Gaskin pushes for investment fund as city sets aside nearly $18 million

The city's accounting practices in fiscal 2021 may not have been up to par, but the audit report released this week showed its cash position actually improved that year .

Since then, it has continued to improve every year.

Records The dispatch obtained Thursday from Finance Director Jim Brigham's office shows the city expects to end this fiscal year Sept. 30 with a general fund balance of nearly $17.9 million.

According to the fiscal year 2021 audit report, the city built these reserves at more than $8 million with a general fund surplus of $2.1 million. According to Brigham's unaudited figures, surpluses in each of the three years since have averaged more than $3 million and more than doubled the general fund balance.

Not only have sales tax revenues exceeded budget expectations over the past three years, but unfilled positions in some city departments – primarily police and fire – have kept spending below budget.

The police department has a budget of 55 officers, but its staff is around 40, Chief Joseph Daughtry reported to the council in May. With the Fire and Rescue Department down to just one person, Chief Duane Hughes told The Dispatch it has been short as many as 20 firefighters in the past two years.

“We have a full budget and underspending in some areas,” Brigham said. “The unfilled staff is the main one.”

Mayor Keith Gaskin said he considered the fund balance “good news” and “shows we have budgeted conservatively.” What he doesn't see is the need to change course.

“I'm hesitant, because of the history of our finances in the city, to go on a spending spree,” Gaskin told The Dispatch Friday, referring to the city's past deficit spending that in some years, exceeded $800,000. “We need to measure these numbers, really understand how we got there and what it means for the future. »

What Gaskin is proposing instead is creating a capital fund for long-term infrastructure and facilities needs. For example, he highlighted the repairs needed to the roof of the Municipal Complex.

“We never really had a capital fund that we could develop and build,” he said. “This will avoid having to put up deposits (for projects).”

Ward 5 Councilman Stephen Jones, who frequently opposes Gaskin's recommendations, said he likes the idea of ​​a capital fund.

“I would love to see a capital improvement plan because I think we’ve been waiting a long time,” he said.

Jones specifically mentioned the completion of the Terry Brown Amphitheater on the island as a capital improvement needed. Since the stage was built in 2017, it has sat unused as the city sought an additional $3 million for seats, doors, restrooms and concession facilities. He received a third of that sum from Parliament this year.

Jones also wants to continue raising the minimum wage for city employees to $15 an hour.

As budget planning approaches for fiscal year 2025, which begins Oct. 1, Gaskin said he wants the board to look at all options. This includes raises for police positions to make them more attractive, as well as hiring full-time city planner and public information officer positions.

“If you’re doing something like this, you have to make sure it’s sustainable,” Gaskin said.

He said he was not comfortable reducing the number of budgeted police officers below 55 people. Additionally, he thinks it might be too early to cut taxes.

“I don't think the first moment your finances start to look healthy that you start going down that path,” Gaskin said. “Over time, yes.”

Zack Plair is the editor-in-chief of The Dispatch.