NSB Budget Shot Down

NEW SMYRNA BEACH -- A retired police chief armed with 40 years of budgeting experience and backed by more than 200 supporters told the New Smyrna Beach City Commission at Wednesday's public hearing that an 11.2 percent mill-rate increase was not going to fly and that there would be hell to pay come election time or even sooner through voter recalls for any of them who didn't heed his warnings. He got his way and that means $1 million has to be cut unless the city dips into already dangerously low reserves.

 

"This is not the time to raise budgets," 12-year resident Bill Koleszar told the commission. "It's time to cut. Everybody in this room knows what the economic situation is. in the country and in local politics. This year is different. These people behind me are not going to put up with the 11.2 (percent) millage increase you are proposing in the new budget. You can decrease services, you can eliminate services. I don't really care. I don't have a dog in this fight."

 

And then Koleszar's words got tougher: "This year, for those individuals who raise the millage rate, 11.2 percent, there is going to be consequences. I'm retired. I've got time on my hands, money in my pockets and I'm a retired attorney... If you've got the vote, you win and if you don't got the vote you lose. The ballot box is the name of the game. If you've got the vote, you in. If you don't got the vote, you lose. The ballot box is the name of the game whether that's exercise in removal or recalling elected officials pursuant to state statute."

Mayor Sally Mackay and Commissioners Jim Hathaway, Randy Richenberg, Jack Grasty and Lynne Plaskett all voted in favor of keeping the mill rate of $3.10 per $1,000 of assessed property value intact. And that means $1 million must be pared from the budget by Oct. 1 in order to stay at this year's 3.1 as opposed to the 3.477 per $1,000 City Manager John Hagood had recommended. His $24.1 million spending plan for the general fund was only 2 percent more than this fiscal year's $23.9 million, but because assessments were down 20 percent, it meant the city would have to raise more in taxes -- the mill rate -- in order to generate the revenue needed to support his budget request.

Hathaway said he believed Hagood's staff could cut $1 million, with the police and fire budgets accounting for half of the spending.

"I think we've heard a clear message," Hathaway said. "I think we can do it. We're looking at a million bucks. Tell staff you've got a million dollars to cut . Cut it and we'll take a look at it."

Plaskett hinted at dipping into reserves, but didn't speak further on the issue. The city is down to $7.2 million in reserves after committing $1 million already for the proposed budget as well as spending more than a million earlier this summer because the city had spent more than was budgeted.

Prior to the unanimous vote, Koleszar did not mince words, saying there would be "consequences" for those who ignore the will of the citizens, adding: That's all I've got to say. I've got two questions. Is there any part of what I said that you don't understand or are there any questions for me that you don't understand before I sit down?"

Commissioners implored Koleszar to help them with cuts, but he responded that he was leaving Saturday for a three-week vacation and that the city had "painted itself into a corner."

He wasn't the only one to stand up and take a stand.

Bill Denmark was emphatic about a major money-loser for the city, the New Smyrna Beach Municipal Golf Course: "I don't want to pay for other people's golf habits. Sell it! Sell it!.

Denmark, who writes a marketing and business column for NSBNEWS.net, suggested he city get into the signage business because it could make a lot of money selling "for sale" and "for rent" signs on the businesses closing up shop on Flagler Avenue and Canal Street.

Denmark urged the city to have the courage to stand up o he special interests and reduce the spending: "You can cut it but you're going to have to aggravate your little buddies."

Realtor Judy Reicher said local businesses are struggling and she has had to live with a 20 percent cut in her own pay, but she was thankful to have a job with benefits.

"Raises should be frozen, salaries cut or positions eliminated," she said, adding, "Your citizens cannot afford to pay more taxes. We elected. We depend on you. We trust you'll take your fiscal responsibility seriously."

Resident Robert Reis presented the mayor and commissioners with a bowl filled with tea bags in it, symbolic of the Boston Tea Party where American colonists dumped tea into Boston Harbor to protest increasing British taxes.

"We want the budget and spending brought under control," he said. "There's so much money hidden in this city and it's being wasted. We want it stopped."

 

 


 

NSB resident Bill Koleszar gives city commissioners and mayor ultimatum:
Reduce millage increases or face voter recall.

NSBNEWS.net videos by Sera King 

City commissioners and mayor agree to Koleszar's demand,
which requires paring spending plan by cool $1 million.

 

Fast Facts

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New Smyrna Beach Sources of Funds

General Fund Summary New Smyrna Beach