Provo mayor defends his budget

PROVO — Mayor Lewis K. Billings is denying that balancing his budget rests solely on the back of transfers from the utility-enterprise fund, which in time could increase rates.

In an 11th-hour open letter sent today to the Provo City Council, Billings said that while his proposed city budget includes more than $1 million in one-time transfers, it also calls for numerous cuts to bring the $156 million budget in line, along with reductions and savings from the current budget.

The City Council meets tonight to consider and possibly approve the final 2010 fiscal-year budget, which goes into effect July 1.

"This is an important distinction and not just semantics," Billings wrote in the letter. "Using money resulting from agreed-upon cuts in the prior fiscal year as a one-time infusion in difficult economic times is one thing. Altering our long-established policy of prudent ongoing transfers from enterprise funds to the general fund is quite another."

The policy of using transfers only when prudent remains, he said.

"The administration did not advance any new programs, new general capital-improvement projects or new initiatives in the recommended budget," Billings said.

However, the City Council for the first time is inserting its priorities into the budget.

Additionally, Councilman Steve Turley also advanced his budget, which he asserted would reduce general-fund expenses and eliminate fund transfers from reserves while proposing no tax increases.

Council Chairwoman Cynthia Dayton responded with a press release saying that Turley's proposal failed to have council backing.

Billings expressed concern over how utility transfers looked to some of the 1,200 members of the American Public Power Association who were visiting for their annual convention. About 136 of them were in Provo last week doing service projects.

Without naming Turley, Billings said, "As they have read media reports quoting a member of the council about utility transfers, they … expressed concern. But as we clarified what the administration recommended, we have fortunately been able to allay their fears about the precedent of increasing our ongoing transfers."

Turley's budget also included layoffs, which went against the administration recommendation.

"It has been represented by a council member that department heads have wished the council would impose a mandatory layoff so that they could terminate the employment of 'dead wood' employees," Billings said. "We have spoken to each department director, and none could recall a conversation like that with any member of the council."

Layoffs aren't necessary to remove poor performers, Billings said.

E-MAIL: rodger@desnews.com