City cuts $75K

The Fort Scott City Commission unanimously voted to cut $75,000 from the city's 2013 budget to make up for lost money due to a clerical error found last week following an annual state audit.

After reviewing various options available to help fix next year's budget due to the mistake, the commission chose during a special meeting Tuesday to follow a recommendation by city leaders to not raise the mill levy and instead to cut expenses in next year's budget by $75,000.

Assistant City Manager Susan Brown said the budget cut was the best option and "wouldn't hurt as bad" as other choices she presented to commissioners for consideration. The cuts will trim about $70,000 from the general fund, about $3,000 from the public safety fund and about $800 from the promotion of industry fund, Brown estimated.

Brown said one benefit of the budget cuts is that a tax burden will not be passed on to residents because the mill levy will not be raised. One drawback will be that the city will have to cut back on some services, such as street repairs.

Other effects of the cuts include dismissing a volumetric rebate program, not being as aggressive on demolition of homes and cutting capital expenditures. The cuts will not affect any city employees, Brown said.

"We want to continue to encourage staff to bring us ideas (for saving money)," she said.

Brown said the amount of property tax generated through local taxpayers will actually be reduced by $75,000 after the cuts are made since the assessed valuation figure will go back to last year's approximate total of $44 million, rather than the $46 million total anticipated before the $1.5 million miscalculation in the county's assessed property valuation for 2012 found following the annual state audit.

"It's unfortunate that this happened," City Manager Dave Martin said. "I'm sure the county will address it."

Martin added he recommended keeping the mill levy flat and cutting expenses rather than a tax increase to solve the city's budget problem.

"This wasn't the taxpayers' fault," he said. "We want to hold the line this year."

Martin said the city needs to continue trying to keep taxes down to help attract business.

Commissioner Cindy Bartelsmeyer commended Brown for re-figuring the budget following the error. She and commissioner Jeanie Parker both said the recommendation to cut the budget would be the best move.

Brown said the budget will not have to be republished, nor will another public hearing need to be held.

The commission's decision was popular with some audience members at Wednesday's special meeting.

"I think the commission should be commended today," local resident Jim Smith said, adding "people are hurting" already with high fuel costs and taxes and a tax increase would only compound problems.

Smith said the clerical error was an "unfortunate mistake."

Mayor Jim Adams said discovery of the error was "upsetting to me."

"This dropped in our lap Friday afternoon ... We've kept the mill levy flat recently and worked hard on preparation of the budget," he said. "We're not happy, I know citizens aren't happy with this."

Adams said the city is required by law to have a balanced budget and have reserves on hand.

The budget had already been approved and published before the error was found and included a plan to keep the overall mill levy flat at 48.8 mills.

Other options discussed during the meeting included:

* Increasing transfers from the water and sewer funds.

* Deferring $75,000 to the rate stabilization fund, which is a capital reserves fund.

* Cutting levied funds equally by $75,000.

There was some discussion during the meeting about the amount of work city officials put into preparing the budget, and trying to keep the mill levy down through city staff saving money whenever possible throughout the year.

"That makes the whole city able to tackle something like this, by working together and throwing out good ideas," Parker said.