McComb’s employees can breathe a sigh of relief — for now — as city officials said this week layoffs and a reduction in hours will not be necessary to overcome a projected $1 million budget shortfall.
“Right now, we could weather the storm without any layoffs, without going into a 32-hour work week,” city administrator Quordiniah Lockley told selectmen at Tuesday’s work session.
The optimism is due to a combination of tax collections and cost-cutting measures that have inflated the city’s general fund to $2.5 million.
The city is saving $80,000 per month on the accounts payable docket since Lockley instructed department heads to purchase items only when needed. Before the change, the docket cost the city about $240,000 a month.
With a hiring freeze in place, there are 25 vacant positions that will not be filled.
A surprise drug test on Monday that included all city employees yielded 11 results that indicate drug use. Severing ties with five of those employees will catapult the city to its goal.
Selectman Wade Lamb, who voiced concern on hour reduction and layoffs at previous meetings, was relieved, yet puzzled by the announcement.
“For a couple of months, we’ve been sitting here talking about cutting people’s pay 20 percent or cutting people out 100 percent,” Lamb said. “Now, all of a sudden, we can make it?
“I’m glad to hear that. If attrition comes up, (employees) made that choice. But I don’t want the rest of the employees going home still not knowing if they have a job,” Lamb said.
But the city is not out of the woods yet.
The $2.5 million fund balance will be combined with monthly sales tax revenues to cover operations through Sept. 30 — the end of the current fiscal year. The trouble is, the remaining months are historically lean, and sales tax revenues have steadily declined over the last few years.
Also, outside agencies hoping for a city check may be on the back burner.
“Right now, I’m not sure we’re standing good financially,” said Selectman Robert Earl Smith. “How can we contribute money to outside agencies?”
The city has little choice on organizations it has previously committed funds to. These include the Pike County Arts Council ($13,000), Southwest Mississippi Narcotics Enforcement Unit ($25,000), National Guard ($1,000), Pike County Economic Development District ($36,500) and the McComb-Pike County Airport ($10,400).
The city has already paid the arts council and the narcotics unit. Since the city is owner of the armory and part-owner of the airport, selectmen indicated the board would pay those as well.
The economic development board may be a different story.
Lockley told selectmen that the 16-member board may be restructured and reduced to an 11- or seven-member board.
With an 11-person board, McComb would have two representatives; Magnolia, Summit and Osyka would have one apiece; and the county would appoint the other six seats.
The proposal for a seven-member board was not well received by McComb selectmen.
Under this proposal, the board would be made up of one member from each county supervisor’s district, with two at-large positions.
Each position would be picked by the county.
“We can eliminate that $35,000 fee,” Selectman Melvin Joe Johnson said.
Selectman E.C. Nobles added a similar sentiment, saying, “I can’t see the good in giving $35,000 to the agency that wants to take what little vote that we did have on that board away from us.”
It is not known when selectmen will vote on payments to the economic board.
