Mayor Pulls Property Tax Hike, Cites LES Rate Increase
Mayor Pulls Property Tax Hike, Cites LES Rate Increase Save Email Print
Lincoln, Neb.
Posted: 1:49 PM Jul 10, 2008
Last Updated: 6:42 PM Jul 10, 2008
Reporter: Jason Volentine
Email Address: jason.volentine@kolnkgin.com

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"I can no longer support the propose city budget of property tax increase." That's the word from Lincoln Mayor Chris Beutler just days after he said he would push to raise property taxes.

While Beutler said he would drop his tax increase proposal, Thursday LES came forward saying they are going to push for an increase. The increase has been blamed on the cost to purchases and deliver energy. LES said that would create a $9.3 million shortfall.

The mayor also said he will oppose the proposed rate increase by LES.

Exactly one week ago, Beutler said the budget couldn't be balanced without a property tax increase that would raise $1.5 million after finding out about the LES rate hike, Beutler said he could, not only, no longer support the increase but will also oppose the LES rate hike.

LES officials say the mayor is using them as his political scapegoat to back out of his property tax hike.

"We just stem the bleeding in the budget and preserve the greatness of our city," Beutler said.

One week ago, Beutler said pools, libraries and school resource officers were in danger of disappearing if the city didn't raise takes.

"I can no longer support the proposed city budgeted property tax increase," he said.

After learning Thursday that LES wants to raise its rates an average $108 per customer starting in September, he's backing away from not only his property tax, but also saying he finds the LES rate hike unacceptable.

"I will not approve the 11.8 percent increase. If LES needs additional revenue, they muse due as the mayor and Lincoln City Council have done, and show significant budget reductions," Beutler said.

But LES officials say budget reductions have already been done.

They're looking at a $9.3 million shortfall due mostly to a 45 percent increase in the price of energy they purchase for one-time uses.

LES CEO Terry Bundy said they believe Beutler is now using them as a scapegoat for his politically unpopular property tax increase. He said they've reduced both serviced center staffing, as well as other non-essential services to meet budget concerns now.

"When I met with the mayor, I expected him to respect the established public review process and that goes on through the LES administrative board rather than jumping the gun to make LES a scapegoat for city budget issues," Bundy said.

He said they've reduced service center staffing and other non-essential services.

"I take some offense to the mayor's coment that LES has been fiscly responsible," he said.

Regardless, Beutler said his decision has nothing to do with politics, and everything to do with helping the average citizen, plagued by rising costs of every day life.

"The government must be willing to sacrifice before we can ask the community to sacrifice," he said.

Beutler has promised to veto a tax increase, but Bundy said the mayor doesn't have that power. He said only the city council can approve or deny a rate increase.

He said if the city council doesn't approve some kind of rate increase the situation could get worse, because most energy is purchased on loan.

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Posted by: Concerned Location: Lincoln on Jul 12, 2008 at 10:32 AM
Seems to me, we could go a long way in budget reduction by reevaluating the employee retirement matching funds level. I understand employees participating get a 2 for 1 matching from the employer. That is 2 dollars from employer for every 1 dollar from employee. That is just insane and unheard of in todays economy. Most will match a portion of the dollar, some will even match dollar for dollar, but not 2 for 1. All city employees have this. Time for a change maybe?

Posted by: OMG Location: Lincoln on Jul 11, 2008 at 05:24 PM
LES is a fat spoiled bloated enity. What, they need more money to buy more trucks to have more employees spend more time sitting in them. They are fooling no one. Everyone see's this throughout any given work day. Everybody else has to cut the fat and restructer and they just keep wanting more. I used to work there and believe me, NO ONE there is over worked. Compare them with other cities our size for number of employees and let the facts speak for themselves. City Council needs to grow a back bone and overhaul that mess from top to bottom. Retired and glad

Posted by: Wondering Location: Nebraska on Jul 11, 2008 at 04:15 PM
One way to balance the budget may be to not grant big raises to city employees. For years I've only received a two percent raise a year--with their high executive salaries, I'm sure even a two percent raise would be more than adequate--let them see how many of us are forced to try to survive.

Posted by: struggling Location: Lincoln on Jul 11, 2008 at 03:12 PM
I don't understand how or why LES needs more money. We pay such high electric, gas, and water bills here in Lincoln it is crazy. My family is from Fremont and there utilities are not near what we pay here. We struggle every month to pay our bills. Everything keeps going up but pay stays the same. I'm not sure we will be able to continue making our house payments.

Posted by: Mark Location: Lincoln on Jul 11, 2008 at 11:46 AM
Yes the Mayor is opposed to the LES rate hike, but he alone can't stop it. LES says they need this and it figuers about $100 per year per household. So, $100 per home x a population of 230,000 = $23,000,000 a year for LES!!! GIVE US A BREAK YOU GREEDY UTILITY COMPANIES!!!

Posted by: DJ Location: Lincoln on Jul 11, 2008 at 10:02 AM
I would like to know why LES needs more money when they charge your bill a surcharge every time in addition to what your monthly useage charge is and we were told this was due to the ice strom last year and it would go away after awhile. How are people suppose to make ends meet when prices keep rising? The average person cannot afford this all the time. We need to find a better solution to the problem instead of raising prices and rates to compensate for over spending. I know as a consumer, I'm tired of paying for people not managing their budgets and money.

Posted by: Fred Location: Lincoln on Jul 10, 2008 at 05:33 PM
We live in one of the blighted areas still reeling from the 5% LES increase to pay for million dollar homes in south Lincoln a couple of months ago. Another 12% increase for what? Most of their fleet of vehicles is powered by natural gas conversions. We are so poor our neighbor robbed a bank on a 10 speed. Not to mention we were charged 18$ per house extra for last months power outage. Replace my 1850's high tech infrastructure that hasn't been serviced in 40 years and then talk rate increase.

Posted by: Suzanne Location: Lincoln on Jul 10, 2008 at 04:13 PM
I would have paid his proposed tax increase with no issues. I don't mind paying my city taxes, it is the astonomical school taxes that make me angry.

Posted by: Taxpayer Location: Lincoln, NE on Jul 10, 2008 at 03:53 PM
Thank you for the tax increase. While attending UNL, my business profs would tell us that cuts only hurt worse in the long run. It's about time.

Posted by: Marie Location: Lincoln on Jul 10, 2008 at 03:23 PM
I am extremely grateful that the Mayor is saying that he will not approve the 12 percent increase that LES is asking for. LES has continued to raise prices and fees without making any personnel changes within for as long as I can remember. It's has gotten out of control and I am glad that Lincoln finally has a mayor that listens to those who live and work in this community.

Posted by: Sam Location: Lincoln on Jul 10, 2008 at 02:57 PM
Thank you Mayor, for listening and reconsidering.

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