The city of Lawrence is looking for long-term ways to raise additional revenue and decrease expenditures.
In a recent City Commission meeting the fourth quarter report showed that the city had spent more money from the general operating fund in 2006 than it had brought in. Budget Manager Casey Toomay, who gave the report, said the city used money from the fund balance to cover the difference last year, and anticipates the city will this year, as well. Toomay described the fund balance as a savings account the city can dip into when expenditures exceed revenues.
“While this addresses the problem in the short term, a longer-term solution will be needed,” Toomay said. “The City Commission may need to prioritize future expenditures in order to match anticipated revenues.”
City Manager David Corliss agreed with Toomay’s suggestion.
“We’re going to have to look at our expenditures very carefully and say no both to the small and the big that fall outside the budget,” Corliss said. He said the city needs to be more rigorous in its analysis of non-budgeted requests for money, but that he doesn’t want to refuse legitimate requests by pre-judging them. Corliss cited the library funding as a project the city chose to go ahead with even though it was expensive.
The general fund, which funds police services, fire medical services and park and street maintenance, among other services, comprises 39% of the city’s total budget.
Another issue discussed at the meeting was the sales and use tax revenue, which is part of the general fund. Toomay said the city expected to receive 4 percent more from these revenues in 2006 than it actually did. As a result, the city received about $466,000 less than it had predicted and included in the 2007 budget. Toomay said this represents a very small part of the city’s total budget. During the meeting Commissioner David Schauner had asked if the unexpected tax revenue shortfall would cause problems in the general fund budget. Toomay said it wouldn’t currently, but that a slower growth rate in tax revenues could pose a problem.
“The city will need to continue to review our expenditures and explore options for expanding our tax base, increasing existing funding streams, and creating new revenue streams,” Toomay said.
Finding new ways to raise revenue, however, seems to be more easily said than done. Schauner said sales and property are the city’s most lucrative sources of income, and that it is harder to get revenue from the fees the city administers.
“When the rubber meets the road,” Schauner said,” it’s very difficult to get that great big surge of revenue that will stay with you.”
Corliss suggested streamlining the city’s purchasing process as a way to minimize expenditures.
“We’re looking for efficiencies,” Corliss said. “We’re saying ‘how can we do things better?’”
Toomay said the city is hiring an internal auditor to examine city operations and look for additional ways in which the city could operate more efficiently. The 2007
budget also contained some measures to increase efficiency, such as having departments share certain equipment and using city staff for design work on projects rather than hiring outside consultants, she said.
Lawrence citizens can aid the city’s budget process by providing input on what they consider important, Toomay said.
“Citizens should speak out and let the city know areas where funding is needed to provide the level of service they expect from the city of Lawrence,” she said.
Lawrence will be conducting a citizen satisfaction survey in the coming weeks. Toomay encouraged those who are contacted to share their thoughts and suggestions with the city.