The city’s accounting practices in Fiscal Year 2021 may not have been up to snuff, but the audit report released this week showed its cash position actually improved that year.
It’s kept improving every year since.
Records The Dispatch obtained from Chief Financial Officer Jim Brigham’s office Thursday show the city expects to end this fiscal year Sept. 30 with a general fund balance of almost $17.9 million.
Per the FY 2021 audit report, the city built those reserves to more than $8 million with a general fund surplus of $2.1 million. According to Brigham’s unaudited numbers, surpluses each of the three years since have averaged more than $3 million and more than doubled the general fund balance.
Not only has sales tax revenue exceeded budget expectations the last three years, unfilled positions in some city departments — primarily police and fire — have kept expenses under budget.
The police department is budgeted for 55 officers but staffing runs the 40s, Chief Joseph Daughtry reported to the council in May. While Fire and Rescue is now only one person down, Chief Duane Hughes told The Dispatch it has been short as many as 20 firefighters over the past two years.
“We’re budgeting full and underspending in some areas,” Brigham said. “Unfilled staff is the main one.”
Mayor Keith Gaskin said he sees the accruing fund balance as “good news” and “shows we’ve been budgeting conservatively.” What he doesn’t see is a need to change course.
“I’m hesitant, because of the history of our finances in the city, to go on a spending spree,” Gaskin told The Dispatch Friday, referencing the city’s past deficit spending that in some years exceeded $800,000. “We need to take measure of those numbers, truly understand how we got there and what that means for the future.”
What Gaskin proposes instead is establishing a capital fund for long-term infrastructure and facility needs. For example, he noted the roof repairs needed at the Municipal Complex.
“We’ve never really had a capital fund that we grow and build,” he said. “That will avoid having to do bonds (for projects).”
Ward 5 Councilman Stephen Jones, who frequently opposes Gaskin’s recommendations, said he likes the idea of a capital fund.
“I would love to see a capital improvement plan because I think we’re long overdue,” he said.
Jones specifically mentioned finishing the Terry Brown Amphitheater on The Island as a needed capital improvement. Since the stage was built in 2017, it has sat unused while the city looked for an additional $3 million for seating, gates, restrooms and concession facilities. It received one-third of that from the legislature this year.
Jones also wants to pursue raising the minimum wage for city employees to $15 per hour.
As budget planning approaches for Fiscal Year 2025, which begins Oct. 1, Gaskin said he wants the council to consider all options. That includes raises for police positions to make them more attractive, as well as hiring full-time city planner and public information officer positions.
“If you do something like that, you’ve got to make sure you have sustainability,” Gaskin said.
He said he is not comfortable cutting the budgeted police officers below 55. Further, he thinks it might be too soon to lower taxes.
“I don’t think that at the first moment your finances begin to look healthy you start going down that road,” Gaskin said. “Over time, yes.”
Zack Plair is the managing editor for The Dispatch.
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Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 39 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.
