by J. Brooks Terry
Staff Writer
Just days after the presentation of Mayor John Peyton’s 2003-04 budget proposal, the City Council is preparing to undergo an exhaustive review before outlining revisions and, likely, passing it.
The specifics remain fuzzy for now — Council President Lad Daniels and Vice President Elaine Brown have had little more than superficial exposure to the Peyton-developed budget — but the they are expected to devote a substantial amount of time and energy to it by mid-week.
Daniels speculated that, despite some minimal monetary shifting on the part of Council, “there won’t be a lot of change when we’re through.”
Brown concurred.
“I need more time to look it over, but [Peyton’s] methodology is very intriguing,” she said. “I’m sure his budget will definitely come under some heavy scrutiny from our auditors before we do anything, but I think it has the potential to make some money for the City by making the most of current interest rates. That’s obviously a good thing.”
Daniels agreed, saying he had “no problem” with Peyton’s matched book strategy, a financial plan placing emphasis on equal borrowing and lending rates that carries the potential to yield upwards of $15 million in City revenue.
However, there will be some fiscal challenges down the line.
Referencing monetary disparities in expected expenditures and City employee pensions, Daniels said, “it will be difficult to accommodate for a $40 million shortfall this year and the years after that.”
Daniels has consistently stressed the importance of money management at previous Council committee meetings.
“It may be necessary for us to make a change in our current investment strategies. It’s an area of major concern,” he said. “We have entered into sacred contracts with our City employees and we will most certainly have to honor them. High yielding investment opportunities may prove beneficial in the future.”