East Ridge elected officials turned to an unlikely source for an analysis of how the city ended its most recent fiscal year with a $701,308 deficit – the finance department director who is losing her job on Sept. 30.
“We’ve dealt with some pain,” East Ridge Mayor Mike Steele said during Thursday’s agenda session. “I want to know exactly what happened.”
Natalie Blackwell, a certified public accountant, said she will analyze what is the city’s largest shortfall in at least 20 years.
She headed the city’s finance department that first projected a $215,000 deficit, which ballooned to almost three-quarters of a million dollars. Her staff also advised East Ridge City Council members to pass a $560,000 surplus from the city’s most recent budget, only to later discover the actual surplus was $80,000 less.
Steele said it’s in Blackwell’s best interest to do a great job providing the information.
“We can’t do anything to her. It’s already been done,” Mr. Steele said. “In that way, she’s the best person for the job.”
Blackwell lost her job at a special session last week when councilmen cut $400,000 worth of programs and positions in a budget they haven’t yet passed.
Blackwell’s last day is Sept. 30. Steele said he wants her report within two weeks.
Vernon Liston, a certified public accountant and East Ridge resident, said he had “major problems” with the city’s decision.
“If they really want to know what the answer is, they need to hire an outside consultant,” he said.
Local accounting firm Johnson, Hickey & Murchison already is auditing East Ridge’s entire fiscal year.
A certified public accountant for 11 years, Blackwell said she had no reservations about finding out the problems within the department she supervises. She said she’s up to the task.
“I don’t see where it would interfere with my job performance at all,” Blackwell said.
During the regular council meeting, East Ridge resident Frances Pope asked the mayor if city officials would reveal exactly how much the city has in its reserve fund, which will be used to cover the deficit.
Interim City Manager Eddie Phillips and former city manager William Whitson haven’t revealed how much is left.
“It’s your money,” Steele said. “There’s no reason you shouldn’t see that.”
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