LB - Mohave Community College 0418 summer16

Home | Real Estate Search | Classifieds | Place an Ad | Public Notices | Galleries | Obituaries | Subscriber Services | Kingman Digital | Contact Us
Kingman Daily Miner | Kingman, Arizona

home : latest news : latest news April 29, 2016


4/23/2013 6:00:00 AM
Another $700,000 slide expected in Kingman budget
Sluggish economy forces change in financial philosophy at City Hall
Jack Kramer
Jack Kramer
By the Numbers
Here's a summary of what Kingman's next budget might look like if the City Council formally OKs at a final public hearing in May the tentative budget hammered out Friday.

The two biggest departments, police and fire, will receive $7.4 million and $5.5 million, respectively, an increase over the current budget by about $200,000.

Parks and Recreation, pools and the golf course have the next highest budget at just over $400,000, an increase over 2012 of about $185,000.

This budget will likely see a dramatic decrease in 2014 when the city makes the final payment on Cerbat Cliffs Golf Course.

The office of the mayor and council has a proposed budget of $135,512, an increase of about $11,500 over 2012.

City attorney: $625,500, an increase of nearly $15,000;

Magistrate: $1.4 million, a decrease of about $8,000;

City manager: $234,949; an increase of about $11,00;

Tourism Development Commission: roughly $812,000, a decrease of about $59,000;

Economic Development Marketing Commission: $25,000, same as last year;

City Clerk: 280,640, an increase of about $9,000;

Human Resources: $602,600, an increase of roughly $44,000.

Finance: $820,500, a decrease of about $7,000 over last year;

Development Services: $1.1 million, a more than $59,000 decrease.



Doug McMurdo
Miner Staff Reporter


KINGMAN - City Manager Jack Kramer succinctly summed up the financial challenges Kingman faces as a stagnant economy continues to erode the city's bank accounts.

"We're trying to match today's costs with yesterday's revenue," said Kramer at a public hearing Friday regarding the city's preliminary budget for fiscal year 2013-2014, which begins July 1.

The city's general fund balance declined by $700,000 at the end of fiscal year 2012 and Kramer expects it to take another $700,000 hit when the 2013 fiscal year ends June 30.

The $1.4 million used to provide services is money spent beyond what the city collected in revenue.

Kramer said the bad economy has prompted the state and federal governments to keep revenue that was previously redistributed to the city. That, in turn, has left the city with serious revenue shortfalls.

The economic slowdown, said Kramer, has forced the city to essentially abandon the "growth-pays-for-growth" financial philosophy it embraced during the prolonged boom years.

Things could get worse if the Legislature completely reformulates how construction sales taxes are paid. Mayor John Salem has said having subcontractors pay sales tax at the point of sale could cost the city about $300,000 a year.

Also, the city a couple of years ago repealed local impact fees with the exception of wastewater in an effort to spur development.

Kramer said the city has been conservative in both spending and budget practices, but providing certain services and paying for manpower that was previously paid with state and federal grants that have largely dried up.

Grants that once paid for five Kingman Police Department resource officers at city schools, for example, are now paid entirely out of the general fund.

The city's grants fund is expected to shrink from about $6 million in 2012 to about $4.8 million in 2013, a decrease of roughly $1.2 million.

While the City Council voted unanimously to increase the sales tax by one-half-cent starting July 1, that measure is seen as a temporary fix until a permanent revenue stream can be identified.

The proposal is to create the revenue stream either through the implementation of a property tax or a fire district.

In the meantime, the city will struggle to provide essential services until the economic ship is righted.

Gas taxes, formally known as highway user revenue funds, or HURF, are the primary funding source for the city's street department.

Kramer said that funding is down about $500,000 annually, but it will increase by more than $600,000 next fiscal year, according to the report, to a total of about $3.5 million.

The timing is particularly critical for the city since capital purchases have been deferred as long as possible.

The city must replace police and fire vehicles, a KART bus, a public safety mobile data system and an automated fingerprinting system.

"We have continued to defer the automobile and equipment replacement programs in many departments," said Kramer. "And down the road, this may come back to haunt us as we are seeing now in the information technology area."

The city has also deferred investments into computer system upgrades and other costs of running city government.

With revenues shrinking, the city still has to struggle with funding its five-year capital improvement plan that now exceeds $200 million.



Click for home delivery with comics, grocery deals, inserts, TV listings, coupons and more

ICT - Mohave Electric WI_Power Boy 233x388

    Most Viewed     Recently Commented
•   Hard legal lessons faced by accused in home invasion case (3018 views)

•   20-year sentence possible for murder in Yucca (2026 views)

•   ATV rider the focus of a complicated rescue effort (1579 views)

•   McCain fundraiser arrested following drug raid (1231 views)

•   Alleged theft among counts returned by grand jury (1197 views)



Reader Comments

Posted: Wednesday, May 1, 2013
Article comment by: Patriot WES

I'm still trying to figure out when the economy was good in Kingman! What did they do differently then as compared to now? For a city that has no property tax, they want everybody else to pay for their city, they get what they deserve!

Posted: Tuesday, April 30, 2013
Article comment by: Anson's Nephew

Frankie

“I am sure in your leftist mind, anyone against increased govt. spending is a ‘rightie.”

Well based on the fact that you consistently claim that only “lefties” want to see tax increases then it stands to reason that anyone against a tax hike would be a rightie. Simple logic.

“But let's put that aside for the moment.Just how exactly do you know that someone calling themself ‘Schools need to pay For the resource officers’ is a ‘rightie?”

Here is what the person posting said, “The residents of Kingman should not have to pay the cost of the schools wanting these resource officers.” Now, go back and read paragraph two above. See, logic 302.


Posted: Tuesday, April 30, 2013
Article comment by: V Stokes

@Course Will Always Be a Cost Item
You are probably correct..it may indeed cost money...but then, so do all the other parks and recreation programs.

You do know they just adjusted the fees upwards last year? I think it was last year. Minor increases for students and juniors, slightly more for locals, and quite a bit for out of region. That's by memory...can't find the article I saw it in right now.


Posted: Monday, April 29, 2013
Article comment by: Course Will Always Be a Cost Item

Cut E, do you really believe the golf course will ever be a profit center. I'm sure they are already licking their lips thinking about lowering the greens fees for those poor, poor golfers.

Posted: Monday, April 29, 2013
Article comment by: Just Follow the Money

Oh, it just dawn on me why the city is paying for increase school resource officers. It's so they can include KAOL. Think about it - if the city said no it would be forced on the school districts. And where do you think all the kids go that make the decisions in this town - BINGO.

Posted: Monday, April 29, 2013
Article comment by: Curious Minds Want to Know

So we're paying $1/2 million a year for cops in schools? Why didn't I hear about this?

Posted: Monday, April 29, 2013
Article comment by: Do We Have Our Priorities Straight

Compare the Tourism budget with the Economic Development Budget.

Posted: Monday, April 29, 2013
Article comment by: An Never Ending Supply

Now, now Richard, we leave. It's just that new ones take our place.

Posted: Monday, April 29, 2013
Article comment by: Frank Lee Speaking

@ansons nephew

"Trying to keep up with the righties is more than a full time job."

I am sure in your leftist mind, anyone against increased govt. spending is a "rightie". But let's put that aside for the moment.Just how exactly do you know that someone calling themself "Schools need to pay For the resource officers" is a "rightie?


Posted: Thursday, April 25, 2013
Article comment by: Richard Kale

I love it, If this city is so bad off, how come I never see all you complainers lining up to run for one of the city offices. The way you coment, each and everyone of you could do a better job than what we have now. Every now and than I see a post about "leave if you dont like it", but I have yet to see any one of you leaving. I guess, no matter what, you will still stay here. Besides putting in a coment gives you somthing to do.

Posted: Thursday, April 25, 2013
Article comment by: Just Cares

If the good ole boys running this city would have not always given large businesses that wanted to come in a chance instead of just another hamburger joint, maybe things would not be this bad.....but of course there are a lot more issues than just this but it would be a start.

Posted: Wednesday, April 24, 2013
Article comment by: yours, mine and thiers MR. C

A quick fix is not the way to address lost revenues, Several comments already suggest some thing that need changing. Allow me to add one more, do not try selling off public property as a supplement source of revenue for the city. The average citizen will lose and the good old boys will win.

Two proven actions that have been counter productive & contribute to a city's reduce growth and decline, have been the lost of schools, places to shop & buy your everyday needs. Loss of your general population is tied directly to both, you certainly do not want to give the public one more reason "not" to live somewhere.


Posted: Wednesday, April 24, 2013
Article comment by: Get a Clue

@Palmer

Good thing for Kingan you were not voted on city council. You have no clue as to who improves the economy. IT IS CONTRACTORS!!!!!!!!!!!!! They locate new business and they build. New jobs!!

The golf course is an asset. It brings doctors and educators - value to the community.

What is good ole boys stuff?

@ Foxhound

Do you know what the average salary is for government workers in this area? Kingman is the lowest. Do you want trained police and firemen going to Bullhead, Havasu or DPS after your tax dollars trained them?
What new building did the City build recently?


Posted: Wednesday, April 24, 2013
Article comment by: Resident Joe

It always makes me laugh to read these comments. Janice, the City Manager does not make that. That is his budget for his department. Take a look at a budget book and see what that includes. It really gets old listening to you spout off about stuff you know nothing about. You will never win an election (including the one you falsely claim to have won in Nevada).

Posted: Wednesday, April 24, 2013
Article comment by: vock canyon

$812k for adversting/tourism budget? cut it......

Posted: Wednesday, April 24, 2013
Article comment by: vock canyon

Why are "ANY" expenses increasing? They need to match the "decreasing" income. What part of depression can't be understood? The budget needs to be cut hard, this means that the golf course needs to be shut down or paid by it's users. Cut "capitol improvement" just do maintanance. Stop buying new cars, don't replace them. Stop furnishing cars for employee's to drive. Cut expenses, cut expenses, cut expenses. What was added, now must be cut!!!!

Posted: Wednesday, April 24, 2013
Article comment by: Cut Expenditures

Many cuts could be made - just some of the following: Once a week trash pick up - Only major city in Mohave County with twice a week pick-up. Bring new hire salaries in line with other cities in Mohave County. City Manager paid more than Lake Havasu City, Flagstaff. No new "Fire District". Schools assume Resource Officers funding, Reduce number of city employees with city vehicles. Reduce number of workers from current 6 who spread asphalt on cracks to 3-4. A new Kart bus?? Really - doesn't the county pay some since the service is primarily in county area. Cut staff in water dept collection. Can now pay with credit card, so now the staff takes the information. Go to on line bill pay like the rest of world goes. LEAVE THE GOLF COURSE ALONE - when it is paid for this year the city will grab the funds from the profit and spend it somewhere else. No Property Tax.

Posted: Wednesday, April 24, 2013
Article comment by: Dean Wolslagel

Hey.... heres a great idea lets just hire a new City manager with only a high school diploma and who has no education in city finances or public administration and lets all go play golf and drink till we forget all about the real world ! Oh ...sorry we did that already !!

Posted: Tuesday, April 23, 2013
Article comment by: Anson's Nephew

“The residents of Kingman should not have to pay the cost of the schools wanting these resource officers.”

Hey, hold a minute! Weren’t we just having – a few weeks ago – major discussions about having a police presence in the schools to “protect the children?” And now all of a sudden “protecting the children” is no longer important because it costs us money?

Trying to keep up with the righties is more than a full time job. They flip and flop more than a catfish pulled into a boat.

I still favor my proposal of just disbanding the city and doing away with all services. With the constant whining about taxes here it only follows that the people of Kingman do not want a city – I have no idea what the resulting mess would be, but at least it would all be tax free.


Posted: Tuesday, April 23, 2013
Article comment by: Concerned Patriot

Lets not forget how much tax dollars pay for them to ride around in brand new fully overly equiped vehicles. We have Several new tractors Ive noticed parked because it was a no brainer to buy it but now..lol. They cant afford to run it. Im sure there are some dirt road County citizens out there that have not seen a scrape in some time.Then you throw up some new buildings and boom bam your broke. I smell several tax hikes coming.

Posted: Tuesday, April 23, 2013
Article comment by: What the heck

Why does human resources need $44,000 increase. They are not that large of a department. Does the director need another wage increase? Council wines about how much money the city doesn't have but yet they increased their budget. The employees haven't seen a wage increase for years now, but yet they're benefits keep getting hit one way or another. The city manager gets a pay increase again and the employees still won't see one. Jack you always make sure you take care of yourself. Where is the honor in our government?

Posted: Tuesday, April 23, 2013
Article comment by: Thai Mai Shu

9 of 13 departments had INCREASES.

Maybe the story should be how the other 4 departments had decreases in their budgets and still provided services without cutting back on hours?

@ The Fox Hound.....The City of Kingman isn't building any new buildings. You are speaking of the County.


Posted: Tuesday, April 23, 2013
Article comment by: Steve McCall

"Also, the city a couple of years ago repealed local impact fees with the exception of wastewater in an effort to spur development."

Let's shut the barn door after the horses have run out. I never quite got a clear explanation of what the impact fees were used for, they obviously had nothing to do with neighborhoods where construnction was going on. I live in a subdivision with no streetlights or sidewalks, like most of Kingman!
I remember awhile back Lowes wanted to build beside the Library, but the price on the lot was raised because it was being sold for commercial interests and when Lowe's offered to buy half the lot, the city said it is all or nothing so Lowe's chose nothing.
I think our city leaders need to take a step back and see that Kingman would be an ideal place for many businesses and offer incentives that will draw them in instead of making it nearly impossible for any business to come here!


Posted: Tuesday, April 23, 2013
Article comment by: janice palmer

try cutting out the useless projects supporting contractors. you know...sweetheart contracts? good old boys stuff. lose the golf course. and theres no reason a city manager should make so much money. its obscene. my opinion. Janice palmer

Posted: Tuesday, April 23, 2013
Article comment by: justanobody sr

its pretty obvious to me, that more cuts are needed NOT increased tax methods!
we ( the people) are broke too, you just cannot continue to increase taxes, and expect people to accept it.



  - Page 1 -  Page 2



Article Comment Submission Form
Comments are not posted immediately. Submissions must adhere to our Use of Service Terms of Use agreement. Rambling or nonsensical comments may not be posted. Comments are limited to Facebook character limits. In order for us to reasonably manage this feature we may limit excessive comment entries.
Submit an Article Comment
First Name:
Required
Last Name:
Required
Telephone:
Required
Email:
Required
Comment:
Required
Passcode:
Required
Anti-SPAM Passcode Click here to see a new mix of characters.
This is an anti-SPAM device. It is not case sensitive.
   


Advanced Search

HSE - We want to hear from you
Kingman Chamber News
House Ad- Dining Guide
Auto Racing Upickem
Find more about Weather in Kingman, AZ
Click for weather forecast






Find it Features Blogs Milestones Extras Submit Other Publications Local Listings
Real Estate Search | Classifieds | Place an Ad | Find Kingman Jobs | Kingman Chamber | e-News | Contact Us | RSS | Site Map
LB - Auto Racing Upickem

© Copyright 2016 Western News&Info, Inc.® The Kingman Daily Miner is the information source for Kingman and surrounding area communities in Northern Arizona. Original content may not be reprinted or distributed without the written permission of Western News&Info, Inc.® Kingman Daily Miner Online is a service of WNI. By using the Site, kdminer.com ®, you agree to abide and be bound by the Site's terms of use and Privacy Policy, which prohibit commercial use of any information on the Site. Click here to email your questions, comments or suggestions. Kingman Daily Miner Online is a proud publication of Western News&Info, Inc.® All Rights Reserved.


Software © 1998-2016 1up! Software, All Rights Reserved