Columbus Mayor Robert Smith will present a seven-part plan to reduce city expenses in an effort to combat a financial crisis that the city’s financial consultant claims will leave Columbus out of cash by Sept. 30.
City Public Information Officer Joe Dillon announced the plan in a post on the The City of Columbus — Mayor’s Office Facebook page Saturday. The post listed a series of “Frequently Asked Questions” with answers about the city’s financial situation, as well as other issues the city faces such as damaged roads and relief for citizens affected in an EF-3 tornado that hit the city on Feb. 23.
City financial consultant Mike Crowder, a certified public accountant tasked with reviewing city finances, told councilmen earlier this month that at current spending rates, the city’s general fund will be more than $338,000 in debt at the end of the fiscal year. He said the difference in a projected $11 million in revenues and more than $14 million in expenditures will wipe out the city’s general fund balance, which is currently just under $3 million.
However, the Facebook post stressed the city is not “going broke” and that officials will make adjustments to spending throughout the year.
“The City operates on projected receipts from sales taxes, property taxes, and other fees,” the post says. “Since this number is only a projection, adjustments are made in spending throughout the year. Changes have been made to improve the financial reporting process to City officials and the public which will help with financial decisions moving forward.”
The post does not go into detail about the seven-part plan, but Ward 3 Councilman Charlie Box said at least some of it involves increasing deductibles on employees’ insurance plans, along with other expenditure reductions.
As a member of the city’s insurance committee, Box helped craft the plan Smith will present to the council Tuesday, he said. While Box said he didn’t have the plan with him on Saturday to offer specifics, he said he strongly approves of it.
“I think it’s a really good plan,” he said. “If the numbers all work out like we say they are, there are going to be some tremendous savings.”
The plan’s implementation will ultimately come down to the city council’s approval, but Box said he thinks it will easily pass that hurdle.
He couldn’t offer a specific number without the plan in front of him, but said the savings should be on the order of hundreds of thousands of dollars, if not more.
“It is significant,” Box said. “It should be enough to at least get us on the right track through the end of this year.”
Ward 5 Councilman Stephen Jones told The Dispatch he received a copy of the plan but hadn’t had the chance to look through it yet and couldn’t comment with much detail.
“I know there was a hiring freeze on everything except for the CFO,” he said, referencing Columbus’ search for a new chief financial officer after former CFO Milton Rawle resigned in February.
Smith did not return multiple calls or messages from The Dispatch by press time.
Smith previously told The Dispatch the city’s finances are “definitely a problem” but that he wouldn’t call it a “crisis” and said there wouldn’t be an accurate picture of the city’s finances until the summer.
Other issues
The post goes on to invite the public to attend Tuesday’s meeting and hear the plan firsthand and adds the plan will be posted to the Facebook page.
Also addressed in the FAQ are numerous potholes in the city’s roads, retail, funding for parks and the as-yet unfinished Amphitheater and storm cleanup and relief. Those in need of housing after the February storm can apply for assistance at the East Columbus Gym at 222 Lawrence Drive from Tuesday to Apr. 7 from 10 a.m.-7 p.m., the post says.
The city council meeting will begin at 5 p.m. Tuesday at the Columbus Municipal Complex at 1501 Main Street.
Dispatch reporters Amanda Lien and Alex Holloway contributed to this report.
If you go
■ WHO: Columbus City Council
■ WHAT: Columbus Mayor Robert Smith’s proposed plan to curb city spending
■ WHEN: Tuesday at 5 p.m.
■ WHERE: Columbus Municipal Complex courtroom at 1501 Main St.
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