Denmark's mayor, Carolyn Davis. C. ALUKA BERRY/SPECIAL

In an emergency meeting in which every penny was counted, council members eliminated their own salaries and agreed to cut 23 full-time employees from 40 to 30 hours a week until the end of June. Five part-time employees in the maintenance, sanitation and fire departments will be laid off until June 30, the end of the fiscal year.

``This is just temporary,'' said Mayor Carolyn Davis, who surprised many residents Wednesday by admitting publicly for the first time that the city is having financial problems.

The mayor and city officials are under investigation by agents with the South Carolina Law Enforcement Division, who want to find out how the town went from six-figure surpluses in 1995 to six-figure debt by 2000. Denmark continues to struggle to pay its bills and recover from years of mismanagement, overspending and excessive fines for late payments, according to Clerk Administrator Pat Anduze.

The city council agreed to the Wednesday meeting after Mrs. Anduze said the town had no money. Residents crowded into the meeting hall at Brooker Center to find out how the council would keep the city running.

Mrs. Anduze told council members that the city was headed for a deficit of $48,000 this fiscal year even after cutting some services. Councilman Charles Bristow suggested the city seek advice on a general obligation bond and meet again later.

``We need cash, not advice right now,'' Mrs. Anduze responded. ``I need some answers, and I need some answers yesterday. When payday comes, the employees don't want to hear that you are bringing in someone (for advice). They want the money to be in the bank when they go there.''

The council responded by going into executive session to discuss personnel. Afterward, they voted in public to cut the personnel budget and those of other areas:

This article is the latest in a series by The Augusta Chronicle and television station WJBF (Channel 6) exploring the financial woes and allegations of mismanagement in Denmark, S.C. and the impact on its residents.

The Denmark Fire Department has usually paid $7.50 to each volunteer for every emergency they respond to. The council voted to eliminate that pay until June 30, saving $2,250.

Council members voted to cancel their own pay for May and June, saving $400 a month for Ms. Davis and $200 a month each for the six council members.

Five part-time employees will be laid off until June 30.

Every full-time city employee will be furloughed for 21/2 days a pay period, or every two weeks. That affects workers in the fire, police, sanitation, and water and sewer departments. It also affects administrative workers, including Mrs. Anduze.

All overtime pay is temporarily suspended.

Council members had considered a general obligation bond and even voted to look into the option. But the council reversed its vote and decided not to pursue it after residents complained about the possibility of higher taxes from a bond.

The vote to cut the personnel budget still leaves Denmark with a potential deficit of about $23,000 at the end of the fiscal year. But the clerk administrator said she is working on increasing revenues in a few areas and could make up the difference in the meantime.

Ms. Davis assured residents that the police department would still provide around-the-clock coverage because the nine officers will cut their hours at different times. Firefighters accustomed to reimbursement for answering emergency calls will be asked to ``help the city out'' and continue serving the fire department, Mrs. Anduze said.

The clerk administrator said she will inform city workers of the council's vote in a letter and will likely schedule a meeting in the next week.

Reach Greg Rickabaugh at (803) 648-1395.