By BECKY KISER
Hays Post
Hays city commissioners unanimously approved the 2017 budget of $37,990,318 following a public hearing Thursday night.
The mill levy still remains at 25, although that required some belt-tightening. Commissioners issued a warning to outside agencies that receive city funding to expect cuts in that funding in 2018.
City Manager Toby Dougherty again outlined the 2017 budget highlights:
- 25 mill cap maintained
- Balanced budget
- No hiring of more full-time employees
- No salary increases for employees
- Continues funding of reserves and payment of cash for large capital projects
- Full funding of Street Maintenance Program
- Reconstruction of Eighth Street and Allen Street projects schedule moved up in Capital Improvement Plan
- Emphasis on sustainability to take care of capital assets
Dougherty also noted the “continued shallow decline in sales tax revenues.”
“We are budgeting a reduction of $250,000. … We offset that with $300,000 in expenditure cuts,” Dougherty explained. “We’re still $50,000 ahead of the game and, with our unreserved fund balance and the cushion we have in there, if we do have that protracted decline (of sales taxes) … we’re OK with that, too.”
Commissioner Henry Schwaller said it was “important to point out the vast majority of the city’s revenue comes from sales tax.”
“Over 10 years ago, we decided we would no longer rely on property taxes to fund the general operations of the city,” Schwaller recalled.
“We are the only city that actually has this kind of mechanism whereby which we fund our general fund with sales tax revenue strictly,” Hays Mayor Eber Phelps pointed out.
After thanking Finance Director Kim Rupp and city staff for their work on the budget, Vice-Mayor Shaun Musil said, “I think it’s important we do everything we can to get raises for city employees next year.” He referred to Commissioner Lance Jones’ comments in an earlier meeting about city funding for outside agencies.
“I’ll be honest with you. I think that’s probably going to be where we cut next year,” Musil said.
“You’re reading my mind, Commissioner,” interjected Schwaller.
“We can’t give money we don’t have,” said Commissioner James Meier, who praised the recent work of city employees in the wake of a major water leak July 4th and the July 13 storm damage.
“We tried to do a reset on these outside agency funding requests a long time ago,” Schwaller said. “I think, for the first time, our expectation going into 2017 that there are no guarantees for any outside funding in 2018 and that we start with a fresh slate.
“It doesn’t matter what they got this year. They have to justify what they want, and what they’re going to do with it, and what the outcomes are. I don’t see that happening anymore.”
Commissioners agreed the outside agency funding issue should be discussed within the commission between now and the next budget cycle,” discussing it publicly as this is the standard moving forward,” Commissioner James Meier said.
“It’s not an entitlement program. It’s over,” added Schwaller.
Commissioner Lance Jones clarified he “didn’t bring up the issue because he was frustrated with any agency.”
“I just don’t understand the city’s funding of the DHDC (Downtown Hays Development Corporation). I don’t see how they’re any different from the (Hays Area) Chamber of Commerce, whom we don’t fund at all, and who does a lot for our community, like the DHDC does,” Jones said.
“Yes, definitely. I think we have to look at the outside agencies a little harder next year if it comes down to the same budget crunch that we’re looking at right now,” Jones agreed with his fellow commissioners.
City funding in 2017 for the seven outside nonprofit agencies remained at the 2016 levels for a total of $437,508. That’s the same total amount distributed for social services, economic development and quality of life groups each year since 2014.
City of Hays 2017 Budget Outside Agency Funding
- Care Council: $164,000
- FHSU Scholarship Program: $100,000
- Ellis Co. Coalition for Economic Development: $87,550
- Downtown Hays Development Corp.: $53,655
- Ellis Co. Historical Society: $11,621
- Hays Arts Council: $11,182
- Wild West Festival: $9,500