[08/01/01] Twenty-nine line-item budget amendments were approved Tuesday, Vicksburg officials said, to correct deficits left by the previous administration.

The largest chunk was $1.2 million pulled out of the gas department’s surplus to correct projected shortfalls for the purchase of natural gas. In addition, $115,000 was taken from cash reserves added to the general fund.

“The bottom line is we can’t have negative numbers in our accounts,” Leyens said. “We’re obligated to fund those negative accounts before the year ends.”

A month ago, the previous administration approved budget amendments that included cutting $882,000 from capital improvement projects to fund a projected $1.7 million shortfall in payroll and personnel costs. None of those items, which included the proposed Kings police precinct, expansion at City Front and street improvements on Pearl and Clay streets, was addressed in the new budget amendments.

The city’s fiscal year ends Sept. 30, and city officials are in the process of preparing a new budget that will be adopted for use beginning Oct. 1.

City Strategic Planner Paul Rogers said $1 million from the Gas Department’s surplus fund will be used to purchase and store gas. The summer rate is expected to be lower than it will be in the colder months. Another $185,000 in surplus funds will be used for administrative costs.

“We’ll actually sell that gas later,” Rogers said. “So we’re not increasing the gas department’s interest any.”

Vicksburg has entered a fixed-rate contract for gas supplies for the coming year. While that contract assures a steady supply with no price surges, current gas rates charged to customers are not sufficient to pay the fixed-rate cost.

During the past winter when gas prices nearly tripled, city officials used $2.7 million in cash reserves to avoid a rate increase. City officials have not said if they will eventually raise rates charged to customers to offset the difference.

The adjustments did allocate an additional $39,000 to place two new picnic shelters at Riverfront Park and funding for the purchase and storage of natural gas for 2002.

Other changes to the budget included $17,000 added to the Washington Street retaining wall project, $2,650 to purchase a sound system for City Auditorium and $30,000 for various expenses for the police department.

In other matters the board:

Approved a request to rescind the city’s residency requirement for civil service employees.

Authorized a new contract with the American Red Cross to use City Auditorium as a shelter during natural disasters.

Approved the claims docket.

The city board will meet again at 10 a.m., Monday at City Hall.