The projected overall budget shortfall comes to roughly $1.5 million, according to interim city manager Brian Muenger. The city is expected to close out the current fiscal year with about $1 million in reserves, but an ordinance passed by the council two years ago requires a carry-over balance of at least 8 percent of the overall budget. This amount comes to about $1 million, and represents approximately one month’s operating expenses.
During the regular meeting, the council had voted to freeze step raises for the coming year for a savings of about $60,000 and had already zeroed out a $32,500 expenditure in this year’s budget for the 175th Anniversary celebration. However, that still leaves more than $400,000 to make up.
Councilman Jimmy Davis asked how much revenue an additional 1 cent in sales tax would generate. Muenger said about $1.5 million, but there did not seem to be much support for a tax hike, and Councilman Eddie Tucker said he was actively opposed to an increase.
“We can’t tax people anymore,” he said. “The water and garbage bills feel sky-high already, and we’ve got automatic rate increases built into the water rates. We’ve raised the hotel tax, the sin taxes and the garbage fees. I don’t want to see anymore taxes. And I want this on the record, because I know I’m not liked anyway. But we’re giving organizations $50,000 and $75,000 per year, and they’re not doing anything for us. They’re supposed to bring businesses in, but they’re not doing it. We should cut the Ritz Theatre’s funding. We’ve got a lady (Thelma Dundy of Isaiah House) who wants $7,500 so she can feed people and give them clothes and furniture, and we tell her to go elsewhere. There’s something wrong with that. … We started giving the Ritz money for startup, but it’s time for them to operate on their own. We need a chamber of commerce, but we should establish our business thing. Others have been trying to do that for us, and they’re not successful. We’ve been supporting the chamber for 16 years.”
Council President Horace Patterson pointed out that funding for the Ritz Theatre had been cut last year.
Councilwoman Liz Grissett said she knew the Talladega County Industrial Development Board had funded projects in Sylacauga, “but what have they done for us?”
“Nothing,” Tucker replied. “We need community development and industrial development for us.”
Grissett said she was also opposed to a tax hike “unless we absolutely freeze everything else.”
A variety of proposals were bandied about the table during the course of the hour and a half long meeting. Patterson, for example, suggested a retirement incentive for employees with 25 or more years of service. He did not propose a specific amount for the incentive.
“This city has 15,000 or so people in it and a $14 million budget,” Councilman Donnie Miller said. “And $5 million of that is payroll, so I agree with the idea.”
“It sounds great, but can it be done?” Grissett asked.
“We need a substantial force reduction,” Davis said. “I don’t know if we’re going to be able to run the city, though.”
“We’re nickel and diming right now because we have to,” Muenger said. “I can’t go in and cut a quarter of a million dollars at a time. Having these little $5,000 efficiencies here and there will add up over time.”
“Exactly,” Patterson said. “We need to streamline while remaining progressive.”
Tucker suggested consolidating the city’s bond debt while interest rates are so low, which Muenger said he would look into.
Miller suggested hiring a young lawyer and a certified mechanic to put on payroll rather than paying for these services by the hour.
Patterson said, “We must be creative, but no matter how much cutting we do, I don’t think it will be enough. We need to focus not just on spending less but in raising revenue. But I don’t see the economy looking up anytime soon, and I see massive layoffs coming if we don’t figure out how to do this.”
Davis agreed. “We need to cut all we can, but we can’t do it all. You’re talking about half a million dollars at least.”
Tucker said, “I would like to cut $1 million, and we can do it by tightening our belts.”
Finance director Teri St. James said this was unlikely, since all city departments had already gone through two consecutive years of budget cuts.
The closure of three under utilized recreation facilities, the Bemiston and Brecon recreation centers and the Mattie Simmons Center, were also discussed. Grissett said she would oppose closure of the Bemiston Center, to which Muenger suggested turning it over to the citizens of the community or a church group.
Miller also suggested leasing the municipal golf course, which is losing tremendous amounts of money, to a private contractor and bringing more major sporting events and tournaments to the city’s Athletic Complex.
Muenger said he was negotiating with various youth sports leagues to come up with arrangements more beneficial to the city.
Tucker also suggested leaving top management positions in the Water Department and the city manager’s office unfilled until the revenue issues are resolved.
Muenger said there had been no meetings yet on the Water and Sewer Budget, which must be handled separately.
The council agreed to hold another budget hearing “in a couple of weeks,” but a firm date was not set Monday.
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