By Stan Welch
West Pelzer Town Council experienced a remarkable case of déjà vu’ Monday night, as Councilman Jimmy Jeanes, displaying an impressive tenacity once again brought up the issue of the town’s finances, and his solution for those problems.
Jeanes, who was the brunt of citizen anger in recent months, when he proposed reducing the town’s staff in both the sewer department and the police department, proposed an amendment to the town’s budget ordinance that would accomplish precisely those results.
The main cause of Jeanes resurrection of the issues is the pending due date for the repayment of the tax anticipation note (TAN) which the town executed late last year to address its cash flow problems.
The repayment of the money borrowed by the Town, in effect an advance on the collection of tax revenues, is due no later than April 15th. The town owes $40,000, having drawn only that amount against the $60,000 for which it was authorized by the TAN.
No one questioned that the repayment, and in fact the use of a TAN as policy, is problematic. The town is already planning to execute another TAN in the coming budget year, because of the cash flow problems that result from such a percentage of the town’s tax revenue coming at such an awkward time.
Upon passage of the TAN last year, at the advice of the bond attorney, the Council raised taxes to begin building emergency funds to provide a cushion in the future.
Unfortunately, state law tightly restricts the amount of such increases; restrictions that will make building any reserves a very slow process.
The issue Monday night seemed to be one of method.
Mayor Paxton pointed out that when the questions of layoffs and reduction of the police presence arose last year, the message received from the public was very strong.
“The people we all work for made it clear that not only did they want a full time police department, but they were willing to pay additional taxes to fund it,” said Paxton. “Our budget is fine. It will be balanced again when we pass a new one. Our problem is one of cash flow.”
There was little doubt that Jeanes remembered that display at a public hearing on the matter last year, as he was called out personally by several citizens attending the public hearing.
The Council at that time, with Robert Alexander still active, acknowledged the public pressure and declined to cut any positions, with Alexander casting the deciding vote.
Monday night, in just his third meeting as a Councilman, Donnie Jeanes, who won a special election in December to fill Alexander’s vacant seat, voted along with his uncle and Councilman Johnnie Rogers to amend the budget, despite the lack of fiscal details on how much the decision would affect the situation. Jeanes expressed his preference for finding an alternative to layoffs, saying he hated to see anyone lose their job.
The proposed amendment was so abruptly presented that the agenda had to be amended to add the item. Jeanes explained that he had requested that town attorney Carey Murphy draw up a basic ordinance. No financial details were included. Murphy was unsure what the procedure might be, since the ordinance would affect the budget.
Councilman Blake Sanders challenged the need for such abrupt action, and raised the possibility of pursuing an employee furlough approach. “Why don’t we study that possibility, of furloughing each employee of the town for one day a month and see how much we can save? I think we might be surprised how close those savings might be to this idea.” Instead, the Council voted 3-2 to amend the budget as proposed by Jeanes.
Following the vote, Police Chief Mike Clardy addressed the Council, saying, “I hope you three rocket scientists can figure out how to police this town with just three cops. I’m done with you.” He then left the town hall.
The second reading of the ordinance will be held on March the 2nd, with the Council meeting, rescheduled from the 9th, to follow immediately after the public hearing. Sanders said he would spend the interim exploring various means to avoid the layoffs, including a furlough program.
Speaking after the meeting, Mayor Paxton said that the people the town elected have a job to do, and that each member should do what they feel in their heart. “I’m not going to fight it anymore. People made their choices and they basically get what they asked for.”
Jimmy Jeanes said that he had no doubts about his actions, but said that if anyone could come up with a better answer, he would listen.
