Four principles guide the city budget | City View

When I came on board as city manager in May, the first order of business was preparing the city’s fiscal 2012 budget proposal. My recommendations for next fiscal year (Oct. 1, 2011 – Sept. 30, 2012) have been presented to City Council for deliberation. Transparency (and an easier-to-use budget document) is one of the four principles guiding the budget this year. Others include: living within our means, creating a more intensive customer-centered culture and supporting high performance and accountability.

I’m proposing total budgeted spending of about $403 million (about $11.5 million less than last year). Although the General Fund is only 18 percent of the total city budget, it represents our greatest financial pain. In fiscal 2012, this fund is projected to take in $75.4 million from all revenue sources and spend $77.7 million for all services. A $2.3 million mismatch cannot be sustained for long. I have recommended approximately $600,000 worth of changes that begin to close the gap between revenues and expenses.
Living within our means
Although Columbia is in as fine a financial shape as any city I’ve seen, I am committed to ending the use of General Fund reserves for city services by fiscal 2014.
Fiscal 2012 highlights:
• No tax increases.
• Selected fee increases for solid waste service, parks programs, rental inspections and Health Department food handler cards; higher bus fares; and operational and voter-approved rate increases for city water and sewer service. There are no scheduled electric or solid waste residential rate increases, which results in an average residential utility rate hike of $4.49 per month, the lowest since fiscal 2004.
• Reduced bus service and an end to city financial support for school crossing guards.
• Savings in street lighting, services provided by the Health Department and Police vehicle purchases.
• Reductions in some staff positions.
Customer-centered culture
Although our recent survey showed the quality of our customer service exceeded national and regional benchmarks, citizen satisfaction is down 10 points from 2007. Citizens are hugely dissatisfied with city street conditions, and better pavement is their top priority.
Fiscal 2012 highlights:
•Add $585,000 for paving, for a total of $1.6 million. We will also look at ways to add another $700,000 to the street maintenance budget during the next four years.
• A new Community Development Department (that merges Neighborhood Services, Planning and Development and the Building and Site Development Division of Public Works) will help business owners and residents navigate city codes, from concept to ribbon cutting and beyond. Whether a multi-million dollar commercial enterprise, a garage in the backyard or a neighborhood concern, this combined resource will provide a one-stop shop at City Hall.
Supporting high performance
We are committed to serving well, but our employee engagement survey and an assessment of our internal processes both tell us that we can do better. I prefer to replace micro-management with supportive management, to effectively measure performance, remove technological barriers and get better returns from our time, money and talent.
Fiscal 2012 recommendations:
• After two years with no pay raises, the proposed budget includes an across-the-board increase of $0.25/hour. Unlike a percentage-based increase, this approach maximizes the impact of the raise for those who are paid the least. Even this modest increase totals about $1 million, with half coming from the General Fund.
• Support city department directors and improve focus on the Community Vision through staff realignments in the City Manager’s Office.
• Prepare the organization for higher performance by continuing the Journey to Excellence and participating in national benchmarking through the International City/County Management Association.
Top nine things to design in fiscal 2012 and do in fiscal 2013
Pensions: While the Pension Task Force continues its work, we will start answering part of this $100 million unfunded liability question. Three-fourths of this liability affects the Fire and Police plan, and I propose that all new Fire and Police hires will be part of the Missouri Local Government Employees Retirement System as a way to rein in costs. I also propose that we contract with an independent investment manager with the goal of increasing the rate of return on the Police and Fire plan assets.
Transit: A great bus system — appropriately funded — can help support jobs and quality of life and reduce air pollution. I wish we had that system. Columbia Transit costs about $1.4 million more annually than we have to spend, and, on our current course, it will run out of money in June 2012. Throughout fiscal 2012 and 2013, we will consider all possible funding and service options for a self-sustaining transit system.
Airport: We will explore ways to elevate the airport to its next stage of success. Whether it becomes a new city department, an independent regional authority or some other type of entity, I propose freeing Columbia Regional Airport from the friendly confines of the Public Works Department.
Strategic plan: I will ask City Council and staff to direct our future with a united sense of mission, goals and accountability. Each city department should know exactly what to measure and how to rate performance.
Contact center: In our recent survey, citizens were generally satisfied with our customer service quality. Although most said it was easy to reach the right person for their questions, no one should have to guess where to get started. In fiscal 2012, we will lay the groundwork to launch a budget-neutral contact center in
fiscal 2013.
City fleet: A plan to centralize the purchase and maintenance of city vehicles in fiscal 2013 can save time and money.
Building inspections: In fiscal 2013, I propose allowing the private sector to handle some of our inspection load. This would free up city resources, reduce wait time for building projects and still allow us to certify safe construction. Boulder, Colo., offers a possible model.
Stormwater: In our recent survey, 87 percent of citizens said it’s important to fund stormwater improvements. Fifty-nine percent said they were likely, to some degree, to vote for stormwater rate increases. We will seek options to address infrastructure needs with minimum financial impact on the community.

Tourism and arts partnership: I heard the community concerns about a possible merger of the Convention and Visitors Bureau and Office of Cultural Affairs. Although I recommend they retain their distinct identities, I will look to both entities for more strategic collaboration. To aid that effort, staff from Cultural Affairs will move to the Walton Building, where the Convention and Visitors Bureau offices are housed.