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01 Jul
2009

Cover Story: A Suttle Difference

Omaha’s new mayor settles into new job

By: Jim Minge
Issue: July 1, 2009

Photo by Dale Heise

Being the new sheriff in town can be daunting. Take Jim Suttle, the Omaha mayor whose first few days on the job were no doubt much more of a crap storm than he could have anticipated.

Suttle’s woes began before he even took office. The Omaha World-Herald – upset and embarrassed that the mayoral candidate they endorsed, Hal Daub, didn’t win the election – went after one of Suttle’s staff members and his allegedly sordid past. Suttle removed that staff member and attempted to move on. A week later, the World-Herald attacked Suttle because he leased a higher-priced but eco-friendly hybrid car for the mayor’s office. After that, the World-Herald wanted Suttle recalled because he reportedly stepped on a crack, and subsequently broke his mother’s back.

Nevertheless, Suttle remains upbeat: “I take one day at a time. We get up and we do what we have to do each day; I’m enjoying it,” the new mayor said last week during a sit-down conversation in his City Hall office at 1819 Farnam St.

Suttle, in office 24 days as of press time, has been wrestling with the city’s budget in his first few weeks. While he knew he was walking into a brutal financial crisis, Suttle said he was still surprised at the “breadth and depth of the crisis of the finances.”

“Actually, it was getting worse, almost compounding itself daily here in the April-May timeframe,” Suttle said.

Omaha’s 2009 budget faces a $5 million shortfall, and there is an estimated $11 million shortfall in projected revenues for 2010.

“I thought we were going to get into a stabilization of the revenue for 2009, and then work on the 2010 budget,” Suttle said last week. “What I didn’t realize is that the shortfalls are expanding beyond ’09 into ’10, and so we ended up merging the two problems together and trying to talk about them collectively on what we do with good management, fiscal cuts. What do we do to stabilize the revenue so that it doesn’t continue to just drop off a cliff? We’re overly dependent on the sales tax, and that’s our problem.”

City leaders have attributed Omaha’s lower-than-anticipated revenues to the drop off in city tax revenue spurred by the floundering economy.

“We’re deep in the red financially. We need to be strongly in the black,” Suttle said. “When we have that strength we will be able to take a hard look at the bigger items that are financial concerns, like the pension plans. But there’s a whole lot more that we should be getting into.”

The city’s total shortfall for 2009 was estimated at $14 million. Before leaving office, former Mayor Mike Fahey cut $9 million, leaving $5 million for Suttle to deal with. To solve that remaining $5 million budget shortfall, Suttle has suggested these options so far:

– Wage freezes for civilian city employees (Savings: $1.5 million)

– Wage freezes for police and fire employees (Savings: $3.5 million)

– Wage freezes for the mayor, his staff and the city council (Savings: $5,364)

– Withhold the contribution from the city’s general fund support to the Convention &
Visitors Bureau (Savings: $500,000). To be implemented July 1.

– Raise parking fees at city lots from $6 to $8. ($100,000 annually). To begin July 1.

– Implement a false alarm fire fee (To generate $500,000 annually). Expected to be
implemented Oct. 1 if approved by the City Council.

– A commercial fire-alarm system registration fee (To generate $500,000 annually)

A combination of these suggestions could solve 2009’s budget shortfall, but there’s another projected $11 million to make up in the 2010 budget. Suttle has suggested other potential savings for the city via a property tax increase, layoffs of city employees, adding a 2-percent entertainment tax, ending city-funded pick up of yard waste and other options. Ultimately, Suttle said, the city and the state needs major tax reform.

“We’ve got statutes to change, hearings we need to have. We have to have compliance with federal and state, but we need to start looking at the bigger picture of our priorities and how we’re going to pay for proper services,” Suttle said.

“That’s why I keep focusing on tax reform; tax reform at the state level is needed and we’re a creation of a state, all cities are a creation of a state. We need the tax reform at the state. We have a tax policy on the 50s, 60s, 70s and 80s – that’s the past. We need a tax policy on the future, that’s where we’re going.”

Of course, when Suttle mentions raising the city’s property tax ears perk up and homeowners scream “foul!” Never mind that Omaha’s property tax is lower than surrounding areas such as Springfield, Bennington, Valley, Ralston, Bellevue, La Vista, Waterloo and Gretna. Omaha’s current property tax rate of 43 cents per $100 of a home’s vaule is 3 cents higher than Papillion’s 40 cents.

That said, are property taxes going to go up in Omaha in 2010?

“That’s not the question right now,” Suttle said in a mildly cantankerous but fatherly manner. “The question in front of your city is cash flow. How do we stabilize the expenditures with the cash flow that’s coming in so that we can have a foundation for city services and for even being in business. It’s not about taxes; it’s about cash flow.”

So, no increase in property taxes then?

“No, I didn’t say that. You’re over on the tax question, which has been around for decades. It’s not the question,” Suttle repeated. “It’s like in your life, if you have expenditures – mortgage, car payments, food and clothing – and all of a sudden you have problems with your income, you’re going to do things to make cuts, but you’re also going to do something to make sure you have an income coming in to cover your lifestyle. We have to do that, too.”

As for layoffs, Suttle suggested that he’s saving that as a last resort.

“I’m really trying to avoid layoffs. But we did give instructions at the beginning of this week: We do need a layoff plan,” Suttle said. “I hope it stays in the folder and I never have to use it. But if I have to, I will open the folder and we will follow that layoff plan. So the plan is being prepared while we speak.”

At a Crossroads
Last week the owners of the Crossroads Mall at 72nd and Dodge streets decided to put the vulnerable shopping mall up for sale – just a month after the City Weekly published a cover story looking at the mall’s future.

As a city councilman from 2005-2009 for District 1 – which encompasses Crossroads Mall – Suttle met with the mall’s owners, Simon Property Group, on several occasions in an effort to find ways to improve the aging property.

“I’ve been working with the Simon Properties on a fairly regular basis for the past year and a half,” Suttle said. “The options were always there, and one of the options was to sell the property. Because of the financial difficulties that Simon is now reaching they have decided to exercise that option. And so the mayor’s office will be here to help them and anyone who wishes to purchase it.

“That is an extremely valuable piece of property in the heart of the city. We have so much going on, but we need to come back to that intersection and get that corner working in our economy.”

How about a new arena for the University of Nebraska at Omaha’s hockey and basketball teams?

“No, because that doesn’t generate tax,” Suttle said. “This is a commercial corner; it needs to be mixed use, it needs to be generating for our tax base, so we need to look at what fits the economy and times. It needs to have a vertical presence, but it ought to focus on retail, office and residential. And generate jobs for the tax base.”

A new city council, new mayor
Mayor Suttle says he has been meeting with members of the city council – which has four new members out of seven seats – on a regular basis individually.

Last week, one of the new members – and the only female on the city council – Jean Stothert suggested delaying the construction of the new water park and pool facility that the city is building near Lake Zorinsky, which is in her district. Stothert thought the city could save money by delaying the project, but the city council voted 5-2 to continue construction of the water park, which is set to open in 2010.

“We should continue; that is not a problem,” Suttle said of the project. “The money has been on account. We’ve been promising this pool out of park bond dollars since 1993. We finally got this project so that the cash in the account fit the design and we rolled it out.

“It is not part of our problem; we don’t need new problems. It was a solution, and it needs to go on its way. And we also need the jobs.”

Co-chief of staff on hold
Just prior to being sworn in as Omaha’s new mayor, Suttle withdrew his offer of the co-chief of staff position to Matthew Samp, who was investigated eight years ago as a result of allegations that he had sexual relations in the mid-1990s with a 14-year-old boy.

Samp, now 36, was never charged with any crime. However, the World-Herald dug up the records and splashed them on Page 1 as an “EXCLUSIVE.” With the controversy behind him, we asked Suttle if he would eventually fill the co-chief of staff position with another 30-something, as the mayor has went out of his way to connect with Omaha’s youth and 20-amd 30-somethings.

“I’m looking at skill sets,” Suttle said. “We have since changed the office quite a bit. I’m going to see how the office functions here. I’m going to put that on hold indefinitely for the time being and I am stepping into that community thrust with the staff that we have.

“I’m certainly going to be looking at diversity in the broader context. I’m looking not only at race and gender, but youth. But I’m also looking at your Myers-Briggs thought process. Are you a left brainer, right brainer? We’ll be looking at a cross-section of thinkers, too.”

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