No budget approved; city would revert to previous year's

MOBILE, Ala. (WALA) - It looks as if the City of Mobile could start a new fiscal year without a budget in place. The city council held over voting on a proposed tax increase and budget, Tuesday. The issue of raising the sales tax to 10 percent was voted down one week ago.

Time is running out on approving a budget for the upcoming fiscal year, as Mayor Sam Jones reminded the council on Tuesday.

Jones also said the way to fund the budget and what he calls a $29 million shortfall is by raising the sales tax.

Reverend Cleveland McFarland urged council members to pass the tax, too.

“…When the people stand and say, ‘Tax me. Because I love this city, and I want to see my children grow up in this city.’ That is what we are sharing with you today," said McFarland.

Despite the plea, a vote on the one percent sales tax increase was delayed.

Related: Moving on after another tax failure

And at one point, sparks flew between Councilwoman Bess Rich and Chief of Staff Al Stokes.

Rich said she has some questions about budget line items that have gone unanswered.

"I have very specific questions that are not all over the charts, and I just want to understand how you arrived at certain line items," said Rich. 

Stokes said he told Rich he will meet with her anytime. But he said no arrangements have been made, saying ‘And to this date, you have not called me."

Rich said she has emailed Stokes numerous times, but he said he has not seen any of them.

Mobile's Executive Director of Finance Barbara Malkove said without a budget in place, performance contracts will have to be watched closely.

Mayor Jones said those are usually signed October 1 at the start of the fiscal year.

Jones said the city can operate without a budget for only so long.

"The city can operate for several months (without a budget in place.) And at some point, it zeros out when you have a shortfall of revenue, and you don't ever want to be in that position. It really hurts the image of the city, real image of the city - image problem," said Jones.

A Finance Committee Meeting is planned for Thursday at 4 p.m.