By BECKY KISER
Hays Post
A proposed 10 percent cut in the city of Hays 2018 draft budget for funding to the Ellis County Coalition for Economic Development (ECCED) and Fort Hays State University scholarships, may go a little deeper and even wider.
Also proposed is moving the remaining half of city funding for the Downtown Hays Development Corporation (DHDC) to the Convention and Visitors Bureau (CVB) budget which is funded by the Transient Guest tax.
City commissioners heard their first overview of the budget by City Manager Toby Dougherty during their work session last week.
The 25.000 mill levy would be maintained for 2018 even as sales tax revenues for the General Fund are projected to be flat.
“Knowing that we’re projecting $78,000 less in sales tax revenues for 2018 than we budgeted for 2017, I challenged city staff to find money for raises. So that means we had to get our operating expenditures down as much as possible,” explained Dougherty.
And they did.
Total operating expenditures for 2018 will be $11,719,457, which includes a four percent raise for all current employees. It’s also $155,000 lower than the 2017 operating expenditures of $11,874,395.
“A concerted effort was made to reduce expenditures without impacting operations or capital maintenance, and yet find money for a raise for all employees,” said Dougherty. “Everybody did a good job. In some places it was cuts, in some places we tightened the tolerances, in some places we made adjustments as we needed to.”
The commission then discussed the proposed funding levels for outside agencies.
Commissioner Lance Jones doesn’t like CVB funds supporting the DHDC. “I don’t think the CVB fund needs to be looked at as an endless resource–forever. If we cut the DHDC money by 10 percent, there’s $5,000 we can put towards an app for self-guided tours of downtown Hays,” he said.
“The same cut we made to economic development and FHSU, we should make to DHDC–10 percent,” Jones said, noting he has made his decision known to the DHDC board and employees. Mayor Shaun Musil was not in favor of any cuts to their funding, saying “DHDC is one area of our community that’s seems to be continually growing the sales tax base.”
The $10,000 cut in the FHSU city scholarships program was not favored by Commissioner Sandy Jacob.
“I think we’re trying to build a partnership with the university and the community, particularly from the downtown standpoint the past few years,” she said. “If we need it to take care of our employee raises then I absolutely am in favor of it. If we don’t need it for the raises, then I would not vote for cutting FHSU. I think it’s just a bad message.” Mayor Musil agreed.
Vice-Mayor James Meier was concerned about a different message to city employees and said he was “fine with the cuts.”
“We’ve asked staff members to look at their budgets and what they’re spending money on, and then to push things back and rearrange things, all so they can get a raise. There’s certainly nothing wrong with asking them to do that, but I think it sends the wrong message to our employees to ask them to do that and not also ask outside agencies to take a cut.”
Musil then brought up the Coalition. “I’m extremely confused on how we handle that because every year it’s a different way.” He continued as Commissioner Henry Schwaller nodded his head in agreement.
“I firmly think we should cut them,” declared Musil. “We’ve kind of talked about if we like their outcomes, then we fund them. I don’t agree that we haven’t given them a clear direction. There are a lot of people on the board who care about our community but it really hasn’t changed since I’ve been on the city commission, since 2013. Either we do fund them or we don’t, and move on,” Musil advocated.
“I don’t think we should fund them this year,” Meier said, “and just be done with it.” Meier is the city’s representative on the ECCED board. “I’ve come to the conclusion I’m not pleased with the outcomes and I agree with Mayor Musil there’s no point in funding half now and maybe half later.”
Musil was quick to point out he’s always said “we have to have economic development, but it’s just not working, what we’re doing.”
“Regarding outcomes, when’s the last time the Coalition recruited a new business? How many jobs did they add?” Commissioner Schwaller asked. “When’s the last time they helped a startup or two actually launch? When was the last time they actually did something for housing other than help someone flip a home? It just keeps staying right where it is,” he said.
Schwaller said he was not speaking about the Coalition board, although the city and county commissions during a joint meeting in April agreed the board membership is too big to be effective and should be reduced. The Ellis County draft 2018 budget includes a recommended 50 percent cut in funding to the ECCED. The city of Hays and Ellis County are the biggest revenue contributors to the Coalition budget.
“The Coalition is able to fund its operations, not its programs, with our money. As long as that salary is guaranteed, that’s what you’re gonna get,” Schwaller said. “I support any cut in the city’s funding from 10 percent to 100 percent.
“Unfortunately though, the same is true for DHDC. They were told in the very beginning they’d have to sustain cuts in the future. Our money doesn’t really go to projects because the criteria for the DHDC events is that they must pay for themselves or make money. Otherwise, they don’t do them. So that means we’re paying the salary of the DHDC director, which is fine, but that’s not what we do, other than for the Coalition. We don’t pay the FHSU president’s salary. I agree with Commissioner Jones–we’re subsidizing something,” Schwaller said.
“I don’t mind giving money to the DHDC, but I’d rather have the city sponsor individual events,” Schwaller suggested, “sponsoring the things that actually bring tourists in. All the non-alcoholic things that bring in people, we should be the sponsors of that.
“DHDC and the Coalition are the only two agencies that we just write a check to, and basically pay for their operations. Everything else has been programmatic.”
The budget proposal, along with more about city funding to outside agencies, will be discussed again at the next commission work session, July 20 and then reviewed during the regular July 27 commission meeting.
No cuts were recommended for the CARE Council funding, which is again asking for $164,000 for the following social services agencies:
American Red Cross-Ellis Co. Chapter
Big Brothers Big Sisters
Cancer Council
CASA of the High Plains
First Call For Help
Options
Hays Senior Center
DSNWK Access Transportation
“You have to come to a consensus,” advised Dougherty the city commissioners, “but you have plenty of time.” Staff is recommending the budget public hearing be conducted Aug. 10.