Budget woes force Riverside to cut services
by ELSIE HODNETT
Dec 01, 2009 | 1098 views | 2 2 comments | 10 10 recommendations | email to a friend | print
RIVERSIDE — The Riverside Town Council approved an amended budget in a 5-1 decision at Tuesday’s meeting.

Mayor Rusty Jessup and council members Jimmy Hollander, Joyce Silvers, Rob Hayes, and Kenny Womack voted for the amended budget. Councilwoman Rachelle Painter voted against the amended budget. The budget is effective immediately.

“We have been challenged the last few months with the town’s income and budget,” Jessup said. “We didn’t expect it to be this bad. Once we got our fourth quarter numbers in, we realized that the town’s income was, and probably will be, much less than we anticipated when we prepared this budget back in July and August.”

Jessup said based on the new income projection, the town should take in $502,000 in income this fiscal year. The council passed a $627,000 budget in September.

“Now that those numbers are in, I’m asking the council to deal with an estimated possible deficit of $125,000 in our general fund,” he said.

Jessup said the amended budget he proposed to the council at a called work session Tuesday morning and at Tuesday’s council meeting would reduce that deficit to $38,000.

The amended budget includes cutting back fire department coverage from 12 hours a day, seven days a week to eight hours a day, seven days a week, cutting back the building inspector from five days a week to four days a week, cutting back on the police department salary (continue using part-time police officers instead of hiring full-time officers to fill the two vacant police officer positions), taking the mayor’s salary from the water department budget, and other across-the-board cutbacks.

Jessup said the town has had difficulty meeting payroll the past few months.

“The amended budget entails cutting back or eliminating all capital improvements, repairs, and maintenance,” he said. “It also entails cutting back on fire coverage, building inspections, and other administrative costs. While I realize that all of these cuts will not balance the budget, I am hoping that the economy and the town’s income will turn around by the end of the first quarter.”

Jessup said if the town’s income does not increase by the end of the first quarter, further cutbacks will be necessary.

“The council always has the power, however, to raise taxes to meet this deficit if they so choose,” he said. “We could ask for additional ad valorem taxes, additional fire dues, or raise the gas tax. Without additional income by the end of the first quarter, we will be faced with some very difficult cutbacks which will probably mean eliminating some jobs, and further restrictions on town services.”

Fire Chief Ray Sweat said the town had been taking money from the fire department fund and moving that money to the general fund budget recently.

“I can’t understand why the fire department is taking the only hit,” he said.

Jessup said the fire department fund money was transferred to reimburse the general fund for the fire chief’s salary, and that other departments were receiving cutbacks as well.

Sweat said in his opinion, the fire department is just as important as the police department.

“Why should we have 24-hour police protection and not fire protection?” he said.

Jessup said the town must keep 24-hour police protection or it will lose its ability to issue warrants and have a court system.

Hayes said he was not sure the budget cuts were deep enough.

“Unfortunately, in 2-3 months, we may be back here doing the same thing,” he said. “I would like to see the budget balanced right now.”

Painter said she did not feel comfortable voting to amend the budget and cut town services without allowing Riverside residents input on how they feel about the loss of services.

“I am not prepared to pass it tonight,” she said. “I want the citizens to know what is happening, and what could happen. I want them to know what services are being cut. The citizens have the right to know what we have to do. They need to know where we are financially.”

The council discussed possibly increasing fire dues as a way to help alleviate fire protection costs.

Womack suggested possibly calling a special meeting to let the residents know about the town’s financial state.

“If we get an awareness program and the residents feel it is a necessity (to have increased fire coverage), and will pay more fire dues, then I would love to hear from them on that issue,” Hollander said.

Hollander said the town’s income is currently at the same level it was in 1995.

“We are making what we made 14 years ago,” he said. “I know people don’t want to do without police and fire services, but the money is trickling out in many aspects.”

Hayes said he feels the community might wake up by seeing the services cut.

“But it might mean a death or a home burned,” Sweat said.

Hayes said residents might be more favorable towards tax or fire dues increases after seeing the cutbacks.

“That is putting a price on someone’s life,” Hollander said.

Hayes said the same thing would happen if the town went bankrupt and lost those services.

“Sooner or later, hard decisions have to be made,” he said.

Hollander also made a motion, which passed unanimously, that the council members relinquish their salaries for the next three months.

“If we are asking everyone to cut back, I think we should too,” he said.

Hollander said the council members’ salaries amount to $750 a month, or $9,000 a year.

comments (2)
« rhowell@coosahs.net wrote on Saturday, Dec 05 at 06:48 PM »
Why does Riverside not have a reserve fund? My household has a reserve fund so that when my income is reduced, I have funds to pay my bills. I have had to do this in the last two years. Why are the town officials not this intelligent? I wonder how they run their household? Like Larry Langford!!!
« lfrd123@msn.com wrote on Wednesday, Dec 02 at 08:54 AM »
Well look at the bright side. Atleast we have a run down marina what other city can say that??

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