The Lewisburg City Council unanimously adopted a personnel policy on Tuesday night that will enable the city to lay off employees.

“There have been no decisions on layoffs,” said Councilman Jerry Gordon to the department heads and city employees attending the meeting, although, leading into the council’s work session last week, those same department heads were under the impression that the city wanted to cut employees from the police, fire, and parks departments.

“We have to communicate better,” said Councilman Bam Haislip. “We swore an oath to do what’s best for this city.”

Layoffs are on the table, at least, as the city tries to recover from a financial crisis brought on by the exhaustion of the city’s cash reserves.

In December, the city’s bank account was $100,000 overdrawn, forcing the city to borrow money on future tax revenues in order to make payroll.

Ultimately, the city drew $700,000 in tax anticipation notes to keep operating, which have been repaid

The council has already authorized up to $1 million in notes to be issued this fiscal year.

By their own resolution, the city should maintain a minimum of 30 percent of the operating budget in the fund balance at the start of a fiscal year.

That equates to roughly $3.5 million, based on the operating budget. On July 1 this year the city had approximately $300,000 on hand.

While sales tax revenues come in monthly from the state, the bulk of the city budget comes in from property taxes, most of which come in in the second half of the fiscal year.

The fund balance provides operating cash for the city during the lower revenue months.

The city cut at least $1 million in proposed expenditures from last year’s budget after December to try and minimize the losses.

During this budget cycle, directors were told to submit budget requests ten percent lower than the previous year and most of those were returned to the departments for more cuts.

City employees did not receive a cost of living raise for this year. The $200,000 set aside for paving has been eliminated this year, and hours for the Recreation Center and pool have been cut, among the many other across the board reductions.

The budget the city adopted at the end on June called for $11.5 million in expenditures versus an estimated $11.9 million in revenues, putting over $400,000 back into the fund balance.

Seemingly, the council wishes to add more this year to that number, without raising taxes, which is why the potential for layoffs is being considered.

At the council work session the previous Tuesday, several department heads laid out for the council the impact that would have on the service they could deliver.

Police Chief David Henley touched on the impact that losing officers would have on his department and public safety, on top of the damage done to department morale already with the cuts and uncertain situation.

Henley said that officer’s hours per pay period have been cut from 84 to 80, to save payroll and move officers further from the 86 hour mark at which overtime pay begins.

The line item that funded the city’s SWAT team was eliminated entirely, leaving the closest police SWAT team an hour away from Lewisburg, Henley said.

The same budget line also paid for the department’s ammunition.

Two officers have already left the department due to the changes, Henley said.

“We start cutting bodies,” Henley said, “someone is going to get hurt.”

“I’m asking you, please, to consider what you are about to do to the citizens,” Fire Chief Larry Williams told the council. “My job is to protect those people and we are putting them in danger if we cut any more.”

Williams explained that his department was already operating on a skeleton crew and relied on eight of 14 off duty firefighters to respond in case of fire in order to meet standards.

A Municipal Technical Advisory Service assessment of the department already described it as “critically understaffed” for residential or commercial fires, and cited additional personnel as “an immediate need.”

Cuts in the department might save the city money but would still cost residents as homeowners insurance costs would increase with weakened fire service.

“There’s no way my department can lose another person,” said Parks and Recreation Director Cary Whitesell, without threatening the revenue her department brings in from the pool and golf course.

Despite their arguments at the work session, the council still approved the separation policy on Tuesday.

Whether or not they decide to use it is still up for discussion apparently.

“Have we considered the consequences or impact of this?” asked Haislip.