Top Stories Montgomery

BIRMINGHAM, Alabama –

The Birmingham City Council could vote as early as today on its modified version of a 2012 city budget that draws less from the city’s investment fund, adds a $1 million bank loan, eliminates employee pay raises and cuts 1 percent from most departments.
 
Overall, the council slashed $6 million in proposed spending. Its spending plan is a revision of Mayor William Bell’s budget that included 2 percent raises and relied more heavily on spending from the investment account, known as the Birmingham Fund.

Staff members from both the council and mayor’s office worked Monday to prepare documents necessary for a possible vote on the proposal today.

The council reduced spending from that fund from Bell’s $11 million to $3.9 million. Members cited a policy that protects the investment fund by limiting non-emergency withdrawals to 5 percent, which is $3.9 million.

Bell had argued that the economic climate constituted an emergency.

The council early in the process had panned Bell’s proposed raises, saying the city could not justify granting raises while also taking money from its reserve accounts.

“The mayor’s office was clearly fiscally challenged or otherwise lacked courage when it came to the question of whether or not raises should be granted,” said Council President Roderick Royal.

“Most people would say that if you declare an emergency and have to borrow money, then certainly there can be no room for granting questionable raises,” he said.

Although Bell’s proposed budget was $370 million, additional spending from the Birmingham Fund was listed separately, bringing his actual proposed spending to $381 million. The city is expected to take in $363 million in revenue in fiscal 2012. To make up the difference, Bell proposed dipping into the city’s savings, known as the Fund Balance, as well as the Birmingham Fund. The council did not change Bell’s plan to spend $7.6 million from the Fund Balance.

The council’s version reduces total spending to about $375 million.

The mayor will agree to the council’s changes, said Bell’s of staff, Chuck Faush.

“We’re looking forward to getting the new fiscal year off on time and on budget,” Faush said. “He is accepting the modifications. The biggest thing with this budget is essential things were not touched, like police and fire.”

The council cut each city department’s proposed budget by 1 percent with the exception of fire, police and the city clerk’s office. The cuts do not affect salaries.

None of the members called the final version ideal.

“I really believe that what we should have done was live within the mayor’s real-revenue-projected $363 million budget, but because the council cannot change numbers, we were left to deal with his numbers, which I believe are not a sign of true austerity,” Royal said. “Cities do go broke when they don’t face budget challenges head on.”

Most of the items on the council’s wish list, such as extra funding for outside agencies, nonprofit groups and other initiatives, were also cut in the final draft.

“We didn’t have any extra money. This recession is making us get used to the fact that we can’t be the be-all and end-all for everybody,” said Councilwoman Valerie Abbott. “I’m not filled with enthusiasm, but we’re going to get basic city business taken care of and, at mid-year, see what we can do.”

Councilman Steven Hoyt, chairman of the Budget and Finance Committee, was disappointed with the document. His plan to increase funding for nonprofit agencies and economic development groups was rejected.

“Given the economic climate that we’re in, we certainly need to support the economic arms of this city at least at 2010 levels, but I’m only one councilman,” he said. “Again the council has avoided making any tough decisions.”

Hoyt said he was unsure whether he would vote for the budget.

The $1 million loan the council added was the suggestion of Councilman Johnathan Austin, who proposed tapping part of the $7 million left from a $15 million line of credit approved last year.

“I wouldn’t say it’s a victory, but it is taking care of the people and making those tough decisions,” Austin said.

The city’s fiscal year begins July 1.

Join the conversation by clicking to comment or email Bryant at jbryant@bhamnews.com.

This entry passed through the Full-Text RSS service — if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers. Five Filters featured article: Ten Years Of Media Lens – Our Problem With Mainstream Dissidents.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.