I've had a number of calls and emails asking what solutions I would suggest to begin the turnaround of Neosho's financial crisis. While I'm not the one ultimately responsible for bringing solutions to the council, I will be one of five deciding if the solutions provided fix the problems we are facing. Below are the issues that concern me most. It's not a complete list, but it highlights the areas any proposed solutions must address:
1) All funds that were inappropriately used to finance day-to-day operations must be replenished. This includes replacing the cash balances in the STAR loan fund along with replacing funds in the Hotel/Motel tax fund and TIF fund.
2) Cash-flow needs for the next 6-9 months must be presented in detail. This includes providing any necessary financing options the city must explore to meet those immediate cash-flow needs.
3) Address any areas that are a drain to the city's finances and develop a specific timeline for those areas to become cash-positive and off of city life support. This would include addressing the debt structure of the golf course and determining if it can survive with its current debt load.
4) Get out of the real estate business - this means working a plan to divest the city's ownership in the former Betz-Bond property. That property is a cash drain and offers no long-term benefits to the city.
5) Move toward a more stable and less-volatile revenue base. Being dependent on sales tax as a sole local source for operating revenues is unwise and was the wrong decision to make years ago. The city must look at a modified revenue base that could include REPLACING some of our sales tax revenue with property-value based taxes that better distribute the costs of operating our city to the ones benefiting from its services. This is especially true for fire protection.
6) Prioritize the city's water and sewer projects to ensure they are completed as approved by the voters. They will provide the city a net savings over time by reducing water loss and improving the overall efficiency of the systems.
7) Postpone ANY other non-critical expenditures until areas 1-6 are addressed.
My ideas are not new. They simply represent a common-sense approach to working through this financial crisis. Some things can happen quickly. Others will take many months if not years to fully implement. But without a fix and a solution, the future of Neosho will remain uncertain.
Let's work together to address these problems and get back on track to once again make Neosho the great city we know it can be.
I find it interesting that you only suggestion about getting out of the real estate business is the bond-betz fiasco...how about the church, the Frye and Gray building and associated building in that area? how about the property beside the new chamber office/across from library...designed only to be parking for a certain group...
ReplyDeletehow about more focus on saving money rather than thinking of ways to squeeze more out of the public...how about that unfinished parking lot where the city stupidly bought buildings on Wood Street for a parking lot no one ever uses...
I think the city has lots of cleaning up to do before they stick their hand out.
This is a total train wreck that big wigs created and now they want me to pay for...try again
Anon, unlike properties that were purchased with grants and other funds donated specifically for that purpose, the Betz-Bond land was paid for 100% with city funds. It's being financed by the Economic Development Tax. It's apples to oranges.
ReplyDelete1) Where would the money come from to replenish the funds that were misspent?
ReplyDelete2) I think it's already been demonstrated that you'll be hard pressed to get valid, accurate information on this. The past miscommunications and hidden activities are just a representation of the type of behavior you'll continue to deal with.
3) You should first start by getting back the $100,000+ salary by firing Jan Blase. That's one of the biggest drains on this city's economy and the citizens morale.
4) I don't disagree, but I see this as being a losing deal. Anyone interested in purchasing these properties knows the financial situation the city is currently in and will take advantage by lowballing the value. The city will end up buying high, selling low and losing money in the process.
5) Is your suggestion to raise personal property taxes? The increased water and sewer costs, which have almost tripled in the past 2 years, have already placed many citizens in a financial choke hold. Raising any taxes at this point is a bad idea as it is a strategy to save the town at the cost of it's citizens. What good is getting Neosho back from financial ruin, if everyone decides it's cheaper to live somewhere else?
6) Is there any determination at this point how much, if any, of the water/sewer funds were misspent? If this money was used for other purposes where is the money going to come from to replenish this fund?
First and foremost Jan Blase should be removed from his position. He has driven this town to the brink of financial ruin. If the city council really wants to demonstrate to the citizens that they want to make a change for the better, then firing Jan Blase should be the first step in your process. There is no longer any trust in his ability to manage this city.
perhaps you should talk with past councils and find out what the thought process was in creaating the sales tax, instead of blindly criticizing.
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ReplyDeleteI'm always open to having a better understanding of the why's and how come's of past decisions. But the sales-tax based revenue model is more sensitive to economic conditions, is more difficult to predict, and does have risks during times of economic slowdown. If our retail base was larger (like Joplin) and growing, I may be less concerned. But that's not the case.
ReplyDeleteThe reality is that sales taxes alone are not working for Neosho. Keeping a stable and properly-funded police and fire department must happen regardless of the economic environment. In addition, our fire department has to maintain equipment for companies like La-Z-Boy, Jarden, and even my company, Marco. But these companies don't generate (much) sales tax.
Richard, I appreciate you and Heather trying to find solutions to the city's problems but the only way to re-establish trust and get a property tax to start to right things is to fire Jan Blase which should have been done a long time ago. The Council's FAILURE was in paying no Attention to the citizen's voices and concerns.
ReplyDeleteJust as when A.W. Lavendar attended Council meetings and asked the question about where the money was coming from for some of the questionable expenditures, he was brushed off and insulted.
I so appreciate Heather's efforts to have more transparency in the city's operations !!
Destroy documents INDEED ??? Glad that didn't happen.
This city needed that First Baptist Church building like I need a new airplane.
I have heard nothing about the financing of the building onto the Senior Center but I do know that the one fourth of one percent sales tax (we passed for maintence and utilities) had only brought in a little over a hundred thousand and according to the newspaper, the city was supposed to have spent 650 thousand on it, so is there a loan on it also, to be paid back in payments as the taxes come in ?????????????? Even that was mismanaged as the contractor was not bonded and didn't finish the job and some of what they had done had to be done over. We built and equipped the senior center in 1990 for 311 thousand. The citizens of all of Newton County and some of the industries locally helped. It took a trmendous amount of work and some time but we, the citizens, did it on our own. Good luck- but you all know where you have to start to remedy the problems. Even with a good economy, it will take years and good common sense to put us out of the pit. There are some people with some good common sense out there but I wonder if they would want the hassle that will be before us now to recover. Hazel
It wouldn't take 15 minutes for many people in this town to cut some costs...starting with the city manager's salary, the financial officer's salary, the assistant officer's salary, end support of ED, fire all those city-paid promoters whose jobs are to fill the auditorium with profitable performances and plan festivals, give back-free and clear-the Betz-Bond property to save paying more on that (take the loss - it was a loss the day it was negoiated), etc. etc. etc.
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