City facing $14M deficit, looking into ways to fix it
PASCAGOULA, Miss. (AP) — With the City of Pascagoula facing a $14 million deficit, Mayor Dane Maxwell says they’re turning over city budgets and related documents to the state auditor to determine what led to the situation and what can be done to fix it.
City officials met with State Auditor Shad White and the District Attorney’s Office to discuss a recent forensic audit that found the city’s general fund was composed completely of bond proceeds and that it was essentially broke, The Mississippi Press reported .
In a statement, Maxwell said the city would turn over budgets and related documents for years 2012-2017 and the audit commissioned by his administration.
“We initiated this action as we continue to seek a complete understanding of the severity of poor fiscal management practices in the past, and the extent to which any employees or officials were responsible or had knowledge of the financial mismanagement at the city,” Maxwell said.
City Attorney Ryan Frederic and comptroller Sherrie Trosclair believes the city can recover in two years if it makes the necessary adjustments to restore solvency.
“As for the current management team at the city, this council and myself — we are laser focused on three things: cutting expenses even further, exploring ways to increase revenue, and preparing/enacting a sound budget for fiscal year 2019. These actions are being taken in a responsible and strategic way and together, we will achieve our goal of putting this great city on a clear path to restore solvency, respecting our quality of life and preventing mistakes that were made from ever being repeated,” Maxwell said.
Information from: The Mississippi Press, http://www.gulflive.com