Patterson revenues drop, cuts proposed for next year

City revenues will be about $655,000 less than originally anticipated by the June 30 end of the fiscal year, mostly because of the struggling economy. So city leaders are proposing cuts next year to be able to maintain vital services, they say.
City Accountant Reginald Weary presented the city’s 2015-16 amended budget for the fiscal year, which the council approved Tuesday.
Tax collections are down 17 percent from this point in the previous year, Weary said. Total revenues are down about 20 percent, which includes lower natural gas revenues because of a mild winter, city officials said.
For 2015-16, Weary estimates city officials will get $6.72 million in revenues by June 30, down from the originally projected $7.37 million in revenues. City officials initially projected to spend $9.37 million in 2015-16, but dropped expenses to $7.53 million through cuts.
Weary also presented the proposed 2016-17 budget at the meeting.
The city projects to bring in $6.64 million in revenues and spend $9.38 million in 2016-17. The proposed budget includes about $2 million in state capital outlay funds to start construction on the city’s new water plant.
Mayor Rodney Grogan asked the council to examine the $400,000 to $600,000 in health insurance the city pays for employees. The city can cut up to $300,000 of those insurance costs in 2016-17 by decreasing the percentage of health insurance the city pays for about 20 employees, who have worked for the city the longest, and have been paying a substantially lower percentage of their families’ health insurance than other city employees, Grogan said.
Grogan has asked the council to consider cutting those health insurance costs for three years, he said.
“If you want to make a major cut, that’s where you make a cut,” Grogan said.
Police Chief Patrick LaSalle said during the meeting that he “is tired of the constant attempts to undermine the police department.” The department “is extremely shorthanded” and is getting assistance from reserve officers where needed, LaSalle said.
The city spent $1.83 mil-lion on the police department in 2015-16 and projects to spend $1.79 million next year.
The police department “will do everything to protect the citizens of Patterson” but the city needs to get more serious about providing adequate resources for police, LaSalle said. LaSalle wants to meet with other city officials to discuss his budget.
In March, Grogan announced he was cutting one hour off of city employees’ work week to save money and closing city hall at 3 p.m. on Fridays. Grogan also made a 2.6 percent budget cut to the police department to match the cuts to other city employees.
Even with the cutbacks, city leaders are still doing what’s necessary to provide the services residents need, Grogan said.
“The public must under-stand. If (the police) chief can’t get there in one second as he’s been doing before, he’ll be there in 1.1 seconds,” Grogan said. “But the services are still there. We can’t cut the services,” Grogan said.
City officials project the city’s 2016-17 ending fund balance to be about $18 million.
The proposed 2016-17 budget will be up for adoption after the council holds a public hearing at 6:30 p.m. June 7.
In other business, the council
—Adopted and enacted a new code for the city’s code of ordinances.
—Introduced an ordinance to levy a general alimony tax at a rate of 8.20 mills for the 2016 tax year.
—Introduced an ordinance to levy a tax of 16 mills for public improvement bond for waterworks issues for the 2016 tax year.
—Approved putting a stop sign at the corner of Martin Luther King Jr. Avenue and Cherry Street.
—Approved the appointment of Joyce Williams to the Main Street and Cultural District Committee.
—Accepted a resolution approving the city to apply for grant funds from the Federal Highway Administration’s Recreation Trails Program.
—Approved a resolution obligating funds to a land and water conservation fund project.
—Authorized City Attorney Russel Cremaldi to draft an ordinance to allow the use of golf carts on city streets.
—Approved a liquor license for Boiling Madd, Patterson, LLC.
—Approved a resolution of respect for Shanqualla Turner Thompson.