Budget Talks: Winter Wonderland, Egg Hunt on Chopping Block

The city staff on Tuesday outlined a plan that calls for layoffs and shifting more work onto existing employees to make up for a projected $8-million budget shortfall for the coming fiscal year.

Other proposed cost-cutting measures include merging departments, contracting out for services, eliminating vacant positions, spending less on consultants and outside legal help and axing some City Council benefits.

The annual city-sponsored Winter Wonderland and Egg Hunt events also are on the chopping block.

“We felt that those were taking away from those more ongoing community events and enhancements that the entire community was enjoying,” Administrative Services Director Tracy McCraner said.

At a study session earlier this month, the city's police and fire department chiefs proposed cutting about 5 percent from their budgets—about $2 million for police services and about $1.5 million for fire and lifeguard services.

Preliminary budget figures project general fund revenues at about $149 million for the fiscal year but anticipate expenditures for the same period to be just sightly less, $148.4 million.

But because of upcoming maintenance goals, rising pension costs and a weak economy, city officials worked under the assumption of an $8-million increase in costs that may, or may not, be offset by an increase in revenues. Other projected expenditure increases include the absorption of about $175,000 in cuts from the state for city libraries, as well as $1 million for maintenance of the city’s information systems and another $1 million to maintain the city’s streets, alleys and parks.

Salaries and benefits account for almost 70 percent of the general fund budget, according to City Manager Dave Kiff.

The next budget study session is scheduled for June 14. The City Council may approve the budget during its regular meeting after that study session.