Cut spending or raise taxes?

Omaha residents sent mixed signals Tuesday night on how Mayor Jim Suttle and the City Council should solve the city's financial woes.

Some said elected officials should raise taxes, not cut services.

Others said that taxpayers already pay too much and that more budget cuts are necessary.

In short, there was no consensus on how the city might climb out of its financial hole.

“I have cut back, coupon-clip and eat ramen noodles,” Christopher Bettini told council members at a public hearing on Suttle's proposed 2010 budget. “If I wasn't doing that, I wouldn't be able to survive.”

Bettini, who works in the restaurant industry, said that if anything, the city should seek authority to raise the sales tax to balance the budget.

He was one of more than 300 people who turned out for the council's public hearing at the City-County Building. The hearing lasted about four hours as dozens of residents signed in to voice their opinions on the budget.

Suttle did not attend, but all seven council members did. They listened to the remarks without commenting.

“I think it's good for us to hear,” Councilman Pete Festersen said during a break.

Although libraries and other services drew strong support, Festersen said he thought the common theme for many average citizens was their opposition to tax increases.

Council members are cool to Suttle's proposed entertainment tax and property tax hike, and they are looking for ways to cut spending further. They are set to vote on the budget Sept. 1.

Suttle and the council face a projected $11 million shortfall next year. The mayor also is trying to close a $12 million revenue gap in the current budget.

The hearing followed weeks of bad news on the city budget: The temporary closing of Florence Library, and cuts in library hours at other branches. Layoffs of 130 civilian employees. The grounding of the police helicopter for the rest of the year. Swimming pools closing early for the season.

Earlier Tuesday, Suttle announced furloughs in the Mayor's Office, saying all members of his staff will take eight unpaid leave days before the end of the year.

Omaha Together One Community called for higher taxes rather than service cuts, saying the entertainment and property tax proposals were “fair, necessary and transparent,” said Allan Howick, a member of the group.

Instead of higher taxes, public works employee Bibiana Decker said, city officials should cut the Fire Department's budget.

“Civilian employees are vital to the city,” she said. “If we are all equal, why isn't the Fire Department helping out?”

The council recently considered repealing an ordinance mandating minimum fire staffing.

Doug Kagan, chairman of the Nebraska Taxpayers for Freedom, urged the council to cut spending.

“Don't tell us about sacred cows that cannot be touched. Sacred cows make the best hamburger,” Kagan said.

Larry Richling, who runs several businesses in the hospitality industry as owner of the Keystone Group, opposed the entertainment tax, saying the economy has already harmed his business.

Suttle has said he would exempt nonprofit organizations from the tax.

Said Richling: “I'm non-for-profit because I'm not making a profit right now. I want to make a fair buck.”

Jane Erdenberger, a teacher at North High, said she was willing to pay an entertainment tax in order to fund services that make Omaha a good place to live.

“We have a wonderful city,” she said. “I, for one, am willing to pay for it.”

Others made a special plea for the city's libraries.

“This is really big, folks, and I really need you to think about this,” city librarian Amy Mather said of the library cuts.

Ernie Boykin also worried about youth services like the Sun Dawgs summer recreation program, which was shut down early this summer because of budget problems.

“What are these young people going to do?” she asked council members, adding that the city would “have to create more jobs for police officers because they'll be chasing these kids down.”

Suttle spokesman Ron Gerard said he was not surprised by the mix of opinions at the hearing.

“I think it shows the difficulty of trying to come up with enough money to balance the budget,” he said. “The answers aren't simple.”

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