After an $11 million deficit, an Alabama city council debates taking the checkbook

Old Town Helena is the historic and cultural district of the city. Frank Couch AL.com/ FileAL.com file

Members of the Helena City Council are mulling a new policy that would change the way the city pays its bills.

Leaders are discussing a proposal to require a council member’s signature on city checks.

The policy proposal from Councilwoman Laura Joseph comes after a recent audit concluded that the city had overspent its budget by $11 million and ended its last fiscal year in a deficit.

Joseph said her proposal would add another layer of responsibility to city finances.

“It will enable the council to be more informed,” she said. “I just want to make sure we have the information we need, when we need it, so we can make good financial decisions for the city.”

Helena’s deficit in the last fiscal year is largely attributed to the construction of a $45 million city hall and sports complex.

Options under review could include three signatures with the mayor, city clerk and a city council member or dropping the mayor altogether by requiring just a council member and the clerk.

In addition, the audit conducted by Birmingham-based accounting firm Dent Moses, showed that city spending in all categories last fiscal year exceeded budget amounts.

Those include $1.1 million for general government, $1.3 million in public safety and $1.2 million in parks and recreation.

Also, Sungho Park, a University of Alabama assistant professor of public policy and administration, in an independent analysis for AL.com warned that the city’s ‘Helena Forward’ initiative to build a $45 million city hall and sports complex appears to stray from some accepted practices.

While the city is not in immediate crisis, Park said the city should consider restraint.

Mayor Brian Puckett has said the audit represented a snapshot of a financial situation that has since passed.

He said city reserves were restored when the construction bonds were sold. Those figures were not represented in the audit because that transaction occurred after the report was completed, Puckett has said.

However, several council members said they needed more information and details. Besides the council, residents have also demanded greater transparency and accountability when it comes to city finances in recent months.

The policy debate will continue before coming up for a vote. The city attorney will return to the council with more details about the idea and how it would affect operations, Joseph said.

Puckett said the council already has a significant role in city finances and already receives packets with detailed information.

“There would need to be research put into this idea to even determine feasibility,” he said of the proposal. “Each Council member currently votes on all bills to be paid each meeting. This is one of the many checks in balance that are in place for Helena and other municipalities.”

Likewise, Council President Alice Lobell called the new rules unnecessary because the council already approves bills and financial information for the city.

Lobell called it unnecessary to implement a permanent policy that would strip the mayor’s office of its authority.

“Now, I do agree that the council should be more engaged in reviewing information they are and have been given,” she said. “Since an ordinance is a law, I just don’t want this to be a knee-jerk reaction.”

Mayor Puckett is not seeking a second term. Also, only two council members, Lobell and recently appointed councilman Andy Healy, are seeking election in the August city elections.

“The new council that will be elected in August may have completely different ideas on how to handle this,” Lobell said.

Additionally, Lobell said requiring a council signature could create logistical challenges.

“Since city council members do not have any type of regular office hours, I think it could create problems if they were not available on an almost daily basis,” she said. “Most city council members have other full-time jobs which could prohibit them from being able to go to city hall to sign checks.”

Nevertheless, Joseph said her proposal is neither punitive nor restrictive.

“I’m not trying to do anything to anybody or be anything to anybody,” she said. “I just want to make sure that this council and councils going forward have the information they need to do what they need to do for the city.”