East Ridge Mayor Mike Steele says the city's much-discussed six-figure budget shortfall is almost $400,000 less than announced.
In October 2009, the city budget had a surplus and the City Council approved spending more than $560,000 on such items as a marketing campaign, a biodiesel program and raises for all city employees. The final expenditure was $389,578, records show.
Because that money was "already pre-approved surplus funds," it shouldn't be counted as a part of an unforeseen deficit, the mayor said.
At the same meeting when the council unanimously approved spending the surplus, then-City Manager William Whitson warned that "staff is concerned that the same positive results will not be evident for 2010."
Whitson was forced to resign in August after the deficit came to light.
In a news conference Wednesday, Steele still blamed Whitson, saying the city manager should have been more forceful in his warnings.
"Whitson was the one here every day who should have had a pulse on the city," Steele said.
City Councilmen Tom Card, Larry Sewell, Brent Lambert and Denny Manning flanked Steele at the news conference and nodded as the mayor criticized Whitson and his staff.
On Nov. 2, Card and Sewell are up for re-election, and Lambert is running for mayor.
Steele is not running for re-election, and Manning is up for re-election in 2012.
The vote to spend the surplus came five weeks after a major flood struck the city and before officials realized the aftermath would cause a revenue shortfall, Steele said.
A $292,421 revenue hole from the closing of the flooded Sears Essential store plus the $389,578 already spent left the $681,999 shortfall, he said.
"I hope people will trust what I have to say," Steele said a few hours before the news conference. "It's unfortunate we didn't have this information to report back in July [when the deficit was revealed]."
According to meeting minutes posted on the city's website, the information was available at that time.
Whitson, whose contract was bought out by the city, said he felt somewhat vindicated by Steele's announcement.
"It's always council's prerogative to spend funds any way they desire," Whitson said. "But I don't play the blame game. That's not what you do when you're a team."
Contact Chris Carroll at ccarroll@timesfreepress.com or 423-757-6610.