Board of supervisors vote to suspend EDA funding
Published 12:00 am Wednesday, January 21, 2009
NATCHEZ — In addition to being without a director, the Natchez-Adams Economic Development Authority is now without a major portion of its funding.
At Tuesday’s meeting of the Adams County Board of Supervisors, the board voted to suspend the EDA’s monthly funding allotments until the next fiscal year.
And that vote means supervisors will have to break their contract with the City of Natchez.
The motion that led to the cut came from Supervisor S.E. “Spanky” Felter and was supported by supervisors Mike Lazarus and board President Henry Watts.
The EDA operates with an annual budget of $275,000 — now it’s just $100,000.
The City of Natchez contributes $100,000 and the county funds the difference.
And for that $175,000, the supervisors felt they weren’t getting their money’s worth.
Felter said in the past five years the county has given the EDA $1.3 million in funding — and he’s not sure what the county got in return.
“What have they brought,” Felter asked the board.
Felter said he believes the EDA has done so little for the county, the board could simply take over their role.
“We can do the EDA,” he said.
While the board did cut the EDA’s funding, the decision to do so was not unanimous.
Supervisors Thomas “Boo” Campbell and Darryl Grennell said they opposed slicing the EDA’s budget.
“We can’t quit because they haven’t gotten anything,” Thomas said.
But former City Attorney Walter Brown said while the EDA won’t dissolve without the funding, the county cannot just back out of their end of the deal.
“They adopted their budget,” Brown said about the supervisors.
And the deal the county is trying to get out of is one that was born in the Mississippi Legislature.
The state legislature solidified the contract between the city and the county that requires each entity to fund the EDA.
But Brown said, if the county doesn’t want to pay the EDA their monthly allotment, approximately $14,000, there’s no way to force them do so.
Brown said the only way to make the county pay would be if the city took legal action against them.
Supervisor Mike Lazarus said he was unaware of the legislative act that bound the deal.
And Natchez Mayor Jake Middleton said while the city has no interest in suing the county, he would like them to uphold their end of the bargain.
“We hope the county will reconsider,” Middleton said.
And Middleton isn’t the only one hoping for some reconsideration by the county.
EDA board Chairman Woody Allen said he was caught completely off guard with news of the board’s decision.
“We had no indication this was coming,” Allen said. “I don’t know how we’re supposed to operate.”
Allen said the EDA’s biggest expenditures include salaries, approximately $143,000, and industrial recruitment travel for $15,000.
Of the $143,000 yearly salary spending, more than $80,000 of that pays the EDA’s executive director.
Jeff Rowell, former EDA director, left his post in December at the end of a three-year term to pursue other opportunities.
And Allen said with newly slashed budget, it won’t be possible to hire a new director.
The EDA board will meet today to discuss the matter, but past that, there isn’t much to be done, Allen said.
“I don’t see the board continuing to operate,” he said.
And some in city government said the wouldn’t be surprised if the EDA ended up with no funding at all.
Aldermen Mark Fortenbery and Bob Pollard both said they feel it would have only been a matter of time before the city started discussing cutting the EDA from their own budget.
“We have some hard core (budget) cuts coming down the pipe and the EDA might be part of that,” he said.
Both Fortenbery and Pollard both said they also don’t think the city sees enough return on the money they give the EDA.
But Middleton said the EDA’s city funding is safe for now.
Middleton said he has no plans to eliminate their funding before the next fiscal year.
But when that time comes, the city’s contribution to the EDA could be re-evaluated, Middleton said.