Pound emergency plans pulled into budget debate

by JEFF LESTER • INTERIM EDITOR

POUND — Town council recently approved a set of emergency measures in response to the COVID-19 coronavirus pandemic, just as most other local governments have done.

But unlike them, Pound’s path to approval was far from smooth, with council members arguing over how the emergency would affect the town’s shaky budget situation.

Council met March 31, resuming a meeting recessed from March 17. The gathering fell within Gov. Ralph Northam’s state emergency limit of no more than 10 people in a public gathering.

A total of nine people were present, with town attorney Tim McAfee absent and council member Glenn Cantrell participating by phone.

Council reviewed a draft emergency ordinance that would allow the board to suspend public gatherings and convene all-electronic meetings.

Any electronic meetings will require at least three days’ public notice of how the public will be able to participate. The public must be given a means to remotely make comments at any such meeting. Minutes of any electronic meetings must be approved eventually at a physical meeting.

All non-emergency public hearings can be postponed with prior public notice.

The ordinance was to stay in force for 60 days unless circumstances warrant a change, but no longer than six months.

Member Clifton Cauthorne asked for details on how public participation would take place. He was told that officials had not figured that out yet.

Council has until mid-April to get squared away before the next regular meeting, member Phil Cantrell said.

Cauthorne asked if council’s intention was to have the amended current-year budget remain in effect past its normal expiration date, June 30.

Clerk/Treasurer Jessica Adams replied that the budget has nothing to do with the emergency ordinance.

So, Cauthorne asked, will council review a new budget for fiscal 2020-21 in April, hold a hearing on it in May and vote on it in June?

Member Danny Stanley said that is not what the town’s administrative committee recommended.

He was referring to a committee meeting that took place in mid-February.

Cauthorne objected to the idea of continuing the 2019-20 budget into the next fiscal year. The town faces the potential of dipping more than $100,000 into its line of credit, he warned.

Stanley said the committee’s budget recommendation was to “carry it through.”

Mayor and interim Town Manager George Dean noted that he wanted to go on record saying, “I completely disagree.”

Cauthorne said that during the committee meeting, Dean had a draft budget prepared but it was never discussed.

Continuing the current-year budget into the next fiscal year is not good for the town, Cauthorne emphasized, asking what spending plan would be used after July 1.

Stanley said the answer was on the agenda for approval that night. He was referring to an item labeled as “budget responsibility” which would give Adams first-line responsibility for budget management.

Council can’t simply empower the clerk/treasurer to handle the budget, Cauthorne said. He asked Dean if he had any suggestions.

“Absolutely not,” said Dean, who does not seek re-election as mayor and will step down from all duties by June 30.

Stanley moved to suspend the rules and carry the current budget forward for six months.

Dean said no one has been able to explain to him how to do what the committee proposed. The emergency ordinance gives the town three months to do something about the budget, he noted.

Again came debate about whether the emergency ordinance and the budget should be part of the same discussions and actions.

Dean said the ordinance must be revisited after 60 days. He asked: What if the May 5 town mayoral and council elections can’t take place? Under the law, he explained, office holders remain in office until their successors are sworn in.

In fact, Northam subsequently proposed that the General Assembly agree to postpone May municipal elections to November when lawmakers return to Richmond April 22.

Cauthorne said he will be comfortable with passing the emergency ordinance if council is required to revisit it 60 days later.

The measure was approved.

Stanley then asked if council agrees this means the current budget is also extended.

No, Dean said, according to his reading. Cauthorne added that his yes vote was based on understanding that the budget was not included.

At this point, Glenn Cantrell phoned into the meeting. When asked, he agreed that he interpreted the emergency measure as including a budget extension.

Dean said council can come back to the budget during any electronic meeting. Cantrell agreed that is a possibility.

Adams noted that with town residents not being required to pay town bills during the emergency, it’s impossible to make accurate revenue projections.

Cauthorne said the ordinance provides the authority to approve a budget extension, but that is not automatic.

He added that he wished council had a copy of Dean’s draft budget to review, asserting that it was “withheld from the public.”

It wasn’t withheld, Adams replied, calling the document Dean’s “working papers.”

Cauthorne asked Dean if he would share them. Dean said, “I will think about it.”

TRANSITION

Near the meeting’s end, council returned to the question of transferring budget responsibility from Dean to Adams.

Dean asked if it was an administrative committee recommendation. Yes, Stanley replied, effective immediately. As the committee noted, he explained, this will provide time for a transition period before the fiscal year ends.

There was discussion of whether the change applies to all future clerk/treasurers or just Adams. Phil Cantrell said if Adams were to leave the job, the duty should go back to the town manager until a new clerk/treasurer is fully trained.

Cauthorne said council has previously tried handing budget duties to an “untested clerk,” and it did not work out well. He noted that the town is approaching $70,000 of debt on its line of credit.

Someone outside daily town hall duties should be involved in budget management, Cauthorne continued. During the committee meeting, he said, Dean opposed the transition at this time. He asked Dean to explain why.

Dean said it was because of what he’s had to do to “clean up some things. I don’t need to say anything else.”

Council approved the change, with Cauthorne voting no.