GOP:
Budget remains top priority
On
August 15, the City Council approved North Star, a marketing consultant company
out of Nashville, TN, to carry out a comprehensive marketing campaign for the
City. This campaign is a joint venture between North Star, businesses in the
Chamber of Commerce, the Mayor’s Marketing Task Force, and the City. North
Star’s consulting fees of $60,000 will be covered by donors from the business
community and the City. North Star has developed a strong track record of
working with states and municipalities to develop in-depth, comprehensive
marketing strategies that are implementable. Our goal is to create a brand, a
truly unique identity, for the city of Bristol that will provide greater
economic development, satisfied residents, and attract more tourism opportunities.
In
order for this effort to be as successful as possible though, we must also fix
our structural fiscal problems. The City once again faces a deficit between
$7.5 and $12 million. How is it that after passing a six percent tax increase
last year, the City remains in the red? Let us break down the budget process,
how Bristol has gotten to this point, and the steps we have taken as the
Council majority to get us back on track.
First
and foremost, we’d like to explain the makeup of the Joint Board, and the
process in which budgets are created and ultimately adopted. The Board of
Finance and City Council form the Joint Board. Overall, 15 members make up the
Joint Board, which consists of the six City Councilors and eight appointed, not
elected, Board of Finance members. The Mayor also sits on the Board of Finance
as the ninth member. The Board of Finance outnumbers the City Council, so as to
make sure decisions are kept in the hands of financial experts and not
politicians. It is the duty of the Board of Finance to hold budget workshops
with City Departments to adopt a budget to bring to the Joint Board for
approval.
Upon
taking office in November 2011, the newly elected Republican majority on the
City Council was presented with a budget deficit of $4 million. That number
ballooned to a final total of $12.8 million after Department requests,
healthcare increases and debt service payments. For years the City's Joint
Board has not budgeted with the out years in mind. Zero-based budgets have not
been utilized, and detailed monthly expenditure reports have yet to be
instituted. The City has relied on Federal and State grants, ARRA money and
borrowing from reserves to cover budget deficits, rather than making cuts or
addressing the structural problems.
The
reason we mention this is not to cast blame on past administrations, but rather
to inform you of the circumstances surrounding the City’s structural budget
issues and why we need significant changes going forward. To combat our budget
issues, we, the majority on the City Council, proposed $1.5 million in simple
cuts to the Joint Board. In addition, we charged City Hall with investigating
department consolidation and privatization. Beyond this, we have proposed a new
non-profit for parks improvement and maintenance, and commissioned a thorough
review of the City’s current business incentives as compared to neighboring
towns.
Unfortunately,
the cuts we offered were voted down by the Joint Board, and our votes to reject
a six percent tax increase were outvoted by the rest of the Joint Board.
Consolidation and privatization research is still ongoing, although we
anticipate a course of action to be drawn by Winter 2012. One bright spot is
that the Parks Board has supported the non-profit donation fund to help support
parks improvements and maintenance.
So
where do we go from here? On Monday, August 20 we will unveil part two of this
release, detailing the steps that will need to be taken in order to get Bristol
back on the right track, and the benefits of doing so. Following that will be a
series of Town Hall meetings to get feedback and to engage the public in this
difficult, but crucial process. With everyone’s help and cooperation, we can
ensure Bristol’s best days are yet to come.
Sincerely,
Councilman
Eric Carlson
Councilman
Ken Cockayne
Councilman
Derek Czenczelewski
Councilman
Henri Martin
MONDAY
(or Tuesday) PRESS RELEASE
On
Thursday, August 16 (OR FRIDAY, AUGUST 17), the Republican Majority of the City
Council addressed the City’s marketing initiative and outlined the budgetary
process, as well as our current fiscal situation. This is part two of the
conversation regarding the steps that must be taken in order to get our fiscal
house in order, and to ensure that our marketing efforts are as successful as
possible.
In
order to fix our structural budget problems, a combination of the following may
be necessary:
1.
Union Concessions (wages, positions, furloughs, health insurance cost sharing)
2.
Early retirement packages
3.
Liquidation of unused assets
4.
Consolidation or elimination of departments
5.
Privatization
We
will continue to meet with City officials to establish a true cost analysis of
City services. Depending on how the numbers unfold, the next step will be to
scrap the plan if the savings are insignificant, or to make a motion asking the
Mayor to start negotiations for a contractual buyout if the savings prove to be
significant. Simultaneously, a motion will have to be made to send any services
determined to show savings out to RFP (requests for proposal). The Purchasing
Department would be in charge of creating the RFP that would detail all the
tasks that must be performed contractually.
We
have identified a list of cuts and concessions totaling approximately $5.6
million. In addition, we will be requesting feedback from the community to
determine which services are most essential to our citizens. Union concessions
will likely need to be made, including health insurance cost sharing, wage
grade changes, overtime structure changes, potential layoffs and furloughs.
Over 70 percent of the City’s budget is tied to salaries and benefits, and to
overlook this area is not an option. Over the past two years the City has faced
approximately $4 million in increased healthcare costs, with no additional
revenue sources and fixed employee cost sharing.
Just
like we will be asking for feedback from our citizens, we will be doing the
same with our workers at City Hall. City Hall may need to shift to a 4.5-day
schedule for non-emergency services. The Board of Education will have to take a
hard look at their budget and identify the true necessities, our children’s
education being number one. Lastly, early retirement packages may need to be
offered, with positions going unfilled through attrition or new hires being
made at lower salaries.
We
are asking for the support of the public, City employees, Board of Finance,
Board of Education and the Mayor in this effort. Nearly half of our full-time
City employees do not live in Bristol, including some of our department heads,
managers and highest earners. We need all City employees, even those who know
Bristol only as a job, to take the same level of pride in their work and
responsibility in ensuring the City is financially sustainable not only for
its’ employees, but also for its’ citizens. Our employees and citizens need to
understand that the City is not on a sustainable path, and like in business,
when the business is losing money changes need to be made. Some of the items
mentioned will require a majority vote of the Joint Board, while others will
require the Mayor and our Unions to enter negotiations. We are offering our
support to the Mayor in these negotiations, should he offer us the opportunity
to serve as counsel in them.
We
understand that these measures will cause concern, and that the effects could
hurt. But unless serious actions are taken, the path the City finds itself on
will end in massive yearly tax hikes that will be detrimental to the business
community and our citizens. The efforts to market the city, redevelopment of
downtown and all the efforts made by concerned citizens in the community to
make Bristol a better place will be made much more difficult, if not
impossible. It is our mission to tackle the challenge head on and treat the
disease, not just the symptoms.
While
this may sound gloomy, there is a light at the end of the tunnel. The benefits
of getting our fiscal house in order include more efficient government, a more
predictable mill rate, greater pride in the community, increased entertainment
opportunities, and more quality businesses and citizens looking to stay or
relocate here. Just as important as cuts and changing our structure is the
attraction of new industry, jobs and taxpaying citizens. But we must be able to
market the City in order to grow our tax base, and in order to market the City,
we need to get our fiscal house in order. Changing the course will require
cooperation from multiple parties, and we remain hopeful that the parties
identified here will rise to the occasion with us and do what’s best for
Bristol.
