City manager updates council on budget
Hart said two tiers of his three tier reduction plan have been completed. Tier 1 reductions put the city in good shape for this year’s budget and Tier 2 reductions prepare the city for the additional revenue loss to the 2009-2010 budget.
Hart said that although he does not have firm figures and any projections could change, the expected revenue loss for next year could be as much as $6 million. This revenue loss is due to the nation’s economic condition and to the housing industry problems that have reduced home values thus reducing property taxes.
The recently completed Tier 2 plan includes 56 job cuts from the city’s payroll. These cuts will be phased in over a period of time. Sixteen employees accepted retirement incentives. The retirements along with the unfilled vacant positions created from a hiring freeze, the city was able to move affected employees to other positions, cutting only five jobs. Other Tier 2 cuts include:
- Employee benefit cuts
- departmental cuts ranging from 2.1 percent to 25.3 percent
- Effective June 1:
- Scale back maintenance operations
- Elimination of Code Enforcement clean-up crew
- Go back to 50/50 sidewalk repair cost
- Close Charley Taylor Recreation Center and Bowles Life Center on Sundays
- Close swimming pools one day a week
- Convert Life is Grand magazine to recreation guide
- Close Main Library on Fridays
- Animal Shelter open 1 hour less per day
- Shrink minimum staffing pool for Fire Department
- Unable to add additional Police patrol beat
Hart finished by saying current cuts in the budget would take care of a property tax revenue loss of around $4.3 million for 2009-2010 budget year. Anything much more than that would require the implementation of Tier 3 cuts.
“Tier 3 starts to get ugly,” Hart said.
Hart said preliminary tax figures will be available on May 21 but final tax figures will not be available until July 27. When these figures become available he will be able to make budget projections, but he stressed further cuts maybe necessary.
Mayor Charles England complemented Hart, the staff and council for their hard work preparing the city for an unsure financial future. He said if revenue does significantly drop and the city has to implement Tier 3 cuts, “We just have to do whatever we have to do. I can just assure you a tax increase is nowhere in my plans.”
