Hillsboro mayor vetoes city tax budget
Lead Summary
By
Brandy Chandler-brandychandler@gmail.com
Hillsboro Mayor Dick Zink has vetoed the city's tax budget, which was passed by a 5-2 vote during the August council meeting this week.
Zink told The Highland County Press Friday that "The problem with it is that it's unreasonable to reduce expenses by $912,000 to make up a $116,500 shortfall, the same thing I stated the other night. The people of Hillsboro deserve better treatment than that. I don't see why government is to squirrel money back when it is to be used on things to benefit the citizens."
Zink had questioned Hillsboro Auditor Gary Lewis on those figures during the tax budget hearing, held prior to the Aug. 12 council meeting. Zink asked Lewis to explain an area of the tax budget in which total estimated revenue for 2011, shown at $4,783,425, was $116,500 less than 2010 estimated total revenue, shown at $4,899,925.
"Then I go back to total expenditures, and according to this, that's $922,984 less," Zink said. "I guess my question is ... if we're going to be $116,000 short, why are we taking $922,000 out of the budget? I just don't understand that. ... Well, I guess if I was a taxpayer ... well, I am a taxpayer," Zink said. "If I was a taxpayer out here and looked at (the city) cutting services to equal $922,000 to save $116,000, I'd have a question for that."
The city of Hillsboro had been facing a deficit by the end of 2011. The projected deficit had been as high as $730,000 and as low as $164,000 in recent months. In July, council voted to have the auditor prepare the tax budget so that there would be a carryover between $400,000 and $450,000 into 2012. The finance committee also has a pending recommendation to cut 10 percent across the board in the general fund for the months of September to December 2010.
Following Zink's questions during the tax budget hearing, administrative clerk and Hillsboro resident Kirby Ellison questioned Lewis extensively on the budget, asking specific questions on figures from the current, and previous tax budgets. Lewis told her that they could meet at a later date when he had the figures in front of him and he would explain the numbers. During the exchange between Lewis and Ellison, Lewis told her he felt she was playing a game of "gotcha," and Ellison said there was "$600,000 unaccounted for" in budget figures.
After council voted to pass the tax budget, Zink questioned Hillsboro Law Director Fred Beery on how to veto the legislation.
"If I don't agree with this, and Mrs. Ellison doesn't get her questions answered that she asked tonight, or tomorrow at the meeting, how can I veto this ordinance?" Zink asked.
"If I don't agree with this, and Mrs. Ellison doesn't get her questions answered that she asked tonight, or tomorrow at the meeting, how can I veto this ordinance?" Zink asked.
Beery said the statute provides that all ordinances and resolutions are submitted to the mayor, and he has 10 days to consider them. Zink said he understood that. Beery said he didn't need to have a denoted signature line, he could sign it or not sign it.
"I have to at that time be able to write my objections," said Zink. "If we get the answers she's looking for tomorrow, then there won't be a problem. But if she doesn't get the answers she's looking for, there will be a problem."
Zink told The Highland County Press Friday that Ellison's questions were answered to her satisfaction, however, "I did veto the legislation. I think it is asinine to take $600,000 out of a budget to save $116,500 so people can stand around and say, 'Look what we done.'"
Zink said that during the independent audit of the city's finances, "Every year it shows we have spent less than the budget appropriations."
Lewis told The Highland County Press on Friday that in regard to Zink's questions, "You can't stop midway on the equation. You also have to include - and these are things I pointed out to him Monday - the rest of the way down the equations. In order to achieve the goal of council, you simply can't stop midway or things don't add up. You have to appropriate $290,000 more than expenditures and the unencumbered fund balance must be at least $350,000, and an ending cash fund balance must be approximately $640,000, after the estimated $200,000 in year-end encumbrances are taken out in for the $450,000 fund balance to result. There are many variables that affect that final outcome, and it is disseminated on the tax document and that shows what has to be done in order to achieve that. That is what I prepared for them, as they requested."
Zink said that the impression was given that during the tax budget hearing Ellison was accusing Lewis, and "It just kind of looks bad. She was not shooting at him for being short (in budget dollars). There was a discrepancy between the two reports, and she got her answer for it."
"I spoke with Lewis on Wednesday, I really I think he was going to report back to council," Ellison said.
Ellison told The Highland County Press that she was reluctant to comment, and she felt the events during the tax budget hearing were "blown out of proportion."
"Yes, he answered my questions. I'm satisfied," Ellison said. "I never accused him of doing anything with $600,000, in the reports it is that way. He was just able to give to me where it was. I was not attacking him. It was a public hearing and usually people asked questions and people explain what is being presented and that is what it is about."
Lewis said he felt that he was attacked during the tax budget hearing.
"I feel it was premeditated, and the evidence that I have seen indicates that, especially when as early as last Friday, (Aug. 6), she had presented these questions to Peter Pence, the finance committee chairman, and Peter told me that he specifically requested she go to my office and ask those questions for clarification. She had Friday, and all day Monday, and I never heard anything from the mayor and I never heard anything from Kirby. Yes, indeed, I do believe that was a setup, and I do continue to believe that."
With the tax budget due to be turned into the Highland County commissioners by Monday, Aug. 15, council may have to call a special meeting to address the veto. The city has already filed one extension in turning in the tax budget.
When asked what happens for the city at this point regarding the veto, Zink said, "Well, council comes back in 10 days and overrides the veto. But I want everyone and his brother to know that I think this is a silly thing to do, and at this point, I'm not blaming the auditor. He did the model council directed him to. To me (the model council requested) is ridiculous."
Council President Lee Koogler said Friday, "If (Zink) has found a way to effectively veto the tax budget, council will have to make a decision in whether or not to override the veto, and we will have to have a special council meeting."
Koogler said he had spoken with Hillsboro Law Director Fred Beery who indicated he was not certain the mayor could veto the tax budget legislation and had informed Zink of that. With the late date in which the veto was issued, Koogler said he was not certain council could set a special meeting before Tuesday.
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