmember Francie Roberts said she feels $250 is a bit high, and recommended the city let a task force determine what amount would be fair.
At least one council member, Bryan Zak, expressed support for Hogan’s ideas.
“This is the type of stuff we have to start looking at it,” Zak said. “If we can do it, it is reasonable under these circumstances to look at these sacrifices.”
Several councilmembers expressed concern that the city would not be able to attract highly qualified professionals – such as police officers – if the benefits were reduced. But Hogan said he would be “flabbergasted if we had a mass exodus of city employees.”
The city’s insurance policy, as it now exists, is generous enough to allow all family members enrollment.
A third proposal Hogan made would take back the cost of living allowance for city employees, which tends to be 2-3 percent per year – even in difficult budget years such as 2010. That amount is generally $1.79 per hour more per employee, Finance Director Regina Harville said.
While Hogan advocates for these cuts, he is also making a budget amendment to reinstate the police dispatcher and part of a police position that fell under the axe in the city manager’s budget proposals.
Homer Police Chief Mark Robl said he is in favor of adding the positions back in.
“I had to pick, but I assure you they are not good cuts to make,” he told the council.
When asked how he feels about restoring a part-time officer position, Robl responded that it would make a difference in the quality of applicants.
“We would have a hard time filling the position because I see very few applicants come through who would take a part-time position,” he explained. “They are definitely wanting a full-time position.”
Along with the police funding, Hogan wants to place Haven House under the police budget. Robl said he has no problem with this idea.
These ordinances were introduced at Monday night’s council meeting, and will be discussed further at Dec. 14’s meeting.
Crowded meeting
The city council chambers filled to capacity when the 7 p.m. meeting started, including more than a dozen teenagers with Homer Youth for Environmental Action. Others showed up to speak their minds on the proposed closing of the Homer Public Library on Mondays, advocate on behalf of the Kachemak Bay Campus lease on the chopping block and to urge council not to shut down Homer Community Schools. Notably, not one person testified about the deep cuts to public works’ road-clearing budget, or proposed cuts to police and fire emergency crews.
Homer Comprehensive Plan
The council postponed action on the Homer Comprehensive Plan until January. Homer Youth for the Environment members urged the council to build nonrenewable energy into its sustainability plan.
Resident Nina Faust observed that, “Homer weathers hard times better because Homer is resilient.”
Homer’s position on the cutting edge of proactive effort on climate change’s impact should translate into energy savings for the city. The Homer comp plan needs to address this.
Homer High School student Tux Seims talked about future generations.
“I don’t want to tell my kids or grandkids that I am sorry I couldn’t help solve the climate-change problems … I don’t want to tell them I didn’t take the time to help my community to invest in alternative energy… or explain to them why they have a hard time surviving,” he said.
Hornaday reminded the group that he appointed the climate-change committee and said he believes the city needs to be involved in nonrenewable energy. However, 90 percent of the state budget comes from oil revenue “and you have that beautiful high school because of it,” he told them.
Community Schools
High School student Elias Garvey made an appeal for community schools, saying three members of his family play on a basketball team through the program.
“Homer has other recreational opportunities, but this one is so rewarding and healthy,” he said.
Another teen, Ben Harville, advocated to solve the city’s budget problems by instituting property taxes on the over-60 population.
Library
Mayor Hornday and councilmen Zak and David Lewis all have amendments on the table to try to save the library from having to cut Monday hours; a cost of about $30,000. To show community support for the library, Cleo Webb submitted 180 signatures in a petition to the council.
“This saved you from hearing at least three hours of public comment,” she told the council.
Earlier in the work session, council members had quizzed Library Director Helen Hill about the options. One idea is to charge patrons for library cards, but that is against the law by federal statute, she said.
Another idea is to draw from the $4.4 million city reserve bank account.
However, former City Councilman Ray Kranich appeared at the council meeting to warn them away from the general fund reserve.
“We’re on the front edge of a rainy day. What’s trickling down from the national economy – we haven’t seen the start of it,” Kranich said. “Stay away from the reserve; $1000 is what started it. We have no idea when it will go bad.”
During his five years on the council, adding to the city’s bank account was often difficult because the city has so many demands made by the public to fund programs, he added later.
City Finance Director Regina Harville has said reserve funds are not for recurring expenditures,but can be used to fill a gap. She too warned that sales tax revenues won’t see previous levels, and so rebuilding the general fund will be difficult. The general fund reserve stood at $4.4 million at the end of 2008 audited statement.
Councilman Zak has amendments to the budget that would restore funding to community schools and the library, on the grounds that they “add to the quality of life.”
“Reserves are also important. But in these economic times, I would put a greater emphasis on maintaining the value of the community,” Zak said.
Ordinance 09-63
Emergency funding for the seawall did not pass. The city was asking for about $27,000 from the general fund reserve to fix the Ocean Drive Loop Seawall, which was left exposed after recent storms.
Boys and Girls Club
According to wording in the Homer Comprehensive Plan, two programs staring at cuts – the Boys and Girls Club and the Kachemak Bay Campus – also contribute to the quality of life in Homer.
A Boys and Girls Club representative read a letter to the council that was written by president Mike Navarre, stating that he is trying to raise matching funds to offset utility expenses at the Homer club.
Erica Marley, KBC advisory board member, asked the council to support its lease of West Campus until they can relocate in 14-16 weeks. The campus would be strapped with a 100-percent increase in rental costs if forced to move.
Homeland security
An ordinance to beef up security at the Port of Homer was introduced, calling for the city to accept a Department of Homeland Security Grant for $107,353, with the city matching costs with $35,758. The money is to be used for a video security system and new gate at the Deep Water Dock.
The surveillance system runs about $54,000, with the remainder going for the gates. Port and Harbor Master Bryan Hawkins submitted a grant to FEMA and it was accepted. The council voted to accept the money, with Zak and Hogan objecting to the city’s expense.
Include Photo of Oceana Wills and Jason Baird, Homer Youth for the Environmental Action
Posted by Newsroom on Nov 25th, 2009 and filed under Headline News, News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.
6 Responses for “City stares down budget cuts”
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One of Mr. Hogans’ many gripes has been “overpaid city employees” and “fatcat city employees” These gripes occurred publicly and before his election. He even thinks he knows how to run the city docks and iceplant better than the skilled employees that work for the city. Many of his suggestions about city dock, iceplant and leasing were simply so he could make more profit from his business. Lets be careful that he doesn’t continue his “conflicts of interest”. City employees are already at rock bottom – trying to live in Homer and work for the city. Hogan’s employees likely live in Anchor Point or in substandard housing on the spit.
Mr. Hogan is a wonderful addition to thecity council. Let’s get something straight – city employees are a long way from rock bottom – and since when does thecity owe them anyhing? If things are too tough let them take jobs in the private sector. What’s that? Oh yeah – many of them don’t want to – because they wouldn’t be doing so well. Good people? yes they are – but maybe you should ask some tourism businesses what they think about enduring such times while city salaries go up. These people have cadillac health care policies for themselves and their families. Everyone else in the country working in the public sector has a significant co-pay fo their insurance – the least our employees can do is pay another couple hundred a month to help out. We don’t owe them anything except to be reasonable – and that’s based on what we think -not what they think.
Wes you were a prime example of an overpaid city employee, Mr Hogan’s Anchor Point employees did more work in a day than you did in a month
but it must have been nice to get paid to drink coffee and eat doughnuts
don’t worry your city pension is safe as long as the city stays out of bankruptcy..
which should be an incentive to support prudent city spending.
It was not my intention to disparage any private employees at the city’s docks and I certainly apologize if my comment was taken this way as they are extremly hard working and are certainly not driving new cars on their wages. Recent comparisions of city wages show Homer to be lower than average and I would point out that your roads get plowed, your water keeps running, sewage goes away and you can buy ice 10 months of the year. As far as dollars earned by work produced vs number of employees, my record speaks for itself. Prudent city spending should include not wasting money on grand projects, such as the City Center, which could not be supported by the current populations taxes, but yet spent (I think) thousands of dollars just in planning. The library is another example as is the million dollar animal shelter. True, the city does not “owe” its employees anything, but if they want average wage earners to be able to live in Homer to service residents, then they will need to continue to pay a living wage – which includes medical benefits. All the benefits that private citizens enjoy in Homer that the city provides, cost money and the price isn’t going to go down soon.
We have 100 city employees – about 35 too many – its one reason why wages might be below some average – but what does that have to do with anything? Nobody forces people to take a job with the city. The reality is that people do what they have to – to survive – they aren’t doing the citizens any favors by doing their jobs. In the private sector money is ripped away from you by market forces without warning. People who want to be insulated from that need to have a reality check when they keep asking for higher wages that resemble what the private sector has. Health insurance w/o co-pay is a huge give-away that is neither earned or warranted. People working in the city to drive up salaries by comparing us to other places results in nothing but an uncontrollable spiral of cost for employees who want nothing to do with what the private sector faces. Maybe with more people like Kevin Hogan on the council we can have some frank discussions why city employees can’t have it both ways – ever increasing pay and insulation from economic harship in the private sector.
I certainly agree that the City has too many empoyees but the council has been reluctant to really get down to which ones are “too many” The percentage of employees vs population is proabably 1% or less. And many of the jobs are more necessary than you may imagine. Its the private citizens that want it both ways IMO. Homer is not Colorado and it simply costs more to live here than many other places.
Homer is still a fishing town and likely will never be able to support a large population infrastructure and this is not a bad thing…..You are lucky someone wants to plow snow, sand and deliver sewer and water services – just to be able to live near Homer.