Greenwood’s budget is set, and without many changes.
The Greenwood City Council on Monday unanimously approved Mayor Mark Myers’s 2021 spending plan for the city, which saw few changes from this year’s due to coronavirus-related revenue shortfalls.
City officials have said Greenwood is in a good place financially despite the pandemic’s impact. But to be safe, all departments were asked to freeze their budgets, meaning staffing levels and expenses will remain virtually the same as some revenues fall. Some departments will receive increases based on specific needs, and the parks department will receive a 21% increase.
The total budget for 2021 is $39.7 million, a 2.8% increase from this year’s budget.
Based on statewide projections, the city’s income tax revenue is expected to drop by 15%, or roughly $880,000, next year, and fuel taxes are expected to decrease by 10%, city officials have said.
But Greenwood’s increased food and beverage tax, passed last year, will help make up for those losses. Revenue from the food and beverage tax is expected to generate about $1.2 million next year.
Most of that money will go to the city’s Parks and Recreation Department, which suffered the most substantial financial losses this year after it closed the community center for three months and delayed opening Freedom Springs Aquatic Center.
The department’s significant budget bump was necessary due to the city being in the middle of the $9 million fieldhouse project set to open last next year. The budget increase will help fund fieldhouse operations and additional employees that will be needed once it opens.
City officials have said Greenwood is not in any foreseeable financial trouble due to its hefty reserves. The city could, hypothetically, get through a little more than six months of unplanned expenses without being in a financial crisis, city controller Greg Wright has said. A priority of the proposed budget is to remain conservative with spending and investments, he has said.
Overall, the city plans to increase its workforce by seven people in 2021, a significant decrease from the 20 employees that were added this year.
Public safety remains the biggest chunk of the city’s budget, taking up 36%, down slightly from this year’s 37%. The police and fire departments typically receive funding for new personnel each year, but neither department will add additional bodies this year, according to the budget.
The Greenwood Police Department’s $6.8 million budget includes funding for 79 employees, with 71 of those being sworn officers. A small increase was added to next year’s budget for new license plate reader cameras, which cost $2,500 each.
The Greenwood Fire Department will also receive a small increase in its budget next year, but that does not include funding for any new firefighters.
According to the proposed budget, the fire department would receive a 2.4% increase next year to raise the pay for part-time firefighters to $16 an hour from $14. The increase is necessary to remain competitive with surrounding departments, officials have said. The increase would bring the fire department’s total budget to $7.4 million.
The city council can consider revisiting the budget next summer if the city generates enough revenue. The option, added due to the volatility of the ongoing pandemic, has fire and police officials hopeful they may receive the funds for new hires later next year.
If that happens, department heads could ask city council members to reopen next year’s budget, add an appropriation and amend the city’s salary ordinance to accommodate new positions, such as a firefighter or police officer, Wright said. Amending salary ordinances is common practice to hire new city staff, even after the budget is set, he said.
The council attempted to make a change to the budget Monday night, one that would have removed money from the Greenwood Police Merit Commission’s budget set aside for hiring outside legal counsel. The commission is the only board with funds for outside counsel as all other boards receive legal assistance from city attorneys. The reason for the proposed change was the commission should only hire legal counsel on an as-needed basis, after it seeks approval from the city council, council member Mike Campbell said.
The proposed change failed on a 5-4 vote. Council member Bob Dine, a former Greenwood police chief, voted against it, saying taking away outside counsel would make it more difficult for the commission to handle issues it deals with regularly, including merit issues, hiring new officers and considering lateral transfers.
The ability to hire lateral transfers — an officer from another agency added to the Greenwood force at the same pay grade — was just approved by the council to alleviate the department’s struggle to fill eight empty officer positions. The police academy is backed up due to the pandemic.
The merit commission was also not informed of the proposed change prior to it coming before the city council, an issue brought up by council member Bradley Pendleton. The merit commission is governed by the council to begin with, Campbell said.
