Get involved in budget
Last week, Mayor Nancy N. Rossi unveiled her $173.4 million budget package for Fiscal Year 2024, beginning July 1, before a special session of the City Council. The annual March proposal begins a six-week process that culminates in the adoption of the budget as written, or with changes made by the council during deliberations. Of course, that process now includes the Municipal Accountability Review Board (MARB), which has final say over the document and its implementation.
The package is a just over a $5 million increase over last year’s budget, and would – if passed as is – increase the mil rate .97 mills, from the current 34 to 34.97. The City Council will be looking at the plan and seeing where and if any changes should be made over the next while. Under the City Charter, the budget must be adopted by the first Monday in May.
This is our annual call for residents to pay attention to the budget process, and what is included in the plan as given by Mrs. Rossi and, later, by the City Council itself. The annual public hearing is the primary opportunity for the public to voice its concerns and/or support, but its participation does not end there. During the weeks ahead, residents can contact their council members to voice other ideas.
The bottom line for most taxpayers is the final mill rate as adopted by the council/MARB. A “mill” is the tax per thousand dollars of assessed value of property. For example, a 30-mill rate, would mean for each thousand dollars assessed the owner is to pay $30, up to 70 percent of the assessed value. This includes most property taxes.
Because the city is still under its original charter scheme regarding budget adoption, the process is rather arcane, and has survived several charter revisions since its adoption in the 1960s.
Following the presentation of the budget proposal by the mayor, the City Council sets the date for the public hearing. As stated above, this is some days after the publication of the budget plan, and is the only time such a hearing takes place.
Once the public hearing is completed, the council members go into session as a Committee of the Whole, under the chairmanship of the Finance Committee chairman. This “meeting” once begun does not adjourn until the budget is adopted. Traditionally, the council only suspends the session. This sets the original “quorum,” allowing discussion and voting, regardless of subsequent attendance by members.
The City Council can make changes in the budget, but needs a super-majority of nine votes out of 13 members in order to adopt the change. Failure to get the super-majority keeps the original line item in place. This nine-vote threshold has been a major hurdle over the decades, but some alterations have succeeded.
Following the six-week deliberation period, the council must set a special meeting to finalize the budget package either as altered or as proposed by the mayor. Under the charter provisions, the council may only pass or alter the budget, it cannot reject it. Failure to adopt a budget package means the mayor’s original proposal, unaltered, goes into effect by default.
This has happened three times in the city’s history, where the council cannot muster enough votes to pass the budget. Unlike alterations, the budget ordinance passes by simple majority. The default mechanism is in place to inhibit extended negotiations, and to comply with state law that expects a May adoption.
The city’s budget process is the most important event of the fiscal year, and affects every resident. We urge our readers to take an interest in the meetings over the next several weeks and to voice their opinions not only in the public hearing, but to their council representatives as well.