Staff writer
ttjohnso@observer-reporter.com
After some shouting and a little animosity during a budget hearing Tuesday night, council in the City of Washington is somewhat hopeful the 2009 budget will balance before final adoption in December.
Projecting an 8- to 10-mill increase in land tax only, council expects to generate enough funds to meet projected expenses. Each mill generates about $4,350. In February, council, including three new members, reopened the 2008 budget and instituted a 30-mill increase in land tax only.
Council also is reviewing raising the earned income tax by 0.15 percent, which would generate an additional $120,000.
In addition to the anticipated tax increases, council has vowed to "tighten belts" is every city department.
Facing a current $70,000 deficit, Councilwoman Virginia Ullom suggested each council member take a year without accepting a salary or health-care benefits. She said eliminating council salary and benefits could generate nearly $85,000, but all of council would need to agree. Currently, council members and their families receive benefits without any premium costs, similar to other city employees.
"I don't use the health care. You're a burden on the taxpayer," Staniszewski said to Ullom.
Ullom became upset, and the exchange began.
"You don't know about my health," she snapped. "If you really care about this city, you'd give up your salary and your health care."
The city has faced financial problems, including receiving court permission for a $2 million bond issue in December to pay bills to the end of 2007.
With rising costs expected in 2009 - health care, pensions and contracted salaries - the city is faced with increased expenditures and lower revenues.
Denny Adams, city controller, said collection of mercantile taxes for this year are lower as spending in the city is down. He blamed the loss on the economy.
"There's no fat in anybody's budget," said Ullom, director of the department of accounts and finance.
As in the past, Staniszewski said he is opposed to any tax increase. His repeated statements prompted Ullom and Mayor Sonny Spossey to ask him for solutions.
"This guy doesn't want this to work," Spossey said.
Ullom said of Staniszewski, "He's running for office. You're never going to vote for any tax increase. You are out of the loop."
Staniszewski is up for election in the spring primary.
Spossey said the city must continue to work toward a stable financial status.
"We have to get our credit (rating) back," Spossey said.
Speaking of the city's past financial problems, Ullom said, "This has been going on for 25 years, and it caught up with us."
Much of the city is tax exempt, including schools, county property, the hospital and Washington & Jefferson College.
"None of us here is doing the popular thing when we're talking about (raising) taxes," said Councilman Terry Faust.
First reading of the tentative budget is set for a 9 a.m. special council meeting Nov. 24.