The Jackson City Council enters the month of November under a cloud of desperation. The city racked up its first $266,000 monthly deficit in October as a result of Jackson Mayor Frank Melton's refusal to follow through with his own budget fee increases.
Melton submitted a budget to the council in September containing a 5-percent sewer-fee increase and a 10-percent water-fee increase. The council approved the fee increases in order to address an almost $3.2 million budget shortfall. Last month, however, Melton refused to submit to the council an agenda item containing the approved water and sewer increases, leaving the budget shortfall intact, to council members' alarm.
The rate hike would have generated almost $266,000 a month, but the city's budget hole will grow an identical amount every month until the city fills the void with an alternative to the rate hike.
Melton prematurely announced last month that the city may have located an extra $6 million in funding from the Department of Public Works, though Director of Administration Rick Hill confirmed during the city's Monday budget meeting that the city could not draw upon that money.
Hill did suggest the city could save more than $200,000 by merging two divisions within Public Works, though he was short on details at the meeting.
Council members expressed frustration at the administration's wheedling on the fee increase.
"There are so many things that should've happened a month ago that should have been a part of our budget process. …We exhausted this process, and we're now two or three weeks into the budget year, and we're still getting these 'great' ideas," said Councilwoman Margaret Barrett-Simon. "This council already went through this process."
Council President Leslie McLemore said the city's legislative branch may have to stand up and do the executive branch's job of producing the budget.
"We have to do what we did during the budget process, grab the bull by the horns and look at ways to make budget changes. … If it means systematic reduction of every department, we'll have to do it; otherwise we'll stay here talking about this issue," McLemore said.
Budget Committee Chairman Marshand Crisler said he was getting nervous about the council's liability, fearing that the council could suffer legal repercussions from the state auditor's office for the unbalanced budget. State law requires that every municipality submit a balanced budget to the auditor's office.
City Attorney Sarah O'Reilly-Evans confirmed to the committee that the council was indeed liable, but she added that the mayor could veto whatever emergency budget fix the council implemented on its own.
"I'm not aware of any provision that exempts the (mayor's) veto power," O'Reilly-Evans answered. "There's nothing that states (the mayor) can't veto an amendment to the budget."
"So we're the ones legally responsible for not having the budget balanced, and you're telling me that somebody with no legal liability can veto it, and the law (is OK with) this?" Crisler challenged.
O'Reilly-Evans suggested the council "move quickly" to make whatever amendments it deemed necessary. "Any time you know there's a shortfall, you move to make the necessary adjustments. … Nobody can say the council didn't fill their obligations," she said.
A four-person majority of council members told the administration not to bother pushing for new expenditures, such as the more than $40,000 in pay raises for Melton's bodyguards, or the administration's desire to purchase the Atmos Energy headquarters to house city offices.
Melton appointed his bodyguard, Michael Recio, to assistant chief last month, and promoted his other bodyguard, Marcus Wright, to sergeant. Neither has passed promotional exams, according to police union members.
The committee was particularly keen on watching for stealth budget transfers and pay increases pertaining to the bodyguards. McLemore asked Hill if there was "paperwork in process" in the administration that could increase the bodyguards' pay.
"There might be, but no payroll has been increased without proper signature of the department heads," Hill answered.
"This is a sensitive issue," Crisler told Hill "… please let us know when it comes down… That (deficit) should be at the top of the list."
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