The Manhattan City Commission revisited discussions Tuesday over strategies to bring up the city’s general fund cash balance, while also considering how to best approach parks and rec funding long term and a potential new indoor aquatics facility.
“If our community desires these amenities, we need to talk about a financial strategy that gets us there,” said interim City Manager Jason Hilgers.
That’s interim Manhattan City Manager Jason Hilgers, who estimates that a 1% sales tax would generate about $15 million annually, enough to operate the parks and recreation department independently as a special revenue fund, but also enough to sustain it.
“And not only sustain it from an operational standpoint, but sustain it from a capital investment standpoint,” he said.
City staff are optimistic that the sales tax will take pressure off the general fund cash balances from dipping below the $10 million threshold to maintain according to the city’s counsel and financial advisors. The funding strategy looks out 20 years into the future.
Commissioners were generally supportive of staff’s clarification on some of the funding mechanisms but also were skeptical of any initiative passing if the city appears to be taking on more than it can handle.
Commissioner Peter Oppelt says the ballot question should be not just where an indoor pool might be located, but rather should ask would the community support such a facility, regardless of location.
“We need to make sure that we keep in mind the overall goal of this pool. Whether it’s in CiCo Park, City Park, Jurassic Park, whatever,” he said. “That needs to be our overall goal.”
Commissioner Karen McCulloh doesn’t favor the indoor aquatic center being located in City Park, but also took issue with creating a fund specifically for the parks and recreation department.
“The other funds we have are statutory. This is just we’re going to say future commissions are going to say we’re turning all these dollars over to parks and rec,” she said. “I suppose for future commissions could take it back, but if that’s what we tell people we’re going to do, it would be difficult. I think this needs to stay in the general fund, I don’t think that should go off negative.”
Commissioner John Matta says the funding proposal still paints a bleak budget picture as the city attempts to tackle its finances while also attempting to take on another major project.
“It’s kind of I want my cake and eat it too. We’re not just going to solve our budget problem. We’re going to go spend a huge amount a money on top of solving our huge budget problem,” he said.
Commissioner Oppelt says he believes having a dedicated revenue stream for parks and rec makes sense.
“My concern is if we are not competitive with things like parks, because I consider parks to be vital to a healthy community, those financial difficulties are just going to become more difficult because we will have fewer people,” he said.
Mayor Susan Adamchak agreed with Oppelt’s assertion, noting it can often be too easy for the city to rob from parks and rec in down fiscal years.
“I was initially a little bit skeptical about the idea of having this dedicated funding stream for Parks and Rec, but have come to appreciate it, looking a little bit at the history here in Manhattan, and understanding how it’s an easy pot to raid sometimes,” she said.
No formal action was taken Tuesday night. City staff have targeted August for a final decision on whether to pursue a November ballot question.
