Starkville Parks Commission Chairman Dan Moreland will get a $60,000 bailout to meet payroll, retirement and bill payments this month, but aldermen expect the autonomous department to pay the money back and balance its revenue shortfalls with increased sports participation fees next year.
Starkville aldermen approved the bailout Tuesday after Moreland sent a letter to the board and mayor stating SPC would fall $56,986.23 short for the month. As of Aug. 31, SPC had $21,974.76 in its checking account, but September’s bare necessity bills, including end-of-the-month payroll, payroll tax and Public Employee’s Retirement System of Mississippi payments and utilities, would total almost $80,000.
A special-call meeting Monday by the three-person Starkville Audit and Budget Committee yielded a plan to give SPC an inter-departmental loan, but that agreement was adjusted at the table after payment concerns were echoed to the group by board attorney Chris Latimer.
The city will still give SPC $60,000 immediately for its shortfall, but instead of awaiting Fiscal Year 2014-2015 loan payments, it will decrease the group’s operating budget $5,000 beginning in April.
Although aldermen didn’t make it clear how long the payment length would last, payments from April to September, the end of the fiscal year, would replenish $30,000, or half of the bailout. Another six months of $5,000 payments would be needed in FY 2015-2016.
Aldermen acknowledged the tight financial situation Parks is in — they previously increased SPC’s operational budget for the current fiscal year after an audit pointed to financial mismanagement, including Moreland’s issuance of an unauthorized check — but the board can make few direct changes since SPC is independent from the city. SPC’s autonomy allows its own board of directors, led by Moreland, to set the department’s budget.
Ward 4 Alderman Jason Walker, the lone board member who criticized Parks’ management and shortcomings before news of its financial troubles broke last week, motioned that Moreland step down from his position. Besides taking the system back under city control, aldermen can also impact the board’s makeup since it appoints commissioners.
His motion died at the table without a second. Aldermen, many of whom have praised Moreland’s and SPC’s community impact for years despite the ever-growing financial revelations — avoided discussion on the potential action all together.
“Without question, Park employees and their retirements have to be paid. If I had a choice, though, I wouldn’t give them this money. Parks is routinely over their budget. Can they not look at their books and figure this out? If we keep bailing them out, I don’t see this problem fixing itself,” he said. “We’ve been asking them to do things for two years. If this was one of our department heads, they would have been fired by now.”
Another motion, submitted by Ward 3 Alderman David Little, tasked auditors with delivering a comprehensive report on SPC’s financial health by the end of the calendar year. Little, along with Ward 1 Aldermen Ben Carver and Walker, did hint at a future city takeover of the group if money issues do not improve, but the board fell short of any formal discussion or action on the matter.
Like Monday’s special-call meeting, Moreland was absent from discussions. His wife did speak on his behalf during an hour-long public comment session that yielded resident criticisms on Moreland and a call for his resignation.
When the board turned to Parks as a discussion point, Parks and Recreation Director Herman Peters spoke of his lack of direct control with SPC’s budget. Peters told aldermen he could manage funds if that power was given to him, but as it stands bill payments are a set amount since commissioners vote on what to pay and how much.
Peters also said general maintenance and upkeep issues are mounting because the department is down workers. Peters has taken on additional responsibilities without a pay increase, he said.
It is unknown if commissioners will increase player participation fees before spring sports begin. Many sports’ player fees are currently $50, and aldermen floated a possible $30 increase in Monday’s budget meeting.
Parks could look toward increasing sponsorship fees in order to lessen the impact of a per-player fee, but SPC is autonomous and does not have to act on aldermen’s recommendation.
The decisions to loan SPC $60,000, require more-stringent financial reports and suggest the fee increase all passed unanimously, but Carver was the sole opposition against cutting SPC’s operating budget $5,000 monthly in the upcoming fiscal year.
“If we agree there’s not enough money, why would we cut them?” Carver asked Tuesday.
Since budget season last year, Moreland has blamed Mayor Parker Wiseman and the previous board of aldermen for SPC’s money woes. His letter to the board again pointed fingers at the usual targets, but SPC’s operational budget was increased $8,000 in 2013 to help reduce growing debt created by late electrical bills.
A June 2013 report estimated SPC owed Starkville Electric Department more than $100,000 and forecasted overdue fees and expected usage at $180,000 for the fiscal year.
Because of its autonomy, SPC is one of the only Starkville departments that pays its own utilities.
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 37 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.