Council redistributes sales tax revenue
(CORRECTION: The sales tax is divided in 1/8% increments, not 1/6%.)
Five out of six members of the Alexander city council voted to stop all non-essential spending until the city's finances are back in order. The decision came after discovering revenue for the fire department has been used to fund other departments. Spending will be limited to payroll, utilities, fuel, or a declaration of an emergency.
Five out of six members of the Alexander city council voted to stop all non-essential spending until the city's finances are back in order. The decision came after discovering revenue for the fire department has been used to fund other departments. Spending will be limited to payroll, utilities, fuel, or a declaration of an emergency.
The lone dissenting vote came from Alderman Sam Gregory. During the
discussion of the spending freeze Gregory said it could become "a big
problem."
The action occurred during a special financial meeting held Tuesday
evening, January 21, 2014 at city hall. Absent from the meeting were Mayor
Michelle Hobbs, Recorder Sharon Bankhead and aldermen Ceola Bailey and Farren
Wadley. Acting as mayor was Alderman Brad Scott and filling in as recorder was
Alderman Andrea Bearden.
According to information provided by Alderman Faye McKeon, this past
December alone the fire department spent over $54,000 but it wasn't all fire
department expenses. McKeon said the revenue is accounted for, just in the
wrong accounts.
Also, at the end of 2013 the fire department fund was $6,000 over
budget. Bearden says it appears some of the fire department revenue is in the
general and police funds.
"You cannot spend fire department money for the police or
park," McKeon said.
The police, fire and parks departments receive sales tax revenue
designated for those three departments.
To help get the fire department account built up again the council also
decided to change how the one-cent sales tax, approved by voters in 2003, is
distributed. According to the wording on the ballot the tax "shall be
distributed" with "3/4% of the revenue for the Police/Fire Department;
and 1/4% of the revenue for Parks and Recreation."
In the past the 3/4% was divided evenly between police and fire, 3/8% each. Apparently
that practice stopped, giving the fire department 1/8% and the police
department 5/8%.
McKeon told council members because the ballot measure did not specify
the 3/4% be "evenly divided" between police and fire the council can
mandate how to split it between the two departments.
The fire department also receives a whole one-cent sales tax from a ballot measure approved in 2005.
The next regular council meeting will be held Monday, January 27, 2014;
6PM at city hall. The regular meeting was moved due the Martin Luther King, Jr.
holiday.
I don't know if doing this will make the Mayor put these funds in the proper accounts
ReplyDeleteand spend them according to law. The Fire Dept. would not be broke if the MAYOR & the SO CALLED CITY ATTORNEY had of not gotten the City into financial trouble by not paying for the Loan. I do not think the Fire Deoartment should bear all the expense of the attornies involved in the loss of the Fire Truck and the possible loss of the Fire Stations.. It is my understanding that the Fire Dept. only has enough money to last the rest of this month. Such a shame espically when it had surplus money a fe months ago.
This again is why I think some other agency should step in and operate the City. Kick everyone out of City Hall, take over the banking and bill paying. Suspend all salaries except for fire and police.
The City could even file bankruptcy. The black run town of Chicago did and is doing better now.
STOP SPENDING JUST BECAUSE THE BUDGET SAYS THERE IS MONEY!!!!
These are "MAKE BELIEVE FIGURES". Look at the Balances and subtract "OUTSTANDING CHECKS" "WHAT KIND OF BOOKKEEPER DO WE HAVE?????" I hope the Mayor does not do her own checking account like she does the City's.
Bill
Bill, I can’t argue - but can ask for patience – don’t do something rash – yet. This Council has an enormous amount of work to do. Just about every step that has been taken since the recall of Paul, has to be redirected. It is a mess! I’ve never seen such a fiasco. Too bad we can’t hold that inept council of 2012 accountable. Just about everything you have mentioned is under strict discussion right now, but they can only take one step at a time. Having people support the council, come to the meetings and let them know you support their efforts is vital.
DeleteFunny thing, that inept council that appointed mayor, where are they now? It looks to me like they did their revenge and crawled back into the woodwork.
The freeze the council initiated this week is described by Alex above, and is very far reaching. State officials said it is a very wise move.
Lastly, don’t be too hard on the bookkeeper. Remember she is an employee of michelle and has to do what michelle tells her. The law says the Council has control of all financial business of the city. It also says the mayor ‘s power extends to spending what is budgeted, no more than that, and has no say in establishing policy establishing the financial picture of the city. We see how that was handled. That is where the ‘buck stops.’
There are good things in the planning stage; be patient and hold onto your seat.
I have information that you might find interesting re city spending. Please email me at matt@bluehogreport.com.
ReplyDeleteCouncil, last night – A lot done, more to do. Financial reports are ambiguous again, but Council is determined to get it right. Bookkeeper, Ms Ruby gave her notice. The vetoes and the over ride of them was not the “head-line” I took home; I really got a kick out of Alderman Faye’s remark, “Don’t read the Alexandrian, it is just people’s opinions” HELLO – Blog Site – Opinion; any news here? Alex’s editorials are without fault, and public opinion is what it is all about.
ReplyDeleteGallery turnout was better than usual. All in all, it was a very productive meeting, a cohesive council with the exception of two, who are entitled to their opinion as are the rest of us.
These days we see a whole lot of ‘my way or the highway’ “your opinion is good as long as it is consistent with mine’ that equals CLONE to me. I don’t have to agree,
The Alexandrian has always promoted open opinion, while demanding respect for the person expressing it, even to the point of warning the removal those who don’t.
Yeah, it's all opinion; except the articles, which are based on facts. And, what was that comment doing in a city meeting anyway.
DeleteIt was after the meeting adjourned. I don’t even recall who she was talking to, I am proud of the Alexandrian. It is a good site, it has good accurate information in it’s editorials, and had some good banter following, it has some garbage fro a couple of people, but that is what debate debate can consist of. I know sometimes some people have a difficult time wrapping their mind around honest debate, but on the other hand, it makes it easier to identify them ;-)
Delete