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.