A Dallas Morning News article today gave some last minute coverage on the budget process and citizen input that has been received.
 
It is unprecedented that the city would seek suggestions to the degree that was done this year. As quoted in the article, those suggestions are valuable and will probably be more so preparing for the next budget.
 
Also in the article, I express my concern for the elimination of the Cost of Living Allowance that has traditionally been provided through the state's retirement system. Few understand the full reasons for the implosion of the system but much of the problem stems from the type of investments in the system's portfolio. They weren't risky investments. In fact, the investments were so safe that there wasn't sufficient returns to meet future obligations. The system is being overhauled but the damage has been done.
 

To continue funding the TRMS COLA, the City's contribution would have to rise to 23.13% ($11.7 million) by 2016 and continue at that level through 2038.

 
City Manager Bill Dollar explains in his transmittal letter: "All City of Garland employees participate in the Texas Municipal Retirement System (TRMS) through through payroll deductions and City-funded plan contributions. Due to changes in the actuarial methodologies utilized by TRMS, the City's contribution rate is projected to increase over the next eight years from 15.67% to 23.13%."
 
The contribution this year would be $700,000 and would rise to $11.7 million per year, starting in 2016. For taxpayers to fund that amount would equal an 11 cent increase in the tax rate, which is equivalent to a 16% tax hike.
 
There is a slight misquote in the article: I don't know that I will find a way to solve the problem. I am dedicated to finding a solution but it is Mr. Dollar that first committed himself, his staff, and professional consultants to exploring possible options over the next year and bringing their findings to the Council and he reiterated that commitment Thursday night. Credit should be given where credit is due.
 
There will be opportunity in the next Legislature to correct some of the problems with TRMS but the COLA isn't among the priorities because there are even greater concerns.
 
To some of the other points covered in the article, such as closing Ridgewood Library and the engines vs ambulances question, I will address Monday.
 

Garland Residents Voice Ideas for City Cutbacks

08:58 AM CDT on Sunday, August 31, 2008
By FRANK TREJO / The Dallas Morning News
ftrejo@dallasnews.com
 

Garland residents' thrifty ideas   The city of Garland invited residents to propose budget changes online. Among the suggestions: Change bulk trash pickup from weekly to monthly, with special runs after storms. Consider selling sections of "our large, mostly under-utilized public parks" for development such as town homes and using proceeds to improve neighborhoods. Consider raising taxes "to help maintain the great services we currently receive. I strongly oppose the proposal to close the Ridgewood Library." Move to a four-day work week "and shut off the lights." Raise thermostats 5 degrees. Have employees pay more of their health insurance. Use nonviolent prisoners to clean up the city and paint. "Put these people to work." "Turn off streetlights at night! People will sleep better. It will keep things cooler. Of course it will save on electricity! All houses must use motion detector lights (if they want a light on their house) after they go to bed." Sell naming rights for parks, ball fields or recreation centers.

As Garland City Council members have worked to craft a new budget for lean times, they've had no shortage of suggestions from residents – both in person and online.
 
At a public hearing Thursday and another earlier this month, people crowded City Hall to oppose proposed cuts that would affect their communities. Chief among their concerns were closing the Ridgewood Branch Library, taking two fire engines out of service and eliminating cost-of-living increases for retirees.
 
Meanwhile, for the first time, the city offered a place on its Web site for residents to suggest ways to cut costs. In less than a month, it received about 75 entries proposing everything from reducing bulk trash pickup to selling parts of large parks for development.
 
"It's really amazing, the number of people who responded to the survey," council member Douglas Athas said. "Unfortunately, maybe we should have done it sooner and taken advantage of more ideas. But next year's going to be an even tougher year, and we'll be able to take advantage of those ideas as we go through the process."
 
The proposed budget for the fiscal year that starts Oct. 1 is scheduled for a council vote Tuesday. It includes a 1.1-cent increase in the property tax rate, to 69.96 cents per $100 of property value. The increase is for debt service.
 
"I think the process went extremely well," Mayor Ronald Jones said. "From the feedback I've gotten from the various groups, they felt we listened to them. ... I am extremely delighted in the way the council came together and worked hard."
 
Mr. Jones said that despite differences of opinion, both on the council and among residents, most recognized the tough financial reality the city is facing.
 
"We're making the necessary adjustments to keep this city moving forward, and the public safety will continue to be protected," Mr. Jones said.
 
While some changes have been made, council members indicated the budget would continue to include the closing of the library branch and putting the two fire engines out of service. It also will probably include elimination of the retiree cost-of-living increases.
 
Mr. Athas said the retiree benefit was one of the items he felt strongest about preserving. He said he intended to find a way to reinstate the cost-of-living increases in the 2009-10 budget.
 
"Not only is it important to stay competitive with other cities, but I think it's the right thing to do," Mr. Athas said. "It's important that we find some solution."
 
City officials noted that the Ridgewood Branch Library was already scheduled for closing as part of a 10-year plan adopted in 2006. And officials said the fire chief had assured the council that public safety wouldn't be compromised by removing the two fire engines from service.
 
The proposed budget includes putting an ambulance in each of the city's 11 fire stations.
 

1 comment

Comments:

Comment from: stevenz [Visitor]

From what I know, the TMRS situation is difficult no matter how you look at it. The part that makes me tip my support to the employees is that they had no say at all where the city invested their money. And that the city has been asking questions for 10 years. And current employees were told they had a secure, sound retirement when they were hired by the city. Had COLA not been something employees already had and were told they had, I would have no issues with the city not funding it. However the employees were told one thing and that promise is not being kept.

09/01/08 @ 10:29

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