Warrior council discusses financial woes at meeting
Published 2:32 pm Wednesday, January 7, 2009
By Melanie Patterson
The North Jefferson News
In a special-called meeting Monday night, the Warrior City Council laid out a grim picture of the city’s financial situation, with possible lay-offs in the future.
Warrior Mayor Rena Hudson said a major factor in the city’s financial woes is the same problem plaguing most small and large cities in the state: The country’s recession.
People spending less means less revenue for cities in the form of sales taxes. In addition, construction has slowed down, meaning a cutback in building permits.
From October to November, there was a $14,000 drop in sales tax for the city, while “building permits have almost dried up,” according to Hudson.
In reviewing financial reports during Monday’s meeting, council members said the city’s expenditures are higher right now than at this time last year, while incoming funds are decreasing.
“We can’t keep operating by spending more than we’re taking in,” said Hudson. “We’re going to have to look at ways to trim our expenditures.”
Trimming expenses is the purpose of another special meeting set for Thursday at 4 p.m., where the council will have to make some tough decisions in order to keep the city afloat financially.
Councilman Jimmy Jett is in favor of cutting line-item expenses to lower the outflow of money. Hudson said some items would automatically be cut for this year, like election expenses.
She added, however, that cutting expenses line-by-line will probably not be enough and that some city employees could be laid off.
“I think we’re going to have to realistically say we’ll have a reduction in force,” said Hudson during the meeting. “We have to cut expenditures, but the bulk of what we spend is for salaries.”
The city pays about $105,000 a month to the city’s 53 employees, including part-time workers, according to city officials.
Hudson also said the city’s employees will have to be flexible and do what it takes to get the job done. She mentioned the possibility of having only two police officers on duty for each shift and requiring investigators and K-9 officers to pull regular patrol duty.
“Everybody’s going to have to put in eight hours a day for eight hours of pay,” she said.
The city has taken steps to cut back on expenditures.
In October, councilman Brad Fuller asked the council to enact a spending freeze, which it did. Department heads could previously spend up to $500 a day without the city council’s approval, but now must get permission from Hudson for all spending.
The city has also consolidated loans, which the mayor said saves the city about $2,000 a month.
In addition, the police department has cut back on part-time officers and lost one full-time officer to another city.
Hudson said that costly projects will likely be put on hold, such as street paving and demolition of abandoned buildings.
She also is not in favor of increasing revenue by another business license hike.
“We don’t want to hit our merchants with more expenses,” she said.