Suttle hears skepticism on spending

Omaha Mayor Jim Suttle stood at the front of a lecture hall Wednesday at Westside High School, trying to teach a crash course in City Budget 101.

His students were the nearly 300 Omaha residents who filled every seat, spilled into the aisles and clustered around the doorways to hear Suttle and city administrators discuss his 2011 budget proposal.

For the most part, audience members raised their hands like good students and took turns asking questions. But they were restless about some of his spending and tax plans. Some threw verbal spitballs, and a lot of them clearly didn’t think their teacher had all the answers.

“How can we trust you and your current staff to spend even more of our money wisely?” demanded one man.

Wednesday was the third of Suttle’s four scheduled budget forums, and it drew more than the first two combined. A final session is scheduled for Monday at South High School, 4519 S. 24th St., from 6:30 p.m. to 8 p.m.

Suttle is holding the public sessions to explain the city’s financial challenges and describe his budget proposals, including three tax hikes.

He wants to raise the city portion of the property tax rate by 9 percent, boost the wheel tax by $23 per vehicle, and add a new 4 percent tax on restaurant food.

The tax proposals drew sharp opposition, with some people saying they couldn’t afford any increase.

Rich Barmettler, president of the Omaha Restaurant Association, took issue with the proposed restaurant tax, saying it would drive some establishments out of business.

But the heat Suttle took at Westside wasn’t entirely based on anti-tax sentiment.

Instead, the opposition he faced in questions and audience catcalls seemed to be based more on concern that the extra tax money would be squandered on excessive pay for city employees, lavish pension benefits and unnecessary spending.

“We can’t afford these gold-plated pension benefits,” one man declared.

Suttle agreed and tried to explain that he was negotiating a better deal for the city’s taxpayers. Among other features, he said, the retirement age for new police officers would rise from 45 to 50. Future contracts could take that even higher.

He might as well have announced that every police officer now gets a free Lexus.

“Who retires at 55?” a woman blurted loudly.

“Not good enough,” someone else complained.

People in the audience talked about living within their own tight budgets, or how they cut salaries 10 percent in their own businesses. Their point: Why can’t the city do the same?

Suttle attempted to explain how he can’t simply choose to cut pay or benefits for city workers. State law requires him to negotiate those changes with employee unions, who have the right to seek a better deal through the State Commission of Industrial Relations.

In response to one questioner, Suttle said the city can’t simply declare bankruptcy like General Motors to get out of its pension obligations, because Omaha wouldn’t be able to argue that it is unable to pay. A judge would point to the city’s ability under state law to raise the pension money through higher property taxes.

Afterward, Suttle said he realizes that many people think he should be making sweeping cuts in employee compensation.

“But that’s unrealistic,” he said. “Not a single person on this planet can promise that.”

Suttle said the only way to curb salaries and benefits is at the negotiating table, which he said he is trying to do.

“We’re not getting the message out,” he acknowledged.

While critics were more vocal, some people expressed support for Suttle. They said he was trying to deal with some long-standing city problems.

One man said he didn’t oppose Suttle’s tax hikes as a way to balance the budget.

“The fix seems feasible,” said Joe Trummer, co-owner of Centaur Electric.

Still, he wondered whether the taxes really would set the city on firm financial ground as health care expenses and other costs keep rising. “What will next year bring?”

Contact the writer:

444-1114, paul.goodsell@owh.com

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