Friday, July 17, 2009

Trim, But Prepare for a More Vibrant Future, Local Mayors Say

Do what's necessary to balance community needs against available revenue, plan strategically (and regionally) and get ready for the upturn--that's the course Metro East mayors are pursuing to lead their cities through the current downturn.
The mayors of Alton, Collinsville and O'Fallon spoke this morning at an event co-sponsored by the Southwest Illinois Council of Mayors (SWICOM) and the Leadership Council Southwest Illinois as part of a panel discussion moderated by Columbia Mayor Kevin Hutchinson. Despite a variety of city sizes and budgets, all four mayors are facing similar challenges and plan to meet them deploying--often--similar methods.

All four noted that the combined pressure of falling revenues and rising mandates--generally unfunded--from federal and state jurisdictions are requiring substantial changes in how their cities do business today compared with even a year of two in the past. All four are continuing to pursue economic development efforts despite a current paucity of proposed projects and all four cited the critical role of both incentives and "business friendly" policies in spurring economic growth.

Alton Mayor Tom Hoechst has had to oversee cuts in the number of city employees while struggling to meet payroll for the remaining workers. "In cashflow terms," he observed, "the City is broke" with only $2 million in reserves; fortunately, economic investments in "one of the premier marinas on the Mississippi" and a new amphitheater, as well as private investment in venues such as an anticipated new downtown hotel, promise new revenues as the recession eases.

Meanwhile, Collinsville Mayor John Miller is shaving costs through increased efficiencies. Instituting a City-wide improvement program to improve performance, restricting training to opportunities arranged in house, and freezing hiring have all contributed to the City's ability to keep its current positions that deliver expected services to citizens. Collinsville has an aggressive economic development program, a regional convention center and five-star hotel, and strategic location among its assets supporting future development.

In O'Fallon, Mayor Gary Graham is struggling to overcome the St. Clair County assessment system--which he claims is "broken"--and a lack of incentives for new development; nevertheless, he deploys the attitude that "we really want to have you here" to full benefit in attracting new businesses. O'Fallon today has more than 1000 hotel rooms as well as a new conference center, and the City is "sales tax rich," according to the mayor.

In summing up, Columbia Mayor Kevin Hutchinson described how dealing with the ongoing fiscal crisis has helped him (and presumably other city leaders) distinguish more clearly between "wants" and "needs" in the budgeting process. He said that Columbia's fiscally conservative leadership over many years--avoiding the maximum carrying capacity for long-term debt, for instance--and well-managed initiatives like a successful Tax Increment Financing (TIF) district have given his City a firm foundation for growth. He anticipates that future growth will benefit from a more regional perspective coupled with strongly-supported local efforts like the Think Monroe County First! campaign.

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