The 2010 budget the Augusta Commission approved Tuesday doesn't include a tax increase, but that could change midyear, depending on where the city's finances stand.
City Administrator Fred Russell told commissioners that his plan postpones some of their toughest decisions -- such as furloughing employees -- until June or July, when they can take another look at revenues, expenses and the state of the economy before setting the millage. A budget is a "living document," he reminded them.
"It's not written in stone," Mr. Russell said. "It can be modified."
The hope is that finances will improve to a point where not all of the budget's $4.3 million in spending reductions will be necessary, much less a tax increase. A key consideration will likely be how much progress has been made toward adding an eighth penny to the city's sales tax, known as a Municipal Option Sales Tax, or MOST.
The vote to approve the budget was 8-1, with Mayor Pro Tem Alvin Mason opposed and Betty Beard absent.
Mr. Mason said he has several problems with the plan, including $1 million in cuts to the sheriff's office and prisoner funding, which he said he doesn't believe is possible.
The board approved the version of the budget Mr. Russell gave them Nov. 17, with a stipulation in the motion by Commissioner Joe Bowles that the mayor form a subcommittee to look into city funding to outside agencies, such as the Richmond County Health Department, the Augusta Museum of History, the Greater Augusta Arts Council, Mosquito Control and the Downtown Development Authority.
The issue was raised when Commissioner Don Grantham told Mr. Russell he had problems with his plan for 15 percent cuts across the board. The cuts to 25 agencies would save more than $1.1 million.
Mr. Grantham said he didn't understand why the Augusta Museum of History and the Lucy Craft Laney Museum are being funded at the same level and why each is being cut the same amount when the history museum is so much larger and serves far more people. After the reductions, each museum would receive $148,750 next year.
"I just think we need to give full consideration to those agencies that are providing services to numbers in our community," Mr. Grantham said.
Commissioner Jerry Brigham questioned why health department funding should be cut when, in this tough economy, so many people need its services. It will receive $148,750 next year under the budget passed Tuesday.
"We need to look at our priorities in how we're funding these outside agencies," he said.
Mr. Russell said he made the reductions across the board because he didn't want to ignite an argument over which agencies have the most important missions. The funding accounts for less than 1 percent of the budget, he said.
The mayor's subcommittee will look into whether some agencies should be cut more than others, or less than others, and have a report ready by Jan. 15.
The approved budget has a general fund of $124.4 million in revenue and expenses. Among the measures that made up for an initial $8.6 million shortfall:
- Furloughing all city employees for four days in September, October, November and December for a savings of $814,000
- Routing $600,000 in beer taxes away from the Augusta-Richmond County Coliseum Authority after it finishes paying off the bond that built James Brown Arena
- Generating $200,000 through stepped-up efforts to collect delinquent taxes
- Saving $650,000 through a new employee retirement incentive program
- Providing six months of funding for the Augusta Municipal Golf Course while the city considers privatizing it
- Taking money out of reserves to make up for a $1.8 million hole in Augusta Public Transit's budget
The $8.6 million shortfall could also be made up for if the sales tax increases a penny next year.
Should voters approve it in July and collections begin in October, it could add $7.5 million to $9 million to next year's revenues and generate an estimated $30 million to $35 million per year total.
Reach Johnny Edwards at (706) 823-3225 or johnny.edwards@augustachronicle.com
Other actions Tuesday
- The commission seemed on the verge of approving a plan to fund construction of a trade, exhibit and event center and revitalization projects in the Laney-Walker and Bethlehem neighborhoods, but the motion by Commissioner Joe Jackson didn't get a second.
The issue came up with Housing and Community Development Director Chester Wheeler's request for a $150,000 loan from the general fund to keep the inner-city projects going, which would be paid back when bonds are issued. As it stands, the program's funds will soon run dry.
Commissioner Joe Bowles maintained that without a TEE center, the $1-a-night hotel fee that's been funding Laney-Walker/Bethlehem projects might not be legal because it's supposed to fund tourism. After several motions failed, Mayor Deke Copenhaver said he would call for a special meeting Monday to revisit the issue.
- After a lengthy closed session, the commission voted 6-2 -- with Don Grantham and Jerry Brigham opposed, Alvin Mason having left early and Betty Beard absent -- to settle former city engineer Teresa Smith's discrimination lawsuit for $125,000. Ms. Smith will receive a letter of recommendation, and she cannot apply for a job with the city government for three years.
- The commission voted 6-3, with Mr. Bowles, Calvin Holland and Mr. Mason opposed, to tentatively approve a resolution asking the city's legislative delegation to push a law allowing Augusta voters to decide whether to add an eighth penny to the sales tax -- the Municipal Option Sales Tax.
- Commissioners voted unanimously, on the consent agenda, to hire Tom Wiedmeier to be the new Utilities Department director for a salary of $115,666.
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