Hiring freeze in effect

Summey says move a precaution as economy continues to sour

A hiring freeze is in effect for the city of North Charleston, a month after Mayor Keith Summey said revenues were still strong and he wouldn't call for a freeze unless he needed to.

The city has largely been able to absorb damage from the national economic nosedive. Ironically, Summey called for the freeze at the close of a City Council finance committee meeting in which the annual audit showed the city is good shape. On Monday, he said the move is a precaution, in effect at least until March 2009.

"Positions can still be filled, but they have to come through the administration (for approval)," Summey said. "This is pre-emptive, to make sure our revenues will meet our needs." The October round of state budget cuts is forcing the move, he said. The city will lose some of nearly $3 million in state revenues it had budgeted.

The loss of state revenues has eaten into city and county budgets. North Charleston's accommodations tax and other revenues had stayed strong enough to keep the city from drastic moves. But the freeze is a formality. The city had delayed filling jobs among other measures to deal with cost overruns from high fuel prices and revenue shortfalls. Summey also called for a stop of out-of-town travel unless approved for needed training, and said fuel use cutbacks would continue.

The freeze was announced on the heels of an auditor's report that found the city's books in good order, with net assets in the range of $140 million.

"The bottom line is the financial position is positive. The city is doing very well. The city has good fiscal management as of June 30, 2008," auditor Robert Milhous told the finance committee.

Chairman Kurt Taylor, though, quickly put it in perspective. "Just remember that (audit) is as of June 30," he said. "Things have changed."

Reach Bo Petersen at 745-5852 or bpetersen@postandcourier.com.