City departments suggest budget reductions

In its 2007-08 budget, the city allocates $7.2 million to the pension fund - $5.3 million shy of what the fund’s actuary recommends. State law requires the city to contribute the full actuarial recommendation at least once in the next five years or risk losing state funding, so city officials are taking a hard look at next year’s budget.

Recommendations on the table include imposing a sales tax increase no more than 1 percent or reducing Police and Fire pension benefits – both of which voters would have to approve.

A third option is to reduce departmental budgets for an overall 7 percent reduction in the city’s 2008-09 General Fund. The city manager’s office this week asked all departments to submit a budget exercise with suggestions for cutting 7 percent of their General Fund expenditures.

Major proposals that came out of the exercise include closing a Fire station, eliminating 16 Fire positions, cutting 20 Police positions, and City Attorney Dan Wichmer’s suggestion to eliminate his position – for savings of $125,000.

“I hired most of the department, and they all gave up lucrative private practices to work here,” Wichmer said in his report, noting that at least one position in the Law department would need to be cut. “I will not throw one of them overboard.”

Other suggestions from various departments include:

• Not filling certain vacant positions in the Building Development Services, Finance, Health, and Planning and Development departments;

• Reducing supply costs in most areas;

• Minimized training in the Parks department; and

• Program cuts to the Parks department and Municipal Court.

Click here to download the city’s compilation of departmental reports.

The city will finalize a recommendation for City Council to review at a March 17 budget workshop. Any decision would be made before the new fiscal year begins July 1.

See SBJ’s March 3 issue for more on the city’s budget crisis.[[In-content Ad]]