As the city faces tough choices for the upcoming fiscal year’s financial plan, City Manager Paul Sabiston’s advice to department heads during a retreat today was direct.
“Go as low as you can with capital expenditures, capital being big items. Look at essential services and facilities.”
Councilman Greg Lawson said, “We’ve been here before. We need to take a good, hard look and see what we can get by with and reduce costs if possible. We need to look at ourselves a little harder and ask if we’re satisfied, are we doing enough internally. We really need to examine ourselves. Let’s do that before we ask for a sales tax increase.”
Sabiston recommended to keep the budget at or below the current plan.
Lawson said department heads have gone without for several years. “There are needs all the way around. There are critical things one department has over another. It’s unfortunate that we’re here.”
With the city preparing to petition state legislators on a referendum for a 1 cent sales tax increase, Lawson said he doesn’t know if that is fair to businesses. “I don’t think it’s fair to us if we haven’t cut. I think the only way we will be more comfortable is if we look at ourselves and cut costs.”
There are questions that need to be asked, Lawson said, questions which are now hypothetical such as keeping the library or aquatic center open. “This is an uncomfortable position to be in. After this year the debt reserve (for the theater) is gone. That $1.7 million has got to come from somewhere. (Fiscal year) 2012/2013 is going to be even worse because we’ve got to come up with that for the theater. Refinancing can help us then we can start looking at capital improvement.”
Councilman Ed Liverman said the city’s property tax rate, combined with a school tax makes Roanoke Rapids an expensive place to live. “This is a working class town. We need to explore ways to control the property tax. We cannot handle a monumental tax increase to pay for the theater.”
Greg Goddard, who was the facilitator for the daylong retreat, told council, “It seems imminent you don’t have but a few options. I don’t see how you’re going to substantially reduce operating costs unless you subsidize income.”
Mayor Emery Doughtie said he believes the 1 cent sales tax makes sense. “We have a choice to leverage sales tax on people who do not live in this community.”
Public Works Director Richard Parnell said there were issues like fuel increases department heads would have to consider in preparing their budgets. “Gas is headed to $4 next year. If you cut capital people can’t work because you can’t buy supplies.”
Parks and Recreation Director John Simeon said being at or below the current budget that could mean closing facilities.
“When you look at stuff,” Lawson said, “May be that will prevent us from having to close stuff. If we don’t have the money what do we shut if we don’t have the revenue. The last thing I want to do is shut the door on things the taxpayers are used to and enjoy.”
Councilman Carl Ferebee said he didn’t disagree with the at or below suggestion. He said, however, department heads need to be realistic in their projections. “If the cost of gas is going from 5 to 10 put that $10 down. You know exactly what you need. If you’re looking at the numbers right and those end up being (higher) don’t put numbers down that are not realistic.”
Goddard said there are going to be operating costs the city will have no control over. “Hold the line this year. If you put a sales tax on the referendum you got 1.7 million or you don’t. I don’t see how you’re going to reduce operating costs without an additional revenue source. You have to establish what your capital needs are.”
Goddard suggested the city possibly look at percentages of efficiencies.
Sabiston said he believed looking at efficiencies is a good way to go. “At the end of the day I hope that every single day at work we try to be efficient all the time. Neutral or better is fair. Go down to the bare essentials of capital you can live with. Five and 10 percent is a good starting point.”
Ferebee said the city should look at partnering more heavily with governments. “We have the theater here. I don’t think we want to tear it down. We need to put a team together to sell it, bring in a person to put additional funds into it, another (Lafayette) Gatling to invest some funds.”
With that, Goddard said the city would need more marketing money.
