MOUNT VERNON — For the second time since creating a rainy day fund, city council members voted to access its savings.
The council created the fund in 2017 and dipped into it in 2022 when it approved a $150,000 grant to help cover costs at Heartland Commerce Park (formerly Cooper Progress Park).
The reserve fund balance stands at $3.2 million. On Monday, council members voted 5 to 2 to withdraw $161,000 for payroll services.
Accessing the fund requires a two-thirds vote of council. Councilwomen Janis Seavolt and Tammy Woods voted no.
Of the $161,000, the administration will use $83,000 to purchase NEOGOV software for the auditor’s office and $3,000 for two more computers. The remaining $75,000 will go to McDaniels CPA for temporary payroll processing.
Fund withdrawals must meet one of three criteria:
•Unforeseen adverse events
•Unforeseen opportunities
•Declining economic trends
“I believe the city has determined that these are unforeseen adverse events,” Law Director Rob Broeren said. “Specifically, the lack of staffing in the auditor’s office, which has led to their overwork and therefore has contributed to grievances filed against the city, which spending this money we are hoping will resolve.”
If council did not approve using reserve fund money, the administration would bring legislation to council detailing where the $161,000 would come from.
Salyers said that if council chose that route, “it will put a strain on line items and delay the process.”
Rationale for accessing the rainy day fund
Councilman Mike Miller said the city government lacks staff to get things done and operate smoothly. That includes the auditor’s office.
The office used to have four people; now it has two. A staff member moved to a different department about a year ago, and the position was not filled.
The deputy auditor position has been vacant for many years. The council recently appropriated money for it, but not many applicants have applied.
One qualified applicant opted to go elsewhere for higher pay.
The two remaining staff members work 10-hour days, including weekends and holidays.
Additionally, Miller said the auditor’s software is “antiquated, outdated, and doesn’t function very well.”
“We’re facing several grievances with employees not being paid properly. We’re also looking at bills not getting paid, sometimes for three or four months,” he said.
“There’s too much inflow for two people to handle.”
Miller said the administration, auditor, and city council members discussed for several months how to fix the issue.
Outsourcing payroll temporarily to McDaniels CPA provides breathing space for the auditor’s office to hire staff and implement the NEOGOV software system.
Miller anticipates using the CPA firm for six to nine months.
Differing opinions
Miller and Salyers noted that using money earmarked for other departments would short those departments of their plans and budgets.
“If we don’t act, we will pay, and then we will pay again,” Salyers said.
“I believe the risks and costs of not [using the reserve fund] could be higher than $161,000. So I believe it’s something we need to do,” Councilman Mel Severns said.
“The value of this money [in the fund] is decreasing, and we do have an adverse event that is affecting the city,” Council member Amber Keener said. “Financially, I think we will end up paying a significant amount more than this if we sit on this process.”
“You have to leave it alone. It’s not a lot of money when you have a big disaster,” Seavolt said, noting how difficult it was and how long it took to create the fund.
“I know what it’s like to not have a rainy day fund, what it’s like to need it and not have it.
“I just know how easy it is to go to it and take from it.”
Legislative action
In other business, council members approved rezoning a Vernonview Road parcel from R-1 to PND.
They also approved rezoning 875 Harcourt Road from General Business/Clinton Township to General Business/Mount Vernon.
In additional legislative actions, council:
•Authorized transferring $209,000 from the water treatment plant account to various other accounts (The administration canceled and will rebid a contract for lime silos because officials believe they can get a better contract.)
•Gave first reading to legislation relating to recreational marijuana sales in the city
•Adopted an ordinance fixing the number of hourly employees in the public works department (total number stays at 20, but positions are rearranged to increase crew leaders and light techs and reduce general techs)
•Gave first reading to legislation replacing Part 11 of the city’s code relating to zoning code violations
•Reviewed July 4 and other activities at Ariel-Foundation Park
•Again reviewed highlights of the zoning code update
•Heard a request to lower the speed limit on Pittsburgh Avenue to 25 mph