Before Monday’s regular council meeting aldermen gathered for a budget workshop, and right away, Mayor Butch Berry gave credit to department heads for keeping expenses down during the budget conservatism the city imposed more than a year ago.
The reason the city must tighten its belt, according to Berry, is a cash flow deficit. Finance Director Lonnie Clark said the city would review tax collections for May and June to determine if he needs to make mid-year corrections. His concern was there was not much left for the city to cut in the budget except hours for staff.
Sentiment was that travelers are coming to town but might not be shopping as much as sleeping and dining. Nevertheless, tax returns for April have been looking better.
Alderman Peg Adamson asked Berry how afraid she should be about the financial returns so far this year, and Clark told her to wait until August for a true reflection of how the year is going.
Terry McClung said everyone should be concerned, but there is nothing anyone can do until council sees the financials from June and beyond, and David Mitchell commented it would be premature to spread terror through the town at this point about finances.
Clark pointed to the good news that the increase in sewer charges will take effect soon, ensuring a cash flow contributor the city has not had. Clark noticed the sewer line item is not down by much, so the new rate adjustment should make a difference soon.
Budget management goes down
Alderman Bob Thomas presented his work pulling together what it takes for the city council to produce a budget every year. His intent was to provide a model whereby any alderman in a future administration would know what to expect in the budgeting process. His handout illustrated some changes recent councils made by vote, not ordinance, in changing the process. He said portions of the process are in place, but nothing has been made official.
He moved for council to formalize a written financial management process.
Vote on his motion was 3-3, Kendrick, McClung and Mitchell voting No, so the motion failed.