Friday, July 10, 2009

MAYOR DAVLIN ANNOUNCES PLAN TO BALANCE CITY BUDGET

Mayor Tim Davlin today announced that he has reached agreements with the Police and Fire unions which will result in a plan that could bring the municipal budget into balance, in light of unexpected expense increases and revenue decreases.

The city was facing additional costs of some $7 million, which is attributed to a number of issues including an anticipated $3.3 million decrease in state revenue. Because of those challenges, changes to city spending are being made to further trim city expenses.

“Before I even began to ask union representatives to consider changes, I made some $3.2 million cuts of my own," Davlin said. "Those include a de facto hiring freeze by not filling a significant number of positions, and postponing the hiring of critical positions and trimming a number of line items by delaying major purchases of vehicles, computers and other commodities.”

“That leaves the budget out of balance by $3.8 million. To eliminate this deficit I am going to propose that the City Council redirect $1.2 million in hotel motel tax receipts that had been set aside for infrastructure improvements. I will also ask the council to approve redirecting $500,000 in Fund 94 equipment monies. And, I will ask that the council approve a short term loan of $1.5 million.”

“That leaves a difference of $600,000. I am proposing to divide that equally across all city departments, which will result in everyone, union and non-union employees, taking three (3) furlough days, instead of the eight (8) that had already announced.”

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