City begins to address budget deficit

    No one likes to hear the words “I told you so.” Therefore, I’ll refrain from saying them.

   It doesn’t matter today that it was written in 2006 and in 2007 (and prior years) that the city of Hillsboro did not have a revenue problem, it had a spending problem. It doesn’t matter today that it was written that the city had better learn to cut spending or plan another tax increase. It doesn’t matter today that it was written that city taxpayers could not sustain average annual salaries for individual public servants that are two and three times the average household income in Highland County. It doesn’t matter that all this was written before the economic collapse of 2008.

   It doesn’t matter now because that’s all money spent. It’s long gone. Any opportunity for savings which could have been realized with some

semblance of fiscal restraint in the past four years is gone.

   Thus, the city taxpayers and residents were recently left with an estimated municipal budget deficit of some $730,000. In response, the city,

at last, began trimming expenses. To be sure, more work needs to be done.

   While the city has not had a tax increase since the 1980s, as we are routinely reminded, the city’s revenues have, by no means, been flat since

the 1980s. 

   In fact, the city has enjoyed tremendous growth in revenues for many years. This is very important for taxpayers to remember because, quite

likely, you may be asked again to approve a tax increase soon. Don’t.

   Do not vote for another increase in taxes until city leaders have taken serious steps to reduce spending – particularly in the areas of salaries,

wages and benefits – and reform departmental operations and management.

   For 2009, in spite of dire economic forecasts across the globe and with local unemployment hovering around 20 percent, the city of Hillsboro paid

more than $4 million in wages. The city had less than 70 full-time workers. This included $1.13 million in salary alone in just one department. Add in

the lucrative benefits and it’s easy to see where budget cuts might begin to have some significance.

   And, before anyone misquotes this opinion, this is not a criticism of any city department or the work performed therein. This is not an issue of

emotions, but one of numbers or, more specifically, dollars. Taxpayers’ dollars. 

   In fact, through the years, I have offered far more praise for these public workers than criticism. However, a pound of praise is often lost

within an ounce of criticism.

   (On a side note, our family had use of the EMT services of Hillsboro Fire and Rescue this week. Their service, courtesy and professionalism were

appreciated. In fact, I am under orders to publish a personal note of thanks to Mr. John Shaw and the HFD EMTs on this call. They know what they’re doing

and it shows.)

   Now, back to the fiscal issues at hand. While Highland County commissioners have made serious efforts to rein in spending, the city

leaders – in spite of the pleadings of city auditors past and present – have not.

   Three years ago, the city administration claimed it had reduced spending by some $750,000. This was based on incorrect assumptions of 40-hour work

weeks that were not implemented. In the ensuing three years, the costly overtime continued. The city has been slow to enact policy changes that

would address the problem, long-term.

   Until city council, the mayor and the safety/service director make spending cuts comparable to those made in county offices, taxpayers would be

foolish to approve an increase in taxes.

   Moreover, the city’s proposed 2005 tax levy – which voters wisely and overwhelmingly rejected – would have done virtually nothing to alleviate

today’s fiscal shortcomings. The 2005 tax was earmarked for various infrastructure projects, including a new safety building, and $500,000 for

equipment purchases.

   Even though voters rejected the levy, the city moved right along with new buildings and equipment purchases, all without addressing the elaborate

salaries and benefits.

   As stated, the city employs numerous workers whose annual incomes are two and three times the county’s average annual total household income.

While private-sector workers have endured layoffs, furloughs and pay cuts, the city leaders have marched along with business as usual. They were

forewarned that a deficit was unavoidable. For the most part, they ignored the warnings. 

   Where there once were multiple options to balance the city budget, now there are only two options: Cut spending or increase taxes. For anyone

considering Option 2: Do you really want to raise taxes on a community with double-digit unemployment and very low private-sector wages?

   If they haven’t done so, city council or at least its finance committee, ought to invite the Highland County commissioners to a public meeting. Discuss some of the ideas the county has implemented in working through its falling revenues. One two-letter word county commissioners learned to say

early on was this one: “No.”

   To close on a more positive note, there are recent indications that city leaders are waking up to the problems we face. That’s good. These are

well-meaning and caring individuals. Their task is not an easy one. But other government bodies across the country have been making these cuts for

two years or more.

   Let’s not forget the words of President Reagan who said “Government always finds a need for whatever money it gets.”

   So don’t raise our taxes. Instead, find a few more areas to reduce spending.

   Rory Ryan is publisher and editor of The Highland County Press.

    No one likes to hear the words “I told you so.” Therefore, I’ll refrain from saying them.

   It doesn’t matter today that it was written in 2006 and in 2007 (and prior years) that the city of Hillsboro did not have a revenue problem, it had a spending problem. It doesn’t matter today that it was written that the city had better learn to cut spending or plan another tax increase. It doesn’t matter today that it was written that city taxpayers could not sustain average annual salaries for individual public servants that are two and three times the average household income in Highland County. It doesn’t matter that all this was written before the economic collapse of 2008.

   It doesn’t matter now because that’s all money spent. It’s long gone. Any opportunity for savings which could have been realized with some semblance of fiscal restraint in the past four years is gone.

   Thus, the city taxpayers and residents were recently left with an estimated municipal budget deficit of some $730,000. In response, the city, at last, began trimming expenses. To be sure, more work needs to be done.

   While the city has not had a tax increase since the 1980s, as we are routinely reminded, the city’s revenues have, by no means, been flat since the 1980s. 

   In fact, the city has enjoyed tremendous growth in revenues for many years. This is very important for taxpayers to remember because, quite likely, you may be asked again to approve a tax increase soon. Don’t.

   Do not vote for another increase in taxes until city leaders have taken serious steps to reduce spending – particularly in the areas of salaries, wages and benefits – and reform departmental operations and management.

   For 2009, in spite of dire economic forecasts across the globe and with local unemployment hovering around 20 percent, the city of Hillsboro paid more than $4 million in wages. The city had less than 70 full-time workers. This included $1.13 million in salary alone in just one department. Add in the lucrative benefits and it’s easy to see where budget cuts might begin to have some significance.

   And, before anyone misquotes this opinion, this is not a criticism of any city department or the work performed therein. This is not an issue of emotions, but one of numbers or, more specifically, dollars. Taxpayers’ dollars. 

   In fact, through the years, I have offered far more praise for these public workers than criticism. However, a pound of praise is often lost within an ounce of criticism.

   (On a side note, our family had use of the EMT services of Hillsboro Fire and Rescue this week. Their service, courtesy and professionalism were appreciated. In fact, I am under orders to publish a personal note of thanks to Mr. John Shaw and the HFD EMTs on this call. They know what they’re doing and it shows.)

   Now, back to the fiscal issues at hand. While Highland County commissioners have made serious efforts to rein in spending, the city leaders – in spite of the pleadings of city auditors past and present – have not.

   Three years ago, the city administration claimed it had reduced spending by some $750,000. This was based on incorrect assumptions of 40-hour work weeks that were not implemented. In the ensuing three years, the costly overtime continued. The city has been slow to enact policy changes that would address the problem, long-term.

   Until city council, the mayor and the safety/service director make spending cuts comparable to those made in county offices, taxpayers would be foolish to approve an increase in taxes.

   Moreover, the city’s proposed 2005 tax levy – which voters wisely and overwhelmingly rejected – would have done virtually nothing to alleviate today’s fiscal shortcomings. The 2005 tax was earmarked for various infrastructure projects, including a new safety building, and $500,000 for equipment purchases.

   Even though voters rejected the levy, the city moved right along with new buildings and equipment purchases, all without addressing the elaborate salaries and benefits.

   As stated, the city employs numerous workers whose annual incomes are two and three times the county’s average annual total household income.

While private-sector workers have endured layoffs, furloughs and pay cuts, the city leaders have marched along with business as usual. They were forewarned that a deficit was unavoidable. For the most part, they ignored the warnings. 

   Where there once were multiple options to balance the city budget, now there are only two options: Cut spending or increase taxes. For anyone considering Option 2: Do you really want to raise taxes on a community with double-digit unemployment and very low private-sector wages?

   If they haven’t done so, city council or at least its finance committee, ought to invite the Highland County commissioners to a public meeting. Discuss some of the ideas the county has implemented in working through its falling revenues. One two-letter word county commissioners learned to say early on was this one: “No.”

   To close on a more positive note, there are recent indications that city leaders are waking up to the problems we face. That’s good. These are well-meaning and caring individuals. Their task is not an easy one. But other government bodies across the country have been making these cuts for two years or more.

   Let’s not forget the words of President Reagan who said “Government always finds a need for whatever money it gets.”

   So don’t raise our taxes. Instead, find a few more areas to reduce spending.

   Rory Ryan is publisher and editor of The Highland County Press.