JAMES MADISON QUOTE - 1822

"A popular government without popular information, or the means of acquiring it, is but a Prologue to a Farce or a Tragedy; or, perhaps both. Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power knowledge gives."

SCOTTSBORO WEATHER - SUN & MOON RISE

Friday, September 25, 2009

Scottsboro City Council Budget Hearings, Part 1



Last night was the first of the Budget Hearings. The Mayor and Council Department Committee members had already met with the Department Heads to work out budget details concerning the respective departments.


As previously announced by the City Council, revenues are down this year. Mr. Wheeler commented lodging taxes were down. Lodging taxes account for 42% of Scottsboro's General Fund budget. The departments were requested to reduce their budgets so a reduction in employees or city services would not need to occur.


Unfortunately Employee insurance costs have risen by 14%. A plan is being considered to reduce the insurance cost increase by 5% to a 9% increase. It appears the city employees may have to share part of the insurance cost increase by higher deductibles. There was considerable discussion concerning this issue. Mr. Smith suggested that if employees were to bare the brunt of cost increases they should receive a one time pay increase to help defray costs. During the insurance discussion it was brought up the city had contracted an insurance evaluator to save the city money in its insurance for its employees. There was some question as to exactly what his contract was for and the length of service of the contract. It was stated this individual was hired 3 years ago for 1 year and the contract has not been officially extended. There was also questions concerning how much money the insurance evaluator was being paid and for what purpose. Neither was clear to this writer as to amount of money paid for the exact service rendered as to cost savings which is what the insurance evaluators contract concerned. Figures given for evaluators pay did not match percentage of savings. It was very confusing, except there was no current contract for what he was being paid.


Another interesting revelation was the amount of money to be placed in the IDB budget, $23,000. I inquired after the meeting as to the specific usage of these funds there was no specific answer given.


There was discussion as to freezing of all Cost of Living Allowances and step increases to meet a balanced budget.


The budget hearings are not a decision making session but are sessions of deliberation to work out problems in the up coming Fiscal year's budget, 2010. I was the only person present outside of the City Council and Mayor. Next budget hearing will be Oct. 1, 2009 at 4:30PM.

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