Columbus councilmen approved a seven-part plan Tuesday that will purportedly save the city $1.1 million this fiscal year.
Mayor Robert Smith presented the plan to reduce city expenses in a package that includes raising employee health insurance deductibles, reducing overtime and hiring an outside accounting firm to monitor the city’s finances. It also calls for leaving 18 vacant positions, for which salaries and benefits are budgeted, unfilled.
The measures are meant to combat a financial crisis, after consultant and certified public accountant Mike Crowder reported in March that Columbus is on track to end the fiscal year on Sept. 30 with a $338,000 debt in its operating fund.
Under the plan, a hiring freeze — on every city position except chief financial officer — would continue, saving an estimated $927,000, and Columbus Fire and Rescue would cut an estimated $53,000 in non-essential supplies and training.
Smith also said department heads have committed to reducing overtime and discretionary spending and will begin keeping records of that spending to be reviewed by city councilmen at the end of each month. The police department and CFR will also reduce the amount of staff present at city events to avoid overtime costs.
In addition to increasing the health insurance deductible from $100 to $500 — which Smith estimated would save the city $78,000 annually — the plan would also only cover the generic brand of prescription medication.
“Right now, we have them on a ‘Cadillac plan,'” Smith said. “But unfortunately, we’re going to take some cuts. They’re still able to get brand-name (prescription medication), but they’d have to pay the difference. As leaders we have to make decisions that are unpopular sometimes.”
Smith said the city is planning a meeting with directors of Baptist Medical Group, with which the city has an agreement to provide medical care to city employees and their families at no cost to the employees, to see what cost-cutting measures could be taken there. Currently, the clinic costs the city $20,000 to $25,000 a month.
J5, the city’s project management firm, will only charge the city for projects that were not previously in the budget, such as anything done to clean up the city after the Feb. 23 tornado. Smith estimated that will save the city $45,000 annually.
City project manager Jabari Edwards, who owns J5, told The Dispatch the offer was “to help out” the city.
“We’re not charging them for anything except those special projects,” he said. “Just anything that takes dedicated manpower. But that’s it. … I understand the position the city’s in and I want to do what I can to help.”
Before voting to enact the plan immediately, councilmen praised the mayor, saying his plan was a good move for the city’s finances.
“This is a good thing for the city,” Ward 2 councilman Joseph Mickens told Smith. “It’s difficult, but it’s good. I wanted to tell you that in open session and thank you.”
Ward 3 Councilman Charlie Box told The Dispatch he sees the plan as an end to the city’s projected $338,000 debt at the end of the fiscal year.
“I don’t think a lot of people realize what we did tonight,” he said. “We cut out $1.1 million for the rest of the year. And Mr. Crowder told us we were going to be $338,000 overdrawn (by Sept. 30). What we did is more than over-balanced the budget.”
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