City juggles funds to skirt spending law
Published 12:00 am Thursday, April 12, 2001
[04/12/01] Vicksburg officials wrangled with budget items Wednesday in order to meet requirements of a new state law that limits how money can be spent during an election year.
In essence, the statute prevents cities from spending more than 25 percent of budgeted funds during the quarter of a fiscal year before an election.
The idea is to keep incumbents from “buying votes” with projects and/or leaving a new governing board with no dollars. Vicksburg’s fiscal year runs from Oct. 1 to Sept. 30. New elective terms start July 1 of every fourth year.
In practice, not being able to buy planned big-ticket items between April 1 until June 30 forced the city to rearrange some funding in order to continue normal operations.
“These budget amendments are designed to make it possible for us to buy some ambulances,” said Mayor Robert Walker.
To get $290,000 for four new ambulances, taking money piecemeal from various departments was authorized. Other budget item changes were an emergency declaration in the recreation department to hire personnel and a $2.7 million increase to the gas fund.
South Ward Alderman Sam Habeeb was absent from the meeting due to illness.
Another change due to the law that did not come before the board, but was reflected in a memo from Fire Chief Kevin Westbrook and related to department staffing in order to reduce overtime.
In September, the board approved a $30.2 million budget that included $7 million in a separate fund for capital improvements. After all the amendments, the city’s general operating fund of $23.1 million was down $580 and the funds for the purchase of natural gas was up to $3.6 million.
“What I did was to find areas where we may have savings at the end of the year to maintain the $23.1 million,” said city accountant John Smith.
The purchase of the ambulances that will replace older models being used by the city was planned in September, but had been budgeted under a lease-purchase agreement. Walker said that by purchasing the vehicles instead, the city would see a savings of at least $34,000.
“We simply made the decision that we were not going to make a budget amendment that changed the bottom line,” Walker said.
Westbrook said three of the new ambulances would be used daily for emergency runs while the fourth would be maintained in reserve.
“Some of the ambulances need to be changed out,” Westbrook said. “It would be a great danger to the public if an ambulance stopped on its way to an emergency.”
Within the department, Westbrook reduced the amount of overtime payroll spending in order to comply with the 25 percent rule.
Under previous policy, the fire department would call in additional firefighters when more than three were not able to work a scheduled shift. At any given time, 39 firefighters are on duty in the city, but in order to reduce overtime, additional personnel will only be called in when that number drops below 34.
“The public shouldn’t worry about anything because we’re not reducing services at all,” Westbrook said.
The increased funding to the gas fund came out of the city’s $6 million reserve and will be used to pay for natural gas purchased this winter after prices soared due to high demand and depleted gas fields. Although many customers of the Vicksburg Gas Department saw higher bills this winter, prices charged by the city were not affected by the increased cost of natural gas.
“This problem that we’re having with regards to the gas prices is not just a city problem or a county problem, it’s a nationwide problem,” said North Ward Alderman Gertrude Young.
Walker said using the city’s surplus funds to supplement the purchase of gas would benefit everyone who uses natural gas in the city and not just the poor.
“If we had not passed that, customers who received a bill of $100 would have gotten a bill of $300 to $400,” he said.
The Board of Mayor and Aldermen called a special session this morning to approve a contract with the management company for the Vicksburg Convention Center. The next scheduled meeting is Monday at 10 a.m., at City Hall.