The Petersburg City Council on Tuesday approved several measures aimed at closing the city’s $12 million budget gap, including a number of tax increases, but they voted against the proposed closure of one of the city’s four fire stations – a hot-button issue for many residents.
In a marathon meeting at a packed Petersburg High School auditorium that started in the late afternoon, the seven-member council voted to raise the lodging tax from 6 percent to 10 percent and the meals tax from 6 percent to 7 percent, staying under the 7.5 percent recommended by Richmond consulting firm Public Financial Management in a 19-step budget-reduction plan that was rolled out two weeks ago.
The council also increased the cigarette tax from 10 cents per pack to 90 cents and the monthly trash-removal fee from $14 to $20.
But a vote on a proposed personal property tax increase from $4.40 per $100 of assessed value to $4.90 was deferred to the next meeting.
A hearing on the proposed amendments to the current budget cycle – including the closing of museums and cuts to school funding – had not concluded by press time.
But shortly before 10 p.m., after residents desperately pleaded with the council members to not cut the city’s firefighting force, the council agreed to keep all fire stations open and pay $183,000 owed to the Southside Virginia Emergency Crew, a nonprofit that handles half of the city’s rescue operations, allowing it to continue servicing the city.
Petersburg Fire Chief T.C. Hairston had warned the City Council that public safety would be in jeopardy with the closing of a station, which would have resulted in 25 layoffs in his department.
“We need at least 16 to 17 people on a shift. If you do close the fire station, it will be a devastation for the city of Petersburg,” Hairston said.
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Tuesday was the first and only time that the City Council sought public input on the austerity measures. But proceedings quickly spun out of control when residents randomly unloaded their frustrations on the city’s visibly uncomfortable leadership.
“Citizens of Petersburg are interested in local government; however, we are tired of business as usual without accountability and transparency,” said Chrystal Brown, who called for the resignation of City Treasurer Kevin Brown and his staff.
“They are unorganized, unprofessional and unwilling to process payments timely,” Brown said.
Beth Whitten presented the City Council with a petition to have every member removed – a proposal that the audience rewarded with applause and shouts of approval.
Others alleged that Petersburg’s fiscal crisis is the result of intentional wrongdoing by some city leaders.
“Mismanagement is a word that is used very loosely,” said Bernard Gannaway. “Another word is embezzlement, and that goes hand in hand with mismanagement.”
City Council members sat on the podium separated from the audience by the orchestra pit, stressing the gravity of the city’s fiscal crisis.
“If we don’t get to the $12 million (in cuts), we will not get the loans that we need. All of these cuts are painful for this council,” said Ward 2 Councilman Darrin Hill.
“I understand the frustration of the citizens, but these are some tough cuts that have to be made,” Hill said.
Vice Mayor Samuel Parham said that Gov. Terry McAuliffe made clear during a recent visit to Petersburg that the city must overcome the crisis without financial aid from the state.
“There will be no bailout for Petersburg,” Parham said.
While the council’s decisions won’t take effect until Oct. 1, they are a first step for the city to secure short-term funding to remain operational.
Interim City Manager Dironna Moore Belton once again warned that without freeing up cash flow, the city would be unable to meet payroll and its monthly debt-servicing obligations, resulting in a shutdown of all city functions in October, with the exception of public safety.
But Petersburg resident Douglas Murtland said that because of the city’s recent credit downgrading, lenders would not be inclined to help.
“A BBB bond rating, that’s like you give a crackhead standing on the corner $5 and expect him to give it back,” Murtland said.
On the chopping block during the remaining public hearings were the city’s three museums and two tourism centers, a reduction of school funding by $4.1 million to the minimum level required by state law, and the extension of an already implemented 10 percent across-the-board salary cut for all full-time city employees.
The consultants’ original 54-page plan aimed at saving Petersburg recommended a mix of layoffs, tax increases, a reduction or the shutdown of several public services and facilities, hiring freezes, the termination of museum and tourism funding, and the consolidation of various city departments.
Michael Evans, who recently suspended his City Council bid for the Nov. 8 elections, left officials and audience with a thundering promise.
“This is our city – it is time to get down to business and put our city back on track,” Evans said. “We surrendered in 1865, and I’ll be damned if we’ll do it again in 2016.”
mschmidt@timesdispatch.com
(804) 649-6537
Twitter: @MSchmidtRTD
