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Helena City Council Evaluates New Bill-Payment Policy Amid Deficit

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Helena City Council meeting discussing financial oversight

News Summary

The Helena City Council is considering a new bill-payment policy following an $11 million budget deficit revealed by a recent audit. Proposed by Councilwoman Laura Joseph, the policy would require a council member’s signature on city checks to enhance financial oversight. The audit highlighted significant overspending in various categories, prompting calls for increased accountability from both council members and residents. The proposal has sparked debate among council members regarding its necessity and practical implementation as discussions continue ahead of upcoming city elections.

Helena City Council Proposes New Bill-Payment Policy Following $11 Million Budget Deficit

Members of the Helena City Council are currently evaluating a proposed policy that could significantly alter the city’s bill payment process. The proposal, introduced by Councilwoman Laura Joseph, aims to require that a council member’s signature be included on city checks. This move comes in response to a recently conducted audit that revealed the city faced an $11 million budget deficit at the end of the last fiscal year.

The proposed policy reflects a need for enhanced financial oversight and accountability within the city’s council, as Joseph suggests it would promote a more responsible approach to managing city funds. The city’s current budget deficit is primarily linked to the controversial construction of a new $45 million city hall and sports complex.

Details of the Proposal

The council is exploring different options regarding the proposal’s implementation. One option under review is requiring signatures from three parties: the mayor, the city clerk, and a council member. Alternatively, a more streamlined approach could involve only the council member and the clerk, eliminating the need for the mayor’s signature.

The audit, performed by the Birmingham-based accounting firm Dent Moses, brought to light several spending areas where the city exceeded its budget limits. Significant overspending was reported in various categories, including:

  • $1.1 million for general government
  • $1.3 million for public safety
  • $1.2 million for parks and recreation

Additionally, an independent analysis by Sungho Park from the University of Alabama raised concerns about the city’s ongoing initiative, known as ‘Helena Forward’, suggesting it may not align with standard financial practices.

Reactions from City Officials

In light of the audit findings, Mayor Brian Puckett commented that the financial information presented is based on outdated data, asserting that the city’s financial standing improved through the sale of construction bonds after the audit occurred. This suggests efforts have already been made to restore reserves.

While council members have expressed a desire for greater insight into the city’s financial activities, residents are voicing demands for increased transparency and accountability from their local government. This proposal is viewed as a potential step toward addressing those calls.

The ongoing policy debate has drawn division within the council. Council President Alice Lobell argued against the necessity of the new rules, suggesting they could potentially undermine the authority of the mayor’s office. She also raised concerns about logistical challenges, noting that council members may not always be available to sign checks due to their other commitments.

Next Steps for the Proposal

Joseph, in her defense of the proposal, asserted that it aims to ensure that future councils possess the necessary financial insights to make informed decisions. Currently, discussions regarding the policy are still in progress, with the city attorney expected to provide further information on its practical implications.

The context surrounding the upcoming city elections in August may introduce additional perspectives on the proposed financial processes, particularly since only two council members are slated for re-election. As such, the council’s discussions regarding the new bill-payment policy will continue, with a vote anticipated following further deliberations.

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