"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.