Mayor continues to claim that spending a half-million dollars to remodel the square was necessary

Now that it is done, he should savor his "victory" and acknowledge that it was not necessary in 2007-08. A lot of needed work in the city could have been done with that money.
Is there really a reason to pretend it was necessary?

Administrative decisions such as persisting with the square project when the budget had to be reduced in a tough year make it clear that the council must insist on a balanced budget upfront.

The new curbs around the square have created dangerous dropoffs in certain spots because of their height and configuration and water stands in the streets around the square when it rains. A lot of people had to laugh when the first batch of new trees was removed and larger ones were brought in. Where were the dead trees? It was a highly functional square.

The remodeling is nice. But it was far from necessary.


Coody sees reserved fund as help during ‘tough times’
BY MARSHA L. MELNICHAK Northwest Arkansas Times
Posted on Saturday, August 9, 2008
URL: http://www.nwanews.com/nwat/News/67930/
A balanced budget means more than balancing revenue and expenses, according to Fayetteville Mayor Dan Coody.

“ We have to balance a lot of interests because we want to maintain services; maintain current staffing, not see a turnover spike; and keep a healthy fund balance, even if we have to go a little bit into reserves, ” Coody said.

The Fayetteville City Council, on a 5-3 vote this week, passed a resolution requesting that the budget presented to aldermen for consideration be balanced.

Ward 3 Alderman Bobby Ferrell, who presented the resolution, explained that he wants the city’s 2009 expenses to be based on revenue estimates only.

He does not want the cash reserves, the city’s savings, to be used to pay the bills.

The mayor has said he may need to go to the reserves to present the best possible budget for the wellbeing of the city and its residents.

Fayetteville has about $ 8 million in cash reserves.

Since 2002, the city has kept 60 days of operating costs in the cash reserves.

That was about $ 3. 4 million then; now it’s about $ 5. 5 million.

“ We have $ 2. 5 million more than that in our general fund, ” the mayor said. “ We have some capacity in there for tough times. ”

The mayor said he sees three ways to deal with balancing the budget: raising taxes, laying off employees or dipping into reserves.

“ Here’s my position, ” he said. “ Last year we tried to get the council to approve 0. 9 mill and that failed. That set the stage for 2008 to be a very, very tight budget year, which is fine. We’ve managed pretty well. But that also sets the stage for 2009 to be even tougher. ”

Coody said he would not advocate for increased property tax in preparing the 2009 budget. He also doesn’t want to cut staff or services.

According to the mayor, Fayetteville has been increasing and raising the quality of services for residents while reducing the number of employees per capita.

That leaves, in his mind, at least the possibility of reaching into the cash reserves.

For Ferrell, there is another choice.

“ My expectation is instead of immediately going into reserves, we might go back and look at expenses, ” he said. “ I think adjustments should be made if problems arise, maybe in two or three months if revenues don’t meet expectations, not plan on them. ”

“ Exactly what would we do without ? ” Coody asked. He said some people like the trails, some don’t. Some people suggest cutting money for parks, he said, but the city survey regularly shows high citizen satisfaction with the city’s park system.

Ferrell said it’s a matter of priorities. He doesn’t want to touch the budgets of the police and fire departments, he said, but the city could look at “ pots of money ” for projects like overlaying streets and building trails.

“ I don’t think spending $ 460, 000 on the Square is hypercritical, ” he said.

Coody said the Square work was essential and long overdue. He talked about people who fell on cracked sidewalks and broke bones, dead cherry trees that were being removed one by one, 30-year-old water leaks, and electrical lines laying in water and hanging in trees.

Ferrell, too, recalled the 2008 budget process. He didn’t talk about the council’s decision against a property tax increase to meet projected expenses. Instead, he said the council asked for a balanced budget and the city administration brought back “ the heart stuff, ” like money for the Donald W. Reynolds Boys & Girls Club, Movies in the Park and the Gulley Park Concert Series for the council to cut.

Coody said it is his job to present the best budget he can; it is the council’s job to approve it or amend it.

“ We are trying to work out the best possible scenario to where we maintain a viable workforce and keep our taxes as low as they are, and that’s a tight balancing act, ” Coody said.

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