By Emmanuel Flemister
University of Kentucky School of Journalism and Media
Vandergrift and some council members were not too pleased with having to make these changes. “This is a painful exercise for me,” the mayor said. None of the budget cuts are final, since there are two budgets are in the works: the bare bones budget and the “status quo budget,” as coined by Council Member Logan Nance.
Before the meeting, Vandegrift had already subtracted $50,000, delaying the Stephens Street sidewalk project for a year.
The project would extend a walk to The Homeplace at Midway, and Vandegrift was hoping to make it part of a larger project to extend a walk to Walter Bradley Park, which would lead to Northside Elementary School, making the overall project eligible for a federal walk-to-school grant. He said City-Clerk Treasurer Cindy Foster said getting the grant would probably take a year anyway.
The council tentatively decided to keep Vandegrift’s proposed 2 percent pay raise for city employees, and to not shop around for health insurance instead of accepting a 9 percent increase. “I don’t like the idea of messing around with the health insurance, especially at a time of uncertainty, so I think we’re gonna have to bite the bullet on that one,” Vandegrift said.
The council discussed cuts in the water and sewer budgets but decided against it since those are enterprise funds, generating their own revenue. “Believe it or not,” Vandegrift said. “we’ve already cut out a lot from water and sewer in the past.”
The council and Vandegrift agreed they need to be conservative with funds during the pandemic because it is uncertain how long it will last, and there may be a resurgence after the initial wave passes.
Vandergrift voiced fears of what could happen if the state allows too many businesses to reopen too soon. “There’s a lot of political pressure to just go ahead and push through, but I think that would be a disaster,” he said. “I think it would be a disaster economically. It might end up hurting the economy more in the long run.”
He elaborated, “If you look at every other pandemic in history, it’s like humans keep making the same mistakes over and over again, they come out too quickly.” He even fretted, “If we aren’t careful, we’re going to eat all our surplus on covid-19.”
Midway is sitting on $1.2 million in unbudgeted surplus, and Vandegrift said he is “confident that Midway, pound for pound, has the healthiest city coffers of any city in Kentucky.” It’s important to note the bare bones budget isn’t final.
Council Member Bruce Southworth said, “Everyone’s got to make sacrifices.”He suggested that the council wait a few weeks to finalize the budget, to see “how this is going to last.” Vandegrift said the budget must be approved by June 22 to have it advertised in The Woodford Sun, thus taking effect, before July 1.
University of Kentucky School of Journalism and Media
The Midway City Council and Mayor Grayson Vandergrift cut
10.6% of expenses from the mayor’s proposed budget for the fiscal year that
begins July 1, in a meeting held Monday in response to the coronavirus pandemic and
its unforeseeable end.
Vandergrift called the special meeting to draft what he
called a “bare bones budget” after the town’s largest employer and taxpayer,
Lakeshore Learning Materials, furloughed 225 of its 300 employees.
With a loss of
occupational-tax revenue looming, the council and Vandegrift agreed on $195,500
in potential cuts from the $1.83 million in expenses he had proposed.
”Obviously, a lot of things have changed,” Vandegrift said
at the start of the discussion. “I think we’re going to have to rethink the way
we budget for next year. . . . I am very concerned about our revenues.”
The mayor’s original budget anticipated $825,000 in occupational-tax revenue, but he said that is no longer certain. “Originally I hoped we could bounce back in the new fiscal year,” he said, but now, “Even if things go better than expected, I just don’t think the economy is gonna be in full stride by July 1.”
The mayor’s original budget anticipated $825,000 in occupational-tax revenue, but he said that is no longer certain. “Originally I hoped we could bounce back in the new fiscal year,” he said, but now, “Even if things go better than expected, I just don’t think the economy is gonna be in full stride by July 1.”
Vandergrift and some council members were not too pleased with having to make these changes. “This is a painful exercise for me,” the mayor said. None of the budget cuts are final, since there are two budgets are in the works: the bare bones budget and the “status quo budget,” as coined by Council Member Logan Nance.
Before the meeting, Vandegrift had already subtracted $50,000, delaying the Stephens Street sidewalk project for a year.
The project would extend a walk to The Homeplace at Midway, and Vandegrift was hoping to make it part of a larger project to extend a walk to Walter Bradley Park, which would lead to Northside Elementary School, making the overall project eligible for a federal walk-to-school grant. He said City-Clerk Treasurer Cindy Foster said getting the grant would probably take a year anyway.
Vandegrift suggested, and the council agreed, to suspend the city's cost-sharing program for sidewalks, for which he had proposed $20,000.
Several other projects and expenses are on the list of proposed cuts:
Several other projects and expenses are on the list of proposed cuts:
• $30,000 for finishing the cemetery’s pavilion.
At this, Hicks exulted, “My baby!” She has been on the forefront of the project.
Vandergrift said, “You know Sara is serious about this when she talks about pulling out her biggest project.” He noted that the concrete base for the pavilion “isn’t going anywhere; it would not be a detriment to that project to be delayed a fiscal year.”
He said $5,000 needs to remain for the cemetery’s fence: “It’s pretty bad in spots and doesn’t look too great.” This cut was the biggest made by the council.
Vandergrift said, “You know Sara is serious about this when she talks about pulling out her biggest project.” He noted that the concrete base for the pavilion “isn’t going anywhere; it would not be a detriment to that project to be delayed a fiscal year.”
He said $5,000 needs to remain for the cemetery’s fence: “It’s pretty bad in spots and doesn’t look too great.” This cut was the biggest made by the council.
• $25,000 of the $50,000 proposed for street paving. “You got to leave something there,” said Vandergrift, noting the possibility of small, unexpected paving projects.
“I think here’s where we really need to make a sacrifice,”
Vandergrift said. “This is going to cost me, and it’s also going to cost the
veteran council members $2,000, but you know this is a sacrifice we’re willing
to make.” He said the remaining $2,000 might be needed to pay for webinars to
receive training.
• $10,000 for donations, the same as the current year’s budget. Nance said, “Since
we’re not bringing in money, we don’t need to be giving it out.”
• $10,000
from the proposed $20,000 for the coming year’s contingencies, which would have
been the same as the current year. “These are the little
things that come up that don’t necessarily fit in the ledger, but we decide we
have the money to do them,” Vandegrift. We’re saying: less of that.”
• $5,000
from the $35,000 proposed for fire department salaries, which are budgeted for
$28,500 this fiscal year. “This is a way to cut
$5,000 without really hindering them,” Vandegrift said, adding that salaries
were on track to hit $30,000 by June 30.
• $5,000
for the proposed public water fountain on East Main Street. “No one’s going to
want to share a fountain anyway,” considering the pandemic, Nance said.
• $2,500 for
park improvements, cutting that $5,000 budget in half. The council budgeted
$12,500 on park improvements for the current fiscal year.
• $20,000 in City Hall maintenance. Brick tuckpointing was supposed to be done,
perhaps with a grant; the proposed total budget for maintenance was $45,000.
The council tentatively decided to keep Vandegrift’s proposed 2 percent pay raise for city employees, and to not shop around for health insurance instead of accepting a 9 percent increase. “I don’t like the idea of messing around with the health insurance, especially at a time of uncertainty, so I think we’re gonna have to bite the bullet on that one,” Vandegrift said.
The council discussed cuts in the water and sewer budgets but decided against it since those are enterprise funds, generating their own revenue. “Believe it or not,” Vandegrift said. “we’ve already cut out a lot from water and sewer in the past.”
The council and Vandegrift agreed they need to be conservative with funds during the pandemic because it is uncertain how long it will last, and there may be a resurgence after the initial wave passes.
Vandergrift voiced fears of what could happen if the state allows too many businesses to reopen too soon. “There’s a lot of political pressure to just go ahead and push through, but I think that would be a disaster,” he said. “I think it would be a disaster economically. It might end up hurting the economy more in the long run.”
He elaborated, “If you look at every other pandemic in history, it’s like humans keep making the same mistakes over and over again, they come out too quickly.” He even fretted, “If we aren’t careful, we’re going to eat all our surplus on covid-19.”
Midway is sitting on $1.2 million in unbudgeted surplus, and Vandegrift said he is “confident that Midway, pound for pound, has the healthiest city coffers of any city in Kentucky.” It’s important to note the bare bones budget isn’t final.
Council members and the mayor noted that they can amend the
budget anytime. “We don’t want to get rid of this stuff, just put it on hold,”
Hicks said. “Things are unsure at this time, and we should just make sure the
city remains stable . . . and have money for emergencies.”
Council Member Bruce Southworth said, “Everyone’s got to make sacrifices.”He suggested that the council wait a few weeks to finalize the budget, to see “how this is going to last.” Vandegrift said the budget must be approved by June 22 to have it advertised in The Woodford Sun, thus taking effect, before July 1.
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