The Baldwin City Council started 2012 budget talks with a 7 a.m. meeting on Saturday at city hall. Shown (clockwise) are: council members Beverly Holcomb and Sandi Rudeseal, Finance and Human Resources Director Karen Degges, Mayor Jerry Neace, council members Jeff Parrish and Rodney King, and city clerk Mirinda Dispain.

Baldwin budget finance director seeks secrecy in budget process; tax hike possible

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Wednesday, June 15. 2011
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The Baldwin City Council will meet Thursday at 5:30 p.m. to again discuss the town’s 2012 budget, although officials had been pressured by town finance director Karen Degges to keep the budget process secret.

Under the current draft budget, the city is looking to increase spending by 8.3 percent, a move that would likely force a tax hike. Among the increased spending is more money for administrative positions, including a city administrator at $60,000 per year, a part-time administrative assistant and taking a part-time finance analyst to full-time.

But Baldwin’s budget process so far has been confused by Degges efforts to keep both the public and media at bay. The council held a highly unusual called meeting at 7 a.m. last Saturday morning to discuss the budget. The timing was apparently a move to keep the discussions secret.

A Banks County News reporter showed up and was met with a hostile reception by Degges. The finance director refused to give the reporter copies of the proposed budget, saying it was secret, a clear violation of state law. The reporter eventually got a copy of an overview sheet, but Degges waited until after the meeting to hand out details to council members to avoid giving the media a copy.

Monday, Degges sent an email to the council complaining about the media showing up Saturday.

"Saturday's meeting was more challenging than I had hoped it would be, with the unexpected attendance by the media (after they said they would not be there at last Thursday's work session,)” Degges wrote.

Degges also pushed the council to cancel Thursday’s meeting to allow her to meet in small groups with council members in an effort to avoid having to have a public budget meeting.

"It's going to be very difficult to have another public meeting…. and go into the level of detail that will be needed to examine potential budget cuts and or tax increases....,” Degges wrote in her Monday email. “It will be inflammatory enough in the paper to have her print (as I am expecting) that staff has asked for an additional $150,000 in funding, which will require a 2.5 tax mil increase."

But after Banks County News co-publisher Mike Buffington challenged Degges on the efforts to discuss the city budget in secret, the city decided to go ahead with its 5:30 p.m. meeting Thursday.

“The City of Baldwin’s finances don’t belong to the city government, they belong to the citizens of Baldwin,” Buffington said. “For a public official to attempt to craft a town budget in secret and to refuse to release public documents is outrageous. Baldwin has a history of fiscal mismanagement and just two years ago, had a negative fund balance because of overspending. This kind of thing just compounds those problems.”

SATURDAY

The council spent four hours Saturday talking about the budget proposed by Degges, minus any detailed information.

The total proposed for 2012 for the Enterprise Fund is $3.06 million in revenues and $2.31 million in expenditures. The enterprise fund includes wastewater treatment plant, sewer collection/Fats, Oil, Grease Inspection Service (FOGIS), water distribution and water treatment plant.

The total 2011 enterprise fund budget was $2.6 million in revenues and $1.99 million in expense.

The proposed 2012 budget reflects a 17.5 percent increase in revenues and a 16.5 percent increase in expenditures for the enterprise fund.

The proposed General Fund account shows $1.54 million in projected revenues and $1.59 million in expenses for 2012. This figure reflects an increase of $14,019 in revenues and an increase of $139,734 in expenditures, making the total additional funds requested $125,715.

Mayor Jerry Neace commented that it would take an increase of 2.5 mills to cover this.

During Saturday’s budget talks, Degges reported that the collection of past due property taxes during 2011 had helped to increase revenues in the general fund.

The proposed police department expenditures for 2012 reflect an increase of 37 percent over 2011. The police department budget included funding for the investigator’s position, currently held by Tim Vaughan who is leaving soon to take a position with another municipality, and 10 digital radios at a cost of approximately $14,200.

Degges told the council that the police department is projected to be over budget in 2011 by $17,282.

The proposed 2012 fire department budget reflects an increase of 22 percent in expenditures including the addition of two full-time firemen and pay increases for all firemen of approximately $1 per hour, digital radios at a cost of approximately $14,570, the purchase of three SCBA bottles and one-set of turn-out gear.

Mayor Neace said, “We agreed no one would get raises this year.”

Degges also advised the fire department is expected to end 2011 over budget by $2,631 with the salaries over budget by $33,000. The council discussed the $33,000 in salaries over budget being due to the use of part-time employees because an open full-time position was not filled in 2011.
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#1 Jerry on 06/16/11 at 09:34 PM [Reply]
The real question that needs to be asked is why Baldwin's Mayor, Finance Director and Acccount have failed to produce a completed Audit for FY 2009/2010. Now that FY 2010/2011 is nearing the end, this audit will be a year overdue. It's interesting that the city gave her a $4.00/hr raise in March even though the Mayor refused to give raises to all other employees. He fought hard last year to cut the pay of employees via furloughs and benefit reductions. Mayor Neace wants to promote Degges to hire position but its obvious she's not qualified to hold the position she has if she can't manage the budget process better, produce a completed audit and doesn't understand how to comply with state Sunshine Laws.

As the former City Administrator, I worked hard to cut Baldwin's 2010/2011 Budget so that taxpayer's didn't have to bare an unnecessary burden in these difficult economic times and to collect delinquent taxes to eliminate past year deficits and create a budget surplus. It was all about balancing the budget and living within the City's means.

Baldwin's citizens deserve an open and honest government.
#1.1 #2 Lucy on 07/20/11 at 07:35 PM [Reply]
Appears to me you were not a yes man.
Baldwin is trying to get too big for their britches.
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