Right now, I can’t be for this note…until we make some cuts,” Brownsville’s Vice-Mayor Leon King said Monday. His comments about a loan city government is considering came during wrangling over whether Brownsville should apply for a $2 million Tax Anticipation line of credit. For the second time, efforts to borrow money failed when the City Board met in special session Monday morning. The cash is needed, some believe, to shore up government’s depleted General Fund bank balance.
King’s comments—and some from others—makes it clear that spending cuts must come before any other action.
Most think the city’s burgeoning payroll is the problem.
Mayor Bill Rawls presented an agenda Monday morning that included only the consideration of the Tax Anticipation Loan. The loan, a line of credit for $2 million, Rawls says, has been recommended by the Municipal Technical Advisory Service (MTAS) out of fear that the town’s General Fund may run out of cash before new property tax money starts arriving after October 1. Rawls called the Monday session on the heels of a tumultuous meeting held last Friday at which the city’s accountants provided insight into the town’s financial crisis. (See additional story.)
While the accounting isn’t certain and the balance changes from day-to-day, recent reports stated the General Fund bank account contains about $1.3 million including its reserves.
Mayor Rawls says the city needs about a half-million dollars every month to pay its bills. “That’s the number Ms. (Lisa) Brooks left me,” Mayor Rawls told the board Monday. Brooks is the town’s beleaguered City Clerk. Brooks is not presently on the job because Mayor Rawls placed her on Administrative Leave about two weeks ago.
The board voted twice on the loan Monday, though the first vote was incomplete. Initially, Aldermen Carolyn Flagg and Alderman Travis Pugh voted yes. Alderman John Simmons voted no and Alderman Leon King refused to vote, abstaining. If Rawls had voted yes, then the measure would have passed, instead he permitted further debate and required a second vote.
After discussion and a second round of voting, Alderman Pugh changed his vote to no, sealing off any chance of passage.
Alderman Flagg worries that without the loan the city may fall behind paying bills and making payroll. “I don’t want to vote for this (loan),” Flagg said. “But these people (city workers) have got to have a paycheck…it’s not fair…it’s our fault.”
“We did not do a good job…we are not being good stewards…” Alderman Leon King echoed.
Whether the city will run out of money without the loan isn’t clear, but what seems certain is the borrowing has no chance unless spending cuts are made first.
“We’ve been talking…now we’ve got to take some action,” Alderman King said.
Mayor Rawls said he’d likely call another budget workshop within days to talk about spending and the new budget. The mayor told aldermen laying off or firing workers requires care, and he believes the board needs legal counsel. “We’re doing this without legal advice,” Mayor Rawls said. City Attorney Michael Banks won’t be available until the first of August.
Later Monday, Mayor Rawls told the Brownsville Press that he is reviewing all of the budgets and plans to submit budget-cutting ideas when he convenes the next session.
