Specifics on being "fiscally responsible” and having a “balanced budget"

[Robert Baird]

I want to thank all who attend the "Meet the Candidate" event tonight. It was a great opportunity to get to know us candidates.  

In reviewing what was said, there is one thought I have. Often we, the candidates, are asked for specifics about what we will do to address issues such as our city’s budget in 2 minutes or less. This is okay if you have a two minute answer but our problems and solutions need more than a two minute answer can convey. In this post, I would like to address being “fiscally responsible” and having a “balanced budget” in a little more detail.

My MBA, masters degree in finance, experience consulting other companies, and running my own business, have taught me many valuable lessons and given me vital tools.  With the help of the city manager and his staff, my top priority when elected to city council is to analyze each city department and city project with respect to its profitability.

Some things in a city may never turn a profit; and that is okay as long as we know which departments they are and as a city we are willing to always pay for such things. However, like I have mentioned before, in learning from my wife early in our marriage my, “Plan A” and her “Plan B” are not always right; we need instead to work together to find the “Plan C”. A great example is the golf course and the new pool. Currently, neither makes a profit and in the foreseeable future each will cost the city money every year.

A few years ago, the city and the city council decided to spend $9 million, $7 million on the new pool and $2 million on the golf course. My family and I love both, but I ask what things could have been done or can still be done to make both profitable? Let’s say it would only cost another $2 million to enclose or put a dome on the pool. Such a change would open the pool to 3 times the revenue as it would then be open 12 months instead of 4.  Maybe we should have spent all $9 million on the pool first to make at least one profitable. Then after saving the earned money from the pool, attack the golf course; doing what is needed to make it profitable.  In the end, instead of two projects being a drain on the city, they could both make money, which we would then spend on city infrastructure.

Those of you whose families have lived here forever know that the problems our city is facing with its infrastructure have been around a long time. I can promise they will still continue to be around unless we do something different and innovative.

In business, I have learned and come to rely heavily on these types of business tools and projections. I feel such experience is needed in our city. We can not reactively run our city or we will never get ahead.  We need long term thinking, planning, and strategizing with perceptive weekly decision making at each city council meeting.  I feel my business experience and knowledge would complement the city council very well in getting what we need done.

What are your thoughts?

[A Bit of Truth]

I kind of hope they are not turning a profit - maybe I missed it, but Payson City is a non-profit organization. This is always a concern when people claim they are going to "run the city like a business." The city is not a business, it is government - non-profit. I don't want the Police making a profit, I want them to protect me and my family and I am willing to pay for that. I don't expect them to have a bake sale, just protect me and I will pay them to do it. Kind of like an eye surgeon. I don't look for the cheapest doctor, I look for the best before operating on my eyes. Some of the services the city provides are life and death - public safety, clean water, sanitary sewer - I don't want cheap I want good.

I realize we have a Golf Course, Power Department and Water Department to help pay the bills. In these instances they should make money or be disolved. But the general fund isn't intended to be profitable.

[Robert Baird]

You make a very good point, which I am glad you brought up. There are different dynamics when you bring in public safety and public works. There are things in a city we will always do not because it makes money but because those are the core responsibilities of our city governments.

The reason I believe in engaging in things outside of these core city responsibilities is to make money to further the core. If we are more fiscally responsible, then we can expand our services and improve our communities.

A great example of this was displayed at city council this last week. The city wants to improve its aging computers and networks.  The city recently realized over a hundred thousand extra dollars by selling off some of it extra capacity at our power plant.  A plan was presented to spend this money to help upgrade the city computers and it networks. A small portion was for actual computer upgrades, which I fully support. Over one hundred thousand was asked for to connect the city's buildings together with a fiber optic network. This would allow the city to share a $150 a month internet connection along with a few other things. To me it does not make common sense to spend over a hundred thousand dollars to saving a few hundred dollars a month on internet connections. The current city council was a bit uncomfortable but didn't know how to act; rather then give advice or ask for specific information they put the decision off get us all now where. I want more for us.

I would have been very specific and asked those requesting the money to come back in two weeks with a clear and convincing break down of why it was worth $100k+.  There are things that may make it worth it, but that direction was not given.  I am afraid the city will spend the money without asking why.  I feel the money could be better spent in a hundred different ways like upgrading our ambulance service from an on call service, where our first responders have to travel from their work or home to the ambulance and then to the site, to having someone always on call ready to go immediately. Or let’s pay our police officers more so we can maintain the best fleet possible to keep our neighbor hoods safe. In spite of the growth Payson has had over the last decade there has been no increase in the size of our police force.   I feel we can only make headway in such things if we apply true business principles to the unique situation of city governments.

[spider]

The golf course bond was to be paid off by the selling of twin home lots (about 34 of them) to a home builder where now the RV's now park.  The City Manager at the time told the Council in a closed door session that the deal had been done (sign sealed and delivered) well it turned out he missed represented that.  The builder backed off and here we are now in a housing depression.  It will come back and the bond can still be paid off in that way.
Open the Pool on Sunday and bring in more revenue.  Thats a no brainer but the LDS will come out screaming.  Well with 20,000 people in the area not all of them are Mormon.   Cut wages and perks.  You can find hundreds of thousand just in travel and training.  And I don't mean mandatory training.  The Mayor and Council should trim as well.  You should be able to cut.  The last City Council cut the fun money and this sitting one put it all back.  About $95,000.00 of fun money was cut a little over two years ago.  Their is enough money in garbage these days to turn big revenue dollars from the 365 acre land fill.  Thats where the money will be found if some one will get off their duff and develop it.
The pit is owned by the Woodberry Corp.  they will develop it into businesses as soon as this depression is over.  They just want more roof tops before they start.  That deal was done 5 years ago and it was a good deal for Payson at the time.  Yes to be fiscally responsible is a must.  A balanced budget a must.
Good luck sir come Tuesday ,and my hat is off to you for wanting to get Elected.