Big Thursday: Debate on raising debt ceiling, modifying bus service
Two important events will be held Thursday at City Hall:
1) The City Council will hold a special meeting, beginning at 4:30 p.m., to hear public testimony on a charter amendment to double the City’s debt limit to $20 million. A vote is expected to be held.
2) The City Department of Transportation will hold a public hearing, beginning at 6 p.m., on several transit proposals, including fare increases, elimination of the C-40 line and other reductions in service.
The mayor encourages your participation at both events. For more information on both, I’ve pulled out a portion of the City’s weekly column in The Capital that ran today. Even more details, including links the specific transit proposals and legislation, are online at www.annapolis.gov.
If you cannot attend Thursday’s events, both events will be aired live on City TV (Verizon Channel 34 and Comcast Channel 99/100).
As always, please feel free to leave a comment below.
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City Hall: Key meeting on borrowing capacity set for tomorrow
Tomorrow will mark an important day of meetings at City Hall.
Mayor Josh Cohen has called a special meeting of the City Council for 4:30 p.m. to hear public testimony and vote on a proposed charter amendment that would raise the city’s borrowing capacity to $20 million.
The administration seeks to double the borrowing capacity as a precaution amid its “cash-flow crisis,” according to the mayor. The administration plans to present the City Council an update on the city’s cash reserves and cash-flow projections into next year.
In presenting the charter amendment, the mayor made clear that the cash-flow crisis is caused by lack of cash on hand in the cash reserves.
Despite this temporary cash flow problem, the city’s annual fiscal 2011 operating budget remains balanced.
The city projects to end the fiscal year in June with a $2 million surplus, which it will use to begin replenishing the cash reserves.
The meeting is scheduled until 6 p.m. in the City Council Chambers at City Hall, 160 Duke of Gloucester St.
With recent financial projections indicating a dramatic drop in available cash going into the fall, the mayor is acting now – through the introduction of the charter amendment – to give the city another option to get through this period. (A charter amendment becomes law after 50 days.) If the City Council were to pass the charter amendment, the administration could then introduce a resolution to authorize borrowing funds up to the new limit. The meeting will be televised live on City TV (Verizon Channel 34 and Comcast Channel 99/100).
Another public meeting set for tomorrow is the city Transportation Department’s public hearing on proposed transit cuts, fare increases and other service changes, including the elimination of the C-40 line that connects Edgewater and Arnold.
The public hearing will be held from 6 to 8 p.m. in the City Council Chambers. The public is also invited to attend a joint meeting of the City Council Transportation Committee, chaired by Alderman Ian Pfeiffer, and the citizen-run Transportation Board, chaired by former mayor Dean Johnson, from 8 to 9 p.m.
It will further weigh the proposed transit cuts, fare increases and other service changes. For city residents who cannot attend, the public hearing and the joint meeting will air live on City TV.
The purpose of this public hearing is to receive feedback on the following city proposals:
- Elimination of C-40 route between Edgewater and Anne Arundel County Community College
- Changing the start time of the bus service from 5:30 a.m. to 6:30 a.m.
- Elimination of transit services on all holidays that city administrative offices are closed
- Increasing the base transit fare from $1 to $2
- Charging $1 for the Navy Blue Shuttle service and eliminating the free fare zone
- Consolidating or modifying the citywide route structure
Mayor: ‘The City must regain the public’s trust’
Since learning of the theft of more than $153,000 in checks and cash last week from the Finance Department, the mayor has moved quickly to notify the public of the situation and the surrounding criminal investigation (click to see the press release and a video of a news conference). Yesterday, he began taking steps, as he said, to “regain the public’s trust in its ability to responsibly safeguard taxpayers’ money.”
From a news release distributed Friday:
Mayor Taps Anne Arundel Co. Auditor to Review Finance Dept. Operations
Annapolis, MD (06-18-10) – Mayor Joshua J. Cohen announces that he’s tapping Anne Arundel County Auditor Teresa Sutherland to conduct an immediate review of how cash and checks are accounted for and secured in the City’s Finance Department.
The City’s outside independent auditor, SB and Company LLC, is already in the midst of its annual audit, but the mayor requested Ms. Sutherland’s additional review in the aftermath of the theft of the $153,000 in cash and checks stolen last week in the Finance Department.
Mayor Cohen has given Ms. Sutherland broad authority to review Finance Department operations. Her primary focus will be on the cash receipt process to determine the proper internal controls for preventing a theft. The Mayor expects a report within 30 days. This review will not interfere with the ongoing criminal investigation.
Mr. Cohen worked with Ms. Sutherland when he served as a member of the County Council. The County Council has authorized her to conduct this review at no cost, as a courtesy to the City.
“The City must regain the public’s trust in its ability to responsibly safeguard taxpayers’ money,” Mayor Cohen said. “Teresa’s expertise will be valuable to help us identify any flaws in our systems and implement appropriate fixes. I am grateful to her, as well as to Council Chair Ed Middlebrooks and my former colleagues on the County Council, for assisting the City with this important issue.”
Ms. Sutherland is a certified public accountant and a certified fraud examiner. She has been an auditor for 27 years, and before becoming the county auditor, she worked as an IRS agent.
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The mayor also discussed the theft in his latest weekly address (posted Thursday):
A Great Example of Businesses Supporting the City
Two businesses, Stan and Joe’s Saloon and Capital Bicycle, are putting on a benefit Saturday to raise $10,000 for the Annapolis Police Department’s bike patrol. These businesses saw the need to help out their city, specifically by raising money for new bike equipment. This is a great example of the kind of partnering that the business community and the City government can do to benefit Annapolis.
Here’s the news release:
Local Businesses Organize Benefit for Police Department’s Bike Patrol
Fundraising goal: $10,000; Chief Pristoop volunteering for dunking booth
Annapolis, Md. (06-11-10) – Mayor Joshua J. Cohen encourages people to come out Saturday, June 12, to Stan and Joe’s Saloon for a fundraising event organized by local businesses that will support the Annapolis Police Department. Attendees can get the chance to soak Police Chief Michael A. Pristoop in a dunking booth.
Stan and Joe’s Saloon and Capital Bicycle are seeking to raise $10,000 to buy new equipment for APD’s bike patrol, and they have organized live music and activities, including a dunking booth featuring local celebrities and dignitaries, a silent auction, food and much more. The event will take place from 2 to 8 p.m. at Stan and Joe’s Saloon, 37 West St.
Contributors may make a general donation or buy a specific piece of equipment. Local businesses are encouraged to provide donations for the silent auction.
Many citizens and visitors of Annapolis see APD’s bike patrol officers making their way through the streets while patrolling up close and personal. In these economic times, the bike patrol can use a hand. Time and daily wear and tear causes the equipment and tools our bike patrol uses to wear out and fail.
“I applaud Stan and Joe’s Saloon and Capital Bicycle for putting on this event to benefit the Police Department,” Mayor Cohen said. “I’m very appreciative that our local businesses are so dedicated to helping the City and supporting public safety.”
Also, attendees are encouraged to bring a can of food to donate to the Lighthouse Shelter.
Guest Column: City budget the result of many tough choices
In recent months, no issue in Annapolis has dominated the debate or been as divisive as the city budget.
Tomorrow night, exactly six months after the alderpersons and I took office, this debate will draw to a close when the City Council votes on the fiscal 2011 budget.
The $75.1 million spending plan I am proposing is $11.4 million smaller than the $86.5 million fiscal 2010 budget approved by the prior council. It dramatically reduces spending. Even more significantly, it fundamentally restructures our government in a fiscally responsible way.
The proposed budget achieves the two primary goals I laid out at the beginning of the year: It ensures a balanced budget, and it does so without raising the property tax rate.
Annapolitans have spoken clearly that this is not the time for government to ask taxpayers to pay more. Additionally, the budget achieves several other objectives: It ensures sufficient cash on hand to pay our monthly bills; it provides for the full repayment of our $10 million line of credit; it restores our reserves to the required 10 percent level across all funds; it maintains core services; and it protects public safety by avoiding the layoff of a single uniformed police officer or firefighter.
Many cities this year are facing the same challenge of having to either raise taxes or reduce spending – or both – because of declining revenues. Some Maryland cities, such as Bowie and College Park, are reducing their budgets by about 5 percent. Others, such as Gaithersburg and Westminster, are reducing their budgets by as much as 9 percent. Of these four cities, all but College Park are raising the tax rate for fiscal 2011.
To my knowledge, Annapolis is making the single-largest budget reduction of any city our size in Maryland: 13 percent. This is the amount needed to truly bring our expenses into alignment with anticipated revenues.
There is no way to achieve a budget reduction of this magnitude without impacting employees. Regrettably, not only have I had to lay off more than 30 employees, but our workforce is earning less and paying more. I am grateful to our dedicated public employee unions for agreeing to accept furlough days, wage concessions and increased health care costs. These concessions are vitally important for the city to survive this budget crisis.
Taxpayers also are going to feel the impact through reduced services. Trash collection is being cut back from twice weekly to once per week. Certain bus routes are being eliminated and hours of operation curtailed. I also am asking the council to raise a handful of fees such as water rates and bus fares, but only where necessary to more accurately cover the cost of providing the service. I am not using the budget crisis as an excuse to raise fees across the board. Instead, I will be working with the council to objectively analyze fee rates later this year.
The proposed budget is the product of much input and collaboration from scores of alderpersons, employees and involved citizens. Some people believe it cuts too much; others believe it does not cut enough. I believe it takes the right approach to ensure effective delivery of services while providing the best value to the taxpayer.
This extraordinary budget crisis has been unprecedented for our city government. It has challenged all of us who serve as city employees in ways we never would have expected. But at the heart of every crisis lies an opportunity. Tomorrow night, the City Council will have a unique opportunity to lay a solid foundation for a new era of fiscal responsibility.
The fiscal 2011 budget is not the end of the process; it is the first step in a continuing journey to make City Hall more effective, efficient and transparent. Together, we will make Annapolis the best-run city in Maryland.
The writer is the mayor of Annapolis.
Mayor Declares: Revised Budget Won’t Raise Property Tax Rate
At a City Council work session on Thursday, the mayor will present a revised fiscal year 2011 budget proposal that balances the City’s finances without raising the property tax rate. The mayor’s budget amendment calls for millions of dollars in additional cuts and other changes to offset further declining revenues. It will also ensure the City has the cash flow necessary to keep up with expenses.
Here’s the mayor’s rationale for not raising the property tax rate:
“The public has spoken loud and clear about how we should tackle this budget crisis. We understand the government should not bail itself out to get through this crisis.”
The mayor will unveil details at the City Council Chambers, starting at 1:15 p.m. The event will be aired live on City TV (Verizon Channel 34 and Comcast Channel 99/100). Be sure to check out this blog and the City of Annapolis Twitter page (@cityofannapolis) for more details during the work session.
While the public will not have the opportunity to formally address the council on Thursday, people are invited to speak on the budget at a special meeting of the City Council on Monday. The meeting begins at 6:30 p.m., and the council is expected to pass the budget that night.
In the meantime, let the City Council know what you think about the mayor’s proposal to balance the budget while leaving the property tax rate untouched. Leave a comment here or reach out to the council members here.
The mayor talks about the budget and other matters below in his weekly video address: