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Agency cuts not so deep

Posted 5/7/13

The Town Council last week agreed to help fund certain agencies above the level recommended by Town Manager Ken Buchanan.

Buchanan recommended 50 percent cuts to most of the contracts, but the …

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Agency cuts not so deep

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The Town Council last week agreed to help fund certain agencies above the level recommended by Town Manager Ken Buchanan.

Buchanan recommended 50 percent cuts to most of the contracts, but the council felt it was not necessary to make such dramatic cuts.

In fact, the Fountain Hills Theater’s request was fully funded at $70,240.

The Boys & Girls Club had asked for $100,000; staff proposed $40,000; and the council approved $64,000, a 20 percent decrease from the current level.

The council approved $24,000 for the Extended Hands Food Bank, also a 20 percent cut from the current fiscal year.

JumpStartBiz, a local business incubator, was approved for $4,500, the same amount as this year. However, the group had asked for $25,000.

The Tourism Bureau will also receive the same as it did this year, $103,000, and the Posse is slated to receive $15,000 for vehicle maintenance.

Councilwoman Ginny Dickey, in speaking regarding the food bank, said she believed the proposed 50 percent reduction for the agencies is a “little abrupt.”

Vice Mayor Tait Elkie said he agreed with that, adding he does believe it should be the town’s ultimate goal to discontinue the funding.

Elkie said he is comfortable with a 20 percent reduction for the food bank and moved to approve the smaller cut.

Town Manager Ken Buchanan reminded the council they are working with a tight budget and whatever they increase has to come with a reduction somewhere else.

Dickey said staff has always done a good job managing the funds and she believes the money will be there. She said she does not think it is necessary to prescribe where the money comes from.

“We are razor thin on our core services,” Buchanan said.

Deputy Town Manager/Finance Director Julie Ghetti sent the council a memo by the end of last week that outlined how the offsets could be covered.

The council was split, but agreed on a 4-3 vote to pay the $8,844 for the town’s membership to the Greater Phoenix Economic Council (GPEC), but with the caveat that there be some results to show for it in the coming year.

Councilman Cecil Yates argued in favor of increasing the JumpStartBiz allocation from $4,500 to the requested $25,000. There was no other support on the council for that move.

Community Theater Executive Director Val Stasik argued that the theater should be considered an economic development asset to the town and not simply a cultural and arts program.

“Anything that brings people to town and keeps bringing them back is an asset to economic development,” Stasik said.

Yates said that although he is a big fan of both the theater and the Boys & Girls Club, he is concerned about the town having enough budgeted as a contingency and did not believe any more should come from the contingency portion of the budget.

Mayor Linda Kavanagh agreed with Yates.

“I kind of fear what could happen,” Kavanagh said, citing the need just this year for emergency street repairs and a new roof for the theater building.

“At the end of the day these are the things that define a community,” Councilman Henry Leger said.

“In terms of crisis we have seen the worst of it. Staff has managed our finances very well, I’m not concerned about a crisis.”

The allocations beyond what was proposed for the food bank, Boys & Girls Club and theater totaled $68,195 within the General Fund Administration budget.

Ghetti’s memo proposes covering that with a reduction in the Fire Department budget ($33,075) and $35,120 for the theater from the economic development portion of the downtown excise tax.

The council gave tentative approval to a 2013-14 budget for public safety services, law enforcement, fire EMS and court; Development Services and streets; Community Services and Administration.

At its regular session on Thursday, May 16, the council will consider adopting a tentative budget total, at which time no increases can be made before final approval, scheduled to come in June.