SELMA, AL (WSFA) - Selma Mayor Darrio Melton confirmed Thursday that the city will fail to meet its payroll obligations for the week, something he warned of Monday in the wake of what he said was a budgetary shortfall. Melton said city employees have already been notified.
A total of 277 employees, including Mayor Melton, will not be paid Friday.
A man and woman who identified themselves only as Selma citizens stood in front of Selma City Hall Thursday where they held signs that read “pay our employees” and “no layoffs.”
Melton announced Monday that the city would layoff at least 68 employees, effective Nov. 5. He said the decision was made after it was discovered that the budget passed by the city council on Sept. 26 did not account for an outstanding debt the city has totaling $1.2 million.
“This is not a new story,” Melton stated. “We have been talking to the council for over two years we need new revenue. I am asking the council to work with me to find new ways to get revenue. They don’t have to agree with every measure, but lets find a way to get revenue for the city of Selma.”
Selma City Council President Corey Bowie told WSFA 12 News on Tuesday that the council was assessing the budget to see what they needed to do to avert citywide layoffs and added "the budget we projected was inclusive of all financial obligations including payroll.”
The city council has called a special meeting for Friday at 12:30 p.m. to discuss the payroll issue.
If it’s not fixed, this may not be the last time city employees find themselves without a steady paycheck.
In his statements Monday, Melton warned, “if we are unable to make payroll Oct. 19, we will definitely be able to make it next week Oct. 26 based on the nature of our sales taxes coming in at the end of the month. However, we will have payroll the following week again on Nov. 2 and we are not sure we will be able to make that payroll because of the lack of revenue that is coming in.”
The city’s finance department issued a breakdown to the mayor’s office Thursday detailing where the city stands for the month of October as of Oct. 18.
The document states:
- Accounts Payable Invoices Report (Invoices that have been entered for payment) - $749,668.15
- Purchases Orders Report (that have been entered for serve that hasn’t been processed) - $288,074.76
- Weekly Payroll (October 26th) anticipated - $18,000
- Bi-Weekly/Weekly Payroll (October 19th anticipated) - $389,000.00
- Monthly Payroll (October 31) anticipated - $25,000.00
TOTAL EXPENSES DUE BY OCT. 31 - $1,469,742.91
As of October, 18, 2018, the total amounts of revenue are as following:
- General Fund - $102,475.57
- Tax Collection Account - $59,876.69
- Anticipated Revenue by Oct. 31 - $750,000.00
TOTAL REVENUE ANTICIPATED BY OCT. 31 - $912,352.26