Brent Hinson wants the City of Webster City to think carefully about taking on new expenses in the coming years, and that’s not the best news for people who support a new building at Wilson Brewer Historic Park or the proposed splash pad.
Brent Hinson wants the City of Webster City to think carefully about taking on new expenses in the coming years, and that’s not the best news for people who support a new building at Wilson Brewer Historic Park or the proposed splash pad.
“Here in central Iowa there’s always more demand than resources,” he said.
Hinson, of Hinson Consulting, LLC, suggested that the city needs to have a realistic idea of what the community is willing to pay in ongoing costs for either project, though he was specifically referring to a proposed additional structure at the historic park when he made that comment.
His opinions were the centerpiece of the special meeting held Monday evening by the City Council.
“Now is a good time to be looking at this,” Hinson said conversationally, referring to his multiple-page report that looked at the city’s financial condition and made suggestions for going forward.
His report was more terse:
“The reality is that the City has available resources in property tax valuation and sales tax that are average at best for a community of your size.”
Hinson did not paint a picture of doom. Instead he created an outline recommending a higher level of long-range planning and a tighter hand on the purse string.
“You want to provide services, but you want to stay financially strong.”
Regarding the proposed splash pad, he said, “when you have something like this come up, you need to understand the operational costs.”
He added, “You could have some impact on your pool revenues.”
Then he suggested that the City reach out to other communities that already have a splash pad to learn more about their financial impact and “not create big issues for your budget going forward.”
Here are some excerpts from the report:
. When it comes to valuation times tax rate, “really you guys are pretty much in the middle.” The city’s tax rate is $602 per capita. “While the City’s tax rate is higher than the average of comparables, the overall tax dollars produced per capita for property tax & local option sales taxes are very comparable to the average, at $602/per capita tax dollars vs. the average of $589,” the Hinson report states. The comparable communities in the report, besides Webster City with its 7,825 population, are: Atlantic, 6,792; Denison, 8,373; Independence, 6,064; Maquoketa, 6,128; Mount Pleasant, 9,274; Sioux Center, 8,229; and Waverly, 10,394.
Of them, Webster City has the highest levy: 15.19376
. Webster City, with its population of 7,825 (2020 census) has seen a $78,059 increase in community and economic development in the last five years, a 28.28% rise.
. The community’s endowed library “is a real benefit for the culture and recreation expenditures.”
. The City’s debt totals $34,632,032, $20,884,009 of which is revenue debt.
. It would be logical to consider combining city and county dispatch resources. It “could save money and enhance quality,” and cut down on duplicate costs.
. “Conversion to LED street lights — if you updated your least efficient 757 street lights (incandescent and high-pressure sodium), the cost of upgrading all lights to LED would be approximately $115,000, if done by municipal staff. LEDs are typically 40% more efficient, and the City currently pays $125,000 per year for street lighting – this could mean up to $30,000/year savings, which would pay for the project in around four years, and also create the benefit of reduced frequency of bulb replacements.”
. Return the rental registration, inspection and code enforcement to the city manager’s office, and vacant building registration. “I have grouped these together because I see them as related.”
. “There are upsides and downsides of housing code enforcement in the Police Department,” the report states. “I have generally wanted it out of the PD (police department), as you are tying up certified officers with tasks that could be performed by non-law enforcement staff, and code enforcement work is generally considered a lower priority for certified officers. However, an officer in uniform making the citations does provide a certain weight to the citations. The Fire Department may actually be a better fit for that type of involvement, if desired, for rental inspections.”
. The report recommends: “Cut spending at WBHP (Wilson Brewer Historic Park) — my understanding is that the park has a significant benefactor interested in helping to fund improvements, and the current trajectory may be investing more in the park rather than pulling back. This is a classic policy decision and needs good discussion and consensus-building. The City needs to carefully and thoroughly examine the long-term maintenance cost commitments associated with the plan, but Webster City has been blessed through the years with significant philanthropy and it is typical of donors to want a major role in shaping the fruits of their donations (thus the donor’s wishes must be taken into account to secure the donation and perhaps future donations). Perhaps discussion can be held with the donor or donors to discuss the City’s financial situation and concerns, and the situation can be worked out to create a beneficial public project that does not create undue maintenance costs.”
Near the end of his presentation, which includes many more detailed suggestions that can be viewed by going to the city’s website and search under the August City Council agenda, Hinson reminded the council that there was one sure way to resolve the budget issues that Webster City has in common with every other small town:
Build the tax base.
“Increasing the tax base,” he said, “is the salve that heals all things.”
View this article as it originally appeared in the Daily Freeman-Journal.
Last modified: August 29, 2023